The Independent states that many companies are struggling to decide on importing and exporting as they are confused over which way Brexit is going to take their business, but just what will this mean for the British economy?
Alongside British brand Gola, who sell a variety of metallic trainers, we look at the UK’s imports and exports. We will take a look at the items we sell the most of, exactly what we’re buying in, and which countries are currently among our top import and export locations.
Which key phrases MUST you know?
Brexit is a tricky topic for many to understand but revising the key phrases which are used throughout may help you. Let’s take a look at some of the key terminology:
It’s important to recognise that the UK does export more to the US than any other country. However, when you class the EU as a whole with the same trade laws etc, rather than 27 separate countries, the EU imports more from the UK than the US by far.
What are the UK’s biggest exports?
You should bear in mind that exports and imports does not just mean physical goods. In the digital age, it’s so much easier to offer services as exports too. This is exactly what the UK does, via tourism, financial services, IT services, and more.
It has also been reported that in 2016 the UK’s top export item was cars, which accounted for 12% of the overall $374 billion export value that year. One of example of this is the world-renowned brand Mercedes-Benz, which offer a variety of cars, including the all new smart car.
It’s very true however that we export large quantities of food and drink. Abroad, items such as whisky and salmon are extremely popular.
Where does the UK commonly export to?
What were our top export destinations? In 2016, these were:
Again, it is worth considering that Europe as a whole accounted for 55% of our top export destinations. Its worth noting that China is one of the countries that the UK is hoping to agree a trade deal with following Brexit.
What currently does the UK import?
In fact, it’s interesting to note that the items we are importing are similar to those we’re exporting. Gold (8.2%), packaged medicaments (3.1%), cars (7.8%) and vehicle parts (2.5%) were among the top imports into the UK in 2016.
Where does the UK commonly import from?
The top origins of the UK’s imported products in 2016 were:
What does this mean for the British economy?
We exported £274 billion worth to the EU in 2017, while we imported £341 billion’s worth from the EU. In fact, Ireland, Sweden, Denmark, and Malta were the only countries in the EU that bought more from us than we bought from them. The country to which we have the biggest trade deficit to is Germany, who sold us £26 billion more than we sold to them. Although we have many popular products, the UK has a trade deficit to the EU because we import more from the EU than what we sell.
Facts also state that we have a £20 billion trade deficit with Asia. Alongside the US, we also have a trade surplus with Africa.
Trade deflects also can have a negative connotation however. This is because it is classed as another form of debt. With so much uncertainty surrounding how Brexit will affect our imports and exports deals, it remains to be seen how businesses in the UK will continue to trade abroad, and if certain focuses will shift.