Services trade sees UK become world’s fourth largest exporter

The UK has become the world’s fourth largest exporter thanks to a boost in services, fresh trade figures have shown.

It comes after the UK ranked seventh in 2021, moving up three places in the figures for exporting goods and services in 2022, the United Nations (UN) has confirmed.

According to the latest statistics from the UN Conference on Trade and Development (UNCTAD), which leads on global trade for the UN, the UK has overtaken France, Netherlands and Japan to take fourth position, behind only China, the US, and Germany.

Business and trade secretary Kemi Badenoch welcomed the news, and said: “These new figures show how the UK is punching above its weight on trade, and is on track to reach our ambition of exporting a trillion pounds of goods and services a year by 2030.”

She added: “The appetite for world-class UK produce continues to grow and this government will keep supporting our brilliant businesses, helping to create more jobs, pay higher wages and grow the economy.”

It signifies a boost to Badenoch who has become embroiled in a row with Canada over tariffs of over six per cent on British car exports after deadlocked trade negotiations hit a wall.

Talks were suspended following disagreement over hormone-treated beef and cheese exports, and the atmosphere worsened after Canada publicly denied Badenoch’s claim that discussions were continuing, despite her suspending them unilaterally in January.

The suspension of talks now means a post-Brexit arrangement with Canada will expire, leaving some UK car exports subject to 6.1 per cent tariffs if they have major EU elements.

The trade news comes thanks to the UK’s strength in services exports which have grown in recent years to a record high of £470bn last year.

Drivers of the recent growth spurt have included professional services, such as research, consulting and technical and trade services, of which the UK exported £185bn in 2023.

It also includes travel services, which the UK is the third biggest exporter of globally, exporting £59bn worth in 2023; and telecommunications, computer and information services, with £40bn worth of exports in 2023.

The Department for Business and Trade (DBT) is still negotiating several trade agreements, including with India, which have been put on ice until later this year and last month signed a trade pact with Texas, the second biggest US state and the world’s eighth largest economy.

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