Fascinating UK-EU Trade Figures & Facts
The UK’s exit from the European Union changed the way it trades goods and services with EU member states. In this overview of the latest UK-EU trade figures and facts, we’ll examine the current state of trade between the European Union and the United Kingdom. We’ll also take a look at Brexit’s effect on trade agreements and import taxes between the two sides. Finally, we’ll explore how — if at all — Brexit affected the UK’s trade with non-EU countries.
Top 10 UK-EU Trade Figures and Statistics
In September 2022, the UK exported $20.55 billion of goods to the EU.
The UK imported $29.24 billion of goods from the EU in September 2022.
The EU-UK trade deficit in September 2022 totaled $8.82 billion.
In 2021, 45.1% of exported goods from the UK went to the EU.
In 2021, 43.6% of imported goods to the UK came from the EU.
The United Kingdom’s exports to the EU fell by 13.1% in 2021.
The EU-UK trade is currently 20% lower than if Brexit hadn’t happened.
The value of customs duties for UK businesses went up by 64% in 2021.
UK businesses underpaid $31 million in import taxes in 2021 and 2022.
As of late 2022, the UK has signed 69 trade deals with non-EU countries.
Statistics on Trade Between the UK and the EU
In September 2022, the UK exported $20.55 billion of goods to the EU.
Valued at £16.8 billion in local currency, the exports were down by 5.6% from £17.8 billion ($21.79 billion) in August 2022. This fall was primarily driven by declines in machinery and fuel exports. Overall, the United Kingdom’s exports to the European Union accounted for 51.2% of the total exports in September 2022 — a slight decrease from 51.6% the previous month.
(Office for National Statistics)
Machinery and transport equipment are the top UK exports to the EU.
At £5 billion ($6.12 billion), machinery and transport equipment made up the largest share of exports to the European Union in September 2022. Fuels ranked second at £4 billion ($4.89 billion), with chemicals ranking third at £2.8 billion ($3.43 billion). Raw materials at £1.7 billion ($2.08 billion) and food and live animals at £0.8 billion ($0.98 billion) rounded out the top five.
(Office for National Statistics)
The UK imported $29.24 billion of goods from the EU in September 2022.
Much like the exports, UK imports from the EU were also down month-over-month. Valued at £23.9 billion, the total was down by 8.4% from £26.1 billion ($31.96 billion) in August 2022, mainly due to a fall in chemical and fuel imports. On the whole, imports from the EU accounted for 44.9% of all UK imports in September 2022 — down from 46.4% the month before.
(Office for National Statistics)
Transport equipment is also the top import from the EU to the UK.
Along with machinery, transport equipment imports from the EU in September 2022 totaled £8.9 billion ($10.89 billion), making them the country’s top import. Meanwhile, chemicals ranked second at £4 billion ($4.89 billion). The monthly top five also included raw materials and food and live animals at £2.7 billion ($3.3 billion) each, as well as fuels at £1.2 billion ($1.47 billion).
(Office for National Statistics)
The UK-EU trade deficit in September 2022 totaled $8.82 billion.
Sitting at £7.2 billion in domestic currency, the number represents the difference between the values of imported and exported goods. In August 2022, the deficit stood at £8.3 billion ($10.16 billion), meaning it had decreased by 13.2% month-over-month. Looking at the data for 2022’s entire third quarter, the UK’s trade deficit with the EU stood at £23.8 billion ($29.14 billion) — a 24% decrease from the £31.3 billion ($38.32 billion) deficit recorded in 2022’s second quarter.
(Office for National Statistics)
In 2021, 45.1% of export goods from the UK went to the EU.
With exports totaling £151.9 billion ($186.17 billion), the EU is the United Kingdom’s largest export partner. Compared to 2020, exports to the European Union were up by 4.3% from £145.7 billion ($178.57 billion). As for individual EU member states, the UK’s biggest export partners in 2021 were Germany at £29.8 billion ($36.52 billion), the Netherlands at £26.9 billion ($32.97 billion), Ireland at £21.2 billion ($25.98 billion), and France at £19.2 billion ($23.54 billion).
(UK Trade Info)
In 2021, 43.6% of import goods to the UK came from the EU.
The EU is also the UK’s single largest import partner, with total imports in 2021 valued at £218.2 billion ($267.43 billion). But unlike exports, imports from the EU were down by 4.5% from £228.6 billion ($280.17 billion) in 2020. Looking at individual EU countries, the biggest import partners in 2021 were Germany at £53.8 billion ($65.94 billion), the Netherlands at £30.1 billion ($36.89 billion), Belgium at £22.4 billion ($27.45 billion), and France at £21.2 billion ($25.98 billion).
(UK Trade Info)
UK Trade With the EU After Brexit
Brexit altered the trading terms between the United Kingdom and the EU.
Before Brexit, the UK was part of the unified EU market, which allowed for the free flow of goods and services from and to other EU member states. But as the UK announced its plans to leave the EU, the two parties negotiated a new trade deal. Dubbed the UK-EU Trade and Cooperation Agreement, the document introduced full customs requirements and checks on exports to the EU (as of January 1, 2021) and imports to the UK (phased in gradually throughout 2022).
(Office for Budget Responsibility)
The United Kingdom’s exports to the EU fell by 13.6% in 2021.
Although the numbers from the UK government paint a different picture, Eurostat’s data shows that the value of EU imports from the UK fell from €169 billion ($178.25 billion) in 2020 to €146 billion ($153.99 billion) in 2021. Compared to 2019, EU imports dropped by 25%. Meanwhile, the value of the EU’s exports to the UK saw an increase, suggesting that the EU-UK Trade and Cooperation Agreement may have been more beneficial for the EU than the United Kingdom.
(Eurostat, The Guardian)
The EU-UK trade is currently 20% lower than if Brexit hadn’t happened.
According to a recent report, the level of trade from the UK to the EU is 16% lower than it would have been had the UK remained in the European Union. At the same time, the trade from the EU to the UK is one-fifth lower than it would have been. The authors note that Brexit’s impact isn’t that vast in the context of the UK’s growing trade with other countries. However, with the EU’s international trade increasing much faster than the UK’s, the Brexit effect is extensive.
(Economic & Social Research Institute, The Guardian)
UK-EU Trade: Customs Duties After Brexit
After Brexit, all EU imports became subject to the three main taxes.
These include customs duties (or tariffs) on imported goods, value-added tax (VAT), and excise duties on tobacco and alcohol. Since January 1, 2021, travelers arriving in the UK from the EU are allowed to bring £390 (about $478) worth of goods and specified small quantities of alcohol and tobacco without having to pay any of these taxes. Any values and quantities that surpass the legally allowed minimum are subject to these taxes, as defined by the UK-EU trade deal.
(Institute for Government)
Ecommerce orders and gifts from the EU are now subject to UK taxes.
As of January 1, 2021, items worth up to £135 (around $165) ordered from EU websites should have the UK VAT added to the price by the retailer. Orders that exceed this value are subject to the import duty from the EU to the UK, which ranges from 0% to 25%, depending on the item. Additionally, gifts sent from the EU are liable to the UK’s import VAT if their value exceeds £39 (around $47). If they’re worth more than £135, the recipients may also have to pay import duty.
(The Guardian, UK Government)
The value of customs duties for UK businesses went up by 64% in 2021.
Driven by the increase in import duty from the EU to the UK after Brexit, British businesses spent a total of £4.5 billion ($5.52 billion) on customs duties between January 31, 2021 and January 31, 2022. The number marked a 64% increase from the £2.9 billion ($3.55 billion) recorded in the preceding 12 months. Analysts predict a further increase as many companies are opting to delay customs declarations due to the increasing administrative load post-Brexit.
(Innovate Tax)
UK businesses underpaid $31 million in import taxes in 2021 and 2022.
Failure to comply with the regulation demanding companies to prove their imports’ EU origin has forced many of them to pay an exorbitant import tax from the EU to the UK. According to HM Revenue & Customs, large UK businesses underpaid more than £25.3 million worth of import taxes between April 5, 2021 and April 5, 2022. The value of underpayment (also known as “tax under consideration”) was up by 3,980% from £620,000 ($759,960) the previous financial year.
(Pinsent Masons)
UK Trade Outside the EU
As of late 2022, the UK has signed 69 trade deals with non-EU countries.
As an EU member state, the UK was party to the Union’s 40 international trade agreements with 70 countries. After leaving the EU, the UK had to negotiate individual trade agreements with non-EU countries. The first deal was with Australia, followed by deals with Japan, New Zealand, and many others. As of late 2022, the UK government had signed new deals with 69 of the 70 countries the EU had agreements with, and it is still negotiating a trade arrangement with India.
(BBC, UK Government)
The UK imported $35.8 billion of goods from non-EU countries in September 2022.
At £29.2 billion in local currency, UK trade figures for September 2022 reveal non-EU imports were down by 3.3% from £30.2 billion ($37.02 billion) in August 2022. Experts attribute the decline to rising inflation and a drop in fuel imports. On the whole, imports from non-EU countries accounted for 55.1% of all UK imports in September — up from 53.6% in August.
(Office for National Statistics)
UK exports to non-EU countries totaled $19.6 billion in September 2022.
Valued at £16 billion, exports to non-EU countries were down by 4.8% from the £16.8 billion ($20.59 billion) recorded in August 2022. And while the share of goods exported to non-EU countries in September 2022 was on par with those exported to the EU (48.8% vs. 51.2%), the trade deficit with non-EU countries was significantly higher at £13.2 billion ($16.18 billion).
(Office for National Statistics)
China was the UK’s leading import partner for goods in 2021.
With import activity to the UK from the EU down in 2021, China was once again the United Kingdom’s leading import partner. At £63.6 billion ($77.96 billion), imported goods from China accounted for 13.3% of all UK imports in 2021. Among other goods, the UK imported £27.5 billion ($33.71 billion) worth of machinery and transport equipment, £5.5 billion ($6.74 billion) worth of consumer products, and £3.5 billion ($4.29 billion) worth of clothes from China in 2021.
(Office for National Statistics)
The US was the UK’s top export partner for goods and services in 2021.
In 2021, the UK exported £43.5 billion ($53.32 billion) worth of goods to the United States, accounting for 14.7% of all UK exports and making the US its biggest export partner for goods. The US is also the UK’s biggest export partner for services, with exports worth £85.1 billion ($104.31 billion) in 2021 — far ahead of second-placed Ireland at £19.5 billion ($23.9 billion).
(UK Trade Info, Statista)
UK-EU Trade: The Takeaway
Although the rising inflation has negatively affected the trade between the UK and the EU in recent months, the 2021 UK-EU trade figures suggest that Brexit hasn’t had much of a financial impact on the trading relationship between the two sides. The EU remains the UK’s biggest export and import partner for goods, with hundreds of billions of pounds in trade annually.
There is still reason for concern, though. For one, UK companies are paying significantly more in customs duties due to the new trade regulations. They’re also underpaying tens of millions more on import taxes than before Brexit. Finally, even though the UK’s trade with non-EU countries has increased, it’s still not where it would have been had it remained in the EU.
UK-EU Trade FAQ
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