CARIFORUM and UK EPA Study

Overall, the UK exported almost 1.6 times more services to the world than it imported, with total services exports for the period of approximately US$4.3 trillion, compared to total imports of just US$2.7 trillion, resulting in US$1.56 trillion of total trade in services surpluses accruing to the UK’s balance of payments.

Table 18: UK Global Services Trade (2008-2019) – US$ Millions

U K Services Trade (2008-2019) - US$Millions

Trade Flow

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019 2008-2019

UK Global Services Exports

324,996 281,777 288,827 333,231 339,375 363,793 392,619 372,914 363,981 375,325 409,416 416,307 4,262,561 UK Global Services Imports 222,562 188,865 191,428 203,469 205,192 215,169 236,059 233,521 226,456 232,763 263,220 283,785 2,702,489 UK Services Trade Balance 102,434 92,912 97,399 129,762 134,183 148,624 156,560 139,393 137,525 142,562 146,196 132,522 1,560,072 Total Services Trade 547,558 470,642 480,255 536,700 544,567 578,962 628,678 606,435 590,437 608,088 672,636 700,092 6,965,050 Source: WTO Statistical Database

iii.

UK Global Trade in Services by Mode of Supply

The trade in services is generally conducted via four modes of supply, representing the main conduits through which it would be both functionally and technologically feasible to provide a given service. These four modes traditionally include Mode 1 – cross border supply, which involves e commerce/digital trade transactions, Mode 2 – consumption abroad, wherein nationals of one country consumes services overseas, while Mode 3 – commercial establishment refers to inward foreign direct investment (FDI), particularly via the entry and setting up of Foreign Affiliates of overseas firms. Mode 4 – temporary entry, on the other hand, captures the movement of persons, such as inbound short-term consultants, technical experts, and investment seeking investors or business services sellers. Figure 14 below provides a graphical representation of the directional flow of such services.

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