UK trade rebounds in July but barriers remain, warns BCC
UK trade rebounds in July but barriers remain, warns BCC
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UK exports picked up strongly in July, driven by a rebound in goods shipments to the United States and continued growth in trade with the EU, according to the latest data from the Office for National Statistics (ONS).
The figures show that the volume of goods exports rose by 5.2% in July. Sales to the EU climbed by 1.4%, led by car exports, while non-EU exports surged 9.3%. Exports of goods to the US rose by £0.8 billion, a 20.5% month-on-month increase, with cars, fuels and industrial products among the strongest performers.
Goods imports also grew, rising by 4.1% from the EU and 3.7% from the rest of the world.
However, the picture was more subdued for services. Exports fell by 0.4% in July, while imports remained flat, ending a period of steady growth in the sector.
Reacting to the data, William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said the latest figures showed both progress and ongoing challenges for UK exporters.
“The first month of reduced automotive tariffs has had a positive effect on US exports alongside more certainty on the outlook for other manufactured goods sectors.
“But far more work is needed on US tariffs. That means delivering the promised zero percent tariffs on steel and aluminium goods, long term certainty for pharmaceuticals, and securing lower levies on other goods if possible.
“The performance of our trade in goods with the EU continued its recent upward trend but the UK-EU reset negotiations need to deliver quickly. Firms are clamouring for cuts to red tape and lower compliance costs.
“There is also a warning in the data as services exports cooled off in July reflecting business concerns about wider economic headwinds. The government needs to focus on the fundamentals to boost UK trade.
“That means lowering tariffs, removing regulatory barriers, boosting supply chain cooperation, and improving access to export support and finance. The faster, simpler and cheaper trade is for UK companies, the higher our exports will be.”
The BCC has repeatedly called for urgent progress in negotiations with both the US and the EU to cut tariffs and ease compliance costs. July’s rebound provides a boost to UK exporters, but business leaders warn that lasting growth will depend on removing structural barriers to trade.
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