Brexit, Inflation, and Ukraine War- Impact on Global Trade

The fallout from the Russia-Ukraine war could be deemed immense. The conflict is worsening supply and demand strains, harming consumer presumption and jeopardising global economic development.

FREMONT, CA: From skyrocketing food prices to social turmoil, the fallout from the Russia-Ukraine war could be deemed immense. When Russia invaded Ukraine, no one comprehended how serious the shockwaves sent through Europe and the world would be or how long the following conflict would last. As the war approaches its sixth month, the consequences of the conflict are becoming more transparent. Against an already tumultuous backdrop of global inflationary coercion amid increasing food and energy costs and disrupted supply chains following the pandemic, the war is worsening supply and demand strains, harming consumer presumption and jeopardising global economic development. Looking at the more expansive global food supply chain, the world could clearly see this conflict shocking important pillars of this system in an already distressed context. In the UK, the government has postponed levying post-Brexit border checks on imports from the EU, quoting that it did not want to aggravate inflationary tensions. With this statement, it is the fourth time that the UK government has stalled such checks.

The influence of Brexit on food expenses is indeed being felt by the British populace. In April, the trade hindrances created via Brexit increased food costs by 6%. Technology persists to have an influence on reshaping modern food supply chain systems to enhance productivity, affordability, accessibility, and variety of choices and lower losses and waste. More than 80% of Europeans purchase food from enormous retailers because they are convenient and dependable. The dominance of large retailers, who can invest in technology, has led to increased quality and welfare measures across the food industry.

Future supply chains need to deliver healthy and nutritious food that has been cultivated in an environmentally friendly and ethical way, while also negotiating with the powerful challenges of a rising population, climate crisis, and dwindling natural resources.