Businesses Must Seize Opportunity in Services Trade, Says McKinsey Centre’s Allas

The video discusses the potential opportunities for UK businesses post-Brexit, emphasizing the growth in services trade, which is outpacing goods trade. It highlights the importance of investment in innovation and digital applications for maintaining global competitiveness. The discussion also covers the future of services in trade deals, noting that digital delivery reduces friction. The UK's strong position in services is under threat, and businesses need to focus on emerging markets and digitalization to sustain their advantage.

What is a key area of growth for UK businesses post-Brexit?

• Manufacturing trade

• Automobile trade

• Services trade

• Agricultural trade

How can services trade grow despite not being included in trade deals?

• Via digital delivery methods

• By reducing tariffs

• Through physical movement of goods

• By increasing import taxes

What is a potential future approach for services in trade agreements?

• Large comprehensive trade deals

• Small targeted market access deals

• Focus on agricultural services

• Complete exclusion from trade deals

What has happened to the UK's share in global services exports?

• Remained constant at 9%

• Decreased from 9% to 7%

• Increased from 5% to 7%

• Increased from 7% to 9%

What is a strategic recommendation for UK businesses to maintain their position in services exports?

• Reduce investment in R&D

• Avoid digitalization

• Focus solely on domestic markets

• Get closer to customers in emerging markets