Strength in the face of uncertainty
Nick McInnes, Director, UK Trade and Investment USA, looks at why the bilateral commercial relationship between the US and UK has never been more important
I returned to the US at the beginning of last year to take up my appointment as Director of UK Trade & Investment US network. As I like to point out to people, my first day was in fact the day of President Obama’s Inauguration so – at the time of writing this foreword – we have both been in our jobs for about 15 months.
I wouldn’t obviously compare the challenges I have had to face at UK Trade & Investment US with those faced by the President in this time, but it has still been a challenging time to be UK Trade & Investment US Director given the global downturn of the last 18 months.
However, I am very pleased that the UK Trade & Investment US network still managed to hit all of its quantitative targets in 2009/10 for assisting UK companies looking to grow their business in the US and for supporting US investment into the UK. I think this is a tribute to the UK Trade & Investment US network’s continuing hard work and enthusiasm, but it also reflects the inherent strength of the bilateral economic relationship between the UK and the US.
The US remains the UK’s top export destination and our second-largest trading partner. The UK is the US’ sixth-largest trading partner. Two-way trade in goods last year between the UK and the US – while affected by the downturn – was still worth £62 billion, with UK exports to the US amounting to £33.5 billion and imports from the USA worth £28.5 billion. Total services trade between the UK and the US was of a similar order of magnitude.
The UK remains the largest foreign investor in the US. UK investment supports nearly one million American jobs – in every sector across every State – and was worth $454 billion at the end of 2008. These jobs also tend to be high-value jobs with average compensation significantly above the average US wage. Similarly, the US is the largest foreign investor in the UK, with US investment worth $421 billion at the end of 2008 and American companies employing just over one million people in the UK.
UK Trade & Investment – the UK government organization that supports British companies doing business in international markets and foreign companies looking to invest in the UK – is committed to strengthening the bilateral economic relationship through its extensive network of offices in the UK Trade & Investment US and its teams in the UK. UK Trade & Investment US provide a range of tailored services for UK firms looking to enter or develop their presence in the US market and expert support and advice to potential US investors looking to make the UK their springboard for international growth.
The UK – like all of the developed economies – was obviously hit by the global recession and, arguably, more than most because of the size of our financial services sector and also its exposure to the banking crisis. However, the UK is coming out of the recession with its basic economic fundamentals intact and in a reasonable place to benefit from a resumption in growth of trade and investment.
The UK has one of the developed world’s most flexible labor markets and is as open as any economy in Europe to trade and foreign investment. Britain has consistently been ranked as one of the best places in the world to start and build business.
The OECD rates the UK for having the lowest barriers to entrepreneurship in the OECD. The World Bank ranks the UK top in Europe for ease of doing business. The UK is the sixth-largest manufacturing nation – which may be surprising to some given the press comment that I have seen in the last year suggesting that the UK doesn’t make anything anymore – and is a world leader in sectors such as creative industries, pharmaceuticals, life sciences and information technology. The UK is investing heavily in low-carbon initiatives, wind power, renewable energy and other green industries. And the City of London continues to have the greatest concentration of financial and business services expertize in the world.
I regard BritishAmerican Business as a key stakeholder for UK Trade & Investment – in our efforts to strengthen the bilateral economic relationship – and have already interacted with many BABC chapters in the UK Trade & Investment US in my 15 months as Director.
It gives me great pleasure therefore to contribute this article to BritishAmerican Business 2010.
For more information on UK Trade & Investment US, contact the UKTI team at::
Tel: +44 (0)20 7215 8000
Website: www.ukti.gov.uk
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