Brexit-induced trade barriers have dealt a significant blow to Scottish exports, according to a newly published report.
The study, conducted by the Fraser of Allander Institute at the University of Strathclyde, highlights the detrimental impact of leaving the European Union on Scotland’s trade performance.
The report indicates that Scottish exports to the EU have plummeted by a staggering £2.2 billion since the Brexit transition period concluded.
This substantial decline represents a 13% decrease in exports to EU countries over the past two years.
Researchers point out that whilst Scottish exports to non-EU countries have shown some growth, it has not been sufficient to offset the losses incurred in EU trade.
The findings suggest that the new trade agreement between the UK and EU has created significant obstacles for Scottish businesses, particularly affecting small and medium-sized enterprises (SMEs).
The study also reveals that certain sectors have been hit harder than others. Food and live animals exports have seen a notable decline of 27%, whilst machinery and transport equipment exports have fallen by 18%.
These findings underscore the challenges faced by Scottish businesses in the post-Brexit landscape, highlighting the need for targeted support and strategies to navigate the new trading environment with the EU.
