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Visualizing the UK and EU Trade Relationship

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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.

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Politics

Which Countries are the Most Polarized?

This chart plots polarization for various countries based on the Edelman Trust Institute’s annual survey of 32,000+ people.

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Which Countries are the Most Polarized?

How do you measure something that’s made headlines for half a decade but is still difficult to quantify? We’re talking about polarization.

Even within the social sciences, polarization covers everything from racial segregation, to labor skill levels, to class divide, to political ideology.

How Do You Quantify Polarization?

Edelman’s data on which countries are the most polarized comes from survey results asking respondents two very simple questions:

  • How divided is their country?
  • How entrenched is the divide?

The questions help bring to light the social issues a particular country is facing and the lack of consensus on those issues.

Plotted against each other, a chart emerges. A country in the top–right corner of the chart is “severely polarized.” Countries located closer to the lower–left are considered less polarized.

In the report, Edelman identifies four metrics to watch for and measure which help quantify polarization.

Economic AnxietiesWill my family be better off in five years?
Institutional ImbalanceGovernment is viewed as unethical and incompetent.
Class DividePeople with higher incomes have a higher trust in institutions.
Battle for TruthEcho chambers, and a low trust in media.

Following Edelman’s metrics, countries with economic uncertainty and inequality as well as institutional distrust are more likely to be polarized. Below, we look at key highlights from the chart.

Severely Polarized Countries

Despite being one of the largest economies in Latin America, Argentina is the most polarized country surveyed by a large margin. Foreign loan defaults, a high fiscal deficit, and now surging inflation have created a perfect storm in the country.

43% of the Argentinian respondents said they will be better off in five years, down 17 percentage points from last year.

Along with fiscal upheaval, Argentinians are also dealing with enduring corruption in the public sector and abrupt policy reversals between governments. Only 20% of those surveyed in Argentina said they trusted the government—the least of all surveyed countries.

Here are all six of the countries considered to be severely polarized:

    🇦🇷 Argentina
    🇨🇴 Colombia
    🇺🇸 United States
    🇿🇦 South Africa
    🇪🇸 Spain
    🇸🇪 Sweden

In the U.S., heightened political upheaval between Democrats and Republicans over the last few years has led to strengthening ideological stances and to an abundance of headlines about polarization. Only 42% of respondents in the country trust the government.

And in South Africa, persistent inequality and falling trust in the African National Congress also check off Edelman’s metrics. It’s also second after Argentina with the least trust in government (22%) per the survey.

Moderately Polarized Countries

The biggest cluster of 15 countries are in moderately polarized section of the chart, with all continents represented.

    🇧🇷 Brazil
    🇰🇷 South Korea
    🇲🇽 Mexico
    🇫🇷 France
    🇬🇧 United Kingdom
    🇯🇵 Japan
    🇳🇱 Netherlands
    🇮🇹 Italy
    🇩🇪 Germany
    🇳🇬 Nigeria
    🇹🇭 Thailand
    🇰🇪 Kenya
    🇨🇦 Canada
    🇦🇺 Australia
    🇮🇪 Ireland

Some are on the cusp of being severely polarized, including economic heavyweights like Japan, the UK, France, and Germany. On the other hand, smaller economies like Thailand, Kenya, and Nigeria, are doing comparatively better on the polarization chart.

Less Polarized Countries

Countries with fair economic outlook and high trust in institutions including China, Singapore, and India are in the bottom left sector of the chart.

    🇮🇩 Indonesia
    🇨🇳 China
    🇦🇪 United Arab Emirates
    🇸🇬 Singapore
    🇸🇦 Saudi Arabia
    🇲🇾 Malaysia
    🇮🇳 India

It’s interesting to note that of the seven countries in that sector, three are not democracies. That said, there are also more developing countries on this list as well, which could also be a factor.

Looking Ahead

Edelman notes that polarization is both “cause and consequence of distrust,” creating a self-fulfilling cycle. Aside from the four metrics stated above, concerns about the erosion of civility and weakening social fabric also lead to polarization.

Edelman polarization quote

As global events unfold in 2023—including looming worries of a recession—it will be fascinating to see how countries might switch positions in the year to come.

Where does this data come from?

Source: The 2023 Edelman Trust Barometer

Data note: Survey conducted: Nov 1 – Nov 28, 2022. Survey included 32,000+ respondents in 28 countries. Russia was omitted from this year’s survey. See page 2 of the report for more details.

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