Trade

This section contains information on defence trade. This includes the estimated value of imports and exports of defence equipment, estimates of total export deliveries, orders of defence equipment and services and payments made for services consumed by MOD establishments overseas. Table 1.13 presents the estimated value of defence equipment imports and exports split by commodity type and origin/destination. Table 1.14 estimates total export deliveries and orders of defence equipment and services. Table 1.15 presents the estimated value of MOD Balance of Payments for Trade in Services.

The estimate of total export deliveries is made up of 'identified defence equipment exports' and 'estimates of additional aerospace equipment and services'. Data on exports are provided by HM Revenue & Customs (HMRC) with supplementary data from the Society of British Aerospace Companies (SBAC). Information on export orders are supplied by the UK Trade & Investment Defence & Security Organisation (UKTI DSO). HMRC provide information on deliveries of military or 'other than civil' goods which cross the UK borders. All equipment exports that are reported to UK customs are classified with tariff codes and we use these to determine defence exports. SBAC data covers sales by UK aerospace companies to foreign civil customers and foreign military aerospace industries and military end-users. UKTI DSO collects data on defence export contracts and they relate to orders placed. These data are collected from the UKTI DSO publication 'The World Defence Export Market' compiled via a quarterly survey with known UK defence contractors.

MOD Trade in Services are provisions of services between UK residents and non-residents (e.g. training, cleaning services, IT support etc) and transactions in goods which are not freighted out of the country in which they take place. They are published in an ONS 'First Release' and 'The Pink Book'.

More information outlining the methodology behind these tables can be found in DASA Defence Statistics Bulletin No.4 and in the National Statistics Quality Review, detailing Trade Statistics and MOD Balance of Payments Statistics respectively. Further information outlining recent developments with Trade Statistics and an assessment of the quality of the underlying data is given in Defence Statistics Bulletin No.8. This is available on the DASA website.

Main Findings

Exports of Defence equipment and services (Table 1.13 & 1.14)

• Total estimated UK deliveries of exports increased between 2006 and 2007 (from £4.7 billion in 2006 to £5.5 billion in 2007). A contributing factor to this increase has been a sharp increase in the value of identified exports in the Warships category in 2007 following an overseas delivery of three Offshore Patrol Vessels.
  
  
• The UK identified export orders increased by £4.1 billion between 2006 and 2007 to £9.7 billion. This significant increase in export orders can be attributed to a large order from Saudi Arabia for Typhoon aircraft and orders from Oman and Trinidad and Tobago for offshore patrol vessels.
  

Balance of Payments: Trade in Services (Table 1.15)

• In 2007, the MOD's estimated Balance of Payments for Trade in Services was £2.3 billion in deficit made up of £2.8 billion debits and £0.4 billion receipts. The deficit has increased by £359 million compared to the previous year.