Brexit: Trade relations between UK and EU

Brexit has entered a critical part in its process. After several rounds of negotiations, a first deal was reached on Friday, December 8, on the terms of the United Kingdom’s exit from the European Union. This deal covers the divorce bill and questions regarding the Irish border and citizens’ rights.

On December 14 and 15, EU leaders meet in Brussels to deliver their verdict on whether sufficient progress has been achieved. If so, it means the start of phase two: trade and transition talks. There is much at stake here for the UK. The majority of Britons regarded access to the European single market to be significantly more important than immigration limitations. If talks do not succeed, it also impacts other sectors in the UK; 31,000 to 35,000 jobs across all financial services in the UK could be lost, for example.

The UK imports more than it exports, with seven of the ten leading import sources coming from the EU. China and the United States, with import values of GBP 40.6 bln and 36.6 bln, respectively, were the UK’s largest nonEU import sources. Being an island nation, the United Kingdom obviously imports food but it is not the only trade commodity. Export of telecommunication devices, for example, took up approximately six percent of the total value of goods and services exports from the Netherlands to the United Kingdom. (Source: Statista)