The UK trade with EU has fallen sharply as Brexit and Covid global outbreak drive down exports.
The Office for National Statistics (ONS) said that exports £1.7bn became lower than in July 2018 and imports by £3bn.
Compared with 2018, which the ONS describes as the most recent “stable” period in UK trade, the change in trading levels is stark.
ONS said the sharp declines in medicinal and pharmaceutical products have caused the this fall.
The pharmaceutical products suffer a hit due to the need for separate regulatory approval post Brexit.
Experts said the latest ONS figures could be a sign that the UK is losing its overall competitiveness.
In July, total exports of goods fell by £300m because of a £900m (6.5%) fall in exports to the EU.
At the same time, exports to non-EU countries increased by £700m, not enough to compensate for the overall fall.
EU citizens to face deportation in Britain
EU citizens living in the UK face deportation threats, which opposes the Brexit withdrawal agreement.
Earlier, the UK ministers had promised that EU citizens who applied to stay in the country would have their rights protected.
However, the Home Office face sharp criticism for willingly attempting to deport EU citizens, as it is easier than deporting asylum seekers.
Bail for Immigration Detainees (Bid) said that unless a meaningful response is received from Home Office this week, the body will file a complaint in European courts. It had raised concerns over the Home Office failure to protest the rights of the citizens.
Lawyers launched legal battles to protect the EU nationals following the Brexit deal.