Trading Partner Portal: United Kingdom
Overview
Interview Series Featuring California’s Key Trading Partners – Featuring Andrew Whittaker, British Consul General in San Francisco:
Cultural Parallels, Mutual Interests Form Core of Strategic Trading Partnership
CalChamber, August 14, 2020
| U.S.-U.K. Trade Dialogue Resumes; Future Meetings Planned CalChamber, March 30, 2022 Director Gives Analysis of UK Trade with US, California After Brexit CalChamber, March 2, 2021 A New Year, A New Deal: The UK’s Future Relationship with California |
Trade Overview
The United Kingdom is a unitary state composed by the countries of England, Wales, Scotland and Northern Ireland. The UK officially left the European Union on January 31, 2020, with a transition period that lasted until December 31, 2020. The two economies agreed to the EU-UK Trade and Cooperation Agreement which entered into force on May 1, 2021.
U.S. – United Kingdom Trade
Two-way trade between the United States and the United Kingdom was $138.53 billion in 2023 and the UK was the seventh largest importer of U.S. goods with a total value of $74.32 billion. Top exports to the UK were oil and gas ($11.44 billion), followed by chemicals ($10.95 billion), transportation equipment ($10.53 billion), primary metals ($9.1 billion), and computer and electronic products ($5.72 billion).
The U.S. imported $64.22 billion from the UK in 2023. Transportation equipment ($13.84 billion), chemicals ($10.68 billion), non-electrical machinery ($9.42 billion), goods returned ($5.08 billion), and computer and electronic products ($4.32 billion). (U.S. Department of Commerce)
U.S. – California Trade
The United Kingdom is California’s 9th largest export destination, with over $5.74 billion in exports in 2023. Chemicals brought in $1.82 billion followed by computer and electronic products, transportation equipment, non-electrical machinery, and miscellaneous manufactures accounting for $1.09 billion, $507 million, $357 million, and $311 million respectively.
In 2023, imports into California from the United Kingdom were approximately $4.19 billion. Top import categories were transportation equipment ($987 million), which made up 23.6% of the total, followed by computer/electronic products ($529 million), non-electrical machinery (493 million), reimports ($364 million), and chemicals ($292 million).
Investment Overview – FDI
Per the U.S. Department of Commerce, the U.S.-UK investment relationship is the largest in the world, valued at over $1.5 trillion in 2021 and creating over 2.6 million jobs, over one million in each country.
As of 2023, the U.S. direct investment position in the UK is roughly $1.06 trillion, and the UK position in the U.S. is roughly $630.6 billion. U.S. Department of Commerce, Bureau of Economic Analysis
UK was the third largest source of FDI in the U.S. in 2022. UK FDI in the U.S. contributed $6.9 billion to research and development and an additional $52.3 billion to expanding U.S. exports. In 2020, there were 1,222,800 U.S. workers who were employed by the U.S. affiliates of majority UK owned firms. The top industry sectors for British FDI in the US are business services, software and IT services, financial services, communications, industrial equipment, and transportation. (Select USA)
In California, the #1 largest source of FDI through foreign-owned enterprises (FOEs) is the United Kingdom. In 2023, British FOEs in California provided over 113,292 jobs through 1,946 firms amounting to $10.637 billion in wages. The top jobs by sector are professional/business services, manufacturing, leisure/hospitality, retail trade, and transportation/warehousing/utilities (World Trade Center Los Angeles FDI Report).
The UK has been pursuing trade with the U.S. by going from state to state, inking trade memorandums of understanding (MOU). In June 2023, the UK signed a state-level trade deal with Utah. Similar deals have been struck with Indiana, North Carolina, South Carolina, and Oklahoma. The trade MOUs aim to strengthen trade relations by establishing a framework to increase exports and spur investment, creating more jobs in the UK.
| UK Government Transition Check Portal Check How to Get Ready for New Rules in 2021 Look Up Tariffs, Taxes and Rules to Trade with the UK Check Duties and Customs Procedures for Exporting Goods from the UK |
Revealed: Joe Biden and Rishi Sunak Seek UK/US Trade Pact Before 2024 Elections
Politico, October 3, 2023
CalChamber Welcomes British Trade Minister to Quarterly Dinner with Other International Representatives
CalChamber, December 13, 2022
U.S., U.K. Strike Trade Deal to End Tariffs on British Steel and American Whiskey
The Wall Street Journal, March 22, 2022
United Kingdom Foreign Direct Investment in California
Los Angeles Economic Development Corporation, February 22, 2022
Global Britain in a Competitive Age: The Integrated Review of Security, Defence, Development and Foreign Policy
Government of the United Kingdom, March 2021
U.K. Names Eight Freeports in Bid to Boost Post-Brexit Trade
Bloomberg, March 3, 2021
A New Year, A New Deal: The UK’s Future Relationship with California
CalChamber, January 12, 2021
UK – US Free Trade Agreement
UK Department of International Trade, February 2020
United States-United Kingdom Negotiations: Summary of Specific Negotiating Objectives
U.S. Trade Representative, February 2019
Administration Announces Intent to Open Trade Talks with EU, UK, Japan
CalChamber, October 18, 2018
The Ideal U.S.-U.K. Free Trade Agreement: A Free Trader’s Perspective
CATO Institute, September 18, 2018
Readout of the 3rd Meeting of the U.S.-UK Trade and Investment Working Group and the 1st Meeting of the U.S.-UK SME Dialogue USTR, March 23, 2018
The United States and the United Kingdom held the third meeting of the U.S.-UK Trade and Investment Working Group on March 21-22 and the inaugural meeting of the new U.S.-UK Small and Medium-sized Enterprises (SME) Dialogue on March 20.
The Working Group, established in July 2017, works to deepen current trade and investment ties between the two nations and is laying the groundwork for a potential, future free trade agreement once the United Kingdom leaves the European Union. The Working Group discussions covered a range of topics, including industrial and agricultural goods; services, investment, intellectual property rights and enforcement; regulatory issues related to trade; and small and medium-sized enterprises
The inaugural meeting of the SME Dialogue brought together more than 100 U.S. and UK SMEs with government officials from both countries to discuss ways to deepen trade and investment and enhance SME cooperation, identify resources currently available from both governments to assist SMEs, and hear from SMEs on their specific challenges and opportunities when trading bilaterally. At the Dialogue, the U.S. and UK governments jointly released the guide to Doing Business in the U.S. and UK: Resources for Small Business as a key tool for SMEs seeking to benefit from U.S.-UK trade.
Priorities for a New EU-UK Economic Partnership
US Chamber of Commerce US-UK Business Council, September 2017
UK-US Trade and Investment Highlights
Gov.UK, March 2017
Brexit Explained: What’s Next on the UK’s Road Out of the EU
The Sacramento Bee, March 14, 2017
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CalChamber Issues Statement on Brexit Vote |
Tourism
Tourism
According to a February 2019 report by Visit California, 720,000 people visited California from the UK in 2017, spending approximately $1.03 billion, which is an average of $1,433 per visitor. Los Angeles and San Francisco were the top 2 destinations in the U.S. for tourists from the UK, followed by Las Vegas.
UK Market Profile
Visit California
Events
Events
CalChamber Welcomes British Trade Minister to Quarterly Dinner with Other International Representatives – Advocacy – California Chamber of Commerce
(December 13, 2022) On Thursday, December 8 the California Chamber of Commerce hosted members of the San Francisco Consular Corps, who make up some of California’s top trading partners, at the CalChamber Board of Directors dinner. In addition, the CalChamber was honored to host as a special guest United Kingdom Minister for Trade Policy Greg Hands. He was accompanied by British Consul General Joe White.
CalChamber-Hosted Lunch for UK Trade Secretary Provides Opportunity to Reiterate Shared Goals
(July 16, 2021) Technology, agriculture and the California and British economies were among the topics discussed when the California Chamber of Commerce hosted a small luncheon for Britain’s trade secretary on July 14.
The Sacramento stop by the Right Honorable Elizabeth Truss, member of Parliament, was part of a five-day visit to the United States.
CalChamber Luncheon Focuses on Understanding Brexit
(April 25, 2019) Brexit is the latest phenomenon in the western world presently characterized by shock and schism, a leading scholar explained yesterday at the California Chamber of Commerce.
“Brexit is the most profound crisis that Europe has had since the end of the Second World War,” Dr. Matt Beech, senior fellow at the Institute of European Studies at the University of California, Berkeley, told nearly 100 guests at the CalChamber International Luncheon Forum. The luncheon was sponsored by Suburban Water Systems, a CalChamber member.
Dr. Beech provided attendees with an analysis of the potential implications for the United States and specifically, trade in California, with Britain’s potential withdrawal from the European Union.
Meeting with New British Consul General (November 3, 2016) Today, CalChamber President and CEO Allan Zaremberg and Vice President of International Affairs Susanne Stirling met with Andrew Whittaker, the new British Consul General based in San Francisco. |
British Consul General Priya Guha Provides European Trade Insight to Californian Business Leaders
(December 4, 2015) CalChamber Council for International Trade hosts International Breakfast Friday, December 4, featuring British Consul General Priya Guha and GO-Biz Deputy Director of International Affairs Brian Peck. Consul General Guha provided insight on California relations with the U.K. and Europe, as well as information about the Transatlantic Trade and Investment Partnership (T-TIP). Brian Peck gave a brief update on the international activities of GO-Biz. Alert Story
CalChamber Hosts New British Consul General (January 19, 2012) Trade and investment were among the topics of discussion when the CalChamber hosted a meeting with the new consul general of the United Kingdom. Consul General Priya Guha was appointed to San Francisco in August 2011. She has responsibility for a seven-state area consisting of Northern California, Washington State, Oregon, Alaska, Idaho, Montana and Northern Nevada. |
London’s Lord Mayor Addresses CalChamber (August 7, 2003) Alderman Gavyn Arthur, the Right Honorable Lord Mayor of the City of London, speaks at a California Chamber International Luncheon Forum about London’s position at the core of international finance, globalization, European Union-U.S. trade, corporate governance and the Euro.
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British Ambassador Meets with CalChamber President (December 4, 2003) Sir David Manning, appointed as the British ambassador to the United States on September 2, visited with California Chamber President Allan Zaremberg yesterday as part of a stop in Sacramento to meet with Governor Arnold Schwarzenegger and other state leaders. Topics raised during the meeting between the Ambassador and Zaremberg included the current political and economic climate in California, trade relations between Great Britain and the United States, and the considerable British investment in California and its significance to the state’s economy. |
Key Country Contacts
Resources
CalChamber Resources
Business
Business
- U.S. Commercial Service UK
- British Chambers of Commerce
- UK Department of International Trade
- UK Trade and Investment
- British American Trade & Investment Guide 2015/16 Edition
- British American Business
- Confederation of British Industry
- Department of Business Innovation and Skills
- Department for International Development
- East London: Tech City Investment Organisation TCIO
- Euronext
- Scottish Development International
- ConnectIreland