WorldCity, Miami-UK Annual Report: No. 12 trade partner- Tapping the Americas' gateway | Connecting Local Business Leaders To The Global Economy

Miami-UK Annual Report: No. 12 trade partner- Tapping the Americas' gateway

July 27th, 2006

U.K. companies are using South Florida as an entry point not only to the United States, but also to Latin America and the Caribbean.

South Florida is a strategic point for British companies interested in Latin American markets. That has spawned a lively trade relationship between the Miami Customs District and the United Kingdom, although half of South Florida’s imports from the United Kingdom simply pass through Miami and Fort Lauderdale on their way to Latin America and the Caribbean.

Overall, $1.5 billion worth of goods were exchanged by South Florida and the United Kingdom in 2005, nearly the same amount as in 2004. While exports declined 22 percent to total $532.5 million, imports rose 17 percent to $928 million despite the weak position of the U.S. dollar against the British pound.

“We see a growing trend in trade between South Florida and British business,” said Simon Crosby, the U.K. trade and investment senior international trade adviser based in England, during a recent visit to Miami. “There are wonderful opportunities in South Florida. We see it as a gateway to Latin America and the Caribbean.”

To illustrate the importance of the Latin market, the British Consulate in Miami has a market intelligence unit set up to support British companies in their Latin American endeavors.

Crosby said what attracts U.K. businesses to South Florida is the political stability of the United States in contrast to some Latin American countries and the English language. Crosby also said British companies see Florida as a state where it is “rather easy to do business.”

South Florida’s top import from the United Kingdom in 2005 was refined petroleum, brought into the United States at Fort Lauderdale’s Port Everglades. Those shipments reached nearly $230 million, a jump of nearly 7 percent when compared with trade data from 2004.

Rum, gin, vodka and other alcoholic beverages were the second most important import commodity, reaching a value of nearly $125 million in 2005. That’s up from $120 million in 2004. Ximena Prelle, head of U.K. trade and investment at the consulate, said South Florida offers tremendous potential as a market for alcoholic beverages. Among other things, it is a vacation and entertainment destination. More than 2,000 food and beverage-related businesses are based in South Florida. And the area is home to industry trade shows such as the IFE Americas Food and Beverage Show and Fispal Latino, a Latin food and drink fair.

Even more, Prelle said, Miami serves as the sales and distribution center for beverage products headed to Latin America and the Caribbean. The U.K. food and beverage sector ships $18 billion-worth of goods to the Americas each year; spirits account for about a fifth of the total. Two of the Britain’s largest distillery companies have offices in South Florida: Diageo and William Grant & Sons.

Another factor attracting British beverage makers is South Florida’s position as the world’s cruise industry capital. Through distribution channels in South Florida, the cruise lines buy beverages for the 3.5 million passengers who board ships in Miami and Fort Lauderdale. The cruise lines also restock their duty-free stores in Miami.

Paintings were the third leading import from the United Kingdom last year, more than doubling to surpass $95 million. Prelle said Miami Art Basel, the annual art event that draws collectors and galleries from around the world, could have been a factor. However, Miami also hosts a number of art-industry trade fairs, among them Scope Miami, New Arts Dealers Alliance and the Pulse Contemporary Art Fair.

Yachts are also a major import from the United Kingdom, though imports suffered a slight 6 percent decrease in 2005. In the past, the British trade office in Miami has placed emphasis on super yachts by supporting associations and companies at major shows such as International Boatbuilders Exhibition and Conference, Miami International Boat Show, Strictly Sail Miami and the Fort Lauderdale Boat Show.

South Florida also imported nearly $31 million-worth of aircraft parts from Britain last year. British aviation companies BAE Systems, Air Partner, B & H Worldwide, Menzies Aviation, TES Aviation and Smiths Aerospace are all present in Florida.

On the export side of the trade exchange, jewelry was the top commodity, jumping to nearly $102 million compared with just $7 million in 2004.

Exports of aircraft parts also grew, increasing 21 percent to $65 million. Exports of regional jet parts made up $22 million of the total, a gain of 85 percent. But one of the fastest-growing exports was optical fibers. They reached nearly $10 million last year, reflecting an increase of 945 percent.