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Brexit caused UK food prices to spike, says report – POLITICO

LONDON – New trade barriers as a result of Brexit have caused food prices in the UK to rise by 6 percent, according to researchers.

A new report from the UK at a Changing Europe think tank said the migration was not due to the coronavirus pandemic. The findings put pressure on British Prime Minister Boris Johnson, who led the pro-Brexit campaign and is now grappling with a cost of living crisis.

The so-called Trade and Cooperation Agreement (TCA) between the UK and the EU has led to controls on goods entering the EU from the UK from early 2021 – as well as more paperwork for traders.

According to the report, the increase in trade barriers between the end of 2019 and September 2021 led to a 6 percent increase in food prices compared to the years prior to December 2019.

Products that account for a larger share of EU imports, such as fresh pork, tomatoes and jams, will be more affected than those that account for a smaller share of EU imports, such as tuna and exotic fruits like pineapple, the researchers added .

“Covid-19 is ruled out as a factor in price changes because key events in the pandemic do not appear to correlate with the changes and, moreover, we are able to control economy-wide macro impacts such as national lockdowns,” the report said.

It follows a study by the London School of Economics (LSE) released this week who noted that Brexit resulted in a “major disruption” to UK trade with the EU. The new relationship resulted in a “sudden and sustained” drop in UK imports from the EU of 25 per cent compared to the rest of the world.

The drop in UK exports to the EU was smaller and short-lived, the LSE researchers said. “Nevertheless, there has been a sharp drop in trade links between UK exporters and EU importers, suggesting that the introduction of the TCA prompted many UK companies to stop exporting to the EU,” they added.

https://www.politico.eu/article/uk-research-food-prices-hike-report-brexit-cost-living/?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication Brexit caused UK food prices to spike, says report - POLITICO

Fry Electronics Team

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