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Advertisers American Institute for Foreign Study
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U.K. welcomes U.S. trade,
Cooperation
and collaboration, rather than confrontation, are the keys to a successful
world market, according to the Rt. Honorable Richard Caborn, the U.K.’s
Minister of Trade. “We must continue to have liberalization of global
trade . . . the most transparent way possible,” he said. Reflecting
on the importance of open relationships, the minister explained that
no alternative to liberalization exists, because the status quo is
not an option.
“We don’t
want to have trade wars. It is far better to have international respect
for the WTO, and the EU must modernize itself,” explained the minister,
who is a strong supporter of the World Trade Organization.
To prevent
harmed relations from disputes such as those previously about bananas
or beef hormones, the United Kingdom maintains an active program of
both inward and outward investment with its close ally, the United
States. The two countries not only have a longstanding historical
relationship as allies in world wars; they are serious trading partners.
Investment
Much
U.S. foreign direct inward investment goes to the United Kingdom.
The two countries invest more in each other’s economies than do any
other two countries throughout the world and have done so for many
years. Many Americans would be surprised to know that more than 200,000
U.S. citizens live in London, and that more than 40 percent of what
the United States invests in the European Union goes to the United
Kingdom. Perhaps these statistics are no surprise when one looks at
obvious similarities between the two countries, such as language.
“Two-thirds
of American headquarters are U.K.-based. The United Kingdom is the
business capital of Europe,” said Andrew Fraser, former chief executive
of the Invest in Britain Bureau (IBB). As of July 5, the IBB became
Invest-UK. Because some American brands are so familiar, many British
citizens think these companies are British. Ford has been in the United
Kingdom since 1923. Dupont established itself in Northern Ireland
more than four decades ago. Kellogg’s, Gillette, Ford and Vauxhall
(GM) are deeply embedded in British culture, Fraser explained.
“There
is an interchangeability to relationships - we are not quite foreign
to each other. There are more American banks in London than in New
York,” he said. KPMG noted a 70 percent merger success rate between
U.S. and U.K. companies, which is twice as high as that of mergers
between U.S. companies and those of other EU countries. Even venture
capital projects are beginning to take root, a concept once not readily
accepted in either the United Kingdom or Europe.
Why such
a flurry of activity in the United Kingdom, one might ask? What kind
of incentives does this region provide? Each area of the United Kingdom
has different programs for investing. However, Fraser noted a few
factors contribute to the United States and the United Kingdom being
the largest investors in each other’s respective economies. He noted
the following: 1) an open attitude, 2) sharing English as our common
language, 3) the strength of the United Kingdom as an insurance base,
4) a very pro-business environment that includes similar legal and
accounting standards in a tax-friendly environment. “I paid a higher
tax (when I lived in New York) than I do in London,” he said. Finally,
the United Kingdom offers flexibility for Americans, because of the
deregulation and privatization that occurred in Britain during the
past two decades.
Tourism
The United
Kingdom is also a thriving tourist destination. Romans established
what is now the Tower of London in 42. Hadrian’s Wall of Northern
England was constructed in the second century. William the Conqueror
arrived in 1066 with the Battle of Hastings. The English, Welsh and
Scots fought over boundaries for centuries, which resulted in a plethora
of castles throughout the United Kingdom. The Industrial Revolution
produced a nation of technological advancement in travel, science
and the arts. No wonder 4.6 million Americans travel to the United
Kingdom annually. It is the most popular destination for foreign-bound
Americans that requires a passport, even though only 16 percent of
Americans possess one.
“We want
to offer a good quality product,” she said. The good quality of the
product is being proven, as the United States is the single largest
U.K. tourist market. Numbers are up 4 percent in the first five months
of 2000 vs. the same period last year. Why do more than four million
Americans venture across the Atlantic each year to the United Kingdom?
Garland lists several reasons.” Britain is the gateway to Europe,
and Americans feel more content about coming to an English-speaking
destination,” she said.
Cultural
and heritage sites are prime attractions, as is the British countryside.
The countryside is especially noteworthy. Many small towns are sprinkled
around Wales and England, nestled between hedgerow upon hedgerow of
pastureland grazed upon by hundreds of small farm flocks of sheep.
From Welshpool in Central Wales to James Herriott territory around
York, England, the sheep offer certain tranquility. Scotland offers
the last wilderness of Europe in its highlands, and Northern Ireland’s
lasting peace has even increased visits to its famous Giant’s Causeway.
And, a U.K. visit would not be complete without enjoying the new Tate
modern art gallery, royal palaces, the West End theater scene, or
the late-night clubbing in magnificent London.
Now is
the time to begin your tour. A New York-based call center and a powerful
website make booking your next vacation or business trip to the United
Kingdom easier than ever before. See the “U.K. Important Contacts”
for further details.
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Table of Contents U.K. welcomes U.S. trade, investment and tourism |
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Trade
Throughout
the United Kingdom, U.S. investors will find government organizations,
companies and individuals that are very willing to discuss investment
opportunities and the advantages of doing business in Britain and
Northern Ireland. More than 5,600 American companies have already
taken advantage of incentives that the United Kingdom offers to foreign
business. Each of the four regions (England, Northern Ireland, Scotland
and Wales) has different programs and incentives to attract investors.
However, one issue is common throughout. An energetic, educated, dedicated
and English-speaking work force awaits potential investors.
“Brits
have a reputation of being quite reserved, but the first-time visitor
is amazed how friendly we are. Come on over, we would like to see
you,” said Sue Garland, deputy chief executive of the British Tourist
Authority. Admitting to a stereotype that may have been true in the
past, Garland pointed out that tourism is becoming more important
to the British economy. Accounting for about 4 percent of the annual
gross domestic product, tourism is serious business, she said.