How has Brexit influenced between Spain and the United Kingdom?

Just over eight months have passed since the effective departure of the United Kingdom from the European Union, but the consequences of this political decision, one of the most relevant in the Old Continent in the last two decades, are already beginning to be seen. Despite the fact that the global economy, and especially those of the European states, are beginning to show strong signs of economic recovery after the crisis caused by the coronavirus, The United Kingdom has seen in recent weeks a series of images that have already become common.

Shortages in supermarkets, energy crisis, and massive closures of gas stations due to lack of supplies have made the covers of British tabloids. A situation that, although it could have been aggravated by the Covid-19 crisis, has its main reason for being in Brexit itself. The excessive bureaucratic complication, the expulsion of foreign labor and the application of the British ‘VAT’ instead of the place of origin, are the main cause of the complicated situation that the British live.

But the consequences of Brexit are not only experienced by the citizens of Great Britain. According to data from Packlink52% of British people make their purchases online in virtual stores outside the United Kingdom, the percentage in Spain standing at 6.5%. “Brexit particularly affects eCommerce, which is exposed to longer delivery times due to increased bureaucracy. In addition, cancellation and refund policies, or the declaration of taxes such as VAT in the United Kingdom, have a direct impact on the way of working of Spanish and European merchants “, points out Noelia Lázaro, Packlink Marketing Director.

The relationship between Spain and the United Kingdom in figures

Although for the moment no tariff controls have been established and products such as phytosanitary products, of a complex nature at customs level, will maintain a uniformity of criteria with the British border with the rest of the Member States of the Single Market, at least until July 2022, the The reality is that the first economic indicators already show the strong impact of Brexit on trade relations between the UK and Spain.

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Only between January and July of this year, Spain has exported goods worth 8.267 million pounds to the United Kingdom, a figure that is almost one 19% less than last year comparable, 2019, when Spain exported goods worth 10,195 million pounds during the same period of the year. Data that represents a setback of 6 years, the last time such low numbers were observed between both countries and, precisely, the same year that the Brexit referendum was held.

But the UK’s exit from the Single Market has further affected if possible to their own businesses. In the case of imports from the United Kingdom, these have been reduced by 30%, going from 6,242 million pounds between January and July 2019 to 4,339 million in the same period of 2021, according to statistics from the British Government , which has meant a record surplus for the Spanish trade balance with his former partners from the community block.

“These weeks we have seen the first impacts in the supply chain of a decision as drastic as Brexit. Although logic invites us to think that the situation will normalize in the coming months, the complexity of commercial relations and increases in prices and times will be a constant, at least for the next few years. Although this allows us to open a window of opportunity with other European markets “, concludes Noelia Lázaro, Packlink Marketing Director.

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