Spanish Food Exports Hit by Brexit

SPANISH food exports have been hit by Brexit in the first two months.

Spanish imports from Britain have been hit in the first two months since their exit from the European Union as new EU rules disrupt trade across the channel.

In the first two months of this year, Spain’s imports from the UK have dropped by 49 per cent when compared with the same period last year. In contrast to this, trade data shows imports between EU countries and Spain only dropped by 7 per cent, according to the Spanish industry minister.

During the same period, exports from Spain to Britain fell by 15 per cent, which is a huge decrease compared to only a 5.1 per cent drop in Spain’s sales to other EU countries.

On January 1 2021, Britain cut ties with the EU following a referendum in 2016, which has effectively put barriers up between the trade of various goods and services.

Data from the Spanish industry ministry shows the country’s trade deficit shrank 49 per cent within the first two months of the year, in comparison to last year to €2.85 billion. Total imports decreased by 11 per cent to €46.89 billion, and exports decreased 6.6 per cent to €44.04 billion due to the business restrictions because of coronavirus.

A breakdown of the type of goods by country was not provided by the ministry, however, they pointed out that sectors with the largest weight in exports were capital goods, food, beverages and tobacco, with each accounting for around 20 per cent of the total.

Source: Reuters

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