The United States surpasses the European Union to become the UK’s largest financial services export market

After the decline in trade with the European Union after Brexit last year, the United States has surpassed the European Union as the main destination for British financial services exports.

According to a report by the industry lobby group TheCityUK, exports of financial services to the EU fell by 6.6% in 2020 to 24.7 billion pounds, involving multiple industries from banking to insurance.

However, according to TheCityUK data, exports to non-EU countries increased by 4.1% over the same period, reaching 57.7 billion pounds, of which exports to the United States increased by 5.3%. This means that the United States accounted for 34.2% of industry exports in 2020, while exports to the EU fell to 30%, which is roughly the opposite of the situation in the previous year.

In 2020, the total value of UK financial services exports remained stable at 82.4 billion pounds, although The upheaval of the coronavirus pandemic, Because the global market rebounded strongly in the second half of the year.

European Union and United Kingdom Strike failed A reciprocal agreement for financial services that allows banks, insurance companies, law firms and accountants to work freely across borders after the UK leaves the European Union in early 2020.

Although the United Kingdom and the European Union have signed a memorandum of understanding on financial services, officials said that since then, progress has been slow in reaching any agreement.

Britain’s Brexit Secretary David Frost said at a dinner hosted by headhunting firm Odgers Berndtson last month that the UK is “unlikely to receive widespread equal treatment”. [on financial services] Withdraw from the European Union within the next one or two years.” He added that the government’s current policy is to “work on this assumption.”

However, the slowdown in UK-EU trade was offset by increased exports to other countries. 2020, the following year Brexit According to TheCityUK report, with the start of the Covid-19 pandemic, the UK’s financial and professional services trade surplus increased from 73.5 billion pounds in 2019 to 79.3 billion pounds.

According to TheCityUK, financial services are generally more resilient during a pandemic, which hit the supply chain and global merchandise trade during the same period.

TheCityUK chief economist Anjalika Bardalai said, “If the UK can’t keep up… other centers will continue to compete to attract business.”

She added: “Unless industry, government and regulators work together to improve long-term competitiveness, deepen key trade links, and focus on new areas of future global growth, the UK’s position as the world’s leading financial center will be at risk.”

By the end of the first half of 2021, the total assets of the UK banking industry were 10.3 trillion pounds, the third largest in the world and the largest among European countries, and the UK has the largest legal services and insurance market in the region.

In September 2021, there were 352 foreign companies listed on the stock exchange in London. In the first 10 months of 2021, the UK’s initial public offering market has rebounded activity, with 93 companies raising funds through new issuances and initial public offerings, with a total of 5.9 billion pounds.

In September 2021, the London Stock Exchange accounted for 4.4% of the global stock market value and 2% of the global stock trading value.

The government hopes to pass Relaxation of stock market listing rules Starting this month, given the criticism that countries such as the United States are more attractive to fast-growing technology-focused companies.