Connect with us

Politics

Visualizing the UK and EU Trade Relationship

Published

on

uk trade with eu

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

Visualizing the UK and EU Trade Relationship

With Brexit solidified and a new trade deal having been struck between the UK and the EU, it appears that a sense of normalcy has returned to the European continent.

The Trade and Cooperation Agreement (TCA) between the two entities came into effect on January 1st, 2021, corresponding with the UK officially leaving the EU Single Market and Customs Union on the same day. The new deal will help the status quo of trade continue, but how important is trade between the EU and the UK?

This visualization, using data from the British House of Commons’ Statistics on UK-EU Trade Briefing Paper, reveals the significance of trade between the UK and EU member states.

Who Does the UK Trade With in the EU?

The EU is the UK’s biggest global trading partner, representing 47% of the country’s total trade.

To break it down further, the EU is the buyer of 42.6% of the UK’s total exports, while also being the source of 51.8% of their total imports. Here’s a closer look at exports and imports by country.

Country % of UK's Exports to the EU% of UK Imports from the EU
🇩🇪 Germany18.9%20.9%
🇳🇱 Netherlands14.2%13.8%
🇫🇷 France13.7%12.1%
🇮🇪 Ireland13.6%8.0%
🇮🇹 Italy6.9%6.8%
🇪🇸 Spain6.8%8.6%
🇧🇪 Belgium6.1%7.7%
🇸🇪 Sweden3.4%3.3%
🇵🇱 Poland2.6%3.9%
🇩🇰 Denmark2.2%2.2%
🇱🇺 Luxembourg1.8%1.0%
🇦🇹 Austria1.1%1.4%
🇨🇿 Czech Repbulic1.1%1.8%
🇫🇮 Finland 1.1%0.8%
🇵🇹 Portugal1.1%1.5%
🇬🇷 Greece0.9%1.0%
🇷🇴 Romania0.9%1.1%
🇭🇺 Hungary0.7%1.3%
🇲🇹 Malta0.7%0.2%
🇨🇾 Cyprus0.6%0.3%
🇸🇰 Slovakia0.5%0.9%
🇧🇬 Bulgaria0.3%0.4%
🇱🇹 Lithuania0.3%0.4%
🇱🇻 Latvia 0.2%0.3%
🇸🇮 Slovenia0.2%0.1%
🇭🇷 Croatia0.1%0.2%
🇪🇪 Estonia0.1%0.1%
🇪🇺 Total EU 28100%100%

The UK’s biggest trading partners within the EU are Ireland, Germany, the Netherlands, and France. Germany comes in at number one, making up nearly 21% of the UK’s imports and receiving almost 19% of the country’s exports.

Here’s a breakdown of the trade balances between the UK and the individual EU member states.

uk trade with eu

What’s in the Bag?

In any trade relationship, it’s also worth examining what types of products and services are switching hands.

Top Imports

The UK’s top three goods imports from the EU (in terms of percentage of total imports) are:

  • Motor vehicles (18%)
  • Pharmaceuticals (7%)
  • Electric machinery and appliances (4%)

Without the new agreement, goods would face tariffs based on the World Trade Organization’s standards. For example, motor vehicles, would have an average tariff of 10% imposed on them, without the provisions of the agreement.

The UK’s top three service imports from the EU are:

  • Travel (33%)
  • Business services (27%)
  • Transportation (18%)

Looking at services, the main import from the EU is travel, followed closely by business services and transportation. Travel makes the top three, as many countries in the EU make attractive vacation spots for UK citizens.

Top Exports

The UK’s top three goods exports to the EU (in terms of percentage of total exports to the EU) are:

  • Petroleum and petroleum products (12%)
  • Motor vehicles (10%)
  • Transport equipment (6%)

In terms of exports, petroleum is the UK’s largest export to the EU, representing 68% of the country’s total petroleum exports.

The UK’s top three service exports to the EU are:

  • Business services (33%)
  • Financial services (21%)
  • Travel (14%)

The main service export is business services, such as accounting, legal, advertising, R&D, engineering, and so on. Travel to the UK is a significant revenue generator as London is one of the top tourist destinations in the world.

EU vs. Global Trade

The UK’s relationship with other countries has remained steady. China is one of the country’s most important export destinations, growing 7% per year from 2010-2019.

At the same time, the UK’s exports to the United States have grown just over 4% per year over the same period, continuing to increase at a similar rate up to 2030.

uk trade with eu

While the UK currently has a £79 billion ($108 billion) trade deficit with the EU, they have a surplus of £49 billion ($67 billion) with non-EU countries. Additionally, the share of the UK’s exports going to the EU has been consistently falling over the last number of years. Foreign direct investment flows between the two entities have also been drastically reduced.

However, the UK and EU trade relationship is still highly intertwined and significant. Not only are the two connected through intangible flows but physically as well via pipelines, transport highways, and cables. In a typical year, 210 million passengers and 230 million tonnes of cargo are transported between the two entities.

The TCA will help to regulate these flows and continue a sense of status quo, however, it’s worth noting that if EU regulations are not met, tariffs could be imposed.

The Economist Intelligence Unit recently determined risk and resilience factors for different UK industries based on the agreement. The report found that the food & agriculture, automotive, and financial services industries are most at risk, due to interconnected supply chains and the risk of tariffs being imposed. The life sciences and tech industries stand to do the best.

The Trade and Cooperation Agreement

Overall, Brexit has had significant ramifications for all nations involved. Ireland, for example, is now geographically cut off from the EU, creating potential obstacles for both the movement of people and goods.

Now, after years of discussions, the UK and the EU have finally agreed to the terms for their new relationship, with a focus on sustainable trade, citizens’ security, and governance for long-standing cooperation, in order to guarantee a level playing field. The TCA has helped ease the transition, and while they’re no longer in a union, the UK and the EU have created a strong base for trade to continue normally.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.
Click for Comments

Business

How Powerful is Your Passport in a Post-Pandemic World?

Ranking the the world’s most powerful passports based on access to visa-free destinations. Where does your country fall on the list?

Published

on

How Powerful is Your Passport in a Post-Pandemic World?

With COVID-19 cases falling in many parts of the world and vaccination programs ramping up at warp speed, international travel no longer seems like a distant dream.

The Henley Passport Index, which has been regularly monitoring the world’s most travel-friendly passports since 2006, has released its latest rankings and analysis.

The most recent data provides insight into what travel freedom will look like in a post-pandemic world as countries selectively begin to open their borders to international visitors.

Prominent Countries Still Holding Strong

The rankings are based on the visa-free score of a particular country. A visa-free score refers to the number of countries that a passport holder can visit without a visa, with a visa on arrival, or by obtaining an electronic travel authorization (ETA).

Without considering the constantly changing COVID-19 restrictions, Japan firmly holds its position as the country with the strongest passport for the 4th year in a row.

This positioning is based on exclusive data from the International Air Transport Association (IATA)—with Japanese passport holders theoretically able to access a record 193 destinations from around the world visa-free.

The last time Japan didn’t hold the number one position was back in 2017, when it shared the 5th spot with countries like the United States, New Zealand, and Switzerland.

Rank (2021)CountryVisa-Free Score (2021)Rank (2011)Visa-Free Score (2011)
1🇯🇵 Japan1934170
2🇸🇬 Singapore1929164
3🇩🇪 Germany1912172
3🇰🇷 South Korea19110163
4🇫🇮 Finland1901173
4🇮🇹 Italy1903171
4🇱🇺 Luxembourg1903171
4🇪🇸 Spain1904170
5🇦🇹 Austria1896168
5🇩🇰 Denmark1891173

Singapore remains in 2nd place, with a visa-free score of 192, while Germany and South Korea again share joint-3rd place, each with access to 191 destinations.

Throughout the 16-year history of the Henley Index, EU countries have maintained a dominant position in the passport strength reports. Finland, Italy, Luxembourg and Spain all hold the 4th position while Austria and Denmark round up the top 5 with a visa-free score of 189.

CountryRank (2011)Rank (2021)Difference
🇺🇸 United States57-2
🇨🇦 Canada990
🇲🇽 Mexico29236
🇬🇧 United Kingdom37-4
🇧🇷 Brazil25178

The United States and the United Kingdom jointly share the 7th position with a visa-free score of 187 destinations. Canada, Mexico and Brazil hold the 9th, 23rd and 17th positions respectively, with Brazil experiencing a significant jump of eight places over the last 10 years.

Editor’s note: Visit the Henley Passport Index site for a full list and ranking of all countries around the world.

The Countries With The Least Travel Freedom

Afghanistan continues to be the country with the least amount of travel freedom, coming in last place (110th rank) with a visa-free score of 26 destinations. Iraq, Syria, Pakistan and Yemen have access to slightly more visa-free travel, but still linger at the bottom of the overall ranking.

Rank (2021)CountryVisa-Free Score (2021)Rank (2011)Visa-Free Score (2011)
110🇦🇫 Afghanistan2610124
109🇮🇶 Iraq2810028
108🇸🇾 Syria299337
107🇵🇰 Pakistan329931
106🇾🇪 Yemen339139

The latest report indicates that the gap in travel freedom is now at its largest since the index began in 2006. Japanese passport holders can access 167 more destinations than citizens of Afghanistan, who can visit only 26.

The Biggest Gainers In a Decade

Over time, small annual moves in the Henley Passport Index can make a big impact—and in the last decade, countries like China and the UAE have been the biggest movers:

China has risen by 22 places in the ranking since 2011 by going from a visa-free/visa-on-arrival score of 40 destinations to now 77.

The most remarkable turnaround story on the index by far, however, is the UAE. In 2011, the UAE was ranked 65th with a visa-free score of 67 destinations. Today, thanks to the Emirates’ ongoing efforts to strengthen diplomatic ties with countries across the globe, it is now ranked 15th with a remarkable visa-free score of 174 destinations.

Continue Reading

Politics

Mapped: The World’s Top Countries for Military Spending

Global military spending is now at a 32-year high. We show countries’ military spending by dollars and as a portion of GDP.

Published

on

Mapped: The World’s Top Countries for Military Spending

By practically any measure, the world today is more peaceful and less war-torn on a global scale, relative to the past.

For instance, declarations of war between nations and soldier casualties have both dropped drastically since the 20th century. Yet, military spending has not followed this trend.

The Top 10 Military Spenders

According to SIPRI, global military spend reached almost $2 trillion in 2020. The top 10 countries represent roughly 75% of this figure, and have increased their spending by $51 billion since the year prior.

Here’s how the worlds top 10 military spenders compare to each other:

RankCountryMilitary Spend 2020 ($B)% ChangeMilitary Spend 2019 ($B)
#1🇺🇸 United States $778.0+6.2%$732.0
#2🇨🇳 China$252.0-3.4%$261.0
#3🇮🇳 India$72.9+2.5%$71.1
#4🇷🇺 Russia$61.7-5.2%$65.1
#5🇬🇧 United Kingdom$59.2+21.5%$48.7
#6🇸🇦 Saudi Arabia$57.5-7.1%$61.9
#7🇩🇪 Germany$52.8+7.1%$61.9
#8🇫🇷 France$52.7+5.1%$50.1
#9🇯🇵 Japan$49.1+3.1%$47.6
#10🇰🇷 South Korea$45.7+4.1%$43.9
Total$1,481.6+3.5%$1,430.7

The U.S. isn’t labeled as a global superpower for nothing. The country is by far the largest military spender, and its $778 billion budget trumps the remainder of the list’s collective $703.6 billion. On its own, the U.S. represents just under 40% of global military spending.

This year, Saudi Arabia has lost out on a top five seat to the UK, after a 7.1% decline in spending compared to a 21.5% increase for the UK.

Military Spend as a Percentage of GDP

Military expenditures as a percentage of GDP can be used to compare military spending relative to the size of a country’s economy.

Military Spend as a Share of GDP

Click here to view a high-resolution version of this image.

When looking at things this way, many of the top spenders above do not appear. This may be an indication of their economic prowess or a demonstration that the money might be used for other vital areas such as education, healthcare, or infrastructure.

RankCountryRegionSpend as a % of GDP (2020)
#1🇴🇲 OmanMiddle East11.0%
#2🇸🇦 Saudi ArabiaMiddle East8.4%
#3🇩🇿 AlgeriaNorth Africa6.7%
#4🇰🇼 KuwaitMiddle East6.5%
#5🇮🇱 IsraelMiddle East5.6%
#6🇷🇺 RussiaEurope/Asia4.3%
#7🇲🇦 MoroccoNorth Africa4.3%
#8🇮🇶 IraqMiddle East4.1%
#9🇺🇦 UkraineEurope4.1%
#10🇵🇰 PakistanSouth Asia4.0%

It’s pretty rare for countries to reach double digits for military spending as a percentage of GDP. In this case, Oman is an outlier, as the Middle Eastern country’s spending relative to GDP grew from 8.8% last year, to 11% in 2020.

Many of the countries with the highest military spending to GDP are located in the Middle East—a reflection of the escalating conflicts that have persisted in the region for well over two decades.

It’s worth noting that some data for the Middle Eastern region are estimates, due to the aforementioned regional instability.

More Spending to Come?

Global military spending figures are at a 32-year high, despite the pandemic’s effect on shrinking economic output.

World Military Spend 1988-2020

Although a major war hasn’t occurred in some time, it’s not to say the geopolitical mood hasn’t been tense.

The last 12 months or so have witnessed some nail-biting moments including:

  • Border disputes between China and India
  • Heightening tensions between China and Taiwan
  • Russia’s military presence in eastern Ukraine
  • The hacking of SolarWinds, a Texas-based company, by Russia
  • The ongoing Yemen crisis
  • An Israel-Iran feud

Will 2021 extend the trend of peace, or will rising military spending mean even higher tensions?

Continue Reading

Subscribe

Join the 240,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular