ONLY as an independent nation can Scotland secure a fair, strong and equal recovery say the SNP after new figures revealed the impact of Brexit and the pandemic on trade.
The impact of Brexit on trading with Europe has been laid bare by the latest figures published by the Office for National Statistics (ONS). They reveal that UK trade in goods with EU countries has plunged by nearly a quarter.
The Office for National Statistics (ONS) said that total trade in goods with EU countries tumbled by 23.1% in the first quarter of 2021, compared with the same quarter in 2018 – seen as the last stable trading period.
But, in the same period, trading with countries outside the EU edged back by a far less dramatic 0.8% in a sign of the toll taken by Brexit disruption and the ending of the transition period.
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Trade with Ireland and Germany has taken the biggest knock, with exports to Ireland – one of the UK’s top five exporting partners – tanking by 47.3% between December and January. Imports from Germany, which is the UK’s largest EU trading partner, dropped 30.5% or £1.7 billion between December and January – the biggest fall in imports by value of goods of any major trading partner.
The SNP’s shadow international trade secretary at Westminster, Drew Hendry, said: “The latest ONS figures revealing a plunge in trade between the UK and the EU must serve as an urgent wake-up call for the Tory government which is pursuing all the wrong priorities with its plans to inflict another round of damaging austerity.
“The Tories’ plans make clear that Westminster cannot be trusted with Scotland’s recovery, and that the only way to secure a strong, fair and equal recovery is for Scotland to become an independent country, with the full powers to invest in our economy and build the fairer society we all want to see.
“This pandemic has exposed the deep inequalities that exist under the broken Westminster system. Once this crisis is over people in Scotland must have the choice of a fairer future with independence.”
The pandemic has also been wreaking havoc on global trade, the data compiled by the ONS suggests this has been easing back while the Brexit hit has ramped up.
Results of a business poll carried out by the ONS at the end of February revealed that firms named the December 31 end of the EU transition period as their main trading challenge. In contrast, those reporting the coronavirus crisis as their biggest challenge fell.
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It comes after figures by the ONS earlier this month showed that imports from countries outside the EU overtook those to Europe in the three months to March 31 for the first time on record.
Total trade – exports and imports – with non-EU countries also surpassed those from Europe in the first quarter, according to the data.
Firms have been hit by increasing red tape and delays at ports since Brexit at the year end, while the Northern Ireland Protocol has caused significant disruption at the Britain and Northern Ireland border.
UK Business Secretary Kwasi Kwarteng admitted to MPs in the Commons on Tuesday that January trade figures were “exceptionally bad” due to Brexit uncertainty and expects better results for the following quarter.
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