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|
|🇨🇿 Czech Repbulic||1.1%||1.8%|
|🇪🇺 Total EU 28||100%||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.
What’s in the Bag?
In any trade relationship, it’s also worth examining what types of products and services are switching hands.
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.
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.
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.
This is How Much NATO Countries Spend on Defense
How much does each country in the military alliance contribute to NATO defense spending? We break it down with this map.
This Is How Much NATO Countries Spend on Defense
The North Atlantic Treaty Organization (NATO) exists for the sole purpose of facilitating a political and military alliance between almost 30 countries. All are obligated to one another in times of war, but some countries have much stronger militaries and defense systems than others.
Using data from NATO, this map reveals what each NATO member country spends on its own national defense.
Note: Numbers are 2021 projections.
Biggest NATO Defense Spenders
The U.S. spends more on defense than any other NATO country.
According to the 2021 estimates, U.S. defense spending will be close to $811 billion this year. On the other hand, the defense spending of all other NATO countries combined is projected to be $363 billion, meaning the U.S. will outspend all other countries by a whopping $448 billion.
|Rank||Country||Millions (USD) 2021p||Change (2014-2021)|
|#1||🇺🇸 United States||$811,140||24.0%|
|#2||🇬🇧 United Kingdom||$72,765||10.8%|
|#16||🇨🇿 Czech Republic||$4,013||103.2%|
|#28||🇲🇰 North Macedonia||$219||76.6%|
NATO is based on building up forces and equipment for the goal of joint security and defense. And, despite the pandemic, many members did increase their spending in 2020.
However, not all countries contribute equally. The agreed-upon target for European NATO members, for example, is to spend 2% of GDP on defense by 2024, but many countries are not on track to meet this goal.
Who Pays for NATO Itself?
One of the key pillars of NATO is collective defense: a commitment to the idea that an act of violence against one or more of its member states is an act of aggression towards all.
Collective defense, cooperative security, and crisis management are at the heart of NATO’s purpose and operations.
Apart from defense spending, running a transcontinental political alliance costs around $3 billion annually. So which countries foot the bill for these expenses?
|Country||Cost Share Arrangements
|🇺🇸 United States||16.36%|
|🇬🇧 United Kingdom||11.29%|
|🇨🇿 Czech Republic||1.06%|
Members have pre-arranged mechanisms to divide NATO alliance expenses evenly.
Getting into specifics, the members are paying for:
- Civilian staff wages and overhead costs of running NATO headquarters.
- Running strategic commands, joint operations, early warning and radar systems, training, etc.
- Defense communications systems, harbors, airfields, and fuel supplies.
The Future of NATO
While outright nation-on-nation conflict is becoming more rare, threats to the collective security of NATO allies have not disappeared.
While countries may have differing opinions over the exact amount each should contribute, rising expenditures are a sign that NATO is still a priority for the near future.
Map Explainer: Key Facts About Afghanistan
This map explainer looks at Afghanistan from a structural point of view, delving into geography and population patterns.
Map Explainer: Key Facts About Afghanistan
The country of Afghanistan has a long and complicated history of domination by foreign powers and conflict between factions within the country.
While Afghanistan is well covered in headlines and news stories, the lion’s share of this coverage is directly related to conflict. As a result, Afghanistan is viewed by many in Western countries as a war-torn desert, with conflict, ideology, and geopolitical power obscuring more practical information about the country and its people.
In the Afghanistan map graphic above, we step back and examine Afghanistan from a structural point of view. How does its unique landscape influence population patterns? How does this geography influence the economy and relationships with neighboring nations? Let’s dive in.
Mountain High, Valley Low
Afghanistan’s rugged landscape is defined by towering snow-capped mountains, fertile valleys, and expansive deserts.
First, the country has a wide variety of climate extremes. There is more than 100ºC (180ºF) separating the record high and low temperatures.
The extremes don’t stop at temperature though. Afghanistan has the sixth-highest elevation span in the world, with 7,234m (23,734 ft) between its highest and lowest point. Afghanistan is one of 44 landlocked nations in the world, which helps explain why its lowest point is so much higher than sea level.
For those living in North America, the country’s terrain has been compared to Colorado, with Kabul sharing similarities with Denver.
Where Do People Live in Afghanistan?
Settlement patterns in Afghanistan are similar to other countries in the region; people cluster where there is access to fresh water.
As the cartogram below demonstrates, a large portion of the country’s population is located around Kabul, and the region adjacent to the Kabul River.
The southwestern province of Nimruz is the most sparsely populated area in the country. The Wakhan Corridor—which connects Afghanistan to China—is also very sparsely populated, with about 14,000 total residents.
Key Facts About Afghanistan’s Demographics
Afghanistan has a very youthful population. The country’s median age of 19 years is one of the youngest in the world, and is low compared to its neighbors Pakistan (24) and Iran (30).
Islam is the official state religion of Afghanistan. 99.7% of the Afghan population are Muslim, one of the highest proportions of the 49 Muslim-majority countries.
So far in 2021, the OCHA estimates that 550,000 people in Afghanistan are “internally displaced” due to conflict, and this number may rise still as new data tracks the final days of the Taliban’s takeover of the country. The majority of those displaced persons are children.
Paving the Way
The Ring Road connecting Afghanistan’s major cities began in the 1960s but was soon cut short by war. After the U.S. took control in 2001, new road construction began in earnest.
Between 2002 and 2016, USAID and the Department of Defense (DoD) spent approximately $2.8 billion building and maintaining Afghanistan’s road infrastructure. This number doesn’t include additional investment from other sources that poured in to improve the country’s road network.
The result is a more comprehensive road network, but one that is difficult to maintain. A 2016 report found collapsed bridges and sections of road around the country that were washed out.
Resources and Relationships
Afghanistan is a critical source of fresh water for the arid region. Several major regional rivers flow from the country’s mountainous eastern provinces into neighboring countries, so any new irrigation schemes and dam infrastructure will come with a geopolitical price tag as well.
Already in the recent past, tensions have increased with Iran and Pakistan over the flow of water crossing the border.
Outside countries are also very interested in Afghanistan’s rich mineral resources. Decades of near-continuous conflict have made mining a tough proposition in the country, but with growing demand for resources such as lithium and rare earths, that may soon change.
Afghanistan is estimated to have over $1 trillion of untapped mineral reserves, and outside interests are taking notice.
China said it was ready for “friendly and cooperative relations” with the new Taliban regime, and it’s possible that investment from China’s Belt and Road Initiative (BRI) may step in to fill the vacuum left by departing Western powers.
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