Trade in services is not well understood.
Rather than obsessing about services exports, UK policy-makers should focus on investment and ensuring UK remains an attractive destination for services firms to operate out of.
New policy brief by me: cer.eu/publications/a…
Rather than obsessing about services exports, UK policy-makers should focus on investment and ensuring UK remains an attractive destination for services firms to operate out of.
New policy brief by me: cer.eu/publications/a…
The UK is a services trade superpower.
It is the only G7 economy that sees more than 50 per cent of its services directly exported (mode 1) from its own soil to the rest of the world.
It is the only G7 economy that sees more than 50 per cent of its services directly exported (mode 1) from its own soil to the rest of the world.
But it can't get complacent. The UK’s decision to exit EU’s single market jeopardises its position as a hub for multinational services firms to sell to clients across Europe. Policy-makers need to ensure that the slow trickle of business moving to the EU does not become a flood.
FTAs have only a small role to play. They are unlikely to provide new market access for UK services exporters – cf FTA w/ Japan, which did not unlock any additional Japanese services liberalisation over and above what Japan unilaterally already offers other countries.
But FTAs do prevent partners from rolling back existing levels of openness to British services firms. They can therefore help to ensure a stable policy environment for investors in both directions.
I make a few recommendations. UK should:
- prioritise policy stability (no changing rules for the sake of it)
- liberalise the immigration regime; I suggest scrapping visa fees and negotiating labour mobility chapter with EU as a model for other FTA partners
- prioritise policy stability (no changing rules for the sake of it)
- liberalise the immigration regime; I suggest scrapping visa fees and negotiating labour mobility chapter with EU as a model for other FTA partners
- do its best to embed free flow of data in its bilateral and multilateral relationships
- and engage in long-term regulatory diplomacy; foreign regulators will only let your firms do things if they trust you and your processes.
- and engage in long-term regulatory diplomacy; foreign regulators will only let your firms do things if they trust you and your processes.
Anna (@Annaisaac; #FF) put my suggestion that UK scrap visa fees to the Home Office for the morning politico trade newsletter. It went about as well as expected. Not very Global Britain imo.
Anyway, please read the report. Even if you don't learn anything new I'd appreciate it.
There are also some other reports being published this week on trade in services that are worth your time.
This one by UK finance on trade policy and financial services is thoughtful and provides a good overview of the different tools available: ukfinance.org.uk/system/files/I…
This one by UK finance on trade policy and financial services is thoughtful and provides a good overview of the different tools available: ukfinance.org.uk/system/files/I…
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