As the Government continues to press ahead with its plans to move closer to the European Union and reduce barriers to trade, the data published by Office for National Statistics (ONS) shows that February 2026 was marked by falls in goods exports to the EU and the rest of the world.
The latest ONS report shows a rise in imports from both EU and non-EU countries with the value of goods imports increasing by £2.3 billion (4.7%). This was offset by a fall in the value of goods exports by £0.5 billion (1.5%).
Overall, the total goods and services trade deficit narrowed by £0.3 billion to £2.8 billion in the three months to February 2026 compared with the three months to November 2025.
Reacting to the news, British Chambers of Commerce (BCC) Head of Trade Policy, William Bain, pointed out that these figures covered a period before the outbreak of conflict in the Middle East as he highlighted that services exports also experienced subdued volume growth amid uncertain global demand.
The Government must secure the supply of key growth materials and critical goods for the UK economy, particularly in those sectors impacted by the Iran War, he continued, and must also expand the routes to overseas markets for UK goods and services through full leverage of existing and forthcoming free trade agreements (FTAs).
