Since Brexit, United Kingdom’s Agricultural Trade With European Union Remains Strong; Opportunities for U.S. Exports Emerge

Highlights: After the United Kingdom (U.K.) left the European Union (EU) in 2020 in a process known as “Brexit,” the EU remains the U.K.’s largest trading partner for agricultural and related goods. While trade linkages continue, new agreements have opened opportunity for other potential trading partners. The U.K. is both an exporter and an importer of high-value, consumer-oriented agricultural and agriculture-related products. It is the world’s fifth-largest importer of agricultural and related goods and a large market for U.S. products. The export value of U.S. agricultural and related products to the U.K. more than doubled from 1990 to 2022. Imports of forest products, primarily wood pellets used for power generation, reached double-digit growth in recent years. Since Brexit, barriers to trade with the U.K. gradually are being removed, which is expected to reverse the slowing in U.K. exports to the United States in the coming years. The United Kingdom (U.K.) is the fifth largest importer by value of agricultural products in the world. Comprising England, Northern Ireland, Scotland, and Wales, the U.K. has a limited capacity to produce agricultural and related products, relying on imports to meet the demands of its population. Agricultural production contributes less than 1 percent of the total value of the U.K. economy. In 2022, the U.K. imported $92.1 billion in agricultural and related goods and exported $34.8 billion, less than half the value of imports. Most of the goods imported by the U.K. are high-value consumer products, with distilled spirits, dairy products, and processed foods including seafood among the largest groups. Climate change has fostered demand for a new generation of agricultural-related products, such as wood pellets to replace coal, for which the United States has emerged as a major supplier. Despite the U.K.’s departure from the European Union (EU) in 2020, a move […]

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