UK Trade August 2021: Expert Commentary

This morning, the ONS revealed that the UK’s total trade deficit widened to £6.6 billion the three months to August 2021 (removing the effect of inflation). In response to the data, please see below commentary from Atul Bhakta, CEO of One World Express.

Atul Bhakta, CEO of One World Express said: “After a strong start in securing a trade deal with Australia earlier this year, the UK Government appears to have lost some momentum – the trade deal with New Zealand, for example, is yet to be pushed over the line. This, combined with additional factors, such as the pandemic and post-Brexit complexities have all contributed to a decline in UK exports. As such, the widening of the UK’s trade deficit will come as little surprise for many businesses.

“It is important that the Government restore businesses’ confidence and nurture their international ambitions. Ensuring that businesses are aware of the status of each trade deal would be beneficial. So too would providing businesses with the right support – financial, resource, or otherwise – to help them to develop robust international trade strategies.

“Given that we are less than a year on from Brexit, it is understandable that the UK is still finding its footing on the international stage. However, as more trade deals are agreed and borders continue to re-open post-COVID, business confidence will begin to grow. Provided they receive the right Government support, I see no reason why the UK shouldn’t see a gradual closing of the trade deficit over the coming years.”