Trade with the EU and with non-EU Countries

The 2015 July Budget Notes had the following fascinating graph:

This shows continuing growth of export trade to non EU countries with a lack of growth to EU countries. Non-EU countries accounted for 59% of all exports in the latest figures, a proportion that is growing rapidly. The government calculates a "Balance of Payments" figure that includes all transactions from exports and imports to money transfers. The deficit with the EU on this measure is shocking:

UK Balance of Payments EU and non-EU

The EU represents a vast loss to the UK economy of around £100 bn a year. The Balance of Trade, that includes only imports and exports is even clearer:

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEeirbqM_VU0f6LkFSzt4vir6gVTaorVOxActfA1DgHTnygkLtYZRL-9S-kMkJva1rt5UhO-T8D_0cUk4A3AEK4GqzU7iTLsFwvXshyA3p2_O6fODjIJ3BqsVEcUrVaYQUNHfms8rEcxs/s1600/balanceoftrade.jpeg

Data: ONS Balance of Payments 2014 - Goods & Services Excel Table

Being a member of the EU involves huge losses to the economy.

You might also be interested in: The Benefit of the EU for UK Trade and Industry.

First published 9/7/2015

Comments

lasancmt said…

First of all your graph of export values shows a pretty steady trading volume with the EU. As long if in actual value EU exports are not nose diving there is no need to hit any panic Buttons, i.e. #brexit

Eurosceptics like Dan Hannan MEP are always banging the drums that in percentage terms the EU economy is in long term decline. He forgets to inform his readers that with the developing economies of the so called BRic countries in the ascent, the law of percentages (total=100%) this inevitably means that the 25% percent that EU and USA used to represent (each!) must go down proportionally. So what if EU goes from 24% to 17%? As long as the EU economy doesn't 'contract' that's perfectly fine.

The EU still represents the largest single consumer market right on the UK's doorstep. With a per capita GDP ten times higher and transport costs ten time lower the EU remains the UK's single most important market and will represent 30% of our exports till way past 2030.

To say we must #brexit now and pin our hopes on fast growing but poor ( in terms of per capita GDP) Bric and commonwealth countries is nothing short of ignorant self destructing brexit propaganda.

There is nothing, absolutely nothing in terms of EU membership to stop Britain from building up trade with the rest of the world. Don't let silly little eurosceptic brexit blogs like this fool you with selectively chosen graphs fool you!

11 July 2015 at 03:56

John said…

A £100 billion per annum balance of payments deficit with the EU is not a trivial matter. Just saying that it is "selective" or of no consequence is not an argument.

11 July 2015 at 13:18

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