Scotland and Northern Ireland defy Brexit concerns with surprising increase in EU exports

Scotland and Northern Ireland Increase Exports to EU Despite Brexit Concerns

Scotland and Northern Ireland have defied expectations by increasing their exports to the European Union (EU) despite warnings of the negative impact of Brexit on trade. According to data from manufacturing lobby group Make UK and accountants BDO, EU customers accounted for 52% of trade last year, up from 50% in 2019. This increase comes despite concerns that Brexit would harm British manufacturers. A survey conducted in 2018 suggested that a fifth of manufacturers were planning to lay off workers due to Brexit.

Rise in Scottish Exports Drives Increase in EU Trade

The rise in manufacturing trade with the EU can be attributed to Scotland's increase in exports, particularly in the oil and gas industry, which saw a boost in demand for equipment amid the energy crisis. Additionally, the Northern Ireland Protocol, which kept the region inside the EU's single market, was credited with boosting trade.

Decline in Trade with EU for England and Wales

However, the picture is not as positive for the rest of the UK. Factories in England and Wales have experienced a decline in their share of trade going to the EU, according to Make UK. Only Scotland and Northern Ireland saw an increase in their share of exports to the EU, while the majority of English regions and Wales suffered a decline. This shift in trade patterns has affected factories in north-west England and the West Midlands, which had previously established strong connections with firms in the EU. The report suggests that UK manufacturers are now exploring opportunities outside their traditional markets, with London, the south-east, and the east of England being the only regions to experience an increase in their share of goods exported to the EU.

UK's Export Performance and Calls for Government Support

These findings come in the context of the UK's overall export performance. Data from the UN Conference on Trade and Development showed that the UK had the worst exports record among G7 countries, apart from Japan, over the past decade. While the UK's goods and services exports increased by just 6% between 2012 and 2021, other G7 members experienced double-digit growth. Make UK has called for more government support for small and medium-sized factories in England, particularly in exporting to countries outside the EU. Despite the challenges, the report suggests that UK trade patterns may be gradually shifting, with companies seeking opportunities in other markets.