In this page: Foreign Trade in Figures | Trade Compliance | Standards
The United Kingdom is one of the main players in international commerce, with foreign trade representing 57% of its GDP in 2021 (World Bank). The country is the 8th largest importer and 14th exporter of goods in the world, and the 2nd largest exporter and 6th largest importer of commercial services in the world (WTO). In 2021, the country mainly imported gold, cars, petroleum products, telephones, data processing machines and medicaments; and exported the same products as well as platinum and parts of aircraft (Comtrade). In 2022, the volume of exports of goods and services increased by 4.8% compared to 2021, after two years of decline in the context of the COVID-19 pandemic and Brexit. The volume of imports of goods and services increased by 8.4% (FMI). The IMF expects exports and imports to grow respectively by 3.8% and 3.4% in 2023. On 1 May 2021, the UK-EU trade deal came into force, granting the UK “zero tariff, zero quota” for its exports towards the EU. Nevertheless, a whole series of new customs and regulatory checks have been introduced, including rules of origin and stringent local content requirements, which could make the procedures more burdensome and thus hinder mutual trade.
In fact, the EU as a whole is the main trading partner of the United Kingdom. At a country level, the UK mainly exports towards the United States (12.7%), Germany (8.7%), Switzerland (8.4%), the Netherlands (7.9%), Ireland (6.2%) and France (5.6%); whereas its main suppliers are China (13.2%), Germany (11%), the United States (8.7%), the Netherlands (6%) and Norway (5.2%) (Comtrade). In order to diversify its business partners, the UK signed trade deals and agreements in principle with 71 countries and one with the EU.
The country has a structural trade deficit, even though it has a large surplus in the services sector. According to WTO data, in 2021 the United Kingdom imported USD 693.8 billion worth of goods (+9.3% y-o-y) and exported USD 468.2 billion (+15.7% y-o-y); in the same year, exports of services stood at USD 417.5 billion (+23.2% y-o-y), against USD 242.9 billion in imports (+20.8% y-o-y). The trade in goods and services deficit, excluding precious metals, narrowed by GBP 6.5 billion to GBP 20.2 billion in the three months to November 2022, driven by a decrease in goods imports from non-EU countries linked to falling fuel prices (ONS).
Foreign Trade Values | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 643,515 | 672,267 | 695,798 | 634,742 | 693,774 |
Exports of Goods (million USD) | 441,106 | 486,439 | 469,684 | 404,681 | 468,177 |
Imports of Services (million USD) | 207,037 | 260,767 | 272,717 | 201,163 | 242,926 |
Exports of Services (million USD) | 353,077 | 410,685 | 401,430 | 338,804 | 417,545 |
Source: World Trade Organisation (WTO) ; Latest available data
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Foreign Trade (in % of GDP) | 62.8 | 64.0 | 64.1 | 58.1 | 56.7 |
Trade Balance (million USD) | -181,887 | -191,203 | -189,482 | -172,739 | -211,433 |
Trade Balance (Including Service) (million USD) | -38,943 | -43,883 | -46,207 | 8,295 | -24,233 |
Imports of Goods and Services (Annual % Change) | 3.3 | 3.3 | 2.6 | -16.0 | 2.8 |
Exports of Goods and Services (Annual % Change) | 6.8 | 3.1 | 1.7 | -12.1 | -0.3 |
Imports of Goods and Services (in % of GDP) | 32.1 | 32.8 | 32.9 | 28.9 | 28.7 |
Exports of Goods and Services (in % of GDP) | 30.7 | 31.2 | 31.3 | 29.2 | 27.9 |
Source: World Bank ; Latest available data
Foreign Trade Forecasts | 2022 | 2023 (e) | 2024 (e) | 2025 (e) | 2026 (e) |
---|---|---|---|---|---|
Volume of exports of goods and services (Annual % change) | 10.3 | 2.3 | 1.6 | 2.4 | 1.8 |
Volume of imports of goods and services (Annual % change) | 12.6 | 4.2 | 0.4 | 1.1 | 1.5 |
Source: IMF, World Economic Outlook ; Latest available data
Note: (e) Estimated Data
Main Customers (% of Exports) |
2021 |
---|---|
United States | 12.7% |
Germany | 8.7% |
Switzerland | 8.4% |
Netherlands | 7.9% |
Ireland | 6.2% |
See More Countries | 56.1% |
Main Suppliers (% of Imports) |
2021 |
---|---|
China | 13.2% |
Germany | 11.0% |
United States | 8.7% |
Netherlands | 6.0% |
Norway | 5.2% |
See More Countries | 55.8% |
Source: Comtrade, last available data
Source: Comtrade, last available data
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Source: United Nations Statistics Division, Latest Available Data
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
British Pound (GBP) - Average Annual Exchange Rate For 1 AED | 0.20 | 0.21 | 0.20 | 0.22 | 0.21 |
Source: World Bank - Latest available data.
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Several goods are subject to specific controls and requirements. Goods subject to import controls under the Open General Import Licence (OGIL) include firearms, anti-personnel mines, and certain nuclear and chemical goods. Some industrial goods need import licences as a result of controls imposed at national or UN level, which are issued by the Department for International Trade’s Import Licensing Branch(firearms, goods subject to import sanctions, etc.). The ILB also issues Certificates of Free Sale (CFS) to UK exporters, mostly for products that come into contact with humans (e.g. cosmetics), from countries that have lower product safety standards and enforcement than the UK. Other government departments issue CFS for certain products including the:
Consult the dedicated page on the UK government’s platform to check whether goods need to be declared to UK customs. For a list of goods subject to import controls, click here.
Furthermore, from 1 January 2021 Brexit became effective and therefore trade relations between the EU and the UK are governed from now on by the Trade and Cooperation Agreement. To preserve their mutually beneficial trading relationship, the EU and the UK have agreed to create an ambitious free trade area with no tariffs or quotas on products, regulatory and customs cooperation mechanisms, as well as provisions ensuring a level playing field for open and fair competition, as part of a larger economic partnership. The Agreement prevents unnecessary technical barriers to trade, e.g. by providing for self-declaration of regulatory compliance for low-risk products and facilitations for other specific products of mutual interest, such as automotive, wine, organics, pharmaceuticals and chemicals. However, all UK goods entering the EU will still have to meet the EU’s high regulatory standards, including on food safety (e.g. sanitary and phytosanitary standards) and product safety. FTA conditions are not the same as those of the EU Customs Union and the Single Market. In particular:
For the list of goods imported into Great Britain from the EU that are subject to customs controls, click here.
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Latest Update: June 2023