{"id":29579,"date":"2021-03-20T16:00:12","date_gmt":"2021-03-20T15:00:12","guid":{"rendered":"https:\/\/blog.xtrawine.com\/?p=29579"},"modified":"2021-04-07T11:14:38","modified_gmt":"2021-04-07T09:14:38","slug":"the-effects-of-brexit-on-trade-and-what-this-means-for-the-italian-wine-lover-in-britain","status":"publish","type":"post","link":"https:\/\/blog.xtrawine.com\/en\/the-effects-of-brexit-on-trade-and-what-this-means-for-the-italian-wine-lover-in-britain\/","title":{"rendered":"The Effects of Brexit on Trade (And What This Means for the Italian Wine Lover in Britain)"},"content":{"rendered":"\n

It finally happened.<\/p>\n\n\n\n

Years after the referendum in which the British public decided that it no longer wanted to be part of the EU, Brexit has finally been carried out. The process was delayed numerous times, both as a result of ongoing negotiations and due to the impact that the pandemic has had on the world.<\/p>\n\n\n\n

But it\u2019s done.<\/p>\n\n\n\n

The ink has dried, Britain is out, and we\u2019re entering a new trade environment for all of Europe.<\/p>\n\n\n\n

Of course, Britain rescinding its membership means that the country is now faced with the same restrictions that other non-member states must deal with. There are also specific restrictions and allowances detailed in the Brexit agreement that we\u2019re not going to go into detail here.<\/p>\n\n\n\n

It\u2019s not the specifics that concern us.<\/p>\n\n\n\n

It\u2019s the impact this situation has on the world of Italian wine, specifically in regards to British people and their ability to buy Italy\u2019s wines, that we are concerned with.<\/p>\n\n\n\n

Now that we have reached March, we finally have some statistics on the effect that Brexit has had on trade between Britain and the EU.<\/p>\n\n\n\n

The early figures do not make for pretty reading.<\/p>\n\n\n\n

Trade is Down on Both Sides<\/strong><\/h2>\n\n\n\n

With a host of new restrictions in place, it isn\u2019t surprising that trade between Britain and the EU decreased. But what may be surprising is the size of the decrease and the fact that it has occurred on both sides.<\/p>\n\n\n\n

First, let\u2019s examine British exports into Europe.<\/p>\n\n\n\n

The British government has made some spurious claims about trade \u201creturning to normal\u201d in the months following Brexit. However, the numbers simply don\u2019t back this statement up. According to the UK\u2019s Office of National Statistics (ONS), exports from the UK into Europe dropped by an astonishing 40.7% in January 2021.<\/p>\n\n\n\n

Now, there is an argument to be made that this drop is partly due to manufacturers getting to grips with the new rules they must follow. However, it\u2019s pretty clear that even when the rules are fully understood, Britain simply won\u2019t be sending as many products to the EU.<\/p>\n\n\n\n

This 40.7% drop is the largest the ONS has recorded since 1997, which is the year when records began.<\/p>\n\n\n\n

That means it\u2019s the largest decline in trade between Britain and the EU since the beginning of the recorded history of trade between the two entities.<\/p>\n\n\n\n

That\u2019s worrying news.<\/p>\n\n\n\n

But it\u2019s made worse by the fact that exports from the EU into the UK have also fallen dramatically. While not as large as the decline in the reverse situation, exports from the EU have still dropped by 28.8% in January 2021.<\/p>\n\n\n\n

Again, that is the largest decline the ONS has ever recorded.<\/p>\n\n\n\n

Is This a Symptom of a Larger Issue<\/strong><\/p>\n\n\n\n

Some may believe that this decline in trade has other causes beyond the Brexit agreement. For example, you could argue the pandemic is playing a part as it has disrupted trade all over the world.<\/p>\n\n\n\n

But again, the figures don\u2019t appear to back this argument up.<\/p>\n\n\n\n

The ONS points out that it\u2019s only trading between the EU and Britain that has declined. Britain\u2019s trade with nations outside of the EU has remained stable, so it\u2019s clear that Brexit is the driving force behind these massive changes.<\/p>\n\n\n\n

Again, the UK government is insistent that trade is returning to normal. But the data doesn\u2019t back that up, and nor does the evidence from Britain\u2019s manufacturing sector. For example, data shows us that about 50% of the lorries leaving Britain to return to the EU are currently empty.<\/p>\n\n\n\n

Prior to Brexit, that figure stood at 30%.<\/p>\n\n\n\n

In other words, thousands more lorries are coming back into the EU without stock from British suppliers. Again, we can see here that exports from Britain are on the decline. And the data from the ONS suggests that the same situation exists for lorries coming back into Britain.<\/p>\n\n\n\n

All told, we have a very worrying trade situation.<\/p>\n\n\n\n

What Does This All Mean for Italian Wine?<\/strong><\/h2>\n\n\n\n

There are two ways to approach this question.<\/p>\n\n\n\n

The first is to look at the impact on Italian wine<\/a> producers and retailers.\u00a0<\/p>\n\n\n\n

Going forward, it\u2019s likely that many of the smaller producers will struggle to export their wines into Britain. There\u2019s simply too much paperwork to deal with, as well as added costs, which may lead to them deciding not to trade in Britain at all. Larger producers, particularly those that specialise in wines that are popular in Britain, will likely continue trading.<\/p>\n\n\n\n

Of course, this will have a knock-on effect on British consumers.<\/p>\n\n\n\n

It\u2019s likely that consumers will have access to fewer varieties of Italian wines in supermarkets and specialist stores because smaller producers won\u2019t provide their wines anymore. We may also see British consumers having to pay more for their Italian wines, especially when issues like VAT come into play on top of all of the other restrictions.<\/p>\n\n\n\n

In short, it\u2019s not a favourable situation for either side of the Italian wine industry. Producers, particularly smaller ones, may feel cut off from a country that previously provided them with a lot of revenue. And consumers may no longer have physical access to Italian wines that they were previously able to purchase in stores.<\/p>\n\n\n\n

What\u2019s the Solution?<\/strong><\/h2>\n\n\n\n

That\u2019s a huge question and it\u2019s one that the Xtrawine team is certainly not equipped to answer on a general level.<\/p>\n\n\n\n

However, we can supply a solution to the question of where Brits can find variety in Italian wine if it no longer exists in physical stores\u2026<\/p>\n\n\n\n

Look online!<\/p>\n\n\n\n

At Xtrawine, we maintain a collection of over 2,000 wines from Italy and other major territories from around the world. We\u2019re also able to deliver these wines anywhere in the UK, which means the Brexit restrictions don\u2019t have to stop you from enjoying your favourite tipple.<\/p>\n\n\n\n

We don\u2019t know what the future holds for trade between Britain and the EU.<\/p>\n\n\n\n

All we know is that we will do everything in our power to ensure that people from all over the world have access to the best Italian wines.<\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"

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