United Kingdom: Trade Profile

Foreign Trade in Figures

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).

Main Partner Countries

Source: Comtrade, last available data

Main Products

Source: Comtrade, last available data

To go further, check out our service Import/Export Flows.

Main Services

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.

Find out all the exchange rates daily on our service Currency Converter.

Trade Compliance

International Conventions

Member of the World Trade Organization (WTO)
Member of the Organisation for Economic Co-operation and Development (OECD)
Party to the Kyoto Protocol
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer
Party to the Wassenaar Arrangement on Export Controls For Conventional Arms and Dual-Use Goods and Technologies
Party to the International Coffee Agreement

International Economic Cooperation

The United Kingdom is a member of the following international economic organisations: IMF, Commonwealth, G-5, G-8, G-10, G-20, ICC, WHO, OECD, among others. For the full list of economic and other international organisations in which participates the United Kingdom click here. International organisation membership of the United Kingdom is also outlined here.

Free Trade Agreements

The complete and up-to-date list of Free Trade Agreements signed by the United Kingdom can be consulted here.

Party of the ATA Convention on Temporary Admissions and Use of the Carnets

Yes

As a Reminder, the ATA is a System Allowing the Free Movement of Goods Across Frontiers and Their Temporary Admission Into a Customs Territory With Relief From Duties and Taxes. The Goods Are Covered By a Single Document Known as the ATA Carnet That is Secured By an International Guarantee System.

Party of the TIR Convention

Yes

As a Reminder, the TIR Convention and its Transit Regime Contribute to the Facilitation of International Transport, Especially International Road Transport, Not Only in Europe and the Middle East, But Also in Other Parts of the World, Such as Africa and Latin America.

Accompanying Documents For Imports

- Bill of Lading
- Consular Invoices
- Certificates of Origin
- Commercial Invoices
- Dangerous Goods Certification
- C3
- C2
- Valuation Declaration and General Valuation Statement (GVS)
Further information on the website business link.

To go further, check out our service Shipping documents.

Free-trade zones

With the 2021 Budget, the UK government identified eight sites as post-Brexit freeports to boost trade, investment, innovation and economic recovery. The eight sites are: East Midlands Airport, Felixstowe and Harwich, Humber region, Liverpool City Region, Plymouth, Solent, Thames, and Teesside.
In order to make use of a UK Free Zone, an authorisation for a so-called "Freeport customs special procedure" is required.

For Further Information

Her Majesty's Revenue & Customs
The Department for Business, Enterprise and Regulatory Reform (BERR)

Non Tariff Barriers

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:

• Department for Environment Food and Rural Affairs for goods that come into contact with animals (such as veterinary medicines)
• Department of Health for medicines
• Medicines and Healthcare Products Regulatory Agency (MHRA) for medical devices
• Health and Safety Executive (HSE) for biocides
• Rural Payments Agency (RPA) for food, drinks or supplements.

 

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:

• Rules of origin will apply to goods in order to qualify for preferential trade terms under the agreement;
• The Agreement includes a Technical Barriers to Trade Chapter which builds on the WTO TBT agreement and addresses regulatory barriers to trade between the UK and EU (provisions on technical regulation, conformity assessment, standardisation, accreditation, market surveillance and marking and labelling);
• The Agreement includes a Sanitary and Phytosanitary Measures (SPS) Chapter which ensures that the UK and the EU can maintain fully independent SPS rules to protect human, animal and plant life and health, preserving each Party’s right to independently regulate, while not creating unjustified barriers to trade.

For the list of goods imported into Great Britain from the EU that are subject to customs controls, click here.

Sectors or Products For Which Commercial Disagreements Have Been Registered With the WTO

The United States have registered a complaint against the United Kingdom regarding the Customs classification of certain computer equipment. Further information on WIPO website.

Assessment of Commercial Policy

UK's commercial policy, as seen by the WTO

Contact the Chamber of Commerce

Contact the British Chamber of Commerce in the United Arab Emirates.

The UAE Chambers of Commerce

Contact the UAE Chamber of Commerce in the United Kingdom.
Contact the UAE Chambers.
Contact Dubai Chamber.
Contact Abu Dhabi Chamber.

Standards

National Standards Organisations

BSI Group, British Standards Institution

Integration in the International Standards Network

The UK is a member of the International Organisation for Standardisation and a full member of the International Electrotechnical Commission. It is also a member state of the International Telecommunication Union.
All EU standards remain in place until 31 December 2020, the date by which ends the transition period for the negotiation of a possible new trade arrangement between the UK and the EU. For the detail on possible future changes regarding certificates, authorisations, markings or labelling which take effect from 1 January 2021 following the UK's withdrawal from the EU and the end of the transition period please consult the European Commission's ‘BREXIT READINESS CHECKLIST’ FOR COMPANIES DOING BUSINESS WITH THE UK.
The UK continues therefore to be a member of the European Committee for Electrotechnical Standardisation (CENELEC), European Telcommunications Standards Institute (ETSI), European Committee for Standardisation (ECS), until the 31 December 2020, and remains to be seen whether the country continues its membership beyond that date.

Obligation to Use Standards

Most standards are voluntary although they can be made mandatory by law or regulation. Products are subject to the European Union's legislation (General product safety Directive, technical legislation) as well as to the national UK legislation.

Classification of Standards

There are over 27,000 British Standards in use and 2,000 are produced annually. CE is the European certification mark. It is compulsory for a country to be able to sell on the market. (Subject to change following the UK's withdrawal from the EU on the 31 December 2020).

Assessment of the System of Standardization

By complying with British Standards, suppliers demonstrate that their products or services are safe and fit for purpose. Customers look for the independent verification that technical standards provide. Certification marks earned by businesses whose products and practices consistently stand up to rigorous examination are instantly recognizable and act as respected badges of quality, safety and performance.

Online Consultation of Standards

The BSI Shop offers a full catalogue of standards and publications, many of which are available as PDF downloads; on-line catalog of European Standards; ISO catalog; IEC catalog.

Certification Organisations

The United Kingdom Accreditation Service. Follow this link for a list of accreditation standards

Associations of Standards Users

BSS is the UK member of the International Federation of Standard Users (IFAN).

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