United Kingdom economy,trade,policy for EU,TURKEY

1. UNITED KINGDOM Economy, Trade, Policy 1 Presentation by B KENAR

2. Outline : 2 The UK The UK trade and economy The UK and European Union The UK and Turkey

3. I – The UK 3 The United Kingdom of Great Britain and Northern Ireland (commonly known as the United Kingdom, the UK, or Britain) is a sovereign statelocated off the northwestern coast of continental Europe. It is an island nation, Northern Ireland is the only part of the UK with a land border with another sovereign state, sharing it with the Republic of Ireland.[10][11] Apart from this land border, the UK is surrounded by the Atlantic Ocean, theNorth Sea, the English Channel, and the Irish Sea.

4. The UK population is 62 million.. B Kenar 4

5. 5 The United Kingdom is a constitutional monarchy and unitary state. It is a countryconsisting of four countries: England, Northern Ireland, Scotland, and Wales.It is governed by aparliamentary system with its seat of government in the capital city of London. There are three devolved national administrations of varying powersin Belfast, Cardiff and Edinburgh, the capitals of Northern Ireland, Wales and Scotland respectively. The UK has three Crown Dependencies and fourteen overseas territories that are not constitutionally part of the UK. These territories are remnants of the British Empire, which at its height in 1922 encompassed almost a quarter of the world's land surface, the largest empire in history. As a result, British influence can still be observed in the language, culture and legal systems of many of its former colonies.

6. II- The UK economy and trade 6 The UK is a developed country, with the world's fifth largest economy by nominal GDP and the sixth largest by purchasing power parity. It was the world's first industrialised country and the world's foremost power during the 19th and early 20th centuries, but the economic and social cost of two world wars and the decline of its empire in the latter half of the 20th century diminished its leading role in global affairs. The UK nevertheless remains a great power with leading economic, cultural, military, scientific and political influence. It is a recognised nuclear weapons state while its military expenditure ranks third or fourth in the world, depending on the method of calculation.It is a Member State of the European Union, a permanent member of theUnited Nations Security Council, and a member of the Commonwealth of Nations, G8, G20, NATO, OECD, the Council of Europe and the World Trade Organization.

7. Why are they using Pound Sterling ? B Kenar 7

8. 2010 UK economy and trade statistic.. 8 Labour Force Laboour force :31 millionSectors: agriculture: 1.4%, industry: 18.2%, services: 80.4% (2009 est.) Unemployment: 7.2 % GDP Facts and Figures Currency: Pound Sterling GDP: 332 billion (2010 est.) GDP Per Capita: $37,500 (2010 est.) GDP Real Growth: 2.9% (2010 est.) GDP Composition: agriculture: 0.9% industry: 23.6% services: 75.5% (2009 est.) Production Growth Rate: 0.7% (2009 est.)

9. UK Industries, GDP Composition by Sector 9 UK Services Sector – 76.2 per cent of GDPThe services sector dominates the UK economy. In particular banking, insurance and business services dominate. Financial services companies dominated the UK stock market until 2007, accounting for one quarter of all corporate profits.UK Industry & Manufacturing – 22.8 per cent of GDPBoth manufacturing and energy (4.0 per cent of GDP) have been in long term decline, with Britain now a net importer of energy. Current industries include machine tools, electric power & automation equipment, transport (trains, shipbuilding, aircraft, motor vehicles and parts), electronics and communications equipment, metals, chemicals, coal, petroleum, paper & paper products, food processing and textiles & clothing. UK Agriculture – 0.9 per cent of GDPThe UK has a highly efficient agricultural sector by European standards, producing 60 per cent of its food needs. Less than 2 per cent of the workforce is employed in the agricultural sector, or under 500,000 workers.

10. B Kenar 10 UK Trade - Deficit increased to £4.1bn in November The UK's deficit on trade in goods and services was £4.1 billion in November, compared with a deficit of £4.0 billion in October (originally published as a deficit of £3.9 billion). The surplus on trade in services was estimated at £4.6 billion in November, unchanged compared with October. The deficit on trade in goods increased to £8.7 billion in November, compared with a deficit of £8.6 billion in October (originally published as a deficit of £8.5 billion). Exports rose by £0.9 billion and imports rose by £1.1 billion. The deficit on trade in goods with EU countries widened to £3.7 billion in November, compared with a deficit of £3.5 billion in October. Exports rose by £0.2 billion and imports rose by £0.4 billion. The deficit on trade in goods with non-EU countries was £5.0 billion in November, compared with a deficit of £5.1 billion in October. Exports rose by £0.8 billion and imports rose by £0.7 billion. Excluding oil and erratic items, the volume of goods exports rose by 3.4 per cent and the volume of goods imports rose by 0.3 per cent, compared with October. Export prices of goods fell by 0.2 per cent but import prices of goods remained unchanged, compared with October.

11. 11 Industries, Land Use and Resource Consumption Industries: machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods Land use: arable land: 23.23% permanent crops: 0.2% other: 76.57% Exports: manufactured goods, fuels, chemicals; food, beverages, tobacco Electricity Consumption: 348.7 billion kWh Natural Gas Consumption: 91.16 billion cu m Oil Consumption: 1.82 million bbl/day

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14. 14 Non EU Exports In November 2010 the total value of UK’s trade-in-goods exported to countries outside the EU was £11.2 billion. As a comparison the total value of UK’s trade-in-goods exported to countries outside the EU in October 2010 was £10.5 billion and for November 2009 was £9.1 billion. November 2010 showed a 6.1 per cent increase in exports compared to October 2010 and a 22.8 per cent increase in exports compared to November 2009. The total 2010 year to date value of UK’s trade-in-goods exported excluding November 2010 was £98.8 billion, which has been upwardly revised by £85.9 million. Non EU Imports In November 2010 the total value of trade-in-goods imported to the UK from countries outside the EU was £16.6 billion. As a comparison the total value of UK’s trade-in-goods imported to the UK from countries outside the EU in October 2010 was £16.0 billion and for November 2009 was £12.6 billion. November 2010 showed a 4.2 per cent increase in imports compared to October 2010 and a 31.6 per cent increase compared to November 2009. The total 2010 year to date value of UK’s trade-in-goods imported excluding November 2010 was £144.4 billion, which has been upwardly revised by £0.6 million.

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21. III- UK trade and economy with the European Union 21 UK trade in goods and services with fellow members of the European Union has deepened in the 38 years since joined the European community. As of 2010 our geographical pattern of trade was as follows: Main export markets: European Union 57% United States: 15% Switzerland: 2% China: 2% Japan: 2% Main source of imports: European Union 55% USA: 9% China: 8% Norway: 5% Japan: 3%

22. UK Exports and Imports of Goods and Services with EU 22 Average Annual Growth Rate (% pa) from 2001-2009) Estonia 12.6 Slovakia 11.0 Poland 10.6 Romania 10.0 Bulgaria 9.2 Lithuania 9.1 Latvia 8.6 Hungary 6.0 Greece 4.7 Czech Republic 4.2 Slovenia 4.0 Belgium 3.7 Netherlands 3.6 Irish Republic 3.3 Sweden 3.2 Germany 2.6 Total EU 2.6 Spain 2.5 Austria 2.1 Finland 1.7 Italy 1.4 Denmark 1.4 Portugal 0.1 France -

23. Why A customs union has trade creation and trade diversion effects for The UK..?? 23 Trade creation involves a shift in people’s spending from a higher-cost domestic source to a lower-cost partner-source within the EU, as a result of the abolition of tariffs. UK consumers may switch spending on car insurance away from a higher-priced UK supplier towards a German insurance company that has decided to operate in the UK market. In principle, trade creation stimulates an increase in intra-EU trade and ought to lead to a more efficient allocation of scarce resources thereby leading to gains in consumer and producer welfare. Trade diversion happens when there is a shift in domestic consumer spending away from a lower-cost world source to a higher cost partner source country from within the EU - as a result of the elimination of tariffs on imports from the partner. The common external tariff on many products entering Europe makes imports more expensive leading to higher costs for producers and rising prices for consumers if previously they had access to a cheaper supply from a non-EU country. The effect is a reduction in consumer and producer welfare.

24. 24 EU Exports In October 2010 the total value of trade-in-goods exported to Member States of the EU was £12.8 billion. As a comparison the total value of UK’s trade-in-goods exported to the Member States of the EU in September 2010 was £11.8 billion and for October 2009 was £11.5 billion. October 2010 showed an 8.5 per cent increase in exports compared to September 2010 and an 11.2 per cent increase in exports compared to October 2009. The total 2010 year to date value of UK’s trade-in-goods exported excluding October was £103.3 billion, which has been upwardly revised by £143.6 million. EU Imports In October 2010 the total value of UK’s trade-in-goods imported to the UK from Member States of the EU was £16.2 billion. As a comparison the total value of UK’s trade-in-goods imported to the UK from Member States of the EU in September 2010 was £16.0 billion and for October 2009 was £15.0 billion. October 2010 showed a 1.3 per cent increase in imports compared to September 2010 and an 8.1 per cent increase in imports compared to October 2009. The total 2010 year to date value of UK’s trade-in-goods imported excluding October was £136.1 billion, which has been upwardly revised by £375.1 million.

25. B Kenar 25 British Exporters ; James Walker,HBCS,Hamilton,MillerBeer,Holiday Inn, M&S ,Jack Wills,Unilever,English Home, EU Importers ; Wilson Sporting Goods,Thinkpad,Budweise,BMW, Mercedes,RollsRoyse,Weed Eater,

26. IV-The UK and Turkey 26 2010 January-November Summary In the January-November period in 2010, Turkey's exports to UK increased by 22.6% and UK exports to Turkey was up by 35.8%. Total trade between the two countries in the first ten month Jan-Nov period in 2010 rose by 27.5% compared to same period the previous year. In this period, the share of Turkey's exports to UK as percentage of Turkey's exports worldwide, rose from 5.7% to 6.3%. The share of UK exports to Turkey increased form 2.4% to 2.5%.

27. 27 2010 - 2009 UK TURKEY TRADE DATA Import: Turkey's exports to UK Export: UK exports to Turkey Source: Turkish State Statistical Institute MONTH (AY) November20102009Change Export430.316324.246 32,7% Import 656.979611.9357,4% Total 1.087.296936.18116,1% October2010 2009 Change Export 432 666 311 855 38,7% Import 762 469 621 260 22,7% Total 1.195.135 933.115 28,1% September20102009Change Export 438.641 326.315 34,4% Import 655.242 536.427 22,1% Total 1.093.882 862.742 26,8% August2010 2009Change Export 381.724 298 727 27,8% Import 573.573 473.256 21,2% Total 955.297 771.983 23,7%

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29. 29 British firms ; HSBC, Tesco, British Airways, BP, Vodafone, Marks and Spencers, Harvey Nichols, Debenhams, H&M, Barclays, Aviva, J&P Morgan, Tohomas Cook, exc … Turkish firms ; Vestel, Sabancı, Koç,Doğan, Doğuş,ArtofisMobilyaA.S,Merinos,AgaogluSirketlerveYatirimGrubu,exc..

30. www.hurriyet.com 30 January 2011Turkey leads Europe in cement production Hurriyet January, 2011 Turkey’s cement producers have surpassed their European peers in terms of output and turnover, according to Turkey’s Cement Manufacturers' Association (TCMA). The increase in production also lifted Turkey up to 4th place in the world after China, India and the USA. “Turkish cement producers have reached a total turnover of EUR 4.5 billion, while exports exceeded EUR 1 billion, reaching over 90 countries,” said TCMA Board Chairman AdnanIgnebekcili adding that West African states are becoming a bigger market following the global financial crisis. Turkey’s century-old cement production sector has grown 15 percent to a capacity of 50 million tons in 2010. “The cement production sector has two major advantages: a strong start to the 21st century and the skilled labor force that Turkey offers,” said Ignebekcili, setting the industry’s 2011 target at a growth rate of 6-8 percent, depending on the housing and infrastructure investments in Turkey.

31. References ; B Kenar 31 http://www.wto.org/english/thewto_e/countries_e/united_kingdom_e.htm http://www.bis.gov.uk/policies/trade-policy-unit http://ec.europa.eu/trade/ http://www.statistics.gov.uk/hub/business-energy/businesses/international-trade http://www.statistics.gov.uk/onlineproducts/ https://www.uktradeinfo.com/index.cfm?task=tradedata https://www.uktradeinfo.com/index.cfm?task=td_regstats http://www.economywatch.com/world_economy/united-kingdom/export-import.html http://data.gov.uk/dataset/uk_overseas_trade_statistics http://www.intute.ac.uk/worldguide/html/1069_economic.html http://www.worldtradelaw.net/ http://www.pdfchaser.com/pdf/currency-devaluation.html