Services trade statistics by modes of supply

Data extracted in April 2026

Planned article update: April 2027

Highlights

In 2023, the European Union (EU) maintained a strong surplus in extra-EU services supply (€605 billion), driven by cross-border services (Mode 1) and commercial presence (Mode 3), which together account for over 80% of exports.

In 2023, Mode 3 (commercial presence) alone accounted for about 55% of extra-EU exports (i.e. most services exported to non-member countries were delivered through foreign affiliates or subsidiaries established abroad).

Germany, France, and the Netherlands were the top intra-EU exporters, while the United States, the United Kingdom, and Switzerland remained the leading extra-EU partners.

This article presents data on the International Supply of Services (ISS) broken down by modes of supply (MoS) for the European Union (EU) and the EU Member States, for reference year 2023. These data, collected under Regulation (EU) 2019/2152 on European business statistics, provide new insights into how EU trades services globally and where they are delivered to foreign customers.

General overview

Why are these statistics important?

Statistics on the services supply by modes help answer two key questions:

How are services traded between countries?
Where are services supplied to foreign customers?

These statistics offer granular insights by service category, modes of supply, and partner country, supporting evidence-based trade policy, negotiations, and economic analysis. They also enable a better understanding of the economic impact of services trade, and they are particularly valuable for:

Policymakers assessing the impact of trade agreements,
Trade negotiators developing strategies for services liberalisation,
Businesses identifying market opportunities, and
Researchers analysing global services trade patterns.

Despite their importance, comprehensive and comparable data on services supply by modes have long been scarce. To address this gap, Eurostat, in collaboration with EU countries and international organisations, has worked to refine the Eurostat-WTO model, ensuring alignment with the latest international standards. The methodological framework used for these statistics is outlined in the section below, with further details available in the European business statistics compilers guide (2023 edition).

First official EU data on Modes of supply

In October 2024, EU countries and Norway submitted to Eurostat the first official data on Modes 1 (cross-border supply), Mode 2 (consumption abroad), and Mode 4 (movement of natural persons) for reference year 2023. These data were subsequently published in the Eurostat database (online data code ext_ser_mos). In October 2025, EU countries, Norway and Iceland transmitted data for reference year 2024, as well as the first ever official Mode 3 data (for reference year 2023). Eurostat released in April 2026 the complete official dataset for all modes of supply (including Mode 3 (commercial presence) and totals for reference year 2023).

Trade in services by modes of supply

The modes of supply explained The General Agreement on Trade in Services (GATS), the first multilateral agreement to cover trade in services, defines trade in services as the supply of a service through any of four modes of supply, outlined in the bullet points below. framework governing services trade, defines trade in services as the supply of a service through any of four modes of supply. These modes classify how services are delivered across borders and are fundamental to understanding international services trade dynamics.

1. Mode 1 – Cross-border supply

A service is delivered from the territory of one country to another without the physical movement of the supplier or consumer.
Example: Legal advice provided via email or video call to a client abroad.

2. Mode 2 – Consumption abroad

A service is consumed by a resident of one country in the territory of another.
Example: A client travels to a lawyer’s office in another country to receive legal services.

3. Mode 3 – Commercial presence

A service supplier establishes a commercial presence (e.g., subsidiary, branch, or affiliate) in a foreign country to deliver services.

This Mode is captured through foreign affiliates statistics (FATS), which track the activities of foreign-controlled enterprises.

Example: A law firm opens an office abroad to provide legal services locally.

4. Mode 4 – Presence of natural persons

A service is supplied through the temporary movement of individuals (e.g., professionals, consultants) into another country.
Example: A lawyer travels abroad to provide legal services in person.

How services are delivered in practice

Services are often supplied through a combination of modes. For instance, computer services may be delivered:

Electronically (Mode 1) – e.g., cloud-based software services, or
Via temporary movement of personnel (Mode 4) – e.g., IT consultants travelling to implement systems.

Where direct data on mode shares are unavailable, the data compilers are advised to apply proportional assumptions. For example, according to the Eurostat-WTO model, 75% of computer services are assumed to be traded via Mode 1 and 25% via Mode 4, based on empirical patterns. Further details on these allocations are provided in the Applied methodology section. The long-term aim during the future data transmissions will be to replace such assumptions with actual survey-based shares from individual countries, improving data accuracy. The data compilation methods are explained in the metadata file.

Statistical frameworks for measuring services trade Information on the international supply of services is provided by two different statistical frameworks.

1. International trade in services (ITSS)

Derived from the balance of payments (BoP), which records transactions between residents and non-residents.
Covers primarily Modes 1, Mode 2, and Mode 4, capturing cross-border exchanges where no commercial presence is established.

2. Foreign affiliates statistics (FATS)

Tracks the activities of foreign-controlled affiliates, offering insights into Mode 3 (commercial presence).
Outward FATS (OFATS) measures exports via foreign affiliates, while Inward FATS (IFATS) assess imports through domestically located foreign affiliates.
Together, these frameworks provide a comprehensive view of how services are supplied internationally, supporting trade policy, economic analysis, and business decision-making.

Competitiveness of EU services and goods trade in 2023

Measuring trade competitiveness

A detailed breakdown of the 2023 services trade by modes of supply (Table 1) reveals notable shifts in competitiveness. The comparison between intra-EU trade (trade between EU countries) and extra-EU trade (trade with non-EU countries) across services by modes of supply and goods in 2023 are present below.

A key indicator of trade competitiveness is the net trade ratio, calculated as the balance of trade (exports minus imports) relative to total trade (exports plus imports). This ratio reveals whether a region is a net exporter (positive ratio) or net importer (negative ratio) in each sector. In 2023, the EU maintained a trade surplus in both goods and services (statistics sourcing from the BoP current account), though with diverse magnitudes:

The goods trade competitiveness ratio was 5.4% with a net surplus of €265 billion for extra-EU. That reflect rising energy import costs and shifting global supply chains. The larger extra-EU surplus also reflects the EU’s strong manufacturing and goods export base.
The services trade competitiveness ratio was 6.0% with a net surplus of €162 billion for extra-EU. These values demonstrate the resilience and expanding global demand for EU services.

Extra-EU total supply of services shows a strong surplus (€605 billion), with a high competitiveness ratio of 10.2%, indicating the EU’s strong global position in supply of services exports. The highest competitiveness ratios are observed for Mode 4 and Mode 3 for extra-EU (respectfully at 16.4% and 15.0%). These high competitiveness ratios indicate that the EU excels globally in exporting services through foreign affiliates (Mode 3), such as multinational enterprises operating abroad and high-skilled labour mobility (Mode 4), consultants, engineers, and IT professionals. This suggests the EU’s strong global demand for its expertise and investment-driven services-value, knowledge-intensive exports that outperform imports in these categories. Services supply performance by modes in 2023

Mode 1 (Cross-border supply)
Surplus expanded to €65 billion (3.1% net trade ratio) for extra-EU. That growth is mostly driven by strong growth in digital services, financial intermediation, intellectual property licensing and transport. The accelerated adoption of digital technologies following the COVID-19 pandemic has significantly strengthened Mode 1, as EU businesses have increasingly capitalized on remote service delivery models. One could assume that this shift has been largely driven by:

Widespread digitalization across, enabling seamless cross-border provision of services such as cloud computing, online consulting, and digital financial services.
Enhanced ICT infrastructure, including high-speed broadband and secure data transmission, which has reduced barriers to remote service exports.
Changing consumer and business preferences, with greater acceptance of virtual interactions in sectors like legal, accounting, and medicine services.
Regulatory adaptations, including the EU’s Digital Single Market strategy, which has facilitated smoother cross-border digital trade by harmonization on e-signatures, data flows, and online contracts.

As a result, Mode 1 has become a cornerstone of the EU’s services competitiveness and a structural shift towards more flexible, technology-driven trade.

Mode 2 (Consumption abroad)
Extra-EU shows a surplus of €35 billion (7.4%), reflecting strong inbound tourism and education exports (e.g., international students, medical tourism). That ratio suggests that high-value sectors like luxury and cultural heritage travel, higher education, and healthcare attract spending from non-EU visitors (e.g., US, China, Gulf States). The sector is highly sensitive to geopolitical tensions, pandemics, and economic downturns. For example, COVID-19 caused a sharp decline in 2020, while Russia’s invasion of Ukraine reduced arrivals from Russia. Climate change and sustainability concerns also pose long-term challenges to traditional tourism models.

Mode 3 (Commercial presence)
Mode 3 dominates EU services trade, accounting for the largest surplus in extra-EU (€469 billion, 15.0%) trade. That surplus highlights the global reach and competitiveness of EU firms through foreign affiliates (e.g., financial services, business services and ICT services in foreign markets).

Mode 4 (Presence of natural persons)
Extra-EU surplus: €40 billion (16.4%) indicates strong global presence of EU professionals, particularly in specialized sectors like IT, legal services, professional services or consulting. The commercial presence (Mode 3) is the backbone of EU services competitiveness. The extra-EU trade is highly competitive in Mode 2 (tourism and education exports) and Mode 4 (high-skilled labour mobility), while Mode 1 is growing, but face global competition.

EU services supply by mode in 2023

Extra-EU services supply by mode
In 2023, the EU exported €3.3 trillion in services supply to non-EU countries and imported €2.7 trillion.

Figure 1 demonstrates that Mode 3 was the largest category, accounting for 54.9% of EU supply of services exports and 49.7% of imports, driven by foreign direct investment (FDI) in financial services, manufacturing, and logistics. Mode 1 holds 33% of exports and 38.1 of the imports, being the second highest contributor. Assumingly that high share is due to digital services provision, financial intermediation, and intellectual property leading growth. Mode 2 holds 7.8% of exports and 8.2% of imports, primarily due to EU tourism, business travel and education or health travel (e.g., students from outside the EU studying in EU universities). Mode 4 remained small about 4.3% of exports and 3.8% of imports.

Intra-EU services supply by mode

Intra-EU trade in services reflects the deep integration of the EU single market, where freedom of establishment (Mode 3) and free movement of services (Mode 1) are key drivers. In 2023, intra-EU services supply reached €2.7 trillion exports and €2.8 trillion imports, with Mode 3 dominating at 43.7% of exports and 50.3% of imports (reflecting EU single market integration) (see Table 3).

As Figure 2 shows Mode 1 held 39% of exports and 33.9% of imports, Mode 2 contributed with 12.5% to the exports and 11.9% for the imports and Mode 4 had 4.7% of exports and 3.8% of imports.

EU services supply by mode and main partners in 2023

The analysis of the EU services supply by partner countries reveals strategic trade patterns, regional specialisations, and competitiveness trends across the delivery of the different modes. The main strengths of EU services supply are the diversified export markets, because the EU maintains strong services trade ties with both advanced (US, UK, Switzerland) and emerging economies (China, Brazil, Singapore). The 2023 data confirm the EU’s strength as a global services exporter, with diverse delivery modes and robust demand from key partners. EU services supply with non-EU partners by modes
Extra-EU exports (€3.27 trillion) exceed intra-EU exports (€2.70 trillion or 45% of total EU services exports), highlighting the global reach of EU services. Table 4 shows the top non-EU services trade partners. United States is the largest single-country market for total EU services supply exports (€809 billion), driven by commercial presence (Mode 3) and cross-border supply (Mode 1) (Figures 3.1.). The United Kingdom (€555 billion) remains a critical services trade partner, particularly for supply of Mode 1 and Mode 3. Switzerland (with total exports of €374 billion) is a key hub for financial and professional services (Mode 3). Offshore financial centers keep the fourth place with €217 billion, with dominant Mode 3.

Extra-EU imports (€2.66 trillion) are slightly below intra-EU imports (€2.79 trillion), a sign for the strong position of the EU Single Market integration. While the EU is globally competitive in services exports, its internal demand is largely met by intra-EU suppliers. United States is the largest single-country market for total EU services supply imports (€1 001 billion, 38% of total imports with non-EU countries), driven mostly by Mode 3 and Mode 1, as for exports (Table 4). The United Kingdom remains on the second position, holding 17% of imports from non-EU partner countries or €449 billion. Switzerland follows with 8% or total imports of €210 billion and Offshore financial centres remain on the top-4 with €173 billion imports (Figures 3.2.).

The analysis of the distribution of EU services exports by mode of supply to key non-EU partners (Table 6 and Figure 5), reveals that Mode 3 dominates across all partners, accounting for about 55% of exports to Extra-EU, with Brazil (80%) and Mexico (74%) holding the highest exports shares. Mode 1 is the second largest mode (33% of exports to Extra-EU), particularly strong in digital and financial services. Mode 1 exports are the highest for the Offshore financial centers (51%), followed by China (50%).

The data on EU services imports by mode of supply from key non-EU partners (Table 6 and Figure 5) reveals that Mode 3 again dominates EU services imports from most partners, accounting for 48% of total Extra-EU imports, with Mexico (83%) and Japan (72%) showing the highest reliance on foreign-owned subsidiaries. Mode 1 is the second-largest import mode, particularly strong in Singapore (56%), India and Offshore financial centres (51% each), and China (50%), reflecting digital, financial, and professional services delivered remotely. Mode 2 is consistently low (3-13%), except in China (13%), likely due to EU residents traveling business or education. Mode 4 remains minimal across all partners both for exports and imports, except for India (10% of imports), where IT professionals and consultants play a larger role.

EU services supply by mode and main EU partners in 2023

The top EU services partners are Germany (€519 billion export and €524 billion import), followed by France (€270 billion export and €412 billion import), the Netherlands (€234 billion export and €280 billion import). On the exports side the 4th and 5th positions belong to Italy (€224 billion export) and Belgium (€177 billion), while on the import side follow Sweden (€177 billion) and Luxembourg (€174 billion import) (Table 5).

Pie chart showing EU services supply imports with EU partners, 2023 as percentages. The partner countries are represented as segments for the year 2023. For more details please use the link to the source dataset code below the image. — Figure 4.2: EU services supply imports with EU partners, 2023
*Source:* Eurostat (ext_ser_mos)

The analysis of the distribution of EU services exports by mode of supply to key EU partners (Table 7 and Figure 6), reveals that Mode 3 dominates services exports in most EU countries (being the highest in Poland 60%, Spain 55%, Italy 54%), reflecting strong FDI-driven services, while for Ireland (56%) and Luxembourg (57%) Mode 1 stands out for cross-border digital/financial services, and Mode 4 remains minimal across all countries. This highlights diverse export strategies, with the different EU countries relying on foreign affiliates and hub economies leveraging digital services.

The data on EU services imports by mode of supply from key EU partners (Table 7 and Figure 6) reveals that Mode 3 again dominates EU services imports in most EU countries with Sweden (76%), France (67%), followed by Luxembourg (66%). These countries are strongly relying on multinational enterprises (MNEs) operating within their borders. Ireland is outstanding with Mode 1 holding 69% of the Irish intra-EU imports, reflecting its role as a hub for cross-border digital and financial services. Belgium’s 42% share of Mode 1 services imports highlights its strong reliance on remotely services, such as digital, financial, and professional services. Mode 2 has the top values for Spain (30%) and Italy (22%), indicating higher imports in consumption abroad, likely driven by tourism and business travel. Mode 4 remains minimal across all partners both for exports and imports, except for Ireland (8-9%) suggesting that high professionals and consultants probably play a larger role.

EU countries services supply by mode in 2023

EU countries services supply with extra-EU by modes

This section examines EU countries’ (and Norway) services trade with non-EU countries (extra-EU), broken down by mode of supply. The data reveals competitiveness trends, specialisations, and structural trade patterns across EU countries in global markets.

Top 5 exporters (classified by total services in € billion) are France (€683 billion), Germany (€645 billion), Netherlands (€417 billion), Spain (€273 billion) and Denmark (€161 billion). The top exporters have Mode 3 as leading mode for supplying services to non-EU countries followed by Mode 1.

For exports to Extra-EU (Figure 7), Mode 1 accounts for a considerable share in Luxembourg (83%), Malta (70%) and Greece (67%). These results may indicate that those countries are more involved in the innovative technologies used to supply services through electronic channels. Transport services are also considered to be supplied via mode 1. One of the reasons for having predominant Mode 1 in Luxembourg are the 'financial services' contributing for about half of the total services export in 2023. This aligns with Luxembourg’s role as a global financial hub, where cross-border financial services (such as banking, investment management, insurance tech) dominate the county services trade. Mode 2 is more significant in Croatia (56%), Hungary (30%), Portugal and Bulgaria. Croatia has predominant 'travel services', which is mostly tourism sector and tourists visiting the country which increase the relative significance of Mode 2 in the total exports. As regards Hungary, the greatest contributors to Mode 2 are 'manufacturing services', some parts of 'transport services' and travel. Mode 3 was predominant among some of the larger EU countries, accounting for 72% of exports for France, 67% for Spain, 65% for Finland, 63% for Germany, 61% for the Netherlands. The results indicate that these countries are more active in capital movement, establishing affiliates abroad to provide services through Mode 3. Mode 4 usually has the smallest proportion in comparison with the other modes in percentage terms. It is somewhat more significant in Malta (where it accounts for 14% of exports), and in Belgium (10% of exports). For the rest of the countries Mode 4 accounts for less than 9%.

Top 3 importers (classified by total services in € billion) have Mode 1 as leading mode: Germany (€387 billion), Netherlands (€234 billion), France (€220 billion). The 4th and the 5th biggest importers have Mode 3 as a leading mode of supply: Spain (€178 billion) and Italy (€174 billion).

As regards imports from Extra-EU (Figure 8), Mode 1 is dominant in Greece (81% of imports), Malta and Luxembourg (59% for each country). Mode 2 is significant in Denmark (where it accounts for 25% of imports), France (19%) and Croatia (18%). For the rest of the countries it accounts for 13% or less of the total imports. Mode 3 accounted for 79% of imports in Hungary, Spain (74%) and Romania (72%), indicating that these countries are attractive destinations for the establishment of foreign affiliates in the services sector. For the rest of the countries Mode 3 accounts for less than 68%. Mode 4 imports are somewhat more significant in Malta (10% of imports), Belgium (8%) and Denmark (7%). For all other EU countries it accounts for 6% or less of their imports. Mode 4 import from Intra-EU also plays an important role in Norway with a share of 8% of the imports. EU countries services supply with intra-EU by modes
This data provides a comprehensive breakdown of EU countries’ (and Norway) services exports and imports within the Single Market (intra-EU trade), categorised by mode of supply. The analysis reveals structural trade patterns, competitiveness disparities, and specialisations across EU countries within the Single Market.

Top 2 exporters (classified by total services in € billion) France (€500 billion) and Germany (€452 billion) have Mode 3 as leading followed by Mode 1. The 3rd biggest exporter is Netherlands (€296 billion), followed by Spain (€165 billion), both with Mode 1 leading among the modes of supply. The 5th top exporter is Italy (€147 billion) with leading Mode 3.

For exports to intra-EU (Figure 9), Mode 1 accounts for a considerable share in Luxembourg (75%), Malta (68%), Romania and Bulgaria (each 67%). These results may indicate that those countries are more involved in the innovative technologies used to supply services through electronic channels. Transport services are also considered to be supplied via Mode 1. Mode 2 is more significant in Croatia (65%), Greece (42%) and Hungary (40%). The values are lower than 28% for the rest of the countries. Mode 3 was predominant in Finland (69% of exports), France (66%), Sweden (63%). Mode 4 usually has the smallest proportion in comparison with the other modes in percentage terms. It is somewhat more significant in Malta (where it accounts for 14% of exports), in Slovenia (12%) and Latvia (11%). For the rest of the countries Mode 4 accounts for less than 10%.

Top 5 intra-EU importers (classified by total services in € billion) are Germany (€520 billion), Netherlands (€248 billion), France (€235 billion), Spain (€216 billion) and Italy (€205 billion). Germany, Spain and Italy have as a leading mode of supply Mode 3, while the Netherlands and France Mode 1.

As regards imports from Intra-EU (Figure 10), Mode 1 is dominant in Luxembourg (56%), Malta (53%) and France (50%). Mode 2 is significant in France (20%), Luxembourg (18%) and Lithuania (17%). Mode 3 accounted for 71% of imports in Hungary and Spain, while in Latvia for 70%. For the rest of the countries Mode 3 accounts for less than 67%. Mode 4 imports are more significant in Malta (9%), Denmark and Norway (8% for each of the countries), for all other countries it accounts for 6% or less of their imports.

Applied methodology

The applied methodology is described in the reference metadata file. The complete methodology is presented in the Eurostat modes of supply compilers guide.

Feedback

Users and researchers are kindly invited to give us their feedback by email To contact the production team: ESTAT-MOS-DATA@ec.europa.eu.

Source data for tables and graphs

Download Excel file Modes of supply 2023 data

Context

The WTO General Agreement on Trade in Services (GATS), in force since 1995, was the first trade agreement to cover services on a multilateral basis. In the GATS, the supply of services is defined based on the location of the supplier and consumer at the time when the transaction takes place. The GATS defines trade in services as 'the supply of a service through four modes of supply'. Services broken down by the mode of supply give an indication of where and in which ways the services are supplied to foreign customers. For example, legal services may be supplied to the customer through email (cross-border supply or 'mode 1') or by the customer travelling to the lawyer's country (consumption abroad or 'mode 2'). However, these services may also be provided to the customer by the lawyer, in person, travelling to the customer's country of residence (presence of natural persons or 'mode 4') or by an established affiliate of the lawyer in the customer's country of residence (commercial presence or 'mode 3'). This extended dimension of international trade in services, also referred to as international supply of services, matters greatly from a trade policy perspective, as market access conditions vary among the four ways of supplying services internationally. Since GATS, most other regional (bilateral or plurilateral) trade agreements follow similar principles in setting out their commitments according to the four modes of supply. Consequently, trade policy makers need statistics to support them in negotiating commitments in their services markets and to monitor the results of their negotiations. These negotiations can take place at global, plurilateral or bilateral level, for individual service sectors and according to how the respective services are supplied internationally, i.e. by mode of supply. For monitoring how these commitments are implemented, politicians, governments and analysts require statistics to assess whether such commitments create trade or divert trade. Statistics on services supplied through all four modes are also used for economic analysis and economic policy, as they provide a more complete picture of how businesses supply and purchase services internationally, by combining services traded across the border (by a non-resident to a resident) with services supplied via foreign affiliates. A sounder understanding of the trade-investment nexus in the services sector would allow for a more accurate assessment of the role of services in the productive structure of an economy and their contribution to its economic and social development, as well as its position in regional and global supply chains.

Current information on international trade in services is structured around the dimensions of 'who' is trading (with whom), 'what' is being traded (the type of service), and 'how much' in terms of monetary value. The Manual on Statistics of International Trade in Services 2010, together with the corresponding Compiler's Guide, provide extensive guidance on how to collect, compile and disseminate trade in services statistics following internationally agreed standards. The information needs described in MSITS 2010 were, in fact, driven by the structure of GATS.

A key recent development (March 2026) in this area is the update of the United Nations' Manual on Statistics of International Trade in Services (MSITS 2026), which now incorporates all recent methodological advancements in modes of supply compilation. Currently the MSITS 2026 is available as a white cover version. This revised methodological framework should enhance the international comparability of MoS data, reinforcing the robustness of statistics on services trade by modes of supply.

Detailed information on international supply of services statistics by services category, mode of supply (MoS) and partner country help policymakers carry out the ongoing and future trade negotiating agenda with facts and strong, evidence-based arguments. Statistics by MoS show how and where services are supplied internationally and they allow for the impact of services trade agreements to be monitored.

Explore further

Thematic section

International Trade in Services

External links

GATS, the Modes of Supply and Statistics on Trade in Services