It is now 5 years since the United Kingdom left the European Union. Flemish companies that export to the United Kingdom suddenly had to deal with a host of new regulations. This served to reduce trade levels between our region and our British neighbours. In the meantime, trade between Flemish companies has returned to pre-Brexit levels. Nevertheless, the host of red tape faced by Flemish and other EU companies wishing to trade with the UK remains.
It’s 5 years to the day since Brexit took effect. According to figures from Leuven University (KU Leuven), exports by Flemish companies to the United Kingdom are now back to the level they were at prior to when the UK left the European Union.
For many companies that exported goods and services, Brexit brought with it a host of red tape and regulation regulations that they suddenly had to comply with in the United Kingdom. Companies exporting fresh goods and food in particular suddenly had to provide a host of documents if the wished to continue to sell their products in the UK.
A Brexit helpdesk was been set up to help companies cope with the new regulations. The helpdesk is still active and offers more than just administrative help Flemish trade representative in says Lionel Orens told VRT News.
Decline in exports?
According to a study by the Leuven University (KU Leuven), exports from Belgium as a whole to the UK have fallen by 13% compared with pre-Brexit levels. However, Lionel Orens says that this isn’t just due to Brexit. “Trade fell back during the first couple of years. In addition to this there was the coronavirus pandemic and the difficult economic situation caused by the war in Ukraine.”
Despite this Flemish have recovered and “Some sectors are even performing better.’ Currently, Flemish exports to the UK are back up to pre-Brexit levels.
Resilience
Despite this, the percentage of Flemish trade that is accounted for by trade with the UK has fallen back. The UK is currently our region’s 5th largest trading partner. The Flemish foreign trade agency Flanders Investment and Trade (FIT) says that the fact that trade with the UK is now at pre-Brexit levels is evidence of Flemish companies’ resilience.
FIT also points to the intensive support measures taken by the Flemish government to help businesses that trade with the UK. “Brexit subsidies, the Brexit helpdesk and the advice campaigns have helped companies through a difficult period". The foreign trade agency adds that the impact on trade has been greatest in sectors with the greatest administrative burden, such as food, plant and construction. “For small businesses, the increased administrative burden does not always outweigh the benefits of exporting to the UK”.