Brexit cost € 1 billion in trade between Poland and UK, analysts say – The First News
Losses in Anglo-Polish trade following Britain’s exit from the European Union amount to around € 1 billion, the Polish Economic Institute reported.
The institute (PIE) drew attention to the fact that in the first quarter of 2021 the turnover of trade between Poland and the United Kingdom was 840 million euros lower than in the similar period in 2020. However, to eliminate the effects of the Covid-19 pandemic on Polish-British trade, analysts said it was worth referring to data from 2019.
“Compared to the first quarter of 2019, turnover in the first three months fell by 1,062 million euros,” PIE analysts said, adding that in terms of value, the most significant declines were recorded in exports, which was 634 million euros lower than in 2019, while imports fell by 427 million euros. “The magnitude of the drop, however, was greatest in imports, which were cut by 30 percent while Polish exports to Britain fell 16 percent.”
Part of the losses, PIE explained, is linked to excess purchases made in late 2020 on both sides of the Channel. “UK and EU importers have built up reserves ahead of the planned introduction of trade restrictions at the border,” PIE said, also drawing attention to a noticeable slowdown in trade with the UK in March 2021.
The hardest hit Polish exports were automotive products (down 37% from the first quarter of 2019), other machinery and equipment (down 16%) and electrical appliances (down 14%). “Only furniture performed better, whose exports to the UK grew 4.3% in 2021 compared to 2019,” PIE noted.
PIE said it was difficult to verify the extent of the losses resulting from Britain’s exit from the common market. “The difference from 2019 can be proven in the coming months, but at the same time we can expect growth due to the reopening of economies,” commented PIE.