US overtakes EU as City’s exports change after Brexit – .

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US overtakes EU as City’s exports change after Brexit – .


British financial services exports to the United States surpassed those to the European Union in 2020 for the first time since the Brexit vote, as the City turns away from the continent.

About 34% of exports from banks and financial companies went to the United States in 2020, according to a study by banking lobby group TheCityUK, compared to 30% to the EU. The United States was in pole position for the first time since it started collecting data in 2016.

Experts said the change is evidence of growing U.S. interest in Britain as businesses consider new opportunities.

Bird & Bird lawyer Trystan Tether said he had also noticed a lot of foreign investment from the US into the UK, particularly in the FinTech sector where he said “the UK continues to represent an attractive market ”.

Britain’s overall trade surplus in financial and related professional services increased 8.4% to $ 101.7 billion (£ 79.3 billion) in 2020, a drop in exports to the The EU having been compensated by an increase in those to the United States.

The move away from the bloc is expected to continue in 2021, as Brexit weighs on exports to the EU and UK trade negotiators make removing barriers to services a key focus of their efforts to strike new deals with others country.

Total financial sector exports to the United States – which include financial services, pensions and insurance – were just under £ 15 billion in the first six months of the year, compared with less £ 11 billion exported to the EU, according to Telegraph calculations based on data from the Office for National Statistics (ONS).

The reversal is expected to be seized by Brexit supporters as a rationale for their claims that the city could thrive outside the bloc.

Opponents argued that London’s status as a financial hub would be threatened if Britain voted for the leave, saying up to 200,000 jobs could be lost because banks and other businesses would be shut out of the European market .

However, data from TheCityUK shows that the capital remains much busier than any financial center on the continent. The UK banking sector had $ 14.3 trillion in assets at the end of June this year, ahead of France and Germany, while the UK legal services market is second in the world after United States.

Meanwhile, London accounts for 16 percent of cross-border bank lending – the largest share in the world – and handles 43 percent of global currency trade, more than twice as much as America’s. The insurance sector is the fourth in the world and the largest in Europe.

William Wright, of the New Financial think tank, said the increase in trade with the United States was due in part to post-Brexit barriers that reduce the City’s exports of financial services to the EU. He added that the US economy was also less severely affected than the euro area by Covid last year and rebounded faster.

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