EU international trade in other business services

Data extracted in February 2024.

Planned article update: March 2025.

Highlights

In 2022, the largest contributor to exports from the EU to the rest of the world in 'Other business services' was the sub-item 'Technical, trade-related and other business services'.

In 2022, the main contributor to imports from the rest of the world to the EU in 'Other business services' was the sub-item 'Professional and management consulting services'.

In 2022, the US was the EU's main partner for exports and imports for 'Research and development services' and 'Professional and management consulting services'. The UK was the main partner for both exports and imports in 'Technical, trade-related, and other business services'.

EU trade in Other business services with extra-EU, 2010-2022

The role of trade in services in EU international trade has been growing steadily over the last decade and plays a major role in modern economies in an increasingly interlinked and globalised world. International trade in services (see Context) flows show the transactions between residents and non-residents according to twelve main service categories of the Extended Balance of Payments Services classification (EBOPS 2010). 'Other business services' is the largest of the twelve service categories, accounting for 23.0 % of total services exports to extra-EU and 31.3 % of total services imports from non-EU countries in 2022. The second largest category is 'Transport services', presented in a separate article.

This article focuses on the structure and evolution of the EU's international trade in 'Other business services' with extra-EU countries. The 'Other business services' category contains three sub-categories^[1], namely: 'Research and development (R&D) services', 'Professional and management consulting services', and 'Technical, trade-related and other business services'. These sub-categories are presented in this article.

Full article

General overview

Figure 1 shows the evolution of the time series for 'Other business services' from 2010 to 2022. EU imports of 'Other business services' have been higher than exports for all years in the period 2010 to 2022 except in 2014. This resulted in a consistent negative balance in all years except 2014. From 2010 until 2019, imports of 'Other business services' have been constantly increasing with the largest increase recorded in 2019 (41.5 %). During the same period, exports have also been constantly increasing, but at a more modest rate. In 2020 however, imports and exports have decreased by 4.2 % and 3.4 % respectively. In 2021 imports continued to decrease by 16.7 % while exports increased by 5.0 %. The trade rebounded in 2022 with an increase of 15.4 % for imports and 16.9 % for exports, the largest increase ever recorded for exports.

Figure 1: EU trade in 'Other business services' with extra-EU, 2010-2022 (€ billion)
Source: Eurostat (bop_its6_det)

Figure 2 and Figure 3 show the contributions of the three sub-categories of 'Other business services' to imports and exports for 2010-2022. Until 2018 the largest contributor to imports was the sub-category of 'Technical, trade-related and other business services'. In 2019 and 2020 'R&D services' was the largest contributor to imports, and 'Professional and management consulting services' in 2021 and 2022. As regards exports, the sub-category of 'Technical, trade-related and other business services' is the largest contributor for the entire period 2010-2022.

Figure 2: Contributions of 'Other business services' sub-categories to imports of EU, 2010-2022 (€ billion)
Source: Eurostat (bop_its6_det)

Figure 3: Contributions of 'Other business services' sub-categories to exports of EU, 2010-2022 (€ billion)
Source: Eurostat (bop_its6_det)

In 2022, the United States was the EU's main partner for imports and exports of 'Other business services' (35.1 % of imports and 24.9 % of exports). It was followed closely by the United Kingdom with 22.6 % of imports and 19.9 % of exports, and then by Switzerland with 6.0 % of imports and 13.0 % of exports (see Figure 4).

Figure 4: Main trading partners' share of EU imports and exports of 'Other business services', 2022
Source: Eurostat (bop_its6_det)

Research and development (R&D) services

'R&D services'^[2] consist of services associated with basic research, applied research and experimental development of new products and processes.

The evolution of 'R&D services' between 2010 and 2022 is shown in Figure 5. Imports were marginally higher than exports in the period 2010 to 2014. Imports then overtook exports with a large increase in 2015 and 2016, resulting in a large drop in the balance. The negative balance (deficit) slightly decreased in 2017 and 2018. However, in 2019 and 2020 imports increased significantly, resulting in a large increase in the deficit, as in the same period exports increased only marginally. In 2021 and 2022, both exports and imports dropped to levels comparable with those of 2018.

Figure 5: Evolution of 'Research and development services' trade for EU, 2010-2021 (€ billion)
Source: Eurostat (bop_its6_det)

In 2022, the EU's largest trade partner for 'R&D services' was the United States, accounting for 56.4 % of the imports and 45.6 % of the exports. The United Kingdom came second for imports with 8.2 % followed by China with 6.7 %. Switzerland was the second largest partner for exports with 16.8 %, followed by the United Kingdom with 11.3 % (see Figure 6).

Figure 6: Main trading partners' share of EU in 'Research and development services' trade, 2010-2022
Source: Eurostat (bop_its6_det)

Professional and management consulting services

'Professional and management consulting services'^[3] comprise:

(a) legal services, accounting, management consulting, managerial services and public relations services;

(b) advertising, market research and public opinion polling services.

Imports of 'Professional and management consulting services' exceeded exports each year between 2010 and 2022, resulting in a deficit, as shown in Figure 7. From 2010 until 2022, both imports and exports continued increasing at a more or less constant, moderate rate. The peak increase was recorded in 2022 for exports (19.6 %) and in 2020 for imports (18.2 %).

Figure 7: Evolution of 'Professional and management consulting services' trade for EU, 2010-2022 (€ billion)
Source: Eurostat (bop_its6_det)

In 2022, the United States was the EU's largest trading partner for imports and exports of 'Professional and management consulting services' with 38.0 % of the imports and 26.4 % of the exports (see Figure 8). The United Kingdom came second with 26.7 % of the imports and 22.5 % of the exports while Switzerland was third with 6.6 % of the imports and 15.0 % of the exports.

Figure 8: Main trading partners' share of EU imports and exports of 'Professional and management consulting services' with extra-EU, 2022
Source: Eurostat (bop_its6_det)

Technical, trade-related and other business services

'Technical, trade-related and other business services'^[4] comprise:

architectural, engineering and other technical services;
waste treatment and environmental remediation, agricultural and mining services;
operating leasing services, trade-related services;
other business services such as:

distribution services related to water, steam, gas and other petroleum products and the supply of air-conditioning, placement of personnel, security, photographic services, publishing, real estate, etc.

'Technical, trade-related and other business services' represent the largest subcategory of other business services. The evolution of 'Technical, trade-related and other business services' trade since 2010 is shown in Figure 9.

Exports of 'Technical, trade-related and other business services' continuously exceeded imports in the period 2010 to 2022, resulting in a positive balance. Both exports and imports increased or remained approximately stable in all years in the period 2010 to 2019. In 2020 exports dropped by 14.8 % and imports by 14.6 %. In 2021 exports increased by 9.2 % and imports by 2.8 % and respectively by 16.0 % and 22.6 % in 2022.

Figure 9: Evolution of 'Technical, trade-related, and other business services' trade for EU, 2010-2022 (€ billion)
Source: Eurostat (bop_its6_det)

In 2022, the United Kingdom was the EU's largest trading partner for both imports and exports of 'Technical, trade-related and other business services' with 27.8 % of the imports and 21.0 % of the exports. The United States came second with 18.0 % of imports and 16.2 % of exports while Switzerland was third with 7.3 % of the imports and 10.0 % of exports (see Figure 10).

Figure 10: Main trading partners' share of EU imports and exports of 'Technical, trade-related and other business services' with extra-EU, 2022
Source: Eurostat (bop_its6_det)

Source data for tables and graphs

EU international trade in other business services - Graphs

Data sources

EU data on trade in other business services come from the Eurostat reference database on International Trade in Services and are prepared in accordance with BPM6, the current balance of payments methodology. The data are updated annually. They have been available since 2010 for EU aggregates, all EU Member States and non-EU countries (European Free Trade Association (EFTA), candidate countries and other countries). Pre-2010 data are also available in the Eurostat reference database but are prepared in accordance with the previous balance of payments methodology (BPM5).

Statistics on the EU's trade with the extra-EU are calculated as the sum of trade conducted by the 27 Member States and the EU institutions (except the European Central Bank and European Stability Mechanism) with the countries outside the EU (no flows within the EU are taken into account).

Context

International trade in services makes up part of the current account of the balance of payments and covers the transactions between the residents and non-residents of a country during a given period. International trade in services follows the BPM6 methodology, which uses 12 main service categories, one of which is 'Other business services'. EU trade in services with the extra-EU countries has been on an increasing trend from 2010 to 2021 for both imports and exports - with the exception of year 2020 when both exports and imports dropped as a result of the Covid-19 pandemic.

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Notes

↑ As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.147
↑ As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.147
↑ As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.149
↑ As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.151

[1] As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.147

[2] As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.147

[3] As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.149

[4] As defined by the Balance of Payments Manual 6 (BPM6) Chapter 10.151

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