CARIFORUM and UK EPA Study

Europe also performed the strongest in the area of trade in services, among the major regions, recording the lowest decline in services exports as well as the lowest decline in services imports, year-on-year, at the end of the fourth quarter of 2020. These figures suggested that Europe enjoyed a strong resurgence in both services exports and imports over the previous two quarters (Q2 and Q3) of 2020, which has carried over into the first quarter of 2021.

7.3 Status of UK Global Services Trade

As it relates to the United Kingdom (UK), the services sector accounts for approximately 80% of the Gross Domestic Product (GDP) of the country and is responsible for 4 in 5 persons employed in the country. Furthermore, the UK is also the world’s second largest exporter of services, with the EU being its largest recipient, accounting for around 40% of the UK’s total services exports 44 .

i.

UK Trade in Commercial Services

During the period 2015 to 2020 the UK’s main services export markets were the EU the USA, Switzerland, Japan and Australia, exporting just under US$350 billion worth of commercials services to those destinations. At the same time, while the EU was also responsible for the majority of the commercial services imported by the UK during the six-year period ending in 2020, the net result was a balance of trade surplus in favour of the UK. Other major source markets for commercial services imported into the UK included traditional partners the USA, Japan, and Switzerland. India, however, replaced Australia as a top five partner on the supply/import side.

44 https://www.cbi.org.uk/uk-transition-hub/trading-services-with-the-eu/

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