UK has smaller share in Dutch domestic exports

In the first seven months of this year, the value of Dutch goods exports to the UK developed less favourably than the value of total Dutch goods exports, which increased by over 4.5 percent to 284 billion euros. Intra-Community exports grew by 4.5 percent.

In the period January-July 2018, Dutch domestic goods exports to the UK amounted to 11.6 billion euros. This represents a year-on-year decrease of over 3 percent. In 2017, domestic exports to the UK were still on the increase, namely by 0.8 percent. The total export value of Dutch-made goods grew significantly in both 2017 and 2018. In the first seven months of this year, re-exports to the United Kingdom increased by 3.3 percent to over 11 billion euros.

UK’s importance in industrial exports has diminished

Because of the less favourable development in domestic exports to the UK in 2017 as well as in the first seven months of 2018, the United Kingdom has seen its share in these exports decline by nearly 0.5 percentage point since 2016 to 7.4 percent in 2018. Partly due to the single delivery of an oil platform, domestic exports to the United Kingdom reached a peak in Q2 2016. This made the UK’s share in total domestic exports go up to more than 9 percent.

Industrial exports to the United Kingdom have decreased gradually: first measured in 2002 was the highest recorded share of 9.7 percent, which has declined to 7.4 percent in 2018. There is no breakdown available by domestic exports and re-exports for 2002.

Main domestic export products

The export value of mineral fuels has decreased by over 160 million euros. Domestic agricultural products are another major export flow to the United Kingdom. The export value of agricultural products including fruit and vegetables, flowers and plants as well as meat has decreased slightly. In 2017, the UK was the third most important export destination for Dutch agricultural and agriculture-related products, after Germany and Belgium.

Demand in the UK for Dutch-manufactured passenger cars has shown an upward trend for several years. In the first seven months of this year, the Netherlands exported 8 percent more cars than in the same period in 2017. The export value of Dutch-manufactured lorries also rose. On the other hand, the export value of boats and ships declined by 150 million euros.

Decline in EU exports to the United Kingdom

Within the EU, the Netherlands ranks second - after Germany - as the most important country exporting to the United Kingdom. Together with Belgium, the two countries take up half of the intra-Community exports to the UK. In the first six months of 2018, intra-Community goods exports to the United Kingdom amounted to 159 billion euros. This represents a 2 percent decrease on the same period in 2017.