Trade and trade patterns:

Between 1688 and 1800, Britain ascended to a dominant position among European trading

empires. Merchants engaged in trade with North America and the West Indies, exporting

wool and importing commodities like sugar and tobacco. The triangular slave trade supplied

African labor for plantations. At this time, Britain faced competition from the trading empires

of France, the Netherlands, Spain, and Portugal. By 1800, overseas trade became increasingly

'Americanized,' North America and the West Indies received 57 per cent of British exports,

and supplied 32 per cent of imports.

By the 1850s, Britain, thanks to Adam Smith (the famous politician and ‘father of capatilsm’)

embraced free trade, removing barriers and tariffs. The removal of the Corn Laws, which had

imposed strict tariffs on imported grain, in 1846 marked a significant shift, opening the

British market to global competition and lowering grain prices. Enjoying the fruits of

industrialization, Britain became the "workshop of the world," dominating global trade with

efficient and cost-effective goods. From 1815 to 1870, Britain's industrial power allowed it to

wield economic influence through free trade, supplying a substantial portion of manufactured

goods to nations like Germany, France, and the United States. Despite challenges, Britain

maintained its commitment to free trade into the 1890s, experiencing fluctuations in global

market share but persisting as a significant economic player.

In 1908, British goods found substantial markets within the Empire and former colonies, with

exports to “Australia, Canada, India, New Zealand and South Africa accounting for around a

quarter of the total.” (From Empire to EU, n.d.) British India stood as the UK's largest single

market, while the U.S. and EU countries constituted significant shares. By 1948, despite the

Empire's decline, the Commonwealth became even more critical, representing almost a third

of all exports. The devastation in post-war Europe reduced demand, making EU exports just a
quarter of the total. By the late 20th century, the EU replaced former colonial preferences,

and the U.S. emerged as the UK's primary market.

As of today, the EU as a whole is the main trading partner of the United Kingdom. At a

country level, the UK mainly exports to the United States (12.7%), Germany (8.7%),

Switzerland (8.4%), the Netherlands (7.9%), Ireland (6.2%) and France (5.6%). Its main

suppliers are China (13.2%), Germany (11%), the United States (8.7%), the Netherlands (6%)

and Norway (5.2%) (Comtrade).

In August 2023, the United Kingdom exported £33.8B and imported £48.8B, resulting in a

negative trade balance of £15B. The top exports of United Kingdom were Gold (£5.54B),

Gas Turbines (£2.44B), Cars (£1.75B), Commodities not elsewhere specified (£1.51B), and

Packaged Medicaments (£1.19B). In August 2023 the top imports of United Kingdom were

Cars (£3.54B), Gold (£2.53B), Commodities not elsewhere specified (£2.21B), Crude

Petroleum (£2.17B), and Refined Petroleum (£2.03B).

So how does trade actually effect the economy? Trade is a cornerstone of the UK's economy.

By participating in international trade, the UK gains access to expansive markets, driving

economic expansion and creating opportunities for businesses. Diversifying markets through

global trade mitigates risks associated with reliance on domestic demand. Trade also serves

as a gateway to vital resources, including raw materials and technology, enhancing

productivity and innovation within the country. Beyond economic considerations,

international trade stimulates job creation, fosters competition, and provides consumers with

a diverse array of choices. Additionally, imports contribute to cost savings for businesses and

consumers alike. Successful trade attracts foreign investment, improving the UK's economic

landscape and promoting cultural exchange.

Refrences:

BBC - History - British History in depth: Symbiosis: Trade and the British Empire. (2011,

February 17). https://www.bbc.co.uk/history/british/empire_seapower/trade_empire_01.shtml

From empire to EU. (n.d.). UK Parliament.

https://www.parliament.uk/business/publications/research/olympic-britain/the-economy/

from-empire-to-eu/

United Kingdom (GBR) Exports, Imports, and Trade Partners | The Observatory of Economic

Complexity. (n.d.). https://oec.world/en/profile/country/gbr