Trade flows between Britain and Europe slumped by more than a fifth in the first quarter of the year, but it is still too early to say how much of this was due to Brexit, the Office for National Statistics has said. 

In a report which compiles already-published data on trade, the ONS pointed out that trade between the UK and EU had fallen by 20.3% in the first quarter of the year while trade with the rest of the world dropped by only 0.4%.

While this disparity seems to imply that Brexit was the main explanation – since this period covers the end of the transition period – the ONS said: “It is difficult to fully detangle the impact the coronavirus and EU exit had on UK and international trade while they are still having an influence.”

Imports of goods from EU countries, excluding precious metals, fell by £14bn, or 21.7%, while exports fell by £7.1bn or 18.1%, the report showed.

The report also noted that there had been evidence of stockpiling of goods in the run-up to the end of the Brexit transition period late last year, which affected the comparison.

“As such, the decreases seen in quarter 1 2021 should be taken in the context of the increases seen in quarter 4 2020,” the ONS said.

Meanwhile the report also pointed to data showing that the ending of the Brexit transition period had, by February, overtaken the pandemic as a cause of challenges faced by businesses.

Britain reached a last-minute deal with the EU in December to allow tariff-free trade with the bloc to continue.

But businesses have reported suffering trade friction thanks to red tape and transport costs.

More broadly, world trade has been affected by the COVID-19 pandemic – with border restrictions and disrupted shipping patterns taking their toll.

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