UK-German trade falls sharply since Brexit vote, data show

UK-German trade falls sharply since Brexit vote, data show

Trade between Germany and the UK has dropped sharply since 2016 and lags behind overall import and export levels in both countries, in a sign that British manufacturing is facing increased hurdles in its interactions with the EU’s biggest economy.

German goods exports to the UK fell 3.9 per cent in March compared with the previous month, and were down 0.3 per cent from the same month last year. Compared with March 2019, exports to Britain were down 27 per cent, even though Germany’s overall exports grew by 16 per cent, according to data released on Wednesday by Destatis, the German office for national statistics.

The UK was the only major German trading partner reporting a contraction in exports compared with March 2016, three months before the Brexit referendum.

Ulrich Hoppe, director-general of the German-British Chamber of Industry and Commerce, said the figures reflected the gradual decoupling of the UK manufacturing economy from the EU single market.

“From a German perspective, the UK is to some extent being taken out of EU supply chains . . . because it has become more complex and expensive [to trade with UK] and that has an effect on bilateral trade,” he said.

Germany is Britain’s second-largest trading partner after the US, and