MARKET OVERVIEW

The United States and the United Kingdom are often described as having a special relationship.  This relationship is the natural outcome of our common history and culture, our shared support of the rule of law, our mutual belief in democracy, freedom and tolerance, and our commitment to free trade and open markets.

Our commercial ties represent one of the most important facets of this relationship.  The level of bilateral trade and investment between our countries is strong and growing.  Both our governments work to institute policies that will foster economic growth, encourage innovation and entrepreneurship, and promote free trade and fair competition.  In addition, record numbers of people from the United States and the United Kingdom travel back and forth to study, work, visit, and learn about one another's country.

The trade component of the U.S. – UK commercial relationship continues to be robust:

• The UK is our largest European export market and the fifth largest worldwide.
• Over 40,000 U.S. firms export to the UK.
• Total bilateral trade in goods and services increased 8% to $184 billion in 2006.
• U.S. exports to the UK in 2006 were $92.5 billion and consisted of $44.2 billion in goods and $48.3 billion in services. 
• Exports of U.S. goods grew by over 17% in 2006.
• Major exports to the UK include aircraft and aircraft engines; pharmaceuticals; IT equipment and parts; electronic components; automobiles and parts; and telecommunications equipment.

Investment data are equally impressive:

• The U.S. and the UK are the largest foreign investors in each other’s country.
• U.S. direct investment in the UK grew 12.5% to reach $ 364 billion in 2006.  In fact, 40% of overseas direct investment in the UK is from the United States.
• UK direct investment in the U.S. totaled $303 billion in 2006, a 2% increase over the previous year.
• Over one million citizens in each country worked for a company headquartered in the other nation.

The size and strength of the UK economy make it particularly attractive to U.S. exporters and investors:

• The UK is the world’s fifth largest economy with a 2007 GDP of $2.7 trillion ($39,000 per capita).
•  GDP growth was 3.1% in 2007.
•  The inflation consumer prince index (CPI) remained steady at 2.1.
•  The key Bank of England interest rate is currently 5.5%.
• Unemployment is 5.3%, one of the lowest rates in the EU; employment totals 29.36 million, an all time high.

Once in the market, U.S. firms find it easy to use the United Kingdom as a gateway to the rest of the EU.  The British Government supports the rights of any company registered in the United Kingdom, irrespective of the nationality of its ultimate parent.  All of these factors combine to make the United Kingdom an excellent market for U.S. exporters and investors.

View full guide - UK Country Commercial Guide (1134KB)