UK Trade Environment

About UK Trade and Business environment

One of the safest and simplest places in the world to conduct trade and business is the UK. One
of the top-ranked nations in the World Bank's Ease of Doing Business index, it is home to the
most advanced corporate governance requirements, the most advanced business law, and
regulators that support innovation. Compared to the majority of other EU nations, the UK has
more lenient and flexible labor rules. The UK's trade and business environment is designed to
support companies' success, and the depth of knowledge and variety of products and services
offered to financial and professional services are unmatched.

Trade of the UK
The UK economy has historically been heavily dependent on trade. The combined value of
imports and exports accounts for almost half of the nation's GDP. (By comparison, the value of
international trade is roughly equal to one-fifth of US GDP.) The volume of the United
Kingdom's imports and exports has increased considerably in recent years. Machinery, cars and
other forms of transportation, electrical and electronic equipment (including computers),
chemicals, and oil are among the main British exports.
Trade between the United Kingdom and other wealthy nations is rising. Trade flows saw a
significant shift as a result of joining the European Economic Community. Although the United
States remained the United Kingdom's sole largest export market and a significant supplier, the
majority of commerce at the start of the twenty-first century was with the European Union's
members.
The United Kingdom's current overall balance of payments, which historically had been largely
favorable (including trade in services and transfer payments), went into deficit from the middle
of the 1980s until the late 1990s as a result of visible imports (i.e., tangible goods imported)
exceeding visible exports. Foreign earnings increased when there was significant offshore
investment. The government has taken involvement in international trade organizations and
supports trade liberalization. The first balance-of-payments surplus in more than ten years was
achieved by the steady growth in exports of goods and services as well as in foreign earnings by
the late 1990s.

UK imports and exports

In 2021, the UK’s exports of goods and services totalled £636 billion and imports totalled £654
billion. The EU accounted for 42% of UK exports of goods and services and 45% of imports in
2021.
The UK generally imports more than it exports meaning that it runs a trade deficit. A deficit of
£154 billion on trade in goods was offset by a surplus of £136 billion on trade in services in
2021. The overall trade deficit was £18 billion in 2021.
The UK had a trade deficit with the EU of £25 billion in 2021 and a trade surplus of £7 billion
with non-EU countries.
The trade deficit with all countries narrowed to £12.6 billion in Quarter 3 of 2022 compared with
a £26.2 billion deficit in the previous Quarter. Exports increased by 9.2% in cash terms over this
period while imports increased by 1.8%.