CARIFORUM and UK EPA Study

and Printing, and Chemicals and Pharmaceutical Products, in which the region currently has some amount of active productive capacity and is, thus, more capable of providing related or incidental services to the UK in the medium to longer term, with the aid of course of targeted value chain penetration strategies. It must be borne in mind, however, that CARIFORUM’s level of participation in UK value chains is likely to be constrained by distance, cross-border regulatory frictions between the two sides and other factors, which may ultimately play a determining role in how effectively the region’s services providers are able to penetrate both the UK’s services and productive sectors. The assessment of the UK’s attractiveness as an investment source and FDI destination also revealed the UK’s strong outward investment orientation, making it a key source market from which to attract foreign direct investment, while at the same time establishing its significant openness to direct inward investment, particularly compared to the EU, thus also making it a prime investment destination. The limited available data also appear to suggest that, based on the value of the UK’s Mode 3 exports in 2019, and thus its assumed preferences in relation to outward investment at that time, the UK may see more value in making investments in the Other Business Services and Financial Services sectors, though significant opportunities may also be available for UK commercial establishment in the Telecommunications, Computer and Information services, Transport services and Distribution services sectors. At the same, for CARIFORUM countries seeking to attract UK investment , the analysis suggests that, subject to the prevailing market conditions for commercial establishment throughout the region, including the existence of an enabling regulatory environment and vibrant consumer demand for the abovementioned services, CARIFORUM countries would likely be attractive investment destinations for the establishment of UK foreign affiliates for the provision of Distribution, Maintenance and Repair, Construction, Other Business Services and Financial

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