Goods exports to the UK have fallen behind since Brexit

The decline in goods exports to the UK is mainly attributable to re-exports and the quasi-transit trade, both of which have seen a downward trend. In 2020, the year in which the UK left the EU, the value of re-exports fell to 3 percent below the level seen in 2015, the year before the UK voted to leave the EU. That was still the case in 2023, despite the elevated inflation of recent years. This contrasts with the trend in re-exports to all countries, which increased in value by 83 percent between 2020 and 2023.

The value of re-exports of telephones, modems and routers to the UK has dropped by half compared with 2015 levels. It is possible that these items are now exported directly to the UK from countries such as China and other countries in East Asia. Other goods that are frequently re-exported include medical instruments and devices, and manufactured medical products such as pacemakers and implants. For these product groups, the 2023 re-export value was approximately unchanged from 2015.

Exports of goods manufactured in the Netherlands to the UK are up less strongly

The Netherlands earns more per euro of trade from the export of goods that are produced in the Netherlands (domestic exports) than from re-exports and quasi-transit. The value of domestic exports to the UK has risen in recent years, but less strongly than domestic exports as a whole (to all countries). In 2015, the Netherlands’ domestic exports to the UK amounted to 18.9 billion euros. By 2023, that had risen to 26.1 billion euros, an increase of 38 percent.

In the same period, the Netherlands’ domestic exports as a whole (to all countries) rose by 57 percent. Exports to EU countries also rose by 57 percent, underscoring the fact that domestic exports to the UK were below average.

Exports of refined petroleum products to the UK are particularly important

Refined petroleum products are a particularly important component within Dutch exports to the UK. This was the most important product group in terms of export value, which grew from 1.1 billion euros in 2015 to 3.9 billion euros in 2023. This increase was mainly attributable to higher prices, rather than to an increase in volume. Other important product groups in domestic exports to the UK include flowers and plants, and vegetables and root vegetables. These were also the top three commodity groups in exports to the UK in 2015.