Hardly surprisingly, the trade frictions caused by Brexit do indeed seem to have reduced trade
One small complication arises, however: a global pandemic. A survey by the Office for National Statistics carried out in June found that around four in ten firms trading in services reported that the end of the transition period had hit their business. Around three-quarters said the pandemic had.has done its best to disentangle the effects of the two. A study published on July 27th compares exports and imports with thehave fallen more.
Much of that fall in imports is accounted for by financial services. The British government had hoped to have signed a deal by now granting “equivalence”, that is, mutual recognition of regulatory standards in the sector. That would have made it easier to sell financial products originating in Britain in the, and vice versa. But no deal has yet been struck.
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