Exploring the Economics of Trade Between the U.K. and the U.S.
The United Kingdom has a G.D.P. of $2.62 trillion, which translates to about 4.4 percent of the total global economy. Lately, the economy in the U.K. has grown by about 1.7 percent every year. This growth is attributed to an increase in demand for services and construction.
When it comes to trade, the United Kingdom is among the largest U.S. export markets and one of the most prominent import partners. Part of the reason why this is so is that both nations share a standard set of values and heritage, which, going by historical data, makes it that much easier for a healthy diplomatic trade relationship.
However, the U.K. recently took a stand and stopped being a part of the European Union. This move has brought in a great deal of tension, especially when it comes to trade economics. But that doesn’t apply to the trade relationship between the U.S. and the U.K. In fact, the British Currency and the U.S. Dollar exchange rates have always been within a 1 percent margin going by the statistics of 2016 and 2017.
In 2016, exports from the United States to the United Kingdom amounted to about $55.29 billion. This was a decline from the numbers in 2015, where the value of exports was determined to be somewhere in the region of $56.1 billion.
Some of the most lucrative exports were motor vehicles, electrical appliances and machinery, pharmaceutical products, and precious metals. Moreover, US-based ventures have a long-standing trade business where they deal with agriculture, fisheries, and forestry products.
Other products that have performed remarkably well in the U.K. market include snacks, alcoholic drinks such as wine and beer, and groceries.
Culture and Diplomacy
The good news is, there are plenty of resources for U.K. citizens who want to conduct business in the U.S. Although the two nations have the same language as a native means of communication, there is bound to be some confusion regarding particular dialects. But that is something that can be navigated through.
For a businessman who wishes to go to the U.S. for business reasons, it’s easier to apply for an ESTA visa by making an application through https://www.estaform.org/. This option is quicker than a conventional visa application and is valid for two years. Your stay, however, is limited to 90 days in the United States, so it’s essential to keep that in mind.
U.K. Imports to the U.S.
The United Kingdom ranks in seventh place when it comes to the largest imports source to the United States. In 2016 alone, the imports totaled about $54.27 billion, a slight decrease from $57.99 billion the previous year. Some of the most prominent imported goods included vehicles, refined oil products, packaged medical supplies, and nucleic acids.
Currently, the U.S. is the biggest export market in the United Kingdom. Presently, a consensus encourages companies to channel their energies towards lucrative sectors such as advanced engineering, creative media, professional finance consultation, clean energy, and power.
In 2015, exports to the U.S. amounted to 68.99 billion for services rendered. This was before the scheduled Brexit trade talks that took off in 2017. There were talks to ensure fluidity in trade between the two countries, despite the developments. These talks were meant to ensure a smooth transition and better trade practices between the two nations.