EXCLUSIVE: The EU’s trade balance with the world has fallen off a cliff
– did no-one at the BBC notice?
"This is alarmingly bad news for the EU," says former Brexit Minister, commenting on this report
Montage © Facts4EU.Org 2023
Facts4EU reveals the crash in the EU’s exports versus its imports over the past two years
EU runs trade surplus with UK ‘Treasure Island’ but now runs deficit with rest of world
This is Part Two in a landmark set of two reports from Facts4EU.Org and CIBUK.Org
revealing some astonishing official facts about the EU’s trade with the UK
- Part One – Brexit Britain’s power – EU sells UK £1bn of goods per working day (yesterday)
- Part Two – The EU’s trade balance has fallen off a cliff – did no-one at the BBC notice? (today)
In this second part of our analysis of the latest trade figures from the EU Commission’s statistics agency, Facts4EU.Org brings readers another major piece of news which seems to have gone unreported on the BBC. For years the EU had enjoyed a goods trade surplus: exports exceeded imports. No longer.
In the last two years the EU’s trade balance has fallen off a cliff. In the final month of the UK’s ‘Transition Period’ (Dec 2020) the EU ran a surplus of nearly €30bn with the rest of the world. Since the beginning of this year (2022) the EU has run an average monthly deficit of close to €40bn.
We bring readers the grim news for the EU.
Brexit Facts4EU.Org Summary
1. The EU’s trade balance in goods with the rest of the world (exports minus imports)
Latest official figures: 24 months to Oct 2022
[ Source: Eurostat - EU Commission’s official statistics agency ]
© Brexit Facts4EU.Org 2023 - click to enlarge
The Rt Hon David Jones MP comments exclusively to Facts4EU.Org and CIBUK.Org
"This is alarmingly bad news for the EU. Its global surplus in trade in goods is fast diminishing.
"It is noteworthy, too, that although it still enjoys a surplus in trade with the UK, that surplus is also dwindling.
"Outside the EU's protectionist trade arrangements, the UK now has the opportunity to source goods and components from countries that offer much better value than the EU's inflated prices. That opportunity will increase substantially if - as is likely - the UK becomes a member of the CPTPP, the Trans Pacific Partnership of dynamic manufacturing nations.
"In an increasingly globalised market, the advantages of membership of a regional bloc such as the EU were always likely to lessen, and these figures prove that this is what is happening."
The Rt Hon David Jones MP, 01 Jan 2023
‘Treasure Island’ (the UK) continues to bring some relief to the beleaguered EU
If it were not for the EU’s sales to Brexit Britain, and their apparent reluctance to buy as much from us as we buy from them, the EU’s massive trade deficit of €420bn in the 12 months to October 2022 would be 26% higher, topping over half a trillion euros.
Brexit Facts4EU.Org Summary
2. The EU’s trade balance in goods with the UK (exports minus imports)
Latest official figures: 12 months to Oct 2022
- With the United Kingdom : +€109.6bn surplus
- With the rest of the world : -€420.1bn DEFICIT
[ Source: Eurostat - EU Commission’s official statistics agency ]
© Brexit Facts4EU.Org 2023 - click to enlarge
3. The EU’s Top 10 worst deficits versus its surplus with Brexit Britain
[ Source: Eurostat - EU Commission’s official statistics agency ]
© Brexit Facts4EU.Org 2023 - click to enlarge
The EU’s highest trade deficit is, not surprisingly, with China which is almost €400bn euros in the red.
The UK gives the EU its second-highest goods trade surplus in the world – close to £100bn GBP - after the US.
The bad news for the EU is that its trade surplus with the UK is falling fast. In the same period pre-Covid (Nov 2018 - Oct 2019) the EU’s surplus with the UK was 19% higher (€130.1bn).
Observations
In Facts4EU.Org’s report yesterday, the Rt Hon Sir John Redwood MP commented:
“The more they pick arguments with us the more likely UK consumers and businesses will look elsewhere for their imports, or even better make, grow and produce more for ourselves.”
There is now growing evidence that this is already happening. On top of this, Brexit Britain is now able to reach out to new markets globally – something it was unable to do as a member of the EU. As new trade deals are made, this is likely to result in the sourcing of much cheaper alternative products than the UK had to buy from the EU, with its high protectionist tariffs.
In our report today - our first of 2023 - the Rt Hon David Jones emphasised this point, telling us "In an increasingly globalised market, the advantages of membership of a regional bloc such as the EU were always likely to lessen, and these figures prove that this is what is happening."
Kemi - One to watch in 2023?
With the impressive Kemi Badenoch in charge at the Dept for International Trade, we are optimistic about the prospects of further advantageous trading arrangements being made with countries around the world.
Yes, there will always be those who will decry these efforts, as the National Farmers Union and other pro-EU bodies have done regarding the deals with Australia and New Zealand. These people are living in the past. The world is a fast-moving place outside the EU and if Brexit Britain wants to retain its place as one of the world's premier economies then it has to engage globally.
We must get reports like this out there
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[ Sources: EU Commission | ONS | The Rt Hon David Jones MP ] Politicians and journalists can contact us for details, as ever.
Brexit Facts4EU.Org, New Year's Day, Sun 01 Jan 2023
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