Brexit and Italy
The UK and Italy are amongst the largest European economies with long- standing cultural and friendship ties and it is useful to examine trade and investment activity between them.
According to a factsheet published by the UK Department for Business & Trade (“DBT”), total trade in goods and services ( exports plus imports) between the UK and Italy was £54.6 billion in the four quarters to the end of Q3 ( Quarter 3) 2025, an increase of 3.5% or £1.8 billion in current prices from the four quarters to the end of Q3 2024. Of this £54.6 billion:
- Total UK exports to Italy amounted to £19.7 billion in the four quarters to the end of Q3 2025 ( an increase of 2.1% or £401 million in current prices, compared to the four quarters to the end of Q3 2024); and
- Total UK imports from Italy amounted to £35.0 billion in the four quarters to the end of Q3 2025 ( an increase of 4.3% or £1.4 billion in current prices, compared to the four quarters to the end of Q3 2024).
The DBT factsheet showed that Italy was the UK’s 9th largest trading partner in the four quarters to the end of Q3 2025, accounting for 2.9% of total UK trade.
The factsheet also revealed that, at the end of 2024, the stock of FDI ( Foreign Direct Investment) from the UK in Italy was £22.3 billion , 19.8% or £3.7 billion higher than at the end of 2023, and that , at the end of that year, Italy accounted for 1.2% of the total UK outward FDI stock.
In addition, the factsheet revealed that, at the end of 2024, the stock of FDI from Italy in the UK was £18.0 billion, 131.3% or £10.2 billion higher than at the end of 2023, and that, at the end of that year , Italy accounted for 0.8% of the total UK inward FDI stock.
These figures show quite an imbalance in trade between the two countries in Italy’s favour, whereas on the other hand Italy appears to be ramping up its investment in the UK in a serous and encouraging way.
Let us see what happens, as the UK and the EU appear once again to be getting closer together economically after the disruptions of Brexit!
Brexit and the Victoria and Albert East Museum
On 18th April 2026 a star was born – the Victoria and Albert Museum in Stratford, East London – to complement the Victoria and East Storehouse, which itself opened to the public on 31st May 2025.
The two facilities, which are physically close to each other, in the Queen Elizabeth Olympic Park, are striking in design – perhaps controversially so – and immense in concept and, amongst other things, celebrate the cultural diversity of East London as well as of the United Kingdom as a whole and the wider world beyond. The message is that Art is universal and creativity is a rainbow of colour but also colour – blind ( in a positive way), both at the same time.
One of the permanent exhibitions on Museum is entitled “Why We Make” and focuses on what inspires artists and craftspersons to create so much of aesthetic beauty, often in a hostile environment. One graphic example is the patchwork and emblazoned quilt on display from prisoners at HMP Wandsworth, who found solace and reflection in needlework to combat the mind-numbing drudgery of prison life.
The Olympic Park itself is a tribute to urban regeneration and with the earlier opening of the dance theatre Sadler’s Wells East in Stratford on 16th January 2025, the so-called East Bank development in Stratford is establishing itself as an iconic cultural hub of international significance.
The UK is bursting with artistic life – often rooted in the immigrant heritages that the V&A East facilities and other such facilities around London and the rest of the UK promote through their galleries and exhibitions.
Brexit must not be allowed to jeopardise this creative endeavour, whether intentionally or consequentially.
Brexit and the European Partnership Bill
The European Partnership Bill ( “the EPB “) was announced in the King’s Speech 2026 on 13th May 2026.
According to the UK Government’s Background Briefing Notes to the King’s Speech, the EPB “will help deliver the manifesto commitment to improve the UK’s trade and investment relationship with the EU by facilitating the implementation of new deals agreed with the EU now and in the future. This includes deals on electricity, emissions trading, and food and drink”.
The EPB, which would extend and apply to the whole of the UK, would ( according to the Notes) “provide a framework of powers to ensure [that] agreements with the EU can be implemented now and in the future, including:
- Powers to fulfil treaty obligations in the agreements with the EU where it serves the national interest [; and]
- A power to extend the application of the Bill to new treaties with the EU in the future.”.
The EPB was intended to secure “ dynamic alignment “ between the UK and the EU on agreed trade matters but as of the date of the King’s Speech details were sketchy as to how democratic oversight over the operation of the EPB would be secured and as to how much ( if anything) the UK would need to pay to the EU ( as reportedly demanded by the EU) to secure the UK’s access to EU markets under the EPB.
The proposal for an EPB was important but further details as to how it would operate in practice were awaited!
Brexit and a Trade Deal with the Gulf Cooperation Council (“GCC”)
On 20th May 2026, the UK Government announced that it had struck a trade deal with the Gulf Cooperation Council (“GCC”) representing 6 Gulf States, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
According to the UK Government press release :-
- “Deal could boost the UK economy by an estimated £3.7 billion every year and increase wages by £1.9 billion annually in the long run”;
- “UK becomes the first G7 country to agree deal with the GCC, bolstering our partnership with a strategically vital region and securing economic resilience at home”; and
- “Deal removes tariffs on food exports, medical equipment and advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data”.
As of 20th May 2026, the deal had yet to be ratified by both sides but, once in force, the trade deal would( according to the press release) benefit many UK business sectors, including the food and drink sector: “UK exports of cereals, cheddar cheese, chocolate and butter are just a few of the goods expected to become tariff-free, supporting British industry to grow”.
The press release claimed that “Today’s agreement marks a fifth agreement following major deals with India, the US, the EU and South Korea, as this Government continues to deliver the certainty and stability that businesses need to grow in tough times”.
Interesting times!
This blog is provided for general information purposes only and does not constitute legal advice. You should not rely on any information contained in this blog as a substitute for obtaining advice from a qualified legal professional regarding your specific circumstances.
