BERLIN: Germany's exports to the United Kingdom fell 2.5 percent year on year to 65.4 billion euros (USD 72 billion) in 2021, one year after the United Kingdom's exit from the European Union (EU), according to the Federal Statistical Office (Destatis).
Germany's exports to the UK had already dropped by 15.3 percent in 2020, the first year of the Covid-19 pandemic, according to the reports. Following the UK's exit from the EU's single market, the two sides reached an agreement on comprehensive trade and cooperation, which took effect on January 1, 2021.
In the ranking of Germany's most important trading partners, the UK dropped from fifth to eighth place in terms of exports and from 11th to 13th place in terms of imports in 2021, according to Destatis.
The German IFO Institute warned on Friday that "Brexit has had a negative impact on trade between the EU and the United Kingdom."
Despite the fact that the trade and cooperation agreement avoided higher tariffs, the ifo Institute stated that barriers such as inspection certificates and other papers and regulations "make border crossing more time-consuming and complicated, resulting in higher trade costs."