Consumers
respond well to advertising and will buy if they see an advantage such
as price, quality, superior design, branding or environmental benefits.
After-sales service is important as consumers do not hesitate to
complain and defend their rights.
Consumer profile and purchasing power
The UK has a
growing population, which has increased faster in recent years. The UK
population is ageing but not as fast as the populations of many other
EU25 countries. In mid-2006, the average age was 39 years, an increase
on 1971 when it was 34,1 years. Approximately one in five people in the
UK were then aged under 16 and one in six people were aged 65 or over.
With a stable, service-focused economy, high employment and long
working hours, consumer income and expenditure has been rising in
recent years. With the so-called ‘credit crunch', this is now slowing
down. The gap between ‘have' and ‘have not' is also widening.
Therefore, the country presents a contrasted picture. This is
illustrated in many ways: for example, while the country is highly
urbanized, it places a high value on country living.
Consumer loyalty has weakened due to increased mobility and easy
accessibility to product information. Thus, consumers are increasingly
shopping around for the best deals and stores offer loyalty schemes to
keep their custom.
Member of World Trade Organisation Member of OECD Party to the Kyoto protocol Party to the Washington convention on International trade in endangered species of wild fauna and flora Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal Party to the Montreal protocol on Substances that deplete the Ozone Layer Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies Party of the International coffee agreement 2001
International economic cooperation
As a member of the European Union, the UK is also part of the European Union Customs Union. It participates in the free trade arrangements of the EU and European Free Trade Association (EFTA). However, it has not adopted the Euro as its currency, which is the British Pound. It is a member of the World Trade Organization and G8. The European Union is a signatory to multilateral and bilateral agreements with many countries.
Non tariff barriers
In accordance with its European Union
membership, United Kingdom applies the European Union (EU) rules that
are in force in all European Union countries. While the EU has a rather
liberal foreign trade policy, there is a certain number of
restrictions, especially on farm products, following the implementation
of the CAP
(Common Agricultural Policy): the application of compensations on
import and export of farm products aimed at favouring the development
of agriculture within the EU, implies a certain number of control and
regulation systems for the goods entering the EU territory.
Moreover, for sanitary reasons, regarding Genetically Modified
Organisms (after being allowed in the European territory), their
presence should be systematically specified on packagings. The beef
cattle bred on hormones is also forbidden to import. The BSE crisis
(often called the "mad cow disease") urged the European Authorities to
strengthen the phytosanitary measures to make sure of the quality of
meats entering and circulating in the EU territory. The principle of
precaution is now widespread: in case of doubt, the import is
prohibited until proof is made of the non-harmfullness of products.
Customs duties and taxes on imports
The average rate effectively applied to manufactured goods,
minerals and metals in EU 15, as evaluated by UNCTAD was 1.44% in
2006.The duties for non-European countries are relatively low,
especially for manufactured goods (4.2% on average for the general
rate). It is one of the lowest in the world. More detailed Customs
tariffs can be found at www.export.gov classified by product type.
Customs classification
The Combined Nomenclature of the European Community
(EC) integrates the HS nomenclature and supplements it with its own
subheadings with an eight digit code number and its own Legal Notes
created for Community purposes.
Import procedures
When introducing goods into United Kingdom, exporters shall fill in an intrastat declaration..
An individual valuation declaration should normally accompany the
import entry for goods liable to customs duty where the value of the
goods exceeds £6,000. However, if you regularly import dutiable goods,
you can save time by completing and registering a general valuation
statement. Detailed procedures are available on the English government website.
The case of samples
It is
possible to import goods deemed to be of negligible value, such as
commercial samples, free of duty and VAT. For futher information visit
the English government website.
97% of the British external trade volume is handled by sea transport: it consists in about 600 million tons a year. There are hundreds of ports well-equipped for goods transportation. The most important are London, Plymouth, Southampton, Aberdeen, Liverpool, Felixtowe and Dover. England, Scotland, and Wales hold more than 80 ports as members in the British Ports Association, whose aim is to represent and protect its members from the market turmoil and to integrate European and international policies. The domestic connections are regularly ensured by domestic companies like British Midlands, Air UK / KLM, Easyjet and British Airways.
Roads are dense and effective. United Kingdom is a powerful market of the European road transport and since the market was liberalised on the European level, this sector has undergone strong upheavals. The government, through the Department of Transport, has called on the private sector to finance the creation, financing and construction of new roads, and a toll-system on highways will be the next step.
Various plans of improvement of the railway infrastructure such as the modernisation of tracks in West Midlands, a high speed connection between South and North as well as a project joining the East and the West are under study. Since December 1994, Great Britain has been connected with the European continent by the Channel, exploited by Eurotunnel company and the train Eurostar (Eurotunnel). An overview of the British rail system can be found on Rail.co.uk.
Manufacturing contributes around 26% of the UK 's GDP, with engineering
and allied industries (transport, electronics) the single largest
sector. Other significant sectors include chemical and chemical-based
products.