CARIFORUM and UK EPA Study

dominates for the majority of individual CF states. The data suggested that there is a high degree of substitutability between modes of supply for all categories of services exports to the UK save for travel and construction services. This high degree of substitutability is largely due to technological advances, which have arisen from the increased “platformisation” and digitisation of services. Therefore, save and except for sectors in which the characteristics were such that it is not technologically feasible, most services activities are able to be supplied via mode 1. This is a distinct advantage for CF given that, in relation to mode 4 ( where under the CF-EU EPA it was anticipated to provide the greatest benefits to the region’s service providers), the UK maintains the most restrictions relative to all other modes. However, as with trade in goods, there are a few economies that dominate the trade in both services and goods. At a regional level of trade with the world, the dominant countries in 2019 were The Dominican Republic, the Bahamas and Haiti. Practical or trade implications and any potential opportunities or challenges that exist i. Challenges From the data reviewed this study highlights three main challenges: 1. Concentration and lack of diversification For the trade in goods we see a concentration of exports from the region in a few tariff lines, and by a few exporters. Though all countries cannot dominate trade, this suggests a high degree of vulnerability within the region. Similarly, on the services side, there was also concentration in a few exporters, services sectors, and modes of supply. 2. Limited integration into global value chains and lack of regional value chains Though specific research is required into Global Value Chains within CARIFORUM, data for Latin America and the Caribbean suggests a low level of integration of the region into GVCswhen compared to other regions. Additionally, no data has been identified that suggests that there are

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