United Kingdom’s Top Trading Partners

United Kingdom’s Top Trading Partners

by Flagpictures.org

Comprised of England, Northern Ireland, Scotland and Wales, the United Kingdom Republic is a sovereign state situated across from continental Europe’s north-western coast.

The United Kingdom shipped US$460.1 billion worth of products around the globe in 2015. That figure represents roughly 2.5% of overall global exports estimated at $18.686 trillion.

From a continental perspective, 53.6% of UK exports by value are delivered to European trade partners while 22.5% are sold to Asian importers. United Kingdom ships another 16.1% to North America but just 2.6% to Africa.

United Kingdom’s Top Trading Partners

Top 15

Below is a list showcasing 15 of United Kingdom’s top trading partners in terms of export sales. That is, these are countries that imported the most UK shipments by dollar value during 2015. Also shown is each import country’s percentage of total UK exports.

  1. United States: US$66.5 billion (14.5% of total UK exports)
  2. Germany: $46.4 billion (10.1%)
  3. Switzerland: $32.2 billion (7%)
  4. China: $27.4 billion (5.9%)
  5. France: $27 billion (5.9%)
  6. Netherlands: $26.6 billion (5.8%)
  7. Ireland: $25.5 billion (5.5%)
  8. Belgium: $17.8 billion (3.9%)
  9. Spain: $13.1 billion (2.8%)
  10. Italy: $12.9 billion (2.8%)
  11. United Arab Emirates: $10.3 billion (2.2%)
  12. Hong Kong: $9.6 billion (2.1%)
  13. South Korea: $7 billion (1.5%)
  14. Saudi Arabia: $6.7 billion (1.5%)
  15. Sweden: $6.6 billion (1.4%)

Almost three-quarters (72.9%) of UK exports in 2015 were delivered to the above 15 trade partners.

Among these top trade partners, UK imports to China rose in value at the fastest pace from 2011 to 2015 with a 94.2% gain.

In second place were South Korean importers, which grew their imports from the UK by 72.9%.

Saudi Arabia and United Arab Emirates boosted their imports purchases by 36% and 23.5%, respectively.

America’s imports from the UK increased by 5.7% over the 5-year period.

Deficits

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.

It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export countrydoesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.

In 2015, United Kingdom incurred the highest trade deficits with the following countries:

  1. Germany: -US$46.1 billion (country-specific trade surplus in 2015)
  2. China: -$33.9 billion
  3. Netherlands: -$20.3 billion
  4. Norway: -$14.1 billion
  5. Belgium: -$13.5 billion
  6. Italy: -$11.2 billion
  7. France: -$9.1 billion
  8. Spain: -$8.2 billion
  9. Canada: -$7.2 billion
  10. Poland: -$6.9 billion

Among United Kingdom’s trading partners that cause the greatest positive trade balances, UK deficits with France (up 406.6%), Spain (up 137.4%) and Belgium (up 118%) grew at the fastest pace from 2011 to 2015.

These cashflow deficiencies clearly indicate United Kingdom’s competitive disadvantages with the above countries, but also represent key opportunities for United Kingdom to develop country-specific strategies to strengthen its overall position in international trade.

Surpluses

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

In 2015, United Kingdom incurred the highest trade surpluses with the following countries:

  1. Switzerland: US$22.5 billion (country-specific trade deficit in 2015)
  2. United States: $9.1 billion
  3. United Arab Emirates: $8.8 billion
  4. Hong Kong: $6.7 billion
  5. Ireland: $6.4 billion
  6. Saudi Arabia: $4.3 billion
  7. Singapore: $4 billion
  8. Australia: $2.6 billion
  9. Azerbaijan: $865.2 million
  10. Macedonia: $762.5 million

Among United Kingdom’s trading partners that cause the greatest negative trade balances, UK surpluses with the United States (up 847.6%), Singapore (up 251.6%) and Brunei Darussalam (up 218.7%) grew at the fastest pace from 2011 to 2015.

These positive cashflow streams clearly indicate United Kingdom’s competitive advantages with the above countries, but also represent key opportunities for United Kingdom to develop country-specific strategies to optimize its overall position in international trade.

Companies

Companies Servicing UK Trading Partners

Ninety-one UK corporations rank among Forbes Global 2000 for 2015. Below is a sample of the major companies headquartered in the UK that Forbes listed:

  • BP (oil, gas)
  • Rio Tinto (diversified metals, mining)
  • GlaxoSmithKline (pharmaceuticals)
  • British American Tobacco (tobacco)
  • AstraZeneca (pharmaceuticals)
  • BG Group (oil, gas)
  • SABMiller (beverages)
  • Diageo (beverages)
  • Rolls-Royce Holdings (aerospace & defense)
  • Imperial Tobacco Group (tobacco)
  • Associated British Foods (food processing)
  • Anglo American (diversified metals, mining)

According to the UK Export Directory, the following are examples of established companies that ship products from the United Kingdom to its trading partners around the globe. Shown within parenthesis is the product category that the UK-based business specializes in.

  • Antech UK Hydraulics (hydraulic motors, other machinery)
  • Knight Plastics Ltd (plastic injection mouldings)
  • Absolute Battery (UK) Ltd (power supplies, batteries)
  • Advanced Technology Laboratories (UK) Ltd (electronics)
  • Global Communications UK Ltd (broadcast equipment, satellites)
  • Nippon Oil Exploration UK Ltd (oil, gas)
  • Trumpler UK Ltd (chemicals)
  • Gold Major Group (jewelry)
  • Johnson Pump (UK) Limited (rotary lobe pumps)
  • Diamond Offshore (UK) Ltd (drilling equipment)


 
See also United Kingdom’s Top 10 Imports, Highest Value UK Import Products, Highest Value UK Export Products and UK Major Trade Balances with America

Research Sources:
The World Factbook, Field Listing: Imports – Commodities, Central Intelligence Agency. Accessed on February 23, 2016

Trade Map, International Trade Centre, www.intracen.org/marketanalysis. Accessed on February 23, 2016

Investopedia, Net Importer Definition. Accessed on November 2, 2015

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on February 23, 2016

UK Export Directory, Import/Export Catalog for Sourcing from the United Kingdom. Accessed on November 2, 2015