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					United Kingdom of Great Britain and
         Northern Ireland
           -Brief Profile-




                  1
Table of contents

1.0      General Introduction ........................................................................................3
2.0      Brief political history.........................................................................................6
3.0      Main economic indicators .................................................................................8
4.0      Main Sectoral Contribution towards Gross Value Added ...................................8
5.0      Employment by Main Sectors ......................................................................... 10
6.0      Trade .............................................................................................................. 11
   6.1      Merchandise trade ............................................................................................. 11
   Distribution of Merchandise Trade ............................................................................... 12
   6.2      Commercial Services Trade ................................................................................ 16
   6.3      Trade between Malta and United Kingdom....................................................... 17
7.0      Foreign Direct Investment............................................................................... 21
   7.1      Why to invest in United Kingdom ...................................................................... 23
8.0      Agreements .................................................................................................... 25
9.0      Opportunities for Investment and Trade ......................................................... 27
Annex 1 - References ................................................................................................ 38




                                                              2
1.0    General Introduction


The United Kingdom is made up of England, Wales, Scotland and Northern Ireland. It has
a long history as a major player in international affairs and fulfils an important role in
the EU, UN and NATO.


Capital city: London


Population size: 61,284,806 (July 2010 est.)


Main Languages: English, Welsh (about 26% of the population of Wales), Scottish form
of Gaelic (about 60,000 in Scotland)


Main Religion: Christian (Anglican, Roman Catholic, Presbyterian, Methodist) 71.6%,
Muslim 2.7%, Hindu 1%, other 1.6%, unspecified or none 23.1% (2001 census)


Life Expectancy:
Total population: 79.16 years
Male: 76.66 years
Female: 81.8 years (2010 est.)


Official Currency: The pound sterling (symbol: £; ISO code: GBP). Commonly called the
pound, is the official currency of the United Kingdom, its Crown dependencies (The Isle
of Man and the Channel Islands) and the British Overseas Territories of South Georgia
and the South Sandwich Islands, British Antarctic Territory and Tristan da Cuncha. It is
subdivided into 100 pence.



                                               3
The Channel Islands and the Isle of Man produce their own local issues of sterling (Manx
pound, Jersey pound and Guernsey pound). The pound sterling is also used in Gibraltar
(alongside the Gibraltar pound), the Falkland Islands (alongside the Falkland Island
pound) and Saint Helena and Ascension (alongside the Saint Helena pound). The
Gibraltar, Falkland Islands and Saint Helena pounds are separate currencies, pegged at
parity to the pound sterling.


Sterling is the third largest reserve currency, after the US dollar and the euro. The pound
sterling is also the fourth most traded currency in the foreign exchange market, after
the US dollar, the euro and Japanese yen.


Geographic location: The United Kingdom of Great Britain and Northern Ireland (UK) is
a sovereign state located off the north-western coast of continental Europe. It
comprises the island of Great Britain (England, Scotland and Wales) and the north-
eastern one-sixth of the island of Ireland (Northern Ireland), together with many smaller
islands. The UK lies between the North Atlantic and the North Sea, and comes within
35 km (22 mi) of the northwest coast of France, from which it is separated by the English
Channel. Northern Ireland shares a 360 km international land boundary with the
Republic of Ireland. The Channel Tunnel ("Chunnel") bored beneath the English Channel,
now links the UK with France.




                                            4
Figure 1 – Map of United Kingdom




Air and Sea Access: In all United Kingdom have 510 airports (312 of which have paved
and 198 have unpaved runways). The main international airports are Heathrow, Gatwick
and Manchester. Heathrow is the largest airport in the United Kingdom and the UK’s
only hub airport and an important economic asset. It is the fifth busiest airport in the
world in terms of total passengers traffic and the second busiest (after Paris CDG Airport
in France) in terms of traffic movements. Gatwick is the UK’s second largest airport with
the busiest single-use runway in the world.



                                              5
United Kingdom has 10 major sea ports. One of Britain's largest and busiest ferry ports is
port Dover, which is also the link between Dover and Calais via the Channel Tunnel.
Other important port is Port of London. Carrying cargoes of oil, textiles and commercial
goods these vessels make their way through from the coast at Southend, up past
Gravesend and into the City of London itself. Port of Liverpool has long been one of the
most important ports to serve the North Atlantic corridor. At present Liverpool port
receives the most cargo to the United Kingdom from the United States and Canada and
recently plans have been unveiled for a £90 million expansion program which would see
Liverpool port's container traffic double. Also port of Southampton is one of the United
Kingdom's most important ports


Corporate Tax: UK's corporate tax rate for 2007/2008 was 30%. The tax rate was
reduced to 28% from 1.4.2008. For UK resident companies with annual profits below
GBP 300,000 the tax rate was 20%. From 1.4.2008, it rose to 21%.


VAT: The standard Value Added Tax in United Kingdom is 17.5% (due to increase to 20%
in January 2011) on supplies of goods and services. It is therefore a tax on consumer
expenditure.


2.0    Brief political history


In 1926, the United Kingdom, completing a process begun a century earlier, granted
Australia, Canada, and New Zealand complete autonomy within the empire. They
became charter members of the British Commonwealth of Nations (now known as the
Commonwealth), an informal but closely-knit association that succeeded the empire.
Beginning with the independence of India and Pakistan in 1947, the remainder of the
British Empire was almost completely dismantled. Today, most of Britain's former
colonies belong to the Commonwealth, almost all of them as independent members.
There are, however, 13 former British colonies--including Bermuda, Gibraltar, the
                                            6
Falkland Islands, and others--which have elected to continue their political links with
London and are known as British Overseas Territories.


The United Kingdom is a constitutional monarchy and parliamentary democracy, with a
queen and a parliament that has two houses: the House of Lords, with 574 life peers, 92
hereditary peers, and 26 bishops; and the House of Commons, which has 651 popularly
elected members.


The Labour government that had been in power since 1997, first under Prime Minister
Tony Blair and then under his successor, Gordon Brown, lost its majority in the House of
Commons in the May 6, 2010 election. For the first time since 1974, however, no party
was able to win a full majority in the Commons, which led to several days of intense
negotiations between the Conservatives (Tories), who won the most seats, and the
Liberal Democrats (Lib Dems), who placed third in number of seats won. On May 11,
when it became clear that Labour would be unable to form a government, Prime
Minister Gordon Brown resigned, and David Cameron became the new Prime Minister.


Political stability index: In the period of 2009/2010 index score of United Kingdom was
4.6. United Kingdom was ranked as the 132nd country out of 165 countries in terms of
The Political Instability Index, which shows the level of threat posed to governments by
social protest (the highest score = the highest risk, the lowest score = the lowest risk).
The index score of United Kingdom has increased rapidly since 2007, when it was 0.6.


Democracy index: In 2008 democracy index of United Kingdom was 8.15, so UK was
ranked as 21st country out of 167. (the highest score = perfect democracy, the lowest
score = the lowest democracy).




                                            7
3.0       Main economic indicators


                                                                          Year
                Indicator
                                                 2005        2006         2007         2008         2009
                                               1,833,954.   1,944,750.   2,044,133.   1,818,946.   1,566,740.
Annual GDP (in million EUR)*
                                                        4           9            0            9            7

Real GDP growth rate*                               2.2%         2.9%         2.6%         0.5%        -4.9%

Deficit/Surplus as a % of GDP*                     -3.4 %       -2.7 %       -2.8%        -4.9%       -11.5%

General Government Debt as a % of GDP*            42.5%        43.5 %        44.7%       52.0 %       68.1 %

GDP per capita***                                $37,860      $40,190      $45,955      $43,541          N/A

Inflation – average consumer prices
                                                  2.041%       2.300%       2.346%       3.629%       2.166%
(percent change)**

Unemployment rate*                                  4.8%         5.4%         5.3%         5.6%         7.6%

Employment rate*                                   71.7%        71.6%        71.5%       71.5 %        69.9%

Exports of goods and services (% of
                                                   26.4%        28.5%        26.4%        28.9%          N/A
GDP)***
Imports of goods and services (% of
                                                   29.8%        31.7%        29.8%        32.0%          N/A
GDP)***
Natural Population Change1 *                     139,886     176,339       197,558     214,686      230,587
                                                                                                              p



* European Commission - Eurostat
** IMF
*** World Bank
p - Provisional value


4.0       Main Sectoral Contribution towards Gross Value Added




1
  The difference between the number of live births and the number of deaths during the year. The natural
increase (or natural decrease) is negative when the number of deaths exceeds the number of births.
                                                   8
Figure 2 below represents the contribution that the main economic sectors (Agriculture,
Industry, Construction and Services) contribute towards the Gross Value Added being
generated in United Kingdom. The figure shows the contribution given by each sector
for the period 2005-2009.


Figure 2 - Sectoral Contribution to Gross Value Added (At current basic prices and
current exchange rates)




Source: European Commission - Eurostat



The figure above highlights the importance that the Services sector has in contributing
towards the Gross Value Added (GVA) being generated by the economy of United
Kingdom. The contribution of Services sector in terms of GVA remained practically
unchanged between 2005 and 2009.


Contribution of other sectors (agriculture, industry and construction) in terms of GVA
remained unchanged between 2005 and 2009.

                                          9
5.0    Employment by Main Sectors


Figure 3 shows the percentage distribution of employment between the main sectors of
the United Kingdom for the period 2005-2009. In 2009 the number of persons employed
was 29,253,423.


Figure 3 – Distribution of Employment




Source: http://www.marketlineinfo.com/


The main sector in terms of employment is Service sector, which in 2009 employed 78%
out of people employed in economy during that year. Industrial sector employed 20.8%
out of employed people and Agricultural sector employed only 1.2% out of people
                                       10
employed in economy during the year 2009. The figure 3 above highlights the
importance of Services sector has in distributing of employment in United Kingdom.




6.0      Trade


The total value of UK export of goods and services in 2008 was $ 744,789 million and the
total value of UK import for the same period was $ 829,871 million. According to the
recent data from WTO United Kingdom is ranked as 10 th world biggest exporter of goods
and 2nd world biggest exporter of services.


6.1      Merchandise trade


During the year 2008 United Kingdom exported $ 459 666 million worth of goods, for
the same period imports amounted to $ 632 975 million. Table 1 and Table 2 hereunder
represent the main countries in terms of monetary value to which United Kingdom
exports to and imports from.


Table 1 – Exports for 2008
 Country                            Value($)            Percentage of total Exports
 European Union (27)           258,792.0 million                    56.3%
 United States                  64,812.9 million                    14.1%
 China                           9,193.3 million                      2.0%
 Switzerland                     8,733.7 million                      1.9%
 Russian Federation              7.814.3 million                      1.7%
 Other                         110,319.8 million                    24.0%
 Total                         459,666.0 million                    100.0%


                                              11
Source:http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Cou
ntry=GB




Table 2 – Imports for 2008
 Country                          Value($)            Percentage of total Exports
 European Union (27)         332,944.9 million                    52.6%
 United States                55,068.8 million                     8.7%
 China                        50,005.0 million                     7.9%
 Norway                       37,345.5 million                     5.9%
 Japan                        14,558.4 million                     2.3%
 Other                       143,052.4million                     22.6%
 Total                       632,975.0 million                    100.0%
Source:http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Cou
ntry=GB


Distribution of Merchandise Trade


Figures 4 and 5 represent the distribution of merchandise trade according to the main
commodity group for 2008.


Figure 4 – Exports by Main Commodity Group for 2008




                                          12
Source:http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Cou
ntry=GB
Table 3 – Export by commodity
                                                     US dollar at current prices (Millions)

Indicator                                                2006         2007        2008
Agricultural products                                      23,820      27,456       29,627
Food                                                       20,714      24,013       25,950
Fuels and mining products                                  58,846      65,050       82,761
Fuels                                                      44,658      46,717       62,304
Manufactures                                              348,077     325,707      325,660
Iron and steel                                              9,537      12,057       12,634
Chemicals                                                  68,904      78,014       80,633

Pharmaceuticals                                            25,633      29,296       31,867

Machinery and transport equipment                         191,366     150,848      148,761
Office and telecom equipment                               84,194      29,558       27,416
Electronic data processing and office equipment            21,388      13,414       11,730
Telecommunications equipment                               55,589      11,107       10,975
Integrated circuits and electronic components               7,217       5,038        4,710
Automotive products                                        38,912      45,948       45,408
Textiles                                                    4,927       5,147        4,748

                                                13
Clothing                                               5,266      6,091       5,898
Source: http://stat.wto.org/StatisticalProgram/WSDBViewData.aspx?Language=E




Figure 5 – Imports by main Commodity Group for 2008




Source:http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Cou
ntry=GB




                                       14
Table 4 – Import by commodity
                                                     US dollar at current prices (Millions)
Indicator                                                2006         2007        2008
Agricultural products                                      54,689      63,388      67,003
Food                                                       47,311      54,684      59,356

Fuels and mining products                                  72,394      80,517     103,826
Fuels                                                      54,332      58,832      81,827
Manufactures                                              404,508     449,478     428,711
Iron and steel                                              9,783      12,331      12,461
Chemicals                                                  59,979      71,222      71,271
Pharmaceuticals                                            17,430      20,509      20,835
Machinery and transport equipment                         205,011     217,836     201,931
Office and telecom equipment                               76,691      63,498      58,638
Electronic data processing and office equipment            29,345      27,772      25,205
Telecommunications equipment                               41,862      30,708      29,027
Integrated circuits and electronic components               5,484       5,018        4,406
Automotive products                                        63,258      75,633      64,441
Textiles                                                    7,600       8,346        7,596
Clothing                                                   21,639      23,981      23,564

                                                15
Source: http://stat.wto.org/StatisticalProgram/WSDBViewData.aspx?Language=E




6.2    Commercial Services Trade


Commercial services exports for the year 2008 amounted to $ 285,123 million, whilst
commercial services imports amounted to $ 196,896 million.


Figures 6 and 7 depict the commercial services exports and imports according to
principal services item for 2008.




Figure 6 – Exports by Principal Services Item




Source:http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Cou
ntry=GB


Figure 7 – Imports by Principal Service Item




                                           16
        Source:http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Cou
        ntry=GB




        6.3        Trade between Malta and United Kingdom


        The Maltese economy is also engaged in exporting and importing activities with the UK
        economy. Table 5 hereunder represents the Merchandise trade between Malta and
        United Kingdom for the years 2008 and 2009.


        Table 5 – Merchandise trade
                                                                                   Year 2008             Year 2009
                                     Description                               Imports Exports       Imports    Exports
                                                                                 (€)       (€)         (€)        (€)
CHP 2 - MEAT AND EDIBLE MEAT OFFAL                                             2,413,967             3,813,593
CHP 3 - FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTEBRATES          447,630    114,838    391,685    126,243
CHP 4 - DAIRY PRODUCE; BIRDS' EGGS; NATURAL HONEY; EDIBLE PRODUCTS OF ANIMAL
ORIGIN, NOT ELSEWHERE SPECIFIED OR INCLUDED
                                                                               2,812,632      339    2,681,841
CHP 7 - EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS                          958,766      7,268    945,100       923
CHP 8 - EDIBLE FRUIT AND NUTS; PEEL OF CITRUS FRUITS OR MELONS                   165,531              135,240       214
CHP 9 - COFFEE, TEA, MATÉ AND SPICES                                           1,659,590      780    1,935,719      161
CHP 10 - CEREALS                                                                 907,531             1,113,331

                                                                 17
CHP 11 - PRODUCTS OF THE MILLING INDUSTRY; MALT; STARCHES; INULIN; WHEAT GLUTEN       1,350,364       3,609     1,035,245     8,524
CHP 12 - OIL SEEDS AND OLEAGINOUS FRUITS; MISCELLANEOUS GRAINS, SEEDS AND FRUIT;
INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER
                                                                                        152,187      19,586      207,252     21,113
CHP 13 - LAC; GUMS, RESINS AND OTHER VEGETABLE SAPS AND EXTRACTS                       452,671     148,719        15,220     99,587
CHP 15 - ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS; PREPARED                                                 55
EDIBLE FATS; ANIMAL OR VEGETABLE WAXES
                                                                                      2,392,744       3,575     2,431,915
CHP 16 - PREPARATIONS OF MEAT, OF FISH OR OF CRUSTACEANS, MOLLUSCS OR OTHER
AQUATIC INVERTEBRATES
                                                                                      3,539,820                 3,398,443
CHP 17 - SUGARS AND SUGAR CONFECTIONERY                                               4,019,325         103     3,838,771
CHP 18 - COCOA AND COCOA PREPARATIONS                                                 3,550,857                 3,653,452
CHP 19 - PREPARATIONS OF CEREALS, FLOUR, STARCH OR MILK; PASTRYCOOKS' PRODUCTS       10,992,719    526,216     12,137,141   374,020
CHP 20 - PREPARATIONS OF VEGETABLES, FRUIT, NUTS OR OTHER PARTS OF PLANTS             1,605,853      11,402     1,687,311       449
                                                                                                   3,505,38                 1,193,17
CHP 21 - MISCELLANEOUS EDIBLE PREPARATIONS                                            8,300,512                 7,605,781
                                                                                                          0                        5
CHP 22 - BEVERAGES, SPIRITS AND VINEGAR                                                5,376,598    125,713     5,411,965   368,940
CHP 23 - RESIDUES AND WASTE FROM THE FOOD INDUSTRIES; PREPARED ANIMAL FODDER    2,804,478                       2,064,148
CHP 24 - TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES                           3,330,106                       1,855,516    49,940
CHP 25 - SALT; SULPHUR; EARTHS AND STONE; PLASTERING MATERIALS, LIME AND CEMENT   287,460             2,890       230,300    14,381
CHP 27 - MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; 109,841,02                            47,434,334
BITUMINOUS SUBSTANCES; MINERAL WAXES                                                    9
CHP 28 - INORGANIC CHEMICALS; ORGANIC OR INORGANIC COMPOUNDS OF PRECIOUS
                                                                                       494,865          967      544,558
METALS, OF RARE-EARTH METALS, OF RADIOACTIVE ELEMENTS OR OF ISOTOPES
CHP 29 - ORGANIC CHEMICALS                                                            5,975,991                 2,898,325       800
                                                                                                                            12,016,1
                                                                                                   11,899,71
CHP 30 - PHARMACEUTICAL PRODUCTS                                                     25,850,496                22,927,106
                                                                                                           1                     45
CHP 32 - TANNING OR DYEING EXTRACTS; TANNINS AND THEIR DERIVATIVES; DYES, PIGMENTS                                          666,721
AND OTHER COLOURING MATTER; PAINTS AND VARNISHES; PUTTY AND OTHER MASTICS;            4,194,223    818,267      3,471,595
INKS
CHP 33 - ESSENTIAL OILS AND RESINOIDS; PERFUMERY, COSMETIC OR TOILET PREPARATIONS     8,601,473    231,056      7,954,270   159,143
CHAPTER 34 - SOAP, ORGANIC SURFACE-ACTIVE AGENTS, WASHING PREPARATIONS,
LUBRICATING PREPARATIONS, ARTIFICIAL WAXES, PREPARED WAXES, POLISHING OR
                                                                                      6,605,866                 6,693,376
SCOURING PREPARATIONS, CANDLES AND SIMILAR ARTICLES, MODELLING PASTES, ‘DENTAL
WAXES’ AND DENTAL PREPARATIONS WITH A BASIS OF PLASTER
CHP 35 - ALBUMINOIDAL SUBSTANCES; MODIFIED STARCHES; GLUES; ENZYMES                    890,270           20       607,370    38,218
CHP 37 - PHOTOGRAPHIC OR CINEMATOGRAPHIC GOODS                                         314,382                    164,973     2,221
CHP 38 - MISCELLANEOUS CHEMICAL PRODUCTS                                              1,879,411       1,218     1,631,372    12,502
                                                                                                   5,134,23                 1,678,01
CHP 39 - PLASTICS AND ARTICLES THEREOF                                               10,385,717                 8,278,218
                                                                                                          9                        3
                                                                                                   4,622,45                 1,869,21
CHP 40 - RUBBER AND ARTICLES THEREOF                                                  1,766,364                  948,417
                                                                                                          9                        3
CHP 42 - ARTICLES OF LEATHER; SADDLERY AND HARNESS; TRAVEL GOODS, HANDBAGS AND
SIMILAR CONTAINERS; ARTICLES OF ANIMAL GUT (OTHER THAN SILKWORM GUT)
                                                                                      1,031,871      56,225      803,715    111,545
                                                                                                                              3,532
CHP 44 - WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL                                      594,707       54,027      251,652

                                                                                                   1,196,66
CHP 48 - PAPER AND PAPERBOARD; ARTICLES OF PAPER PULP, OF PAPER OR OF PAPERBOARD     33,790,767                32,619,602    89,308
                                                                                                          3
CHP 49 - PRINTED BOOKS, NEWSPAPERS, PICTURES AND OTHER PRODUCTS OF THE PRINTING                    44,200,2                 31,544,5
INDUSTRY; MANUSCRIPTS, TYPESCRIPTS AND PLANS
                                                                                     15,126,132                10,847,131
                                                                                                         46                       89
CHP 52 - COTTON                                                                        128,387                   134,646
CHP 54 - MAN-MADE FILAMENTS                                                            236,299                   180,155      7,149
                                                              18
CHP 55 - MAN-MADE STAPLE FIBRES                                                          461,493     26,830      204,043
CHP 56 - WADDING, FELT AND NONWOVENS; SPECIAL YARNS; TWINE, CORDAGE, ROPES AND                                   152,873
CABLES AND ARTICLES THEREOF
                                                                                         565,869
CHP 57 - CARPETS AND OTHER TEXTILE FLOOR COVERINGS                                       206,801                 128,537
CHP 58 - SPECIAL WOVEN FABRICS; TUFTED TEXTILE FABRICS; LACE; TAPESTRIES; TRIMMINGS;
EMBROIDERY
                                                                                         143,851                 117,164
CHP 59 - IMPREGNATED, COATED, COVERED OR LAMINATED TEXTILE FABRICS; TEXTILE
ARTICLES OF A KIND SUITABLE FOR INDUSTRIAL USE
                                                                                         289,598                 236,219
CHP 61 - ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR CROCHETED             8,394,562   661,169     6,759,031   412,872
CHP 62 - ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR                                                       3,803,05
                                                                      10,417,053                               10,047,227
CROCHETED                                                                                                                          4
CHP 63 - OTHER MADE-UP TEXTILE ARTICLES; SETS; WORN CLOTHING AND WORN
                                                                                        1,245,952     8,534      830,211        200
TEXTILE ARTICLES; RAGS
                                                                                                    1,520,88
CHP 64 - FOOTWEAR, GAITERS AND THE LIKE; PARTS OF SUCH ARTICLES                         1,940,434               1,912,309   689,419
                                                                                                           1
CHP 65 - HEADGEAR AND PARTS THEREOF                                                      105,339      11,070      95,505      3,940
CHP 68 - ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR
                                                                                         418,920    167,360      217,086    215,842
MATERIALS
                                                                                                                              4,374
CHP 69 - CERAMIC PRODUCTS                                                               1,049,468    18,205      773,985

CHP 70 - GLASS AND GLASSWARE                                                             430,563     93,643      752,882     87,441
CHP 71 - NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES,
PRECIOUS METALS, METALS CLAD WITH PRECIOUS METAL, AND ARTICLES THEREOF;                  727,412     38,322      816,423     64,142
IMITATION JEWELLERY; COIN
CHP 72 - IRON AND STEEL                                                                  402,026    788,943      429,191    403,887
                                                                                                    10,782,3                9,751,21
CHP 73 - ARTICLES OF IRON OR STEEL                                                      5,971,768               3,453,620
                                                                                                          22                       4
CHP 74 - COPPER AND ARTICLES THEREOF                                                     632,559       1,500    1,156,827     3,235
CHP 75 - NICKEL AND ARTICLES THEREOF                                                      343,761                 25,598     63,000

CHP 76 - ALUMINIUM AND ARTICLES THEREOF                                                 1,354,430    12,144      700,755
CHP 82 - TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND FORKS, OF BASE METAL;
                                                                                         949,651    109,916      651,931     38,369
PARTS THEREOF OF BASE METAL
CHP 83 - MISCELLANEOUS ARTICLES OF BASE METAL                                            619,848       8,951     443,338      11,000
CHP 84 - NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL                                        3,120,51                1,941,96
                                                             28,586,036                                        22,857,261
APPLIANCES; PARTS THEREOF                                                                                  9                       5
CHP 85 - ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND
                                                                                                    29,411,5                18,881,0
RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND 26,198,994                                 19,450,374
REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES                                                   31                      11
CHP 87 - VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-STOCK, AND                                  20,847,3                1,722,65
                                                                   25,587,962                                  21,417,285
PARTS AND ACCESSORIES THEREOF                                                                             89                       5
                                                                                                    4,408,93                6,453,68
CHP 88 - AIRCRAFT, SPACECRAFT, AND PARTS THEREOF                                       14,758,413              14,533,684
                                                                                                           4                       2
CHP 89 - SHIPS, BOATS AND FLOATING STRUCTURES                                            439,292       1,200    1,576,574
CHP 90 - OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING,
                                                                                                    6,196,39
PRECISION, MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; PARTS AND                     4,452,317               3,407,115   434,965
ACCESSORIES THEREOF
                                                                                                           1
CHP 91 - CLOCKS AND WATCHES AND PARTS THEREOF                                            288,880    455,107      210,384    830,644
CHP 94 - FURNITURE; BEDDING, MATTRESSES, MATTRESS SUPPORTS, CUSHIONS                                1,804,70
                                                                                        2,813,833               3,016,882   545,587
AND SIMILAR STUFFED FURNISHINGS; LAMPS AND LIGHTING FITTINGS, NOT                                          5
                                                               19
ELSEWHERE SPECIFIED OR INCLUDED; ILLUMINATED SIGNS, ILLUMINATED NAME-
PLATES AND THE LIKE; PREFABRICATED BUILDINGS
CHP 95 - TOYS, GAMES AND SPORTS REQUISITES; PARTS AND ACCESSORIES
                                                                         3,635,707    355,924      2,433,361   284,809
THEREOF
CHP 96 - MISCELLANEOUS MANUFACTURED ARTICLES                             1,844,287       7,128       543,490
CHP 99 - SPECIAL CLASSIFICATIONS                                           583,137                   564,543
Total                                                                                 165,890,0   325,722,53   97,144,5
                                                                        431,816,665
                                                                                             30            8         53




                                                    20
7.0    Foreign Direct Investment


Foreign investment in UK manufacturing since 1985 has raised productivity growth by
1% a year. The effects of foreign investment will have spilled over into UK firms as they
copy new management techniques. Investment in services has been taking advantage of
the structure of the UK’s service sector. It has not raised productivity growth. Monetary
Union could make the City less attractive if the UK stays out. Inward investment raises
exports, but outward investment reduces them. The UK has been a large outward
investor as well as a recipient of foreign investment. UK exports may be reduced by the
net outward investment over the last ten years.


Table 6 below represents total values of FDI flows and FDI stocks and the FDI to GDP for
years 2007 and 2008.


Table 6 - Foreign direct investment (FDI) overview
              FDI flows (Millions of     FDI stock (Millions of      As a percentage of
                     dollars)                   dollars)                    GDP
               2007         2008          2007           2008         2007       2008
 Inward        183,386       96,939      1,263,652       982,877         45.1       36.8
 Outward       275,482      111,411      1,841,018      1,510,593        65.3       57.4
Source: World Investment Report 2009, UNCTAD


Figure 8 represents net direct investment abroad by UK companies and net direct
investment in the UK by foreign companies in 2008.




                                           21
Figure 8 - Foreign direct investment flows in 2008
                                                                           Values in £ billion




Source: Foreign Direct Investment Statistical Bulletin, Office for National Statistics


Figure 9 represents the classification of business investment in Ireland by the different
economic sectors in the period 2007 – 2009.




                                             22
Figure 9 – Business investment in UK
                                                                               £ Million




Source: Statistical Bulletin, Office for National Statistics


7.1     Why to invest in United Kingdom


1. The easiest place to set up and run a business in Europe
The World Bank found that it takes just 13 days to set up a business in the UK,
compared to the European average of 32 days. It ranks the UK as the first in Europe, and
fifth in the world, as the easiest place to operate a business.


2. Access to the world’s largest market
The UK is the number one gateway to Europe, giving easy access to the 27 member
states of the European Union, and the world's largest single consumer market, with its


                                               23
population of nearly 500 million. The UK’s extensive international connections (travel
and IT) infrastructure makes the UK the ideal location to grow an international business.


3. A strong science base
The UK is a world leader in innovation, ranking second only to the USA for the quality of
its research base.


4. A stable regulatory environment
The UK has a stable regulatory environment; with a consultative approach to the
formulation of regulation, so there are no surprises for business. The UK is one of the
most stable political environments to do business: according to Transparency
International, the UK is one of the most transparent countries in the world. It has a
higher rating than France, Germany, USA and Japan.


5. A flexible workforce
The UK has one of the most flexible labour markets in Europe: the World Bank ranks the
UK the second best place in Europe to employ workers, behind Denmark.


6. Most attractive destination for inward investment
According to Ernst and Young, in 2009/2010 the UK attracted the most company
investments in Europe.


7. Transport
The UK offers world-class transport links. Heathrow's Terminal 5 is open and working
efficiently. Additional expansion is planned for sea container terminals at London
Gateway and Felixstowe, and for the rail network, with investment in London Cross Rail
and rail freight infrastructure.


8. Olympic opportunities

                                           24
The London Olympic Games in 2012 will directly award £6 billion of contracts which in
turn will generate an estimated 75,000 business opportunities to supply chains in the
coming years.
8.0       Agreements


Bilateral Trade Agreements


Bilateral and Regional Trade Agreements for the United Kingdom are mainly negotiated
through the European Union. The UK conducts bilateral trade talks with a number of
countries on an ad-hoc basis, though independent agreements are rare. Despite
inevitably accelerated efforts by the UK (through the EU) to strengthen its standing in
regional and bilateral agreements post-Cancun, the UK continues to believe that the
multilateral system should be the cornerstone of global trade. To the end of ensuring
this, the UK seeks a WTO review of preferential trade agreements to ensure that they do
not obstruct multilateral liberalization. It seeks clarification of WTO rules relating to
these agreements to determine their legitimacy within the multilateral trading system.


The Anglo-Irish Trade Agreement
      -   Was signed on 25 April 1938 by Ireland and the United Kingdom. It aimed to
          resolve the Anglo-Irish Trade War which had been on-going from 1933.


United Kingdom – Canada Trade Agreement


United Kingdom is also a member of the following international organizations:


United Nations (UN)
Conference on Disarmament (CD)
International Atomic Energy Agency (IAEA)
Organization for the Prohibition of Chemical Weapons2 (OPCW)
                                            25
26
9.0    Opportunities for Investment and Trade


Pharmaceuticals


The UK has seen a wave of investments by pharmaceutical companies in the past few
years. These are set to create numerous opportunities within the pharmaceutical and
life sciences sectors.   Pfizer’s US$68 billion takeover of Wyeth kicked off the
consolidation in January 2009, followed by Roche’s US$45.7 billion bid for Genentech
and Merck’s US$41.1 billion move on Schering-Plough.


Pfizer will be opening a centre of excellence for stem cells in Cambridge and has also
partnered with USB, forming Cyclofluidic, a breakthrough technology company aimed at
accelerating the drug discovery process by allowing researchers to test a greater range
of potential new medicines in a shorter time. Additionally, United Therapeutics of the
USA expanded its European headquarters in Chertsey, Surrey, a move likely to generate
significant job creation over the next few years. New entrants into the UK included
Almirall, Spain’s largest pharmaceutical company, which established a UK headquarters
at Stockley Park, near Heathrow, after acquiring a portfolio of products from UK-based
Shire. Biocon, an Indian company developing biopharmaceuticals for diabetes, cancer
and inflammatory diseases, was attracted to the UK thanks to the UK’s ability to reach
the European market.


The pharmaceutical and healthcare industries in the UK are and will continue to be two
strong industries thanks to the UK Government’s commitment to invest heavily in the
NHS. The NHS works closely with UK centres of academic excellence, focusing on the
progress of translational medicine.



                                          27
Opportunities


In the healthcare and medical technology sector, UKTI received an upsurge in inquiries
about tele-health, telemedicine, medicines for children, translational medicine and
dentistry. In addition, UKTI is progressing enquiries across a broad range of disease
areas and treatments including neurosciences, oncology, infectious diseases, vaccines,
monoclonal antibodies and tissue engineering.


The new Pharmaceutical Price Regulation Scheme (PPRS) set up by the UK Government
and the industry will provide a stable environment for pharmaceutical companies for
the next five years. The scheme enables a company to have a felixble pricing regime
according to proven drug efficacy or according to drug usefulness for different
treatments. The National Institute for Health and Clinical Excellence (NICE) will now
assess the drug at this new price for clinical and cost-effectiveness. The scheme also
tackles Patient Assessment Schemes which will become more systematic, improving
drug cost-effectiveness.


Life Sciences


The life sciences sector in the UK is a global market leader in R&D and high-value
manufacturing with areas such as regenerative medicine, stem cells, biologics, obesity,
diabetes, cardiovascular diseases, asthma, paediatrics and medical technologies being at
the international forefront of development. 120,000 people are employed in the life
sciences sector in the UK. The UK is also home to some of the world’s industry leaders –
indeed world class companies such as Novo Nordisk and Inverness Medical have
recently made strategic investments in the UK.



                                          28
Significant achievements have been made in the life science sector in the UK. Five of
the world’s top 20 best-selling medicines have been created in the UK with the UK also
having 45% of all pipeline products in Europe. The future also promises success with the
UK having the highest number of life science graduates in Western Europe and two of
the world’s top 3 universities in the sector. £13 million each day are spent on R&D
alone in the UK.


The “Life Sciences Blueprint”, set out in 2009, is an ambitious and comprehensive set of
measures that will transform the operating environment for the UK life sciences sector.
These measures include – access to the NHS, access to finance (especially in medical
biotechnology), incentivising innovation, skills support and improved collaboration
between industry, academia and the NHS.


Opportunities


Healthcare and medical technologies will remain strong sectors within the UK thanks to
the NHS, which is the largest purchaser of life science products in the world and
accounts for 85% of UK healthcare delivery.


The UK is committed to continuing its support of highly innovative activity in the life
sciences sector, with companies able to seek investment from the newly created “UK
Future Technology Fund” which has an initial £200 million to invest in high growth
potential technologies.


In 2010/11, Government investment in health and biomedical research will reach £1.7
billion, provided mainly through the Medical Research Council and the National Institute
for Health Research. Indeed, the Government is supporting the Medical Research
Council (in partnership with Cancer Research UK, University College London and the



                                          29
Wellcome Trust) to create the £600 million UK Centre for Medical Research and
Innovation which will become one of the world’s leading medical research centres.




Financial Services



The UK has the largest financial service sector in Europe and London is the international
financial centre of choice for financial institutions. The importance of the sector to the
UK economy is such that it contributes to 7% of GDP, generates employment for more
than 1 million people and exports annually an approximate £50 billion. The UK and
London are ranked by the World Economic Forum and the Global Financial Centres
Index respectively as having the world’s strongest financial system.


The strengths of the financial services that have made the UK the global leader in the
industry include diversity of markets, strong skills base, global orientation, cluster
effects including the presence of related businesses such as professional services, and a
robust and stable legal system. The sector’s strength ensures continuous attraction of
foreign investment to the UK. Some businesses that have invested successfully in the
UK include India’s Religare Capital Markets establishing an investment bank, the
opening of a representative office of the China Merchants Bank and Brazil’s
development bank, BNDES, opening an office in London.


£82.5 billion were raised over 2009 through new and further issues of equity on the
London Stock Exchange, showing the resilience and strength of the financial sector.
Similarly, the Alternative Investment Market raised £5.3 billion in 2009, a 23 per cent
increase on 2008, with money raised through further issues reaching £4.6 billion, a 45
per cent year-on-year increase. In addition, the PLUS market continued to show strong



                                           30
growth with reported trades up 69 per cent to 8.6 million in 2009 and with trade values
rising by 45 per cent to £52.86 billion in the same period.


The UK has led the international discussions on the need for regulatory change on a
global scale to restore confidence in the financial services industry. In the G20 held in
London agreements were made to treble resources to the International Monetary Fund
and establish a new Financial Stability Board.


Opportunities

The UK has a broad and deep financial services sector on which to build for future and
long-term market opportunities. London’s instinctive internationalism and openness to
global business provides a base for expanding markets such as Islamic finance, sovereign
wealth fund investment and carbon markets, where London has already established
itself as the world’s leading location and accounts for approximately 40 per cent of
investments globally in offset schemes.


ICT

With an employment of over 1 million people and an estimated worth of £120 billion in
2009, the UK is one of the largest markets for ICT in Europe and provides numerous
investment opportunities.     Businesses benefit particularly from the UK having the
strongest ICT skills in Europe and the highest number of ICT graduates annually in
Western Europe.


The UK continues to dominate the ICT market as identified by independent assessments.
“Connectivity Scorecard” by Nokia Siemens Networks ranked the UK as the top major
European location for ICT, the World Economic Forum rated the UK as having the most
“networked economy” of all major European countries and the “International
Communications Report” by Ofcom confirmed that the UK has one of the strongest
digital telecommunications sectors globally.

                                            31
With regards to digital communications the UK leads the world in the take up of digital
television and has the largest market in Europe for flat screen TVs and mobile
telephones.     Importantly, the UK also secured a number of ground-breaking
technological investments from major international ICT companies, including Europe’s
first 3D television service launched by Sky.


The UK software market is currently worth approximately £9 billion, while the UK IT
services market is valued at over £34 billion. Regulatory changes (especially in the
financial services sector) and the constant need for business improvement and
efficiency savings have driven companies involved in these two markets. Investments
over the 2009/2010 period include those by IBM and the Indian IT services company,
which expanded its UK operations by opening a new headquarters in London and
extending its development centre in Reading.


Opportunities

Estimates from independent research indicate that the UK ICT sector could drive the
creation of 2,500 new businesses and 78,200 new jobs by 2013. Immediate business
opportunities include those for international media technology companies in relation to
the 2012 Olympic Games. International companies can also benefit in the long term
over the next decade due to the wide range of innovative and fast growing
opportunities in security, cloud computing, assisted living and digital advertising.


Environment and Renewable Energy


The UK energy sector provides a range of immediate and dynamic business
opportunities for foreign investors. In 2009, £7.03 billion was invested in renewable
energy technologies across the UK, the highest level of investment in Europe and the
third highest globally

                                               32
Firstly, the launch of the “UK Low Carbon Transition Plan” in July 2009 set out policies to
cut carbon emissions by 34 per cent on 1990 levels by 2020 – one of the most
progressive targets in Europe. Secondly, the “Renewable Energy Strategy”, also
launched in July 2009, confirmed the legal requirement for the UK to generate 15 per
cent of its total energy through renewable energy sources by 2020 (a significant increase
on the 2.5 per cent currently generated).


A key development in 2009 was the launch of the Infrastructure Planning Commission in
August 2009. This new and independent planning regime is expected to shorten the
approval time for significant infrastructure projects and will be of particular benefit to
companies investing in major projects across the energy sector.


Furthermore, the newly created “Feed-in Tariffs”, which took effect from April 2010, will
serve as the main financial incentive to encourage small-scale energy generation by
individuals and businesses – this initiative will provide 2 per cent of the UK’s electricity
by 2020.


Opportunities


Wind Energy – The UK is the world’s biggest market for offshore wind and is expected to
generate employment of up to 70,000 people by 2020. The Government is committed
to an expansion of the UK’s 28 offshore wind capacity, with the aim to produce up to 32
gigawatts of energy by 2020. In addition, commercial activity is already gaining
momentum.


Marine Energy - In March 2010, the “Marine Energy Action Plan” was launched which,
when implemented, will provide enough power for up to 15 million homes, saving up to
70 million tonnes of CO2 by 2050 and creating up to 16,000 jobs. The initiatives arising

                                            33
from this plan will provide the UK with an unparalleled marine energy testing,
development and demonstrating infrastructure.


With its advantages in natural resources and the large traditional energy sector, the UK
is leading the development of a number of renewable energy technologies. The UK
Government will match funding from partner companies to spend £1 billion on energy
research and development.


Food & Beverages

Consumers in the UK spent £173bn on food, drink and catering in 2008, an increase of
5.2% on 2007. Apart from being one of the fastest growing markets in the UK, the UK is
the number one gateway to the European market, with exports from the UK reaching
around £13.2bn per annum. This figure is surpassed only by US exports. The food and
beverage industry is the single largest manufacturing sector in the UK, employing over
400,000 people. The UK is home to a significant proportion of the 25 global companies
in the industry. In 2007, the UK attracted £8.4bn of new overseas investment from food
and drink manufacturers. The country is renowned as a leader in high tech packaging,
health and convenience foods.


With an increasingly multicultural society, the UK has the largest ethnic food market in
Europe, worth around £1.49bn at retail selling prices in 2008. The grocery retail sector
is also highly developed with three quarters of sales taking place in supermarkets and
76% of the market share belonging to four large chains.          Yearly retail sales are
continually increasing and this makes the market accessible to overseas investors.


R&D is another thriving area in the UK. Continuous innovation, such as frozen food,
ready meals and instant coffee, keeps the UK competitive in the field. The UK leads the
world in the development of convenience foods, alternative ingredients and functional
foods. The sector also benefits from a talented workforce, high tech facilities and state

                                           34
of the art technology. In 2007/8, R&D investment into the UK increased by 83 per cent.
The UK Government takes a proactive approach to encouraging R&D through tax
incentives, business support initiatives and close collaboration between companies and
the university research base.


The UK has a world class transport system, offering fast, easy access from anywhere on
the mainland to London, Europe and the rest of the world. It also has an internationally
competitive tax environment, with a top rate of corporate tax of 28 per cent, the lowest
in the G8. The UK is politically and economically stable with an open regulatory
framework and strong protection for intellectual property.


Opportunities


With a quarter of adults and 10% of children classified as obese, there is a strong
demand for healthy foods and beverages, such as pro-biotic yoghurts, cholesterol-
reducing spreads and milks, bottled water and fruit juices. The market has grown
steadily over the past few years and is driving new product development. The UK
Government is additionally investing £372m in the area.


Environmental concerns have also opened up new opportunities within the food and
beverage industry. Products with perceived environmental attributes, such as those
with a low carbon footprint, are expected to become increasingly important in coming
years.


Like most developed countries, the UK has also seen an ever increasing demand for
convenience products.     Innovative packaging solutions, designed to fit with busy
consumer lifestyles, are also helping to fuel growth. In 2007, for example, the UK market
saw the first fish products in microwaveable pouch-packs. Sales of fish and fish products


                                           35
are forecast to grow at a faster rate than the rest of the food market in coming years
thanks to these convenient, pre-packed formats.


With consumers’ tastes becoming more sophisticated, the UK ethnic food market has
become the largest in Europe. It is likely that demand for ethnic food and rice will
increase to £1.76bn by 2013, a 36 per cent increase since 2004


With regards to manufacturing, the sheer scale of the food and drink manufacturing
sector in the UK makes this an ideal investment location for overseas companies. The
largest manufacturing group is that of bakery products.


Travel & Tourism


In 1999, 25.5m visitors came to the UK, with tourism expenditure reaching around
£61bn. Total employment in the sector was nearly 1.8m people. Overseas tourists spent
over £13 billion in the UK, a slight fall from 1998. Expenditure by domestic tourists
(people who spent at least a night away from home) was estimated at £16 billion in
1999. This was a rise of 14% on the £14 billion spent in 1998. Total tourism revenue,
excluding expenditure by UK tourists on day trips, contributed about 3.6% to GDP.


There are an estimated 125,000 businesses in the UK that are related to the travel and
tourism industry. A large number of these are small businesses and 80% of them
generate less than £250,000 per annum. This makes the tourism industry in the UK
highly fragmented.


The UK government undertook a wide-ranging review of tourism policy, the results of
which were published in February 1999 in the report Tomorrow’s Tourism. It set an
overall target for the UK tourism industry to match the global rate of tourism growth by
2010.

                                          36
Education & Training


Education and training is a key component in every business sector and the UK is a
global leader in developing partnerships between education and industry. The UK’s
education and skills exports are worth about £12 billion annually, making the UKTI a
world leader in meeting the accelerating demand in this dynamic sector. The export of
educational and skills-related equipment, books, software, materials and content is
worth £1.5 billion a year and demand is increasing as new technology plays a greater
role.


Around 325,000 international students study at UK universities and colleges, while a
further 3 million students take UK exams overseas. Their professional qualifications are
recognized internationally and are in constant demand by those seeking to improve
profession effectiveness and career prospects.


The UK delivers effective English language learning systems to students both in the UK
and through UK institutions internationally.


Opportunities


The UK Education & Training Sector is a leading innovator in distance and e-learning
material and programmes.


The high quality and proven effectiveness of UK teaching equipment, software and
materials are recognised in international markets.


                                           37
Annex 1 - References


World Investment Report 2009, UNCTAD


https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes
http://news.bbc.co.uk/2/hi/europe/country_profiles/1038758.stm#facts
http://db1.datamonitor.com/country-stats/ViewResults.aspx
http://www.state.gov/r/pa/ei/bgn/3846.htm
http://www.infoplease.com/ipa/A0108078.html
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=GB
http://www.worldwide-tax.com/uk/uk_taxes_rates.asp
http://www.thebild.org/Events/1644/1648
http://www.parliament.uk/documents/commons/lib/research/rp2000/rp00-066.pdf




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