There is no evidence of a “sustained decline” in UK exports to the EU since the Brexit deal, a report said.
Experts say sales in Europe remain strong, despite a relative 25 percent drop in imports from the bloc compared to the rest of the world.
The study, published by the Center for Economic Performance at the London School of Economics, is claimed by its authors as the most comprehensive study of the effects of Brexit on UK and EU trade since the 2016 referendum.
The report suggests that the biggest impact may have been felt on smaller trade links with the continent. He noted a “sharp decline” in the number of trade relations between UK exporters and EU importers, “with lower value relations being particularly hard hit”.
Thomas Pryor, one of the authors, said: “It seems that the United Kingdom has simply stopped selling many products to smaller EU countries.
Economists said their findings could reflect in part “temporary changes as companies adapt to the new trading environment”.
“It may be several years before the economy fully adapts to increasing trade, investment and migration barriers under the TCA,” they said.
Researchers have found that the impact of Brexit on trade is felt only after the entry into force of the Trade and Cooperation Agreement, and not permanently after the referendum.
Thomas Sampson, co-author and associate professor of economics at the LSE, said: “The Trade and Cooperation Agreement has increased trade costs … These changes are making the UK a harder place to do business.”
The TCA is not yet fully implemented, with recent reports suggesting that Boris Johnson is ready to further delay the introduction of new checks on products entering the UK from the EU.
Full checks on goods exported to Europe will apply from the beginning of 2021.
A government spokesman said: “We ensure that companies of all sizes have the support they need to trade effectively with Europe and take advantage of new opportunities while making trade deals around the world.
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