Three years after Brexit, France continues to have a trade surplus with the United Kingdom, and it is even the first, according to a study by the General Directorate of Customs published this Friday. This surplus stood at 9.6 billion euros in 2023. Exports reached 35.9 billion euros, while imports amounted to 26.3 billion euros. However, this balance is down by 2.5 billion euros, or almost 20%, compared to 2018, which serves as a reference before Brexit and the Covid crisis.
This deterioration is explained by an increase in imports (+5.5 billion euros) which was greater than that of exports (+3 billion euros), affecting “most products traded”, details the study. Only the balances of transport equipment and machinery improved. Exports of aeronautical products to the United Kingdom have almost doubled (+83%), and exports of automobiles have also increased sharply (+62%), according to customs.
“Quasi-transit commercial flows”
« Exception notablenotes the study, the United Kingdom's share of France's imports remained stable over the period »to 3.7%, while this share fell for “almost all” from other European countries, except Slovakia and Cyprus. The report explains the increase in imports from the United Kingdom to France by “the appearance of quasi-transit commercial flows, not counted before Brexit”which are at the origin of « most of the deterioration of the balance ».
The United Kingdom's exit from the European Union (EU) on January 31, 2020, followed by its departure from the customs territory the following year, forced most European companies importing British products to pay customs duties. As a result, many goods cross the Channel to be “cleared” in France before being re-exported to another EU country. Experts call this “quasi-transit import flow”.
London looks to the rest of the world
Customs also indicates that, at the same time, “the total number of companies importing goods from the United Kingdom into France fell by more than a third (-34%) between 2018 and 2023”, while at the same time, “the total number of companies importing goods from Italy, Germany and Switzerland into France is increasing significantly, by 49%, 41% and 6% respectively”. Regarding companies that export, excluding small operators, their number is down slightly (-6%).
These developments take place in a context in which London has reoriented its trade towards countries outside the EU. “Overall, foreign trade has lost intensity between the United Kingdom on the one hand and the European Union (EU) on the other. Since Brexit, the United Kingdom has become more focused on the rest of the world”describes the report. The EU's share of UK imports has fallen from 52% to 40% in five years, while that of China and the US have both increased, from 9% to 13% for Beijing and from 9% to 12% for Washington.
