Every new challenge presents opportunities

Dorothy L Lutter, Senior Commercial Officer, US Commercial Service, looks at how the trade and investment relationship between the UK and US will weather the current economic storm

The special relationship between the US and the UK is nowhere more evident than in our trade and investment ties. With total bilateral trade in goods and services valued at around $211bn, the US/UK trade relationship is one of the largest in the world.

The foreign direct investment partnership between the US and the UK is equally impressive and is the largest in the world, with a bilateral investment stock valued at $810 bn. By the end of 2007, US direct investment in the UK was valued at nearly $400bn, representing 14% of all US foreign direct investment (FDI) around the globe and 26% of USFDI in Europe.

UK direct investment in the US had reached over $410bn, representing 20% of all FDI in the US. Over the years, over two million jobs, about one million in each country, have been created to manage and drive this flow of investment which also fuels our important trading relationship.

However, our strong trade and investment ties are presently facing the unprecedented challenge of the global economic downturn and related business and market uncertainties. Although in 2008 US exports to the UK grew by nearly 7% to reach $53.8bn and UK exports to the US increased by 3% to reach $58.6bn, in the last quarter of 2008, bilateral trade declined by 10% compared to the same period in the previous year.

Nonetheless, every new challenge presents opportunities. While our governments undertake measures to shore up financial systems, to instill business confidence, and to create new jobs, it is important to find ways in which to keep the momentum of trade and investment moving forward. Bolstered by the efforts of many businesses and organizations on both sides of the Atlantic, our trade and investment relationship will manage to weather the current economic storm.

The US Commercial Service in the UK is proud of our ongoing relationship with BritishAmerican Business. We look forward to continuing this close co-operation in these challenging times to support our mutual trade and investment goals.

For more information, contact:
American Embassy
US Commercial Service
24 Grosvenor Square
London, W1A 1AE
Tel: +44 (0) 20 7894 0419
E-mail: London.Office.Box@NoSPAM.mail.doc.gov
Website: www.usembassy.org.uk

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