Bermuda supports up to 100,000 jobs in the UK and trade between the two nations averages about $1.4 billon a year, according to a secret report seen by The Royal Gazette.

The report — given to the UK Foreign Office in the run-up to the Overseas Territories summit this week — outlines the trade links between Bermuda and Britain.

A report on the Island on the Foreign Office website, which used parts of the report, said: “Bermuda’s expertise and capacity contributes directly to the UK economy from generating over 100,000 jobs on the UK mainland, more UK jobs that, for instance, of Japanese industrial investment in the country.”

The full report — prepared for the Bermuda Ministry of Finance by a Washington-based consultancy — said there were 52,500 posts backed by foreign direct investment from Bermuda, while 17,500 jobs were due to the export of services to the Island and between 10-22,000 jobs were supported from goods exported from the UK to Bermuda.

The report lists the major economic sector as “shipping and transport, business services and, above all, insurance and reinsurance”.

It added: “Most of the trade is due to an expanding relationship in insurance services trade between the UK and Bermuda that began to show up clearly in data by 2005 but had begun with investments made earlier that decade”.

The report said that — even during the global financial meltdown — trade links remained strong, and remained at around the £1 billion ($1.63 billion) mark.

It added: “Bermuda’s relative economic significance with the United Kingdom compared to other developed and much larger economies grew enormously since 2000 and remained at a high level throughout the crisis.

“Overall, Bermuda ranks in the top 20 of the most important export markets for the United Kingdom.

“In fact, Bermuda accounted for 16-25 percent of the United Kingdom’s cross border trade in insurance services for the last ten years and 20 percent of UK reinsurance services imports.”

The report said that two-way trade and investment flows between the two countries averaged about $1.4 billion between 2001 and 2011.

It added: “The bulk of the UK/Bermuda economic relationship is in the export and import of financial and non-financial services — including equally both cross-border trade and services delivered through UK subsidiaries of companies headquartered in Bermuda.

“In 2011, UK cross-border service imports to Bermuda amounted to GBP338 million ($552 million) and UK imports from Bermuda were GBP680 million ($1.1 billion).”

The report said that Britain exports on average around $81.7 million in manufactured goods to the Island every year,

It added: “The chief UK exports are transportation equipment — principally yachts, commercial ships and aeroplanes made or finished in the UK or Europe.

“Bermuda’s partnership with the UK in trade in ships and jets is long-standing and based on shared commitment to regulation of air and maritime safety and strong environmental standards.”

The report also said that Bermuda’s financial services industry attracted UK investors partly due to its close links to Britain and similar legal system.

It added: “First, Bermuda provides a global investment platform that attracts international capital. Second, investors from around the world view Bermuda as well regulated, primarily because as a territory of the United Kingdom, Bermuda has close legal and administrative affinity with the UK regulatory system.

“Financial stakeholders have recourse to UK courts and the UK Financial Services Agency has strong relations to the Bermuda Monetary Authority.

“Third, Bermuda’s tax system is attractive to most global investors. Bermuda does not tax worldwide income and does not impose a personal or corporate tax.

“The upshot of this large-scale international economic activity of Bermuda as a financial entrepot benefits the United Kingdom as well as other jurisdictions.”

Minister of Finance Bob Richards, who was part of the delegation at the London Overseas Territories meeting, was yesterday en route back to the Island and not available for comment.