Cross investment is a significant part of the relationship, an indication of long term trading links and trust.
Alongside investment, the provision of services and trade in goods are substantial in both directions. Neither do we wish to separate them, when business levels in all sectors benefit from each other.
The 2022 combined total for goods and services aross the Atlantic was £263 billion, making the US Britain’s largest individual trading partner.
37,600 UK VAT registered businesses exported goods to the United States and 44,000 imported goods. Exchange in services was equally high, with financial and management services leading the way.
Should The Relationship Change
Since the UK left the EU, the focus has been on a UK-US trade deal. This may be of assistance but there is a danger of over-hyping the need to enhance a relationship which is already well established.
The UK government’s modelling estimates an increase in trade of 0.07-0.16% of GDP, depending on how far a deal went. Financial institutions in the US have offered similar figures and queried how possible a full deal is.
There is much natural alignment but stumbling blocks exist, particularly on food regulation and healthcare provison. Part of the reason talks have not progressed significantly since they began in May 2020.
Cultural differences are bound to exist within a country, let alone across nations. Nobody is suggesting that a deal wouldn’t be helpful but UK-US trade is already solid and was before we joined, or left the EU.
A UK-US trade deal would be beneficial but to a degree symbolic for the UK, a country looking to establish a changed place in the world.
Taking The Alliance Forward
With 16% of total UK trade going to the US, the two countries are well aligned. Even friends are bound to be competitive and rather than focus on any contention, we can move ahead on the areas we share.
Our cultures are close and this is reflected in media links, from advertising to film making. US creators often base themselves in the UK for European operations, British skills and talent can find a home in the US.
Trade shows in each country will normally have representatives from the other, from services specialists, to power generators, or aircraft manufacturers. All of these build long term trade and bring a requirement for temporary export.
Part Of The Relationship
With a substantial level of trade between the US and UK, a need to temporarily export goods is bound to arise. For a film crew, a scientific, or servicing trip, or a UK company attending a US trade show.
This helps to maintain and build longer term trade, a key purpose of ATA carnets. Knowing that you can travel between nations without delays, or additional cost encourages good business relationships.
If we can help with an ATA carnet for the USA, by all means get in touch with our friendly team. They value the trade they help to bring and the bond between two nations which has stood the test of time.