Bank of England Governor: Trade relations with the EU need to be rebuilt, mainly because of food trade

Speaking to the BBC on Friday, Andrew Bailey said that as a civil servant, he does not wish to form an opinion on the fact of Britain’s withdrawal from the EU (Brexit), but he believes it would be beneficial for the British economy if the damage caused to trade with the EU due to Brexit could be eliminated.

The head of the Bank of England stressed that bilateral trade between the European Union and Great Britain has declined in the years since the exit, and that it would therefore be beneficial if the British economy were more open to trade with the EU. According to Bailey, this would also be important because, despite Brexit, the EU remains Great Britain’s largest trading partner.

The decline mentioned by the Governor of the Central Bank largely affects food trade.

According to the latest figures from the UK Food and Drink Federation (FDF), the volume of British food exports to the EU market was 6.37 million tonnes last year, 34 percent less than in 2019, the last full year before the UK left the EU.

The Governor of the Bank of England has previously expressed his opinion that Britain needs to rebuild its trading relationship with the EU.

One of the most striking such statements came at the annual business gala of the Mayor of the City of London’s financial services centre, Mansion House.

Andrew Bailey also said at that event that he could not take a position on the mere fact of Brexit in his capacity as a public servant, but that it must be stated that the change in trading relations with the European Union has burdened the potential performance of the British economy and that opportunities must therefore be sought to rebuild the relationship with the EU.