The UK-US trade relationship in five charts

As President Trump starts his visit to Britain, just how intertwined are the US and UK economies?

Trump - May at NATO Summit

The US is a major trade and investment partner for the UK - by some measures the biggest of all.

One issue on President Trump's agenda while he is in Britain will be whether - and how - to deepen that relationship.

So just how intertwined are the two economies?

As a single country the US is the largest export market for the UK. It is, however, well behind the EU when the bloc is viewed as a single market.

There is some logic to viewing the EU in that way, as it has a single external trade policy and most of its members share the same currency.

As a supplier of goods and services to the UK, the US comes in second, behind Germany.

Viewed from the other side, from President Trump's perspective, the UK is an important trade partner to the US.

For both imports and exports it comes behind the immediate neighbours, Canada and Mexico, with which the US has a trade deal: the North American Free Trade Agreement.

The US also does more trade with China (at least it does before the full effects of new tariffs are felt).

As a source of imports, the Germany and Japan are also ahead of the UK.

Bilateral UK/US trade has grown in the past few years, after period of relative stagnation in the aftermath of the financial crisis.

The chart below uses data from the Office for National Statistics (ONS) which suggest the UK exports more to the US than it imports. The US figures suggest the reverse.

In principle they cannot both be true. The ONS says there are many reasons why the figures might diverge and they are working on it.

The goods traded cover a wide range, but there a few types that stand out: aircraft coming (or flying) into the UK, as well as scientific instruments. Going the other way to the US: cars and works of art.

There is a substantial trade in both directions in medicines and power generation equipment.

There is also an important trans-Atlantic trade in services, including finance, business services and tourism.

The interconnections are also apparent in the data on foreign direct investment (FDI). This means either establishing a business operation, or taking a controlling interest in one already up and running - usually defined as holding of 10% or more.

For Britain, the US is the largest source of FDI, as a single country. However, depending on exactly what is being measured, the EU as a whole can come out ahead.

The US is also the largest destination for FDI abroad by British firms.

Looked at from the US end, the UK is an important investment partner. The UK came second, behind the Netherlands, as a place that American companies invest, accounting for 13% of the total.

And they seem to like operating here.

The US State department says the UK "hosts more than half of the European, Middle Eastern and African corporate headquarters of American-owned firms".

The UK is the largest source of FDI in the US, accounting for 15%.

Date: 12 July 2018 | Source: BBC

More UK News

Grenfell fire: Ban on combustible material 'not enough'

A committee of MPs say a wider ban on combustible material and requiring sprinklers would save lives..

The story of how one compilation came to rule them all

The full, untold story of Now That's What I Call Music - by the people who made it

Could a prime minister ever have a Brummie accent?

What difference does a person's accent make to getting on in politics

Pte Sean Benton: Coroner to rule on Deepcut army base death

A second inquest has been held after Pte Sean Benton died of gunshot wounds more than 20 years ago

The real cabbage soup diet: What Britons ate down the ages

Ancient Britons were eating dairy, peas, cabbage and oats, according to gunk trapped in their teeth..

Schools alone cannot fix childhood obesity, says Ofsted boss

Factors beyond the school gate make it impossible for schools to affect pupils' weight, says repor
View More

More Telford News

 Telford's Poundworld store avoids the axe

Telford's Poundworld store has avoided the axe after administrators announ..

 Plan is drawn up to tackle Telford cancer rates

A comprehensive plan has been drawn up to tackle the number of people dyin..

 Giant ducks causing a splash at new Southwater home in Telford - with pictures

The Let’s Go Quackers ducks have been causing a splash after landing in So..

 Shropshire knife crime: Young father is jailed for Telford street attack

A street scuffle in Telford led to one man being stabbed and another in ja..

 World Championship date in Italy for Telford schoolgirl

Shropshire schoolgirl Grace Garbett is jetting off to Italy this week to pa..

 Shropshire clubs serving up free tennis as part of the Great British Tennis Weekend

Five Shropshire clubs are preparing to serve up free tennis after signing u..
View More

Telford Businesses

Calendar Countdown

[[countdown here]]

Upcoming Events in Telford

21 Jul 2018

Saturday - 10am - 5pm

Sunday - 10am - 6.30pm

A ticketed charity gala open-air concert in aid of the Severn Hospice, Brass Night of the Proms, will take place on Saturday evening, 9th July from 7.30pm. Compered by BBC Radio Shropshire presenter, Eric Smith, it will feature the Ifton Colliery Band and the Band of the Royal Signals; covered seating will be provided, or bring a blanket and enjoy a picnic on the grass. Please visit the website for more information.

View Details

04 Aug 2018

Practice starts at 4pm on Friday 3 August

Racing starts on Saturday 4 August at 12noon and Sunday 6 August at 10.30am


View Details

04 Aug 2018

See above

Please check show links for ticket prices

View Details

04 Aug 2018

Saturday 4 August 2018


£35 - £45

View Details
View More