1. An interesting thing about #services trade in the context of #Brexit is that we need to remember that services imports directly create jobs. Economists always like imports, but public debate focuses on jobs coming from exports. #Services are different. Let me explain why. 2. Under the GATS, when a foreign services company establishes a subsidiary in the UK and sells services to locals, that's an import of services for the UK under #Mode3. But to sell services to locals, the business needs to employ locals. So imports directly create jobs in the UK

1. Yesterday's post on Brexit and services trade gained some interest - that's very gratifying. Here is the link the report for DfE NI, in case you missed it: bit.ly/2C4dTau. I'd like to look at some basic concepts in services to help everyone understand it a bit better. 2. Services trade is governed by the General Agreement on Trade in Services (GATS), part of the WTO. People only really started thinking about it in the 1980s, and the agreement was signed at the end of the Uruguay Round of negotiations in 1995.

Brexit discussions have focused 90% of the energy of politicians, negotiators, and the public on 20% of GDP: goods. What about services, which account for around 80% of all economic activity in the UK? My team and I have some fact-based analysis: bit.ly/2C4dTau We use the OECD's Services Trade Restrictiveness Index to look at policy changes that would take place under different Brexit scenarios. It's not a modeling exercise, and doesn't require a lot of theory. It is really just coding hundreds of laws and regulations. Hard facts.