British imports from outside EU rise by more than £1bn

BRITAIN is importing more goods from outside the EU than from within the bloc, to an extent not seen before.

Imports from the EU rose £0.8bn in November, driven by higher supplies of chemicals, many of them linked to vaccine production.

However, non-eu imports climbed by £1.1bn as manufacturers bought in components from the wider world.

It was the 11th consecutive month that rest-of-world imports outstripped those from the EU, after a Brexit deal marked the start of the UK trading on its own terms.

Imports from the rest of the world have been elevated for several months, mainly due to a surge in fuel costs.

Continued low level of imports from the EU suggest some British companies may be looking further afield, or within the UK, for products in the face of increased red tape and costs.

The ONS said there was “no strong evidence” that companies had been stockpiling goods in November ahead of the introduction of new import checks in January. Exports were little changed, with British goods sold both into the bloc and further afield about 10pc lower than pre-pandemic levels.

However, this leaves the UK lagging other developed countries, with goods exports from advanced economies 1pc higher than pre-covid levels during November, according to the CPB Netherlands Bureau.

Gabriella Dickens, from Pantheon Macroeconomics, said: “Looking ahead, exports will likely stagnate over the coming months… Omicron also threatens to put even more pressure on stretched global supply chains, due to labour shortages at key ports.”

The UK is still in the process of phasing in post-brexit border checks on goods, with full inspections for some products set to be introduced this summer. Trade figures are likely to have been influenced by sustained supply chain disruptions, with an ONS survey finding two thirds of exporters and three quarters of importers were facing challenges with paperwork or costs early last month.

The combined effects of Brexit and the pandemic have made trade data for the last three years highly volatile.