CARIFORUM and UK EPA Study

Figure 15: Proportion of British Services Supplied by Mode (2019)

Source: UK Office for National Statistics (ONS) Notes: Modes 1, 2 and 4 are derived from a balance of payments basis, whereas Mode 3 is derived using FATS

The data further reveals that between 2017 and 2019, the UK’s services export shares via Modes 2, 3 and 4 all increased, while its share of exports via Mode 1 fell by approximately one-third. However, despite a higher percentage increase in the services exported via Modes 2 and 4 in 2019, representing a rise of 40% and 25% over the corresponding 2017 levels, respectively, these increases occurred on a comparatively lower base, whereas exports under Mode 3, having only increased by around 20%, accounted for a significantly higher volume and larger value of the total increase in the UK’s services exports over the three year period from 2017 to 2019. Therefore, the supply of services through commercial presence was not only the dominant Mode of supply for services exported by the UK, but also demonstrated the strongest growth potential for the UK. This development augurs well for investment seeking jurisdictions, such as those within the CARIFORUM region, which, depending on their attractiveness as investment destinations, could benefit from increased levels of UK Foreign Direct Investment (FDI) in their respective services sectors. This is particularly important in relation to what are considered transformational services, which support productive activities across other sectors and industries, as opposed to so-called transactional or arms-length services, which are the ends in themselves.

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