CARIFORUM and UK EPA Study

investment, as well as employment, creating jobs for over 2.6 million people. As a direct consequence, it is also a major exporter of services via commercial establishment globally, with close to US$500 billion worth of exports to third countries occurring via Mode 3 in 2016, though its exports subsequently declined to approximately US$486 billion in 2018, despite growing by 3% over the previous year. Indeed, the data presented in previous sections confirm the United Kingdom’s dominance among its EU counterparts in relation to FDI driven exports, having ranked 7 th among the EU 28 countries in relation to the share of its exports (55%) which occur via Mode 3 commercial establishment, both to other EU countries as well as globally, making the UK an important potential source market for investment seeking destinations internationally. Similarly, while the available foreign affiliates trade statistics (FATs) data on inward investment into the UK is limited to only 2016 and 2017, it shows that the UK is also a major destination for both inward FDI as well as the corresponding exports of services to UK nationals via Mode 3, having consumed up to US$471 billion worth of services from foreign suppliers through their approximately 18,500 local affiliates established in the UK, as at 2017. This fact is further reinforced by previous data (see Figures 22 and 23), confirming the dominance of the UK’s imports via Mode 3 in 2017 (72%), relative to its EU 28 counterparts, while highlighting the sheer reliance by international services providers on this mode of supplying services to the UK market. While more current data on the UK’s exports of services via Mode 3 is unavailable, estimates produced using the UK ONS experimental data (only available for 2019) suggests that the country exported more than £627.5 billion worldwide in 2019 via its commercially established entities located internationally, not only representing an increase in exports over the previous year, but also suggesting that the UK’s stock of outbound FDI increased during the period.

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