The Treasurer’s Guide to Trade Finance

United Kingdom

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 2,431 bn Goods Exports 479

GDP per capita (USD) 38,951 Imports 639

GDP volume growth (year-on-year) + 0.8% Net – 160

Population 62.42m Services Exports 294

MMR (year average) 0.52% Imports 181

Exchange rate EUR / USD (year average) 1.6036 Net + 113

BoP (goods, services & income) as % of GDP – 0.5% Source: IFS, IMF, January 2013

International/Regional memberships

European Union (EU): since 1 January 1973.

The UK is also a member of the European

Economic Area (EEA).

International Monetary Fund (IMF):

since 27 December 1945.

World Trade Organization (WTO):

since 1 January 1995.

Government trade policy

ƒ The UK implements the EU’s trade

regulations, commercial policies and

customs code (ec.europa.eu/trade).

ƒ The UK trades freely with its fellow EEA

member states as well as Switzerland.

ƒ The EU has in place bilateral trade

agreements with 36 countries and regional

trade agreements with a number of trading

blocs.

ƒ National export credit insurance provider:

Export Credits Guarantee Department

http://www.ecgd.gov.uk).

ƒ The EU maintains 74 free trade zones,

seven of which are located in the UK. Isle of

Man Airport is also a free trade zone.

Currency and exchange controls

Official currency: Pound sterling (GBP).

Exchange rate arrangement: free floating.

The UK does not impose foreign exchange

controls.

Bank accounts

Permission to hold currency accounts

Within UK Outside UK

GBPForeign currency GBPForeign currency

Resident

company ✔ ✔ ✔ ✔

Non-resident

company ✔ ✔ ✔ N/A