Briefing Paper 66 – January 2022 Download Briefing Paper 66 Ingo Borchert, Michael Gasiorek, Guillermo Larbalestier, Nicolo Tamberi Key Points Introduction Global value chains and vertical fragmentation in services and manufacturing industries Approaches to measurement UK engagement in value chains, specifically mode 5 Services value-added share Services value-added share and exports intensity Services value-added share and foreign ownership in industries Which services are used as inputs? The importance of manufacturing and other sectors for service industries What can we learn from using firm-level data? Who trades services? Who trades goods? The use of services by manufacturing firms Impact of UK FTAs on services trade and Mode 5 UK-EU TCA effects Conclusion Disclaimer Key Points Services increasingly matter for the UK economy and for UK trade. Services can be traded either directly, be this by selling a design service from one country to another or by sending a consultant abroad, or they can be traded indirectly as inputs into goods trade. The latter is often referred to as ‘Mode 5 services trade.’ The interconnectedness of services trade and goods trade does not simply derive from the use of services by goods producers, but also because services themselves are traded by [...]

Download Briefing Paper 59 Briefing Paper 59 – June 2021 Ingo Borchert, Michael Gasiorek, Emily Lydgate, L. Alan Winters Key Points Introduction WTO reform: Plurilateral Agreements Trade and Health Digital Trade Trade and Climate Policy Conclusion Editorial Note Key points For the first time, the G7 has an explicit ‘trade track’ as part of its discussions. This opens the door to cooperation and progress in a range of key areas. International trade is increasingly about services, digital products and delivery, domestic regulation, and links to non-trade areas such as health and climate change.  The WTO is struggling to keep up. The UK should use its G7 Presidency to help overcome its slow progress by leading the G7 to create a system to facilitate open plurilateral agreements (OPAs). In addition to discussions on the role that trade can play in addressing the COVID pandemic, G7 leaders should recognise that trade and investment agreements need to make it easier for governments to pursue legitimate health policies with regard to non-communicable diseases in non-discriminatory and minimally trade-distorting ways. The G7 can also advance the possibility of future policy coordination over data regulation by including specific policies and recommendation on digital trade [...]

Download Briefing Paper 53 Briefing Paper 53 – January 2021 Ingo Borchert and Minako Morita-Jaeger Key Points Introduction Trade in Services: Overall Assessment Some Principal Changes Selected Services Sectors Digital Trade and Data Flows Conclusion Key Points The UK-EU Trade and Cooperation Agreement (TCA) sets out the conditions under which UK businesses may supply services according to rules prevailing in the receiving (host) country. This constitutes a major change compared to the economic freedom to provide or receive services through cross-border trade and/or establishment in the EU Single Market, which the UK has left with the end of the Brexit implementation period. The TCA appears to be ambitious in a few sectors such as telecommunications, international maritime transport and digital trade, where strong disciplines seemed uncontroversial. But the TCA is a major setback to services sectors that have hitherto relied on UK regulation being recognised in other EU economies, such as licenses or professional qualifications. This is particularly the case for financial services with the loss of passporting rights, and for air and road transportation services, both of which will see their mode of operations severely curtailed. The TCA provides for improved mobility of skilled workers between the [...]