Weak first quarter for UK Exports

Figures for March revealed a further drop in both goods imports and exports, concluding a weak start to the year. Across the quarter, UK goods exports values declined by 3.2 per cent, and goods imports by 7.5 per cent. Services exports values fell by two per cent across the quarter. Taking goods and services trade overall, there was a fall in UK exports values of 2.6 per cent between January and March 2023, and in imports of 6.8 per cent. 

March data

After taking inflation into account, goods imports values fell by 2.1 per cent in March and goods exports by 2.7 per cent. Although imports of goods with the EU remained static, there was a decline in goods imports trade with the rest of the world in March of 4.7 per cent - driven by lower fuel and oil imports, and across cars, transport, machinery and other manufactured goods. Good exports to the rest of the world fell by 3.6 per cent and to the EU by 1.7 per cent. In services, UK exports increased by 0.8 per cent in March, and imports by 0.3 per cent.

Trade Deficit

Reduced imports across the quarter led to a fall in the overall UK goods and services trade deficit from £15.1bn to £10.2bn in Q1 2023. 

Reacting to the latest ONS Trade data, William Bain, Head of Trade Policy at the BCC, said: “The picture for global trade in the first quarter of 2023 is creating serious challenges for UK exporters, with a drop off in services as well as goods. While a pick-up in global demand is likely to develop in the second half of the year, we need action now to address both the cyclical and structural factors holding back UK export growth.

“Labour market concerns appeared to act as a brake on any further services growth during March. Removing inflationary effects, UK services exports, which make up the bulk of our overseas sales, are still 0.9% below their pre-pandemic levels. The Government needs to do more to remove non-tariff trade barriers that are frustrating firms and make a big push to improve take up of free trade agreements.”

Webinar: Doing business with the Netherlands - all you need to know
Wednesday 7 June, 2.00-3.30pm

You will learn about:

• Why the Netherlands is a great place for trade and investment
  
• The economic climate both currently and looking ahead
  
• What the Netherlands has to offer around infrastructure, human resources, sustainability etc
  
• The opportunities in different regions in the Netherlands
  
• How the NBCC can help and support you.
  

Register here.

Cambridge Networking Lunch
Thursday 29 June, 12.00-2.00pm
Novotel Cambridge North

Join us in Cambridge for a networking lunch that we expect to be very popular!

Make new connections in a room full of decision makers, enjoy an impressive buffet lunch and hear a talk from our guest speaker Sophia Awan, Strategic Partnerships Manager at Moneycorp.

Further details and booking here.

You can view the full list of all our courses on the Chamber website.

Courses can also be tailored to meet your company’s specific requirements. For more information about a bespoke course for your company, which can be delivered remotely or in person, please contact the Chamber on 01223 237414.

Trade negotiations with Switzerland to upgrade the current goods trade-only deal with the UK were launched in Bern last week. Read the BCC’s reaction  to the launch, also covered in The Guardian. 

Last week, UK government officials briefed the BCC on the progress of trade negotiations with India.

Also last week, the European Commission this week announced major reforms of its customs processes to simplify rules for EU SMEs.