For example, UK exports to exceeded UK imports from Middle Eastern countries by $10.5 billion in 2014.
The fact that United Kingdom earns these country-specific trade surpluses indicates UK competitive advantages albeit for a specific set of export products highlighted below.
Major product supply advantages provide a silver lining for the grim fact that United Kingdom carried the world’s second-biggest trade deficit during 2014, trailing only the United States weighing in at -$726.3 billion.
United Kingdom’s trade deficit in 2014 has decreased by 10.9% since 2010 when its negative balance stood at -$205.6 billion.
United Kingdom Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which United Kingdom earned the highest trade surpluses in 2014.
- Gems, precious metals: US$17.5 billion (50.6% of all product surpluses)
- Iron, steel: $3 billion (8.8%)
- Other chemical goods: $2 billion (5.8%)
- Beverages, spirits, vinegar:$2 billion (5.7%)
- Collector items, art, antiques: $1.9 billion (5.4%)
- Books, newspapers, pictures: $1.6 billion (4.6%)
- Tanning, dyeing extracts: $1.1 billion (3.2%)
- Optical, technical, medical apparatus: $447.5 million (1.3%)
- Raw hides, skins not furskins, leather:$291 million (0.8%)
- Coated textile fabric: $189.7 million (0.5%)
The above top 10 product categories represent 86.8% of United Kingdom’s overall product-category surplus subtotal which amounted to $34.7 billion. For that subtotal, 18 of United Kingdom’s 97 general product categories delivered a surplus in 2014 while the remaining 79 categories incurred deficits.
Growth
United Kingdom enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Lead: Up 1,158% since 2010 (US$143.7 million)
- Wool: Up 621.2% ($92.2 million)
- Beverages, spirits, vinegar: Up 222.8% ($2 billion)
- Other chemical goods: Up 81.2% ($2 billion)
- Tanning, dyeing extracts: Up 28.1% ($1.1 billion)
- Iron, steel: Up 27.6% ($3 billion)
- Photo/cinematographic goods: Up 25.1% ($100.3 million)
- Raw hides, skins not furskins, leather:Up 10% ($303.9 million)
- Coated textile fabric: Up 7% ($214.9 million)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled United Kingdom to achieve the highest surpluses in its international trade with other countries.
- Gold (unwrought): US$17.3 billion
- Aircraft parts: $7.6 billion
- Alcohol (including spirits, liqueurs): $7.2 billion
- Turbo-jets: $5.2 billion
- Iron or steel scrap: $2.7 billion
- Medication mixes in dosage: $2.2 billion
- Piston engines: $2.1 billion
- Iron or non-alloy steel products (semi-finished): $1.5 billion
- Hand-drawn paintings, drawings: $1.5 billion
- Platinum (unwrought): $1.5 billion
- Initiators/accelerators, catalytic preps: $1.4 billion
- Printed books, brochures: $1.2 billion
- Heavy machinery (bulldozers, excavators, road rollers): $1.2 billion
- Copper waste, scrap: $1.1 billion
- Jewelry: $1 billion
Among these, semi-finished iron or non-alloy steel products had the fastest-growing UK surplus with a 3,991% gain since 2010. In second place was unwrought gold up 2,025% while exported hand-drawn paintings and drawings moved ahead in value by 212.3%.
United Kingdom Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners United Kingdom earned the highest trade surpluses in 2014.
- Switzerland: US$24.5 billion (30% of UK country-specific surpluses)
- Ireland: $9.9 billion (12.1%)
- Hong Kong: $8.8 billion (10.8%)
- United Arab Emirates: $8.8 billion (10.7%)
- United States: $5.6 billion (6.8%)
- Saudi Arabia: $4.2 billion (5.2%)
- Singapore: $4.1 billion (5%)
- Australia: $2.8 billion (3.5%)
- Azerbaijan: $830.1 million (1%)
- Macedonia: $822.5 million (1%)
The above 10 trade partners represent 86% of United Kingdom’s subtotal surplus of $81.8 billion from the 126 geographic entities with which United Kingdom demonstrated competitive trade advantages. That subtotal excludes the 100 geographic entities with which United Kingdom incurred trade deficits.
Growth
United Kingdom enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Guinea-Bissau: Up 6,452% since 2010 (US$65.8 million)
- Christmas Islands: Up 5,871% ($1 million)
- Togo: Up 917.5% ($296.7 million)
- Anguilla: Up 890.4% ($8.3 million)
- Northern Mariana Islands: Up 750% ($425,000)
- Singapore: Up 709.6% ($4.1 billion)
- Saint Lucia: Up 558.6% ($11.8 million)
- Bulgaria: Up 557% ($144.8 million)
- Serbia: Up 500.5% ($67.5 million)
- Switzerland: Up 495.2% ($24.5 billion)
From the above list, United Kingdom mostly showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts. However, United Kingdom did generate multi-billion-dollar positive trade balances with Singapore and Switzerland.
Switzerland
Below are the products that gave United Kingdom the highest surpluses in its international trade with Switzerland.
- Gold (unwrought): US$25.1 billion (82.4% of United Kingdom’s product-specific surplus vs. Switzerland)
- Jewelry: $902.1 million (3%)
- Hand-drawn paintings, drawings: $590.9 million (1.9%)
- Cars: $501.4 million (1.6%)
- Precious metal waste, scrap: $434 million (1.4%)
- Heterocyclics, nucleic acids: $203.6 million (0.7%)
- Turbo-jets: $172.1 million (0.6%)
- Aircraft, spacecraft: $160.4 million (0.5%)
- Hydrazine/hydroxylamine derivatives: $145.9 million (0.5%)
- Sculptures, statues: $136.1 million (0.4%)
Among these, sculptures and statues had the fastest-growing UK surplus with Switzerland posting a 695.9% gain from 2010 to 2014. In second place were heterocyclics and nucleic acids up 330.9% followed by hand-drawn paintings, drawings ahead by 139.9%.
Ireland
Below are the products that gave United Kingdom the highest surpluses in its international trade with Ireland.
- Processed petroleum oils: US$2.6 billion (17.5% of United Kingdom’s product-specific surplus vs. Ireland)
- Petroleum gases: $1.3 billion (9%)
- Cars: $590.3 million (4%)
- Beauty/makeup/skin care preparations: $260.5 million (1.8%)
- Crude oil: $228.6 million (1.5%)
- Women’s clothing (not knit or crochet): $215.7 million (1.5%)
- Not concentrated/unsweetened milk, cream: $213.9 million (1.4%)
- Light vessels, fire boats, floating docks: $213.9 million (1.4%)
- TV receivers/monitors/projectors: $206.8 million (1.4%)
- Non-alcoholic drinks (not water/juice/milk): $196.7 million (1.3%)
Among these, light vessels, fire boats and floating docks had the fastest-growing UK surplus with [Ireland up dramatically from just $4,000 in 2010. In second place was not concentrated and unsweetened milk and cream up 40.9% followed by exported cars ahead by 39.3%.
Hong Kong
Below are the products that gave United Kingdom the highest surpluses in its international trade with Hong Kong.
- Gold (unwrought): US$4 billion (40.3% of United Kingdom’s product-specific surplus vs. Hong Kong)
- Turbo-jets: $1.2 billion (12%)
- Platinum (unwrought): $643 million (6.5%)
- Jewelry: $528.8 million (5.4%)
- Phone system devices: $418.4 million (4.2%)
- Hand-drawn paintings, drawings: $343.3 million (3.5%)
- Cars: $278.1 million (2.8%)
- Wine: $254.1 million (2.6%)
- Antiques (over 100 years old): $182.9 million (1.9%)
- Diamonds (unmounted/unset): $118.3 million (1.2%)
Among these, unwrought gold had the fastest-growing UK surplus with Hong Kong up dramatically from just $190,000 in 2010. In second place were antiques older than 100 years which were up 674.8% followed by hand-drawn paintings, drawings ahead by 365.8%.
See also United Kingdom’s Top 10 Exports, Highest Value UK Export Products, United Kingdom’s Top 10 Imports and United Kingdom’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 14, 2015
Trade Map, International Trade Centre. Accessed on December 14, 2015
Investopedia, Net Exports Definition. Accessed on December 14, 2015