‘Brexit Britain is servicing the World’ - latest official figures are revealed

Foreign Secretary Dominic Raab touches down in Australia, boosting trade talks

Australia buys 46% more of UK services exports than the average EU country

© Brexit Facts4EU.Org

Exclusive analysis and summary from Brexit Facts4EU.Org

Foreign Secretary Dominic Raab will arrive in Canberra today (6 February) as part of a four-country visit to the Asia-Pacific region. Trade between the UK and Australia was worth £18.3billion in 2019. The Foreign Secretary will discuss “trade and investment opportunities and the potential for an early free trade deal”.

UK exports of services go global, while most EU countries buy little from us

Brexit Facts4EU.Org Summary

The UK has an advanced economy, 80% of which is based on services.

In the last 12 month period, the UK exported £317 billion pounds’ worth of services globally.

Yet only 39.8% of this massive UK export effort was bought by the EU27 countries.

47 years of EU membership did little for UK goods OR services

Most people are aware that the majority of the UK’s exports of goods are sold outside the EU, despite what Remainers wanted everyone to believe for the last four years. Many people are now aware that the EU countries are doing very well out of selling their goods to the UK – and that the EU has been doing so for decades.

The EU’s goods surplus is currently running at almost £100 billion per year. This is the difference between what the UK sells to the EU and what they sell us – broadly what you might call the EU27’s ‘annual profit’ from its goods trade with the UK.

What is not generally known is that the UK’s services companies – representing 80% of the UK economy – are even less reliant on EU sales than their UK counterparts who sell goods.

Busting the myth that the UK's services sales to the EU are balancing out the EU's goods sales to the UK

In the last four years, whenever the EU’s massive surplus in its goods trade with the UK was brought up, a common argument from Remainers was “Ah, but the EU countries buy far more of our services.” Sadly this claim was almost never rebutted by the major news or Leave organisations.

The UK’s surplus in exports of services does not come remotely close to outweighing the EU’s massive surplus in its exports of goods to the UK.

Today we bring readers our latest update on an area which will be important when negotiations finally start next month. (Assuming that the EU have their agreed positions in place by then, which is still not the case despite having had over three years to prepare.)

Brexit Facts4EU.Org Summary

80% of the UK economy is services – How much do EU countries buy?

Latest official UK figures for exports of services, the year to end-Sept 2019

  • The EU27 bought only 39.8% of the UK’s exports of services
  • The Rest of the World bought 60.2%
  • The fastest-growing customer is the USA

© Brexit Facts4EU.Org - click to enlarge

  • Top customer: USA bought £76.3bn - 24.1% of total services exports
  • Highest-placed EU country: Germany, which bought just 6.7%
  • Average UK services exports to EU27 countries: £4.7bn
  • On the other side of the World, Australia bought £6.8bn - 46% more than the EU average

© Brexit Facts4EU.Org - click to enlarge

[Source data : Office for National Statistics. Latest data, to end Sept 2019.]

The EU’s attitude to the largest part of the UK economy – the services sector

Once again we must remind Remainer politicians – and even the big name Leave organisations who failed to rebut them - that the Single Market never worked for services, by the admission of the EU Commission itself.

“The Single Market – this jewel that is all too often taken for granted –
does not function properly for services

- Elżbieta Bieńkowska, EU Commissioner for the Single Market, 2017

Observations

For the past four years Remainers have been telling us that the biggest market in the world is on our doorstep. Putting aside the fact that this was always simply untrue (the USA is the biggest), why haven’t “our friends and neighbours” in the EU been topping the tables when we look at our top customers?

This is as true in services as it is in manufacturing.

The average EU country bought just £4.7bn of services from the UK in the 12 months to 30 Sept 2019. The USA bought over 16 times as much. Japan bought 66% more than the EU27 average. Australia – on the other side of the planet – bought 46% more.

These are basic economic facts. They cannot be wished away by Remainers/Rejoiners, nor by Michel Barnier and his cohorts of extremist, ideological technocrats in the EU Commission.

A big spin-off Brexit benefit

We have long argued that there will be a huge spin-off benefit from Brexit. This benefit will come about because of a renewed confidence in the country which will be reflected in the minds of the UK’s business leaders and entrepreneurs.

We forecast that this will lead to a return to an internationally-minded business attitude, resulting in more and more UK businesses looking to expand globally.

As ever, members of the Brexit Facts4EU.Org team stand ready to assist the Government in any endeavours to negotiate with the EU and to grow the UK’s business internationally.

Finally, if you like our research above, could you help to fund it? For the last four years we have had to rely on the generosity of our readership – and that has never come close to covering costs. If we are to keep going this year we really need your help, because we’ve used up all our own resources. Quick and secure donation methods are below. Thank you.

[ Sources: Office for National Statistics - latest quarterly figures | EU Commission ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, 06 Feb 2020

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