U.S. International Services: Trade in Services in 2017 and Services Supplied Through Affiliates in 2016.
Allen, Shari A. ; Grimm, Alexis N. ; Steiner, Christopher P. 等
U.S. International Services: Trade in Services in 2017 and Services Supplied Through Affiliates in 2016.
This article highlights statistics on international services that
the Bureau of Economic Analysis (BEA) releases annually. These
statistics cover both U.S. international trade in services and services
supplied by majority-owned U.S. and foreign affiliates of multinational
enterprises (MNEs). (1) Trade in services refers to exports and imports
of services--that is, services traded between U.S. residents and
nonresidents--that are included in the broader set of U.S. international
transactions accounts (ITAs) released by BEA. Services supplied through
affiliates refers to services supplied by MNEs through the channel of
direct investment. This set of statistics covers transactions between
majority-owned foreign affiliates of U.S. companies and foreign
residents, both in the host country and in other foreign markets, and
transactions between majority-owned U.S. affiliates of foreign companies
and U.S. residents. (2)
Because of the importance of physical proximity to customers in the
delivery of certain types of services, many MNEs serve foreign markets
partly or wholly through their affiliates located in, or close to, the
markets they serve rather than through trade. As in recent years, about
two-thirds of the services provided internationally both by and to the
United States in 2016--the latest year for which statistics on services
supplied through affiliates are available--were through affiliates
(table A and chart 1). (3)
In 2016, total services supplied by the United States to foreign
persons through both trade and foreign affiliates of U.S. companies was
$2,215.2 billion, and total services received by the United States from
foreign persons through both trade and U.S. affiliates of foreign
companies was $1,504.9 billion. The difference between total services
supplied to and received from foreign persons was $710.3 billion. Total
services supplied to foreign persons decreased $2.9 billion, or less
than 1 percent, in 2016 after decreasing $57.8 billion, or 3 percent, in
2015. Total services received from foreign persons increased $55.1
billion, or 4 percent, in 2016 after increasing $28.7 billion, or 2
percent, in 2015.
In 2017, U.S. exports of services were $797.7 billion, and U.S.
imports of services were $542.5 billion (chart 1), resulting in a
services trade surplus of $255.2 billion. The United States accounted
for 15 percent of the world's exports and for 11 percent of the
world's imports in 2017. (4)
Exports of services increased $38.8 billion, or 5 percent, in 2017
after increasing $3.6 billion, or less than 1 percent, in 2016. The
largest increases in exports occurred in other business services,
primarily research and development services and professional and
management consulting services, and in financial services. While exports
grew, the U.S. share of worldwide exports fell slightly.
Imports of services increased $32.6 billion, or 6 percent, in 2017
after increasing $17.9 billion, or 4 percent, in 2016. The largest
increase in imports occurred in "travel (for all purposes including
education)" (henceforth "travel"). (5) The increase in
travel abroad by U.S. residents continues the upward trend in this
category since 2009 after the Great Recession, coinciding with rising
U.S. consumer spending over this period. The U.S. share of worldwide
imports rose slightly in 2017.
In 2016, services supplied to foreign markets through foreign
affiliates of U.S. MNEs were $1,456.3 billion, down $6.5 billion, or
less than 1 percent, from 2015. The largest decrease was in the mining
industry.
Services supplied to the United States through U.S. affiliates of
foreign MNEs were $995.1 billion, up $37.2 billion, or 4 percent, from
2015. This partly reflected an increase in services supplied by U.S.
affiliates of foreign MNEs in insurance and related activities.
As part of the international services statistics released in
October 2018, BEA has included new historical U.S. trade in services
statistics for the expanded geographic detail it introduced in October
2016, when it increased the number of separately published countries and
areas from 49 to 90. (6) For more information, see the box "Data
Availability and Release of Additional Historical Data for BEA's
Trade in Services Statistics."
The remainder of this article includes a Services Spotlight
discussing insurance services and discussions of U.S. trade in services
in 2017, U.S. trade in information and communications technology (ICT)
and potentially ICT-enabled services (presenting an alternate
aggregation of part of the trade in services statistics) in 2017,
services supplied through affiliates in 2016, and future enhancements to
BEA's international services statistics.
Data Availability and Release of Additional Historical Data for
BEA's Trade in Services Statistics
Detailed statistics for U.S. international services accompany this
article in tables 1.1-5.4. Trade in services statistics through 2017 and
statistics on services supplied through affiliates through 2016 can also
be accessed through BEA's interactive tables. The interactive
tables cover additional years of data and supplemental detail not
available in the tables that accompany this article.
The international services statistics released in October 2018
include new historical statistics for trade in services, trade in
information and communications technology (ICT) services, and trade in
potentially ICT-enabled services for 2006-2012 for the expanded
geographic detail on U.S. trade in services introduced in October 2016.
The expanded geographic detail included statistics for 41 additional
countries and areas, beginning with 2013. With this year's new
geographic detail, BEA now separately presents statistics for all
countries with which the United States has a free trade agreement in
force and for other trading partners with significant transactions for
2006-2017. In addition, BEA revised the previously released geographic
detail for potentially ICT-enabled trade in services for 2006-2012 that
accompanied the article "Trends in U.S. Trade in Information and
Communications Technology (ICT) Services and in ICT-Enabled
Services" so that it is now fully consistent with the definition
used for the aggregate statistics.
Data Sources
The statistics in this article are largely based on data collected
from surveys conducted by the Bureau of Economic Analysis (BEA).
Statistics for some services are based on data from a variety of other
sources, including U.S. Customs and Border Protection, other federal
surveys, private sources, and partner countries.
BEA conducts mandatory surveys of trade in services, some of which
are targeted to specific services industries. Data on financial services
are collected on the Quarterly Survey of Financial Services Transactions
Between U.S. Financial Services Providers and Foreign Persons (BE-185)
and on the related benchmark survey (BE-180). Data on insurance services
are collected on the Quarterly Survey of Insurance Transactions by U.S.
Insurance Companies with Foreign Persons (BE-45) and on the related
benchmark survey (BE-140). Data on transport services are collected on
various quarterly or annual surveys. Data on several other types of
services are collected on the Quarterly Survey of Transactions in
Selected Services and Intellectual Property with Foreign Persons
(BE-125) and on the related benchmark survey (BE-120). All of BEA's
surveys of trade in services and a guide to the reporting requirements
for the surveys are available on BEA's website. For additional
information on these surveys, on data from other sources, and on
definitions and methodology used for the trade in services statistics,
see U.S. International Economic Accounts: Concepts and Methods.
The data on services supplied through affiliates are collected on
BEA's benchmark and annual surveys of the activities of
multinational enterprises (MNEs). All of BEA's surveys of U.S. MNEs
and of U.S. affiliates of foreign MNEs and a guide to reporting
requirements for the surveys are available on BEA's website. For
the methodologies for these surveys, see Foreign Direct Investment in
the United States: Final Results From the 2012 Benchmark Survey and
Worldwide Activities of U.S. Multinational Enterprises: Revised Results
From the 2014 Benchmark Survey on BEA's website.
Services Spotlight: Natural Disasters and U.S. Imports of Insurance
Services
Insurer Aon Benfield reported that 2017 was the costliest year on
record for weather-related disasters since 1900, with an estimated total
bill of $132.0 billion in insured losses worldwide. Almost 70 percent of
those insured losses were related to hurricanes Harvey, Irma, and Maria
as well as the wildfires in California in the United States. (7)
However, these events did not have a large impact on U.S. trade in
insurance services in 2017, because insurance services are measured in a
way that recognizes that insurers provide a steady level of service to
their customers. That is, they stand ready to cover losses, whether or
not those losses occur.
The United States has historically been a net importer of insurance
services, and a portion of the insurance paid to cover damages from
these hurricanes came from insurers abroad. U.S. imports of insurance
services are predominantly--by a factor of about 10 to 1--in reinsurance
rather than in direct insurance. U.S. property/casualty insurers--the
direct insurers--often enter into reinsurance agreements with other
insurance companies to protect their solvency when catastrophic events
such as hurricanes threaten to drain their reserves through the payout
of policyholder claims. Even the National Flood Insurance Program,
administered by the Federal Emergency Management Agency, manages a
portion of its risk exposure through reinsurance contracts with private
companies. (8) Although some U.S. direct insurers purchase reinsurance
from domestic providers, a significant amount of reinsurance is
purchased from insurance companies in other countries. Countries such as
Bermuda, Switzerland, and Ireland lead the world in providing these
services (table B).
U.S. imports of insurance services are measured as gross premium
payments to foreign insurers plus investment income on foreign
insurers' reserves minus claims payable by foreign insurers on
covered U.S. losses; this net measure reflects compensation to foreign
insurers for the costs borne in providing the insurance. To adjust for
claims volatility, BEA's trade in insurance services methodology
uses an estimate of expected or "normal" losses--which are
inferred from the relationship between actual losses and premiums
averaged over several years--to determine the level of service provided
each period by insurance firms. (9) Using normal losses rather than
actual losses reflects the fact that a given amount of insurance
coverage held in a period provides the same service (protection against
risk) to the policyholder whether or not an insured event occurs that
period; it also provides a better measure of long-term production and
pricing of insurance.
Because normal losses are used to calculate insurance services,
insurance services imports do not display large swings when disasters
occur (chart 2). In particular, using normal losses avoids sharply
decreasing insurance services imports in years such as 2017. For
example, imports of insurance services rose to $50.7 billion in 2017
from $49.9 billion in 2016, while losses recovered from foreign insurers
rose to $111.4 billion in 2017 from $79.7 billion in 2016. Although
statistics for services supplied have not yet been released for 2017,
services supplied through U.S. affiliates are likewise not expected to
reflect a noticeable impact from the record payouts, because a similar
methodology that incorporates normal losses is used to estimate
insurance services supplied through affiliates.
Although large insurance payouts have little effect on imports of
insurance services, they do affect the broader ITAs and National Income
and Product Accounts (NIPAs). In BEA's national economic accounts,
insured losses that exceed 0.1 percent of gross domestic product (GDP)
(approximately $19 billion at the time of writing) are deemed to be
appreciable reductions in the country's net worth. Thus, the actual
payouts for these large insurance claims are recorded as capital
transfers both in BEA's NIPAs and ITAs; the difference is that the
ITAs capture only the losses covered by insurers abroad (chart 3).
(10,11) Capital transfers are recorded in the capital account of the
ITAs.
U.S. Trade in Services in 2017
Trade in services transactions consist of transactions between U.S.
residents and nonresidents arising from productive activities that
change the condition of the consumer or that facilitate the exchange of
products and financial assets. Also included in trade in services are
certain transactions for the sale, distribution, or use of intellectual
property. The statistics in this article are consistent with statistics
published in table 3.1 of the ITAs. (12)
In 2017, U.S. exports of services were $797.7 billion, and U.S.
imports of services were $542.5 billion, resulting in a services trade
surplus of $255.2 billion (chart 4). Historically, the U.S. has recorded
a surplus on trade in services as the value of exports has exceeded the
value of imports. The surplus increased $6.2 billion in 2017 after
decreasing $14.3 billion in 2016 (the first decrease since 2003). The
increase in 2017 reflected a $38.8 billion, or 5 percent, increase in
exports of services and a $32.6 billion, or 6 percent, increase in
imports of services.
The remainder of this section discusses trade in services in 2017
by service type, by trading partner, and by affiliation. Tables that
accompany this article and that are available on BEA's website
provide additional detail broken out in these dimensions and as
combinations of these dimensions.
Trade by service type
BEA classifies services trade transactions into nine major
service-type categories. In 2017, travel accounted for the largest share
of both exports and imports (table C). Exports of services in six of the
nine major service types exceeded imports of services; the combined
surplus in these six categories was partly offset by the combined
deficit in the other three (chart 5). Surpluses were largest in
financial services, charges for the use of intellectual property, and
travel.
Chart 5. Trade in Services by Type, 2016 and 2017
Imports Exports
Deficit Surplus
2016 2017 2016 2017
Travel (for all purposes 123.6 135.0 206.9 210.7
including education)
Other business services 99.5 104.4 143.8 154.3
Transport 96.9 101.7 84.7 88.6
Charges for the use of 46.6 41.3 124.7 128.4
intellectual property n.i.e.
Financial services 25.8 28.9 99.4 109.6
Telecommunications, computer, 37.4 40.1 38.5 42.2
and Information services
Insurance services 49.9 50.7 17.1 18.0
Government goods 21.5 22.0 18.8 19.3
and services n.i.e.
Maintenance and repair 8.7 8.3 25.0 26.4
services n.i.e.
U.S. Bureau of Economic Analysis
Note: Table made from bar graph.
These three categories have been the largest contributors to the
services surplus since 2006; 2017 was the first year in which the
surplus on financial services, $80.7 billion, exceeded the other two.
The surplus in financial services partly reflects the fact that the
United States is a major hub for global securities trading. In 2017,
U.S. stock exchanges accounted for nearly half (46 percent) of the value
of equities traded on all the world's exchanges. (13) The surplus
in charges for the use of intellectual property partly reflects the high
level of research and development (R&D) performed in the United
States. In 2015 (the most recent year for which statistics are
available), the United States accounted for 26 percent of R&D
performed worldwide. (14)
U.S. exports of services were $797.7 billion in 2017. Of the nine
major service types, the top four--travel (26 percent of the total),
other business services (19 percent), charges for the use of
intellectual property (16 percent), and financial services (14
percent)--accounted for about three-fourths of total exports of
services. U.S. imports of services were $542.5 billion. The top four
major service types--travel (25 percent of the total), other business
services (19 percent), transport (19 percent), and charges for the use
of intellectual property (9 percent)--accounted for nearly three-fourths
of total imports of services.
U.S. exports of services increased $38.8 billion, or 5 percent, in
2017. Exports increased for each of the nine major service types, but
almost three-quarters of the aggregate increase was in the combined
increase of four service types: other business services, financial
services, transport, and travel.
* Other business services. Exports of other business services
increased for the 17th consecutive year. Exports increased $10.5 billion
to $154.3 billion in 2017, led by an increase in research and
development services. An increase in exports to Switzerland accounted
for nearly a third of the increase in other business services exports.
* Financial services. Exports of financial services increased $10.3
billion to $109.6 billion, led by an increase in financial management,
financial advisory, and custody services. The increase in financial
services partly reflected increases in exports to the United Kingdom
Islands, Caribbean and to the United Kingdom, which together accounted
for 42 percent of the increase.
* Transport. Exports of transport services increased $3.9 billion
to $88.6 billion. The increase partly reflected a $1.3 billion increase
in air passenger services due to increases in the number of foreign
visitors traveling on U.S. carriers and in average airfares.
* Travel. Exports of travel services increased $3.8 billion to
$210.7 billion, led by an increase in education-related travel. Much of
the increase in total travel exports was attributable to increases in
exports to two countries, Canada ($1.4 billion) and China ($1.3
billion).
U.S. imports of services increased $32.6 billion, or 6 percent, to
$542.5 billion in 2017. Eight of the nine major service types increased.
The largest increase was in travel, followed by other business services,
transport, and charges for the use of intellectual property. Maintenance
and repair services decreased slightly.
* Travel. Imports of travel services increased $11.5 billion, or 9
percent, to $135.0 billion. The increase mostly reflected an increase in
personal travel excluding health-related and education-related travel.
* Other business services. Imports of other business services
increased $4.9 billion, or 5 percent, to $104.4 billion. There were
increases in all subcategories, but an increase in professional and
management consulting services accounted for 43 percent of the increase.
The largest increase by country was in imports from the United Kingdom,
which accounted for approximately one-quarter of the increase.
* Transport. Imports of transport services increased $4.8 billion,
or 5 percent, to $101.7 billion, partly reflecting a $2.8 billion
increase in air transport services. The increase in air transport mainly
reflected an increase in air passenger transport services. The largest
increases by country in transport services were in imports from the
United Kingdom and Japan.
* Charges for the use of intellectual property. Imports associated
with the use of intellectual property increased $4.7 billion, or 10
percent, to $51.3 billion, mainly reflecting increases in charges
associated with computer software and industrial processes. The largest
increases by country in imports associated with the use of intellectual
property were from Germany and the United Kingdom.
Trade by partner country
The top 10 trading partners of the United States based on total
trade (exports plus imports) are shown in chart 6. The top 10 trading
partners accounted for 56 percent of services exports and 52 percent of
services imports in 2017. The United Kingdom remained the largest
trading partner for services; it was both the largest market for U.S.
exports and the largest source for U.S. imports (table C). The top
categories of exports to the United Kingdom were financial services and
travel, while the top categories for imports from the United Kingdom
were other business services, mainly professional and management
consulting services, and travel. Canada was the second-largest trading
partner. It was the second-largest market for exports in 2017,
reclaiming the position after being overtaken by China in 2016; the top
categories of exports to Canada were travel and other business services,
primarily professional and management consulting services. Germany was
the second-largest provider of services to the United States in 2017;
the top import categories were transport and charges for the use of
intellectual property.
Chart 6. Trade in Services with Selected Countries, 2016 and 2017 (1)
Imports Exports
2016 2017 2016 2017
United Kingdom 52.3 56.9 66.9 69.6
Canada 30.6 33.0 54.4 58.4
Japan 31.1 33.1 45.0 46.4
China 16.0 17.4 54.9 57.6
Ireland 17.5 20.1 48.6 49.8
Germany 33.8 35.4 31.9 32.7
Switzerland 23.8 26.9 32.7 37.3
Mexico 24.1 25.5 31.7 32.9
India 25.8 28.1 20.6 23.7
United Kingdom 6.1 6.5 32.2 34.5
Islands, Caribbean
(1.) The countries selected for thia chart are the top 10 countries by
total trade (exporta plus imports) in 2017.
U.S. Bureau of Economic Analysis
Note: Table made from bar graph.
Exports to the top 10 trading partners (the countries shown in
chart 6) accounted for $24.2 billion, or 62 percent, of the $38.8
billion increase in total services exports in 2017. Exports to
Switzerland, Canada, and India increased the most. Among the notable
increases in exports were the following:
* Switzerland. Exports to Switzerland increased $4.6 billion, or 14
percent, to $37.3 billion in 2017, mostly reflecting a $3.4 billion
increase in other business services, mainly research and development
services.
* Canada. Exports to Canada increased $4.1 billion, or 8 percent,
to $58.4 billion, primarily reflecting increases of $1.4 billion in both
other business services and in travel. The increase in other business
services primarily reflected an increase in advertising services; the
increase in travel mainly reflected increases in other business travel
and other personal travel.
* India. Exports to India increased $3.1 billion, or 15 percent, to
$23.7 billion, mainly reflecting an increase of $1.3 billion in travel
and an increase of $1.0 billion in charges for the use of intellectual
property. The increase in exports of travel largely reflected an
increase in education-related travel.
* United Kingdom. Exports to the United Kingdom increased $2.8
billion, or 4 percent, to $69.6 billion, primarily reflecting an
increase of $1.9 billion in financial services.
* China. Exports to China increased $2.7 billion, or 5 percent, to
$57.6 billion, primarily reflecting an increase of $1.3 billion in
travel and a $0.8 billion increase in charges for the use of
intellectual property. The increase in travel mainly reflected an
increase in education-related travel. The increase in charges for the
use of intellectual property was primarily due to an increase in charges
associated with industrial processes.
* Brazil. Exports to Brazil (not shown in chart 6) increased $2.5
billion, or 11 percent, to $26.4 billion, mainly reflecting a $1.4
billion increase in other business services, primarily professional and
management consulting services.
Imports from the top 10 trading partners accounted for $21.9
billion, or 67 percent, of the $32.6 billion increase in total services
imports in 2017 (chart 6). Imports from the United Kingdom, Switzerland,
and Ireland increased the most. Among the notable changes in imports are
the following:
* United Kingdom. Imports from the United Kingdom increased $4.6
billion, or 9 percent, to $56.9 billion, mostly reflecting increases in
travel, other business services, and financial services. Imports of
travel increased $1.5 billion, largely reflecting increases in other
business travel and other personal travel. Imports of other business
services increased $1.3 billion, reflecting increases in technical,
trade-related, and other business services and in business and
management consulting and public relations services. Imports of
financial services increased $1.1 billion.
* Switzerland. Imports from Switzerland increased $3.2 billion, or
13 percent, to $26.9 billion, reflecting an increase in insurance
services of $1.4 billion, mostly reinsurance services.
* Ireland. Imports from Ireland increased $2.6 billion, or 15
percent, to $20.1 billion, mainly reflecting increases in insurance
services and charges for the use of intellectual property. Imports of
insurance services increased $1.7 billion, reflecting an increase in
reinsurance services. Imports associated with the use of intellectual
property increased $0.9 billion.
* Canada. Imports from Canada increased $2.4 billion, or 8 percent,
to $33.0 billion, mainly reflecting an increase in other business
services. Imports of other business services increased $1.0 billion,
partly reflecting a 25 percent increase in technical, trade-related, and
other business services.
* India. Imports from India increased $2.3 billion, or 9 percent,
to $28.1 billion, mainly reflecting increases in other business services
and in telecommunications, computer, and information services. Imports
of other business services increased $1.0 billion, largely reflecting
increases in business and management consulting and public relations
services
and in research and development services. Telecommunications,
computer, and information imports increased $0.8 billion, reflecting a
$0.9 billion increase in computer services.
* Bermuda. Imports from Bermuda (not shown in chart 6) decreased
$2.0 billion, or 8 percent, to $23.6 billion, reflecting a $2.1 billion
decrease in insurance, mostly reinsurance.
Trade by affiliation
U.S. services trade includes trade between unaffiliated parties and
trade within MNEs (affiliated trade). Affiliated trade accounted for 30
percent of U.S. services exports and imports in 2017 (table D).
Affiliated services exports grew at a slightly faster rate than
unaffiliated services exports in 2017. In contrast, unaffiliated
services imports grew at a slightly faster rate than affiliated services
imports.
ICT Services and Potentially ICT-Enabled Services in 2017
BEA's statistics on trade in ICT and potentially ICT-enabled
services complement BEA's standard presentation of international
trade in services statistics by providing insight into the extent to
which ICT may be used to facilitate trade in services. ICT services
facilitate information processing and communication; ICT-enabled
services are services delivered over ICT networks. (15) BEA's
statistics on ICT services include three categories of services from
BEA's published statistics on international trade in services:
telecommunications services, computer services, and charges for the use
of intellectual property associated with computer software.
It is not possible to precisely identify services trade that is
ICT-enabled, because BEA collects data on trade in services by category
based on the Extended Balance of Payments Services Classification (EBOPS
2010), which is based on the type of service traded and not on the mode
of delivery. (16) BEA, therefore, measures a related but more broadly
defined concept of potentially ICT-enabled services, which include
services that can predominantly be delivered remotely over ICT networks
without identifying the services that are delivered over ICT networks.
BEA's statistics on potentially ICT-enabled services are composed
of BEA's published statistics on international trade in insurance
services; financial services; charges for the use of intellectual
property; telecommunications, computer, and information services; and
certain other services included in other business services. Potentially
ICT-enabled services include ICT services.
In 2017, U.S. exports of ICT services were $70.9 billion, and U.S.
imports of ICT services were $47.4 billion, resulting in an ICT services
trade surplus of $23.5 billion (chart 7). The surplus decreased $1.9
billion from 2016, as exports of ICT services increased $2.8 billion,
and imports of ICT services increased $4.8 billion. U.S. exports of
potentially ICT-enabled services were $439.1 billion, and U.S. imports
of potentially ICT-enabled services were $266.6 billion, resulting in a
potentially ICT-enabled services trade surplus of $172.6 billion. The
surplus increased $12.4 billion from 2016, as exports of potentially
ICT-enabled services increased $29.1 billion, and imports of potentially
ICT-enabled services increased $16.7 billion. Potentially ICT-enabled
services accounted for 55 percent of all trade in services exports and
49 percent of imports in 2017. Both shares increased slightly over their
2016 values of 54 and 49 percent, respectively. The remainder of this
section discusses trade in potentially ICT-enabled services in 2017 by
service type, by trading partner, and by affiliation. Tables that
accompany this article and that are available on BEA's website
provide additional detail on trade in ICT and potentially ICT-enabled
services.
Chart 7. ICT and Potentially ICT-Enabled Services in Total Trade in
Services, 2017
Billions of dollars
Exports Imports Balance
Not potetially ICT-enabled services 358.6 275.9 82.7
Other potentially ICT-enabled 368.2 219.2 149.1
services
ICT services 70.9 47.4 23.5
439.1 266.6 172.6
U.S. Bureau of Economic. Analysis
Note: Table made from bar graph.
Trade by service type
In 2017, potentially ICT-enabled services in other business
services, primarily professional and management consulting services and
research and development services, accounted for the largest share of
exports (32.1 percent) and imports (35.9 percent) (chart 8). Exports in
four of the major categories exceeded imports; the combined surpluses in
these four categories more than offset a deficit in insurance services.
The surplus was largest in financial services. Both exports and imports
increased in all five of the major categories in 2017. The largest
increases for exports were in potentially ICT-enabled services in other
business services, which increased $10.6 billion to $140.9 billion, and
financial services, which increased $10.3 billion to $109.6 billion. The
largest increases for imports were in potentially ICT-enabled services
in other business services, which increased $5.4 billion to $95.6
billion, and charges for the use of intellectual property, which
increased $4.7 billion to $51.3 billion.
Chart 8. Trade in Potentially ICT-Enabled Services by Type, 2016 and
2017
Imports Exports
Deficit Surplus
2016 2017 2016 2017
Potentially ICT-enabled 90.3 95.6 130.3 140.9
services in other
business services
Charges for the use of 46.6 51.3 124.7 128.4
intellectual property n.i.e.
Financial services 25.8 28.9 99.4 109.6
Telecommunications, 37.4 40.1 38.6 42.2
computer, and
information services
Insurance services 49.9 50.7 17.1 18.0
Chart 9. Trade in Potentially ICT-Enabled Services with Selected
Countries, 2016 and 2017 (1)
Billions dollars
Imports Exports
2016 2017 2016 2017
United Kingdom 31.6 31.7-35.1 43.0 45.5
Ireland 14.3 16.6 46.1 46.8-47.2
Switzerland 17.1 19.7 28.0 32.8
Canada 13.3-15.6 16.2 28.0 31.0
Japan 16.0 16.5 22.0 22.6-23.2
United Kingdom 5.1-5.2 5.7 30.0-31.8 32.5-34.3
Islands, Caribbean
Germany 17.3 18.5 18.4 19.2
India 21.9 24.1 6.0 7.5
Bermuda 24.1-24.2 22.1 10.2 8.7
China 6.5 7.6 15.4 16.8
Trade by partner country
Exports, imports, and the balance of trade in potentially
ICT-enabled services for the top 10 trading-partner countries by total
trade (exports plus imports) are shown in chart 9.
In 2017, the United Kingdom was the top trading partner in
potentially ICT-enabled services. Exports to the United Kingdom were
$45.5 billion, more than a third of which was in financial services.
Imports from the United Kingdom were between $31.7 and $35.1 billion
(see the box "Calculating Ranges for Suppressed Values of Trade in
Potentially ICT-Enabled Services"), led by potentially ICT-enabled
services in other business services. The United Kingdom was the top
country for imports and the second ranked country for exports of
potentially ICT-enabled services. Ireland was the second ranked trading
partner in potentially ICT-enabled services, primarily as a result of
being the top country for exports, which were between $46.8 and $47.2
billion in 2017.
The largest increases in 2017 in potentially ICT-enabled services
exports and imports by country were with Switzerland. Exports to
Switzerland increased $4.8 billion, or 17 percent, to $32.8 billion; the
largest increase was in potentially ICT-enabled services in other
business services. Imports from Switzerland increased $2.6 billion, or
15 percent, to $19.7 billion in 2017; the largest increase was in
insurance services.
Calculating Ranges for Suppressed Values of Trade in Potentially
ICT-Enabled Services
For some countries, exports and imports of potentially ICT-enabled
services were suppressed to avoid the disclosure of data of individual
companies. Of the top 10 trading partners, the values for potentially
ICT-enabled services exports were suppressed for Ireland; Japan; and
United Kingdom Islands, Caribbean in 2017 and United Kingdom Islands,
Caribbean in 2016. Values for potentially ICT-enabled services imports
were suppressed for the United Kingdom in 2017 and Canada; United
Kingdom Islands, Caribbean; and Bermuda in 2016. For these countries,
ranges of feasible values are presented to facilitate the discussion of
potentially ICT-enabled services exports, imports, and trade balances
for the countries, and the lower bounds of these ranges are used to rank
the countries.
Values for ICT and potentially ICT-enabled services exports,
imports, or trade balance may be suppressed when certain components are
suppressed. In most cases, the components that are suppressed are
relatively small parts of the total. For countries where one or more
components are suppressed, chart 9 includes an upper bound and lower
bound that establish a range of possible values. The lower bound is
equal to the sum of all unsuppressed services included in ICT or
potentially ICT-enabled services. The upper bound is calculated as the
sum of the unsuppressed services and higher level aggregates that
include the suppressed services less any other unsuppressed components
of that higher level aggregate that are not included in ICT or
potentially ICT-enabled services.
Trade by affiliation
Affiliated trade accounted for 54 percent of exports of potentially
ICT-enabled services and for 57 percent of imports of potentially
ICT-enabled services in 2017. These shares are much higher than the
affiliated shares of total services exports and imports, highlighting
the importance of providing services over ICT networks for intrafirm
trade. Unaffiliated exports of potentially ICT-enabled services
increased 9 percent in 2017, and affiliated exports increased 6 percent.
Unaffiliated imports of potentially ICT-enabled services increased 6
percent, and affiliated services imports increased 7 percent.
Services Supplied Through Affiliates in 2016
U.S. international services delivered via the channel of direct
investment consist of (1) services supplied to the host country and
other foreign markets by foreign affiliates of U.S. multinational
enterprises (MNEs) and (2) services supplied to the U.S. market by U.S.
affiliates of foreign MNEs. The statistics in this article are
consistent with services supplied statistics published in BEA's
statistics on the activities of multinational enterprises ("AMNE
statistics") except AMNE statistics include services supplied to
all customers regardless of the residency of the customer.
In 2016, the latest year for which statistics are available,
services supplied by U.S. MNEs to foreign markets through their
affiliates decreased $6.5 billion, or less than 1 percent, to $1,456.3
billion (chart 10). Services supplied by foreign MNEs to the U.S. market
through their affiliates increased $37.2 billion, or 4 percent, to
$995.1 billion. The difference between international services supplied
through affiliates to foreign markets and the services supplied to the
U.S. market was $461.2 billion in 2016, compared with $504.9 billion in
2015.
The remainder of this section discusses services supplied through
affiliates in 2016 by industry of affiliate, by country of affiliate or
country of ultimate beneficial owner (UBO), and by destination. (17)
Tables that accompany this article and that are available on BEA's
website provide additional detail on services provided by affiliates of
MNEs, along with detail cross classified by country and industry.
Services supplied through affiliates by industry
In the international services statistics, BEA classifies services
supplied through affiliates into nine major industry categories (table
F). In 2016, other industries (primarily transportation and warehousing;
administration, support, and waste management; and accommodation and
food services) accounted for the largest share of the services supplied
by U.S. MNEs to foreign markets through their foreign affiliates. (18)
Information; professional, scientific, and technical services; wholesale
trade; and finance and insurance also accounted for large shares of the
total. Together, these five industries accounted for 83 percent of
services supplied by foreign affiliates.
For services supplied by foreign MNEs to U.S. markets through their
U.S. affiliates, wholesale trade, other industries (primarily
transportation and warehousing, and administration, support, and waste
management), and finance and insurance accounted for the three largest
shares. Together these three industries accounted for 56 percent of
total services supplied by U.S. affiliates.
In 2016, decreases in six of the nine major industry categories
contributed to the $6.5 billion aggregate decrease in services supplied
by U.S. MNEs through foreign affiliates. Decreases were largest for
affiliates in mining and wholesale trade (chart 11). Among the notable
changes in services supplied through foreign affiliates were the
following:
* Mining. Services supplied to foreign markets by mining affiliates
decreased $8.0 billion to $36.1 billion, reflecting a $7.9 billion
decrease in services supplied by affiliates in mining services other
than oil and gas extraction.
* Wholesale trade. (19) Services supplied by wholesale trade
affiliates decreased $6.4 billion to $227.7 billion, reflecting
decreases in services supplied in professional and commercial equipment
and supplies and in electrical and electronic goods.
* Finance and insurance. Services supplied by affiliates in finance
and insurance decreased $5.5 billion to $224.5 billion, reflecting a
$6.6 billion decrease in finance, mostly by nonbanks, that was partly
offset by a $1.1 billion increase in insurance and related activities.
* Other industries. Services supplied by affiliates in other
industries decreased $3.0 billion to $264.8 billion. Services supplied
by affiliates in transportation and warehousing decreased $7.8 billion,
and services supplied by affiliates in utilities decreased $5.3 billion.
These decreases were partly offset by a $6.5 billion increase in
services supplied by affiliates in administrative and support services.
* Professional, scientific, and technical services. Services
supplied by affiliates in professional, scientific, and technical
services decreased $1.8 billion to $234.2 billion. Decreases in
architectural, engineering, and related services and in scientific
research and development services totaling $5.5 billion were partly
offset by a $3.6 billion increase in computer systems design and related
services.
* Information. Services supplied by affiliates in information
increased $12.5 billion to $257.6 billion. The increase in information
was the largest change among major industries in 2017 and reflected an
$11.6 billion increase in other information services, particularly from
affiliates in Europe. (20)
* Real estate and rental and leasing. Services supplied by
affiliates in real estate and rental and leasing increased $4.7 billion.
Chart 11. Services Supplied Through Affiliates by Industry, 2015 and
2016
U.S. Bureau of Economic Analysis
Services supplied
to U.S. persons
by U.S.
affiliates of
foreign MNEs
* 2015 * 2016
Other industries 183.4 184.3
Wholesale trade 181.5 189.0
Finance and insurance 161.6 179.2
Information 114.6 120.7
Professional, scientific, 116.6 120.1
and technical services
Retail trade 54.3 60.9
Manufacturing 93.2 91.1
Real estate and 24.5 23.0
rental and leasing
Mining 33.0 26.8
Services supplied
to foreign persons
by foreign
affiliates of
U.S. MNEs
* 2015 * 2016
Other industries 267.8 264.8
Wholesale trade 234.1 227.7
Finance and insurance 230.0 224.5
Information 245.1 257.6
Professional, scientific, 236.0 234.2
and technical services
Retail trade 107.4 108.6
Manufacturing 34.8 34.6
Real estate and 63.4 68.1
rental and leasing
Mining 44.0 36.1
Note: Table made from bar graph.
Increases in services supplied through U.S. affiliates in six of
the nine major industries in 2016 contributed to the aggregate $37.2
billion increase in services supplied to the U.S. market by foreign
MNEs. Affiliates in finance and insurance accounted for nearly half of
the total increase. Among the notable changes in services supplied
through U.S. affiliates were the following:
* Finance and insurance. Services supplied by finance and insurance
affiliates increased $17.6 billion to $179.2 billion. This increase
reflected a $17.6 billion increase in services supplied by affiliates in
insurance and related activities. Over half of the total increase in
finance and insurance was due to affiliates with Canadian UBOs, for
which services supplied increased $9.6 billion, or 38 percent.
* Professional, scientific, and technical services. Services
supplied by affiliates in professional, scientific, and technical
services increased $8.5 billion to $120.1 billion, led by increases in
computer systems design and related services; other professional,
scientific, and technical services; and management, scientific, and
technical consulting.
* Wholesale trade. Services supplied by wholesale trade affiliates
increased $7.5 billion to $189.0 billion. The increase reflected
increases in services supplied by wholesalers of petroleum and petroleum
products and by affiliates in the other wholesale trade, including
distributors of machinery, equipment, and supplies.
* Retail trade. (21) Services supplied by retail trade affiliates
increased $6.6 billion to $60.9 billion. The increase reflected
increases in services supplied by food and beverage store affiliates and
in services supplied by retail trade affiliates in other retail trade,
which includes retailers of goods such as furniture and home furnishings
and general merchandise.
* Information. Services supplied by affiliates in information
increased $6.0 billion to $120.7 billion, reflecting an increase in
services supplied by European-owned affiliates.
* Mining. Services supplied by affiliates in mining decreased $6.2
billion, or 19 percent, to $26.8 billion, mostly reflecting a $5.7
billion decrease in services supplied by affiliates in mining other than
oil and gas extraction. In mining other than oil and gas extraction,
services supplied by affiliates with UBOs in Latin America and Other
Western Hemisphere decreased $3.2 billion.
Services supplied through affiliates by country
Table F shows, for 2016, the top 10 countries for (1) services
supplied through foreign affiliates of U.S. MNEs to foreign markets, by
country of the foreign affiliate, and (2) services supplied through U.S.
affiliates of foreign MNEs to the U.S. market, by country of the UBO.
The top country through which U.S. MNEs supplied services to
foreign markets through their foreign affiliates in 2016 was the United
Kingdom, followed by Ireland, which overtook Canada as the
second-highest ranked country in 2016. For services supplied to the U.S.
market through U.S. affiliates, the top UBO country was Japan, followed
by the United Kingdom and Germany.
The top 10 countries as measured by the sum of 2016 services
supplied by foreign affiliates and by U.S. affiliates are shown in chart
12; the chart shows services supplied for both 2015 and 2016. Decreases
in services supplied by affiliates in four of these countries
contributed to the $6.5 billion decrease in services supplied to foreign
markets in 2016. Other than services supplied by Irish affiliates, which
increased, no other 2016 change for the countries shown in chart 12
exceeded 10 percent. Among the notable 2016 decreases in services
supplied are the following:
* Canada. Services supplied by Canadian affiliates decreased $4.4
billion to $117.2 billion. Most of the decrease was in other industries,
particularly utilities.
* Hong Kong. Services supplied through affiliates in Hong Kong (not
shown in chart 12) decreased $3.9 billion to $26.0 billion; $2.4 billion
of the decrease was in finance and insurance.
* Brazil. Services supplied through affiliates in Brazil (not shown
in chart 12) decreased $3.1 billion to $39.1 billion, partly reflecting
a decrease in other industries, primarily in utilities.
* Singapore. Services supplied by Singaporean affiliates decreased
$2.8 billion to $77.8 billion, reflecting decreases in finance and
insurance and in information.
Despite the overall decrease in services supplied through foreign
affiliates, services supplied by affiliates in several countries
increased in 2016, most notably in Ireland.
* Ireland. Services supplied by Irish affiliates of U.S. MNEs
increased $13.0 billion, or 12 percent, to $125.2 billion. Of this
increase, $4.6 billion was in information; $3.3 billion was in
professional, scientific, and technical services; and $3.2 billion was
in administration, support, and waste management services.
* The Netherlands. Services supplied by affiliates in the
Netherlands increased $5.0 billion to $66.2 billion, primarily in repair
and maintenance services.
* Japan. Services supplied by Japanese affiliates increased $4.3
billion to $72.0 billion, reflecting an increase in information.
Chart 12. Services Supplied Through Affiliates for Selected Countries,
2015 and 2016 (1)
Services supplied to Services supplied to
U.S. persons by U.S. foreign persons by
affiliates of foreign foreign affiliates of
MNEs. U.S. MNEs
2015 2016
United Kingdom 139.4 231.3
143.3 232.1
Japan 154.0 67.7
158.6 72.0
Canada 97.0 121.6
108.5 117.2
Germany 136.7 68.2
134.0 68.3
Ireland 22.5 112.3
24.2 125.2
France 94.9 49.1
97.2 48.9
Switzerland 46.9 74.7
47.5 74.9
Netherlands 45.5 61.2
51.9 66.2
Singapore 7.0 80.7
6.5 77.8
China 6.0 55.4
8.3 55.1
(1.) The countries selected for this chart are the top 10 countries as
measured by the sum of services supplied by foreign affiliates to
foreign markets end by U.S. affiliates to the U.S. market in 2016.
U.S. Bureau of Economic Analysis
Note: Table made from bar graph.
Services supplied through U.S. affiliates of foreign MNEs to the
U.S. market increased $37.2 billion in 2016. The largest increase was
Canada, followed by the Netherlands and the United Kingdom. Services
supplied by German affiliates notably decreased.
* Canada. Services supplied by Canadian-owned affiliates increased
$11.5 billion, or 12 percent, to $108.5 billion in 2016. Affiliates in
finance and insurance accounted for $9.6 billion of this increase,
mostly insurance carriers and related activities.
* The Netherlands. Services supplied by Netherlands-owned
affiliates increased $6.4 billion to $51.9 billion.
* United Kingdom. Services supplied by U.K.-owned affiliates
increased $4.9 billion to $143.3 billion, reflecting a $5.0 billion, or
97 percent, increase in services supplied by retail trade affiliates.
* Japan. Services supplied by Japanese-owned affiliates increased
$4.6 billion to $158.6 billion, reflecting a $5.5 billion increase in
finance and insurance.
* France. Services supplied by French-owned affiliates increased
$2.4 billion, mostly reflecting an increase in professional, scientific,
and technical services.
* Spain. Services supplied by Spanish-owned affiliates (not shown
in chart 12) increased $2.3 billion. Nearly half of the increase was
explained by an increase in other industries.
* China. Services supplied by Chinese-owned affiliates increased
$2.3 billion, reflecting broad increases across industries.
* India. Services supplied by Indian-owned affiliates (not shown in
chart 12) increased $2.3 billion, mostly reflecting an increase in
professional, scientific, and technical services.
* Germany. The largest decrease in 2016 was for affiliates with
German UBOs. Services supplied by German-owned U.S. affiliates decreased
$2.7 billion, reflecting a decrease for affiliates in primary and
fabricated metals manufacturing.
Services supplied by destination
Foreign affiliates not only supply services to foreign markets, but
they also supply services to the U.S. market. (22) Services supplied to
foreign markets, which include local markets and other foreign markets,
accounted for 88 percent of the $1,663.1 billion in services supplied by
foreign affiliates worldwide in 2016. Services supplied to the U.S.
market, which are not included in the international services statistics
discussed in this article, accounted for the remaining 12 percent (table
G). In 2016, transactions in the affiliates' local market accounted
for 65 percent of services supplied worldwide through affiliates, while
transactions in other foreign markets accounted for 22 percent.
U.S. affiliates not only supply services to the U.S. market, but
they also supply services to other markets (which are mostly classified
as U.S. exports of services). However, transactions in the U.S. market
account for the vast majority of the services supplied by U.S.
affiliates worldwide. In 2016, transactions in the U.S. market accounted
for 91 percent of the $1,097.9 billion in services supplied by U.S.
affiliates worldwide. Services supplied to foreign markets, which are
not included in the international services statistics discussed in this
article, accounted for the remaining 9 percent.
Future Enhancements to the International Services Statistics
The Bureau of Economic Analysis (BEA) continues its efforts to
enhance its international economic account statistics. (1) Significant
changes made to the 2017 Benchmark Survey of Selected Services and
Intellectual Property with Foreign Persons (BE-120), along with
continued research into potential estimation methodologies, will allow
BEA to further align its trade in services statistics with international
statistical guidelines. Specific improvements and research planned for
the coming years include:
* Introducing measures of implicitly priced financial services,
including financial intermediation services indirectly measured (FISIM)
and markups on securities traded through brokers or dealers
* Introducing a personal, cultural, and recreational services
category
* Reclassifying certain transactions related to intellectual
property
* Researching methodologies for measuring manufacturing services on
physical inputs owned by others
For a discussion of the above changes, see "Improving the
International Services Statistics" in the October 2014 article in
this series. (2)
BEA is also researching ways to further expand the detail it
provides by country and by type of service in its trade in services
statistics by:
* Accelerating the release of geographical detail by publishing
bilateral statistics for more countries in the quarterly ITAs
* Expanding the type of service detail for existing categories,
including research and development, intellectual property, financial
services, and potentially ICT-enabled services
* Expanding the affiliation detail for existing service types
* Considering the feasibility of developing statistics that present
international services in different ways, such as by industry of the
transactor or by the mode that services are delivered
(1.) See the "Catalog of Major Revisions to the U.S.
International Accounts, 1976-2008" on BEA's website. For
changes implemented since 2008, see the appendixes on improvements in
each annual Survey article in this series or the annual update of the
U.S. international accounts Survey articles.
(2.) See Alexis N. Grimm and Charu S. Krishnan, "U.S.
International Services: Trade in Services in 2013 and Services Supplied
Through Affiliates in 2012," Survey 94 (October 2014).
Acknowledgments
The estimates of trade in services and services supplied through
affiliates were prepared by the following staff members of the Balance
of Payments Division and the Direct Investment Division:
Estimates of trade in services were prepared under the guidance of
Molly E. Garber and Christopher J. Stein. Travel and air passenger
transport estimates were prepared by Laura L. Brokenbaugh, Edward F.
Dozier, Alexis N. Grimm, and Yiran Xin. Transport estimates were
prepared by Elye Bliss, Edward F. Dozier, C. Omar Kebbeh, and Steven J.
Muno. Estimates for services other than travel and transport were
prepared by Ami V. Adjoh-Baliki, Pamela N. Aiken, Shari A. Allen, Suhail
Ally, Damon C. Battaglia, Jeffrey R. Bogen, Faith M. Brannam, Kiesha V.
Brown, Jamela DesVignes, Michael D. Flinch, Andre Garber, Brian C.
Goddard, Nazre Jamil, Hope R. Jones, C. Omar Kebbeh, Eddie Lee Key,
Patricia A. Mosley, Steven J. Muno, Michelle Murillo, Maya Ortiz, Alice
K. Ramey, Alyssa N. Reinland, Makia M. Riley, Mark P. Samuel, and John
A. Sondheimer.
The processing of the survey data used to prepare the estimates of
services supplied through majority-owned affiliates was conducted by the
following staff members of the Direct Investment Division under the
guidance of Kirsten Brew, Mark D. Goddard, and Ricardo Limes: Richard
Adkins, Catherine Ama, George Bogachevsky, Gregory Brace, Ariel Canela,
Polly Cheung, Stephen Corsiglia, James Crim, Laura Downey, Kenneth
Grier, Jamaika Hawthorne, Marvin Helfman, Kiara Hughes, Peterson Kimani,
James Lashley, Andrew Makoge, Demetria McCormick, Marcia Miller, Yetunde
Olayinka, Christina Peele, Terri Perdue, Amanda Petersen, Michelle
Proctor, Kevin Reagan, Terri Riley, Ann Robinson, Nathaniel Rogers,
Larisa Rondon, Roberto Ruiz, Myriam Rullan, Aqeel Sahibzada, Howard
Trumbo, Daniel Wakjira, and Helen Yiu. Alexis N. Grimm and Christopher
P. Steiner performed additional calculations to prepare the statistics
on services supplied through affiliates.
The information in the international services tables was compiled
by Danielle N. Clavon, Alexis N. Grimm, Benjamin P. Kavanaugh, Mitchell
N. Shabani, and John A. Sondheimer. Computer support was provided by
Matthew Drake, Carole J. Henry, Barbara Hubbard, Neeta Kapoor, Fritz H.
Mayhew, Christopher Morski, Kevin Smith, and Gary Sowers.
By Shari A. Allen, Alexis N. Grimm, and Christopher P. Steiner
(1.) More information on the definitions, coverage, and methodology
of trade in services and services supplied through affiliates is
available on the Bureau of Economic Analysis website.
(2.) The term "affiliates" in this article refers to
majority-owned affiliates. The statistics on services supplied through
affiliates cover the full value of services provided by majority-owned
affiliates, irrespective of the percentage of ownership.
(3.) The statistics on trade in services and services supplied
through affiliates are not directly comparable, because of differences
in coverage and classification. For example, wholesale and retail trade
distributive services are included in services supplied through
affiliates but not in trade in services statistics. Trade in services
are collected and published by type of service, but services supplied
through affiliates are collected and published by the affiliate's
primary industry. For more information, see "Definition of
International Services" on BEA's website.
(4.) World Trade Organization and United Nations Conference on
Trade and Development Quarterly Trade in Commercial Services.
(5.) Travel (for all purposes including education) is the name used
in the trade in services statistics to encompass a broadly defined
travel category. This category includes business travel and personal
travel. Business travel includes expenditures by border, seasonal, and
other short-term workers and other business travel. Personal travel
includes health-related travel, education-related travel, and other
personal travel. Note that airfares or other expenditures associated
with transporting travelers between the United States and foreign
countries are not classified in travel; these expenditures are included
in transport services.
(6.) See Alexis N. Grimm and Maya Ortiz, "U.S. International
Services: Trade in Services in 2015 and Services Supplied Through
Affiliates in 2014," Survey 96 (December 2016) for a discussion of
the geographic detail added to BEA's trade in services statistics
in 2016.
(7.) Aon Benfield, Weather, Climate & Catastrophe Insight -
2017 Annual Report, January 24, 2018.
(8.) National Flood Insurance Program's (NFIP) Reinsurance
Program.
(9.) See Christopher L. Bach, "Annual Revision of the U.S.
International Accounts, 1992-2002," Survey 83, (July 2003): 32-45.
(10.) For detailed descriptions of the fundamental concepts,
definitions, classifications, and accounting framework that underlie the
NIPAs and the general sources and methods that are used to prepare the
estimates, see NIPA Handbook: Concepts and Methods of the U.S. National
Income and Product Accounts on BEA's website.
(11.) When insured losses do not exceed the 0.1 percent of GDP
threshold, losses covered by insurers abroad are deemed to be
"regularly occurring" and are recorded as current transfers in
the secondary income account of the ITAs.
(12.) The statistics in this article supersede those presented in
the October 2017 Survey of Current Business. Revisions of trade in
services statistics for 2010 to 2017 were published in June of 2018 and
are already reflected in the ITAs and monthly trade statistics found on
BEA's website.
(13.) Based on data from the December 2017 monthly report from the
World Federation of Exchanges.
(14.) National Science Board, Science and Engineering Indicators
2018 (Alexandria, VA: National Science Foundation, 2018 (NSB-2018-1)).
(15.) For a detailed description of how ICT and potentially
ICT-enabled statistics are defined, see Alexis N. Grimm, "Trends in
U.S. Trade in Information and Communications Technology (ICT) Services
and in ICT-Enabled Services," Survey of Current Business 96 (May
2016).
(16.) The EBOPS guidelines were established by the Manual on
Statistics of International Trade in Services (Geneva: United Nations
Department of Economic and Social Affairs, 2010) and Balance of Payments
and International Investment Position Manual, Sixth Edition (Washington,
DC: International Monetary Fund, 2009).
(17.) The UBO of a U.S. affiliate is that person or entity,
proceeding up the affiliate's ownership chain, beginning with and
including the foreign parent, that is not owned by more than 50 percent
by another person. Unlike the foreign parent, the UBO of an affiliate
may be located in the United States. The UBO of each affiliate
ultimately owns or controls the U.S. affiliate and therefore ultimately
derives the benefits from ownership or control.
(18.) Other industries includes agriculture, forestry, fishing, and
hunting; utilities; construction; transportation and warehousing;
management of nonbank companies and enterprises; administration,
support, and waste management; health care and social assistance;
accommodation and food services; and miscellaneous services.
(19.) Wholesale trade includes motor vehicles and other motor
vehicle parts and supplies; professional and commercial equipment and
supplies; electrical and electronic goods; petroleum and petroleum
products; drugs and druggists' sundries; and other wholesale trade.
(20.) Other information services covers businesses engaged in
supplying information, storing and providing access to information,
searching and retrieving information, operating websites that use search
engines to allow for searching information on the Internet, or
publishing and/or broadcasting content exclusively on the Internet.
(21.) Retail trade includes general merchandise stores; clothing
and clothing accessories stores; food and beverage stores; nonstore
retailers; and other retail trade.
(22.) Services supplied by foreign affiliates to the U.S. market
are mostly classified as U.S. imports of services. However, data from
BEA's direct investment surveys on these services supplied are not
used to estimate U.S. imports of services; data on these services are
collected along with data on other U.S. services imports in BEA's
services trade collection program. Of the services supplied by foreign
affiliates to the U.S. market, distributive services in wholesale and
retail trade are generally not included as U.S. imports of services.
Table A. U.S. International Services Supplied and Received, 2015-2017
Services supplied Services
received
Total Through Through foreign Total Through
trade affiliates of trade
(U.S. U.S. companies (U.S.
exports) imports)
Billions of dollars
2015 2,218.1 755.3 1,462.8 1,449.8 492.0
2016 2,215.2 758.9 1,456.3 1,504.9 509.8
2017 n.a. 797.7 n.a. n.a. 542.5
Percent change from preceding year
2015 -2.5 1.9 -4.7 2.0 2.3
2016 -0.1 0.5 -0.4 3.8 3.6
2017 n.a. 5.1 n.a. n.a. 6.4
Services received
Total Through U.S. affiliates of foreign
companies
Billions of dollars
2015 2,218.1 957.8
2016 2,215.2 995.1
2017 n.a. n.a.
Percent change from preceding year
2015 -2.5 1.9
2016 -0.1 3.9
2017 n.a. n.a.
n.a. Not available
Table B. Reinsurance Imports 2016-2017
[Billions of dollars]
2016 2017
All countries 43.9 45.1
Total for the top 5 countries (1) 37.1 38.3
Bermuda 21.1 19.3
Switzerland 7.0 8.4
Ireland 3.1 4.8
United Kingdom Islands, Caribbean (2) 3.2 3.3
Germany 2.6 2.5
Other countries 6.8 6.8
(1.) The rank is based on the total value of reinsurance imports in
2017.
(2.) United Kingdom Islands, Caribbean comprises the British Virgin
Islands, the Cayman Islands, Montserrat, and the Turks and Caicos
Islands.
Table C. U.S. Trade in Services by Type and Country, 2017
[Millions of dollars]
Total Maintenance Transport Travel
services and repair (for all
services purposes
n.i.e. including
education) (2)
Export
All countries 797,690 26,430 88,598 210,747
Total for the top 445,786 10,248 46,945 108,911
10 countries (1)
United Kingdom 69,624 2,774 7,853 12,373
Canada 58,446 1,245 6,996 17,433
China 57,628 1,538 5,174 32,772
Ireland 49,841 322 675 1,671
Japan 46,428 1,250 10,041 10,732
Switzerland 37,291 278 2,282 1,615
United Kingdom 34,531 10 65 143
Islands,
Caribbean (3)
Mexico 32,874 643 3,975 17,932
Germany 32,692 1,439 4,963 6,568
Brazil 26,431 750 4,922 7,673
Other countries 351,904 16,182 41,652 101,836
Imports
All countries 542,471 8,337 101,744 135,024
Total for the top 300,204 (D) 43,693 55,353
10 countries (1)
United Kingdom 56,927 2,211 8,696 10,135
Germany 35,364 143 8,222 3,566
Japan 33,062 67 8,860 3,284
Canada 33,025 1,414 5,414 8,562
India 28,136 23 619 3,236
Switzerland 26,945 (D) 2,338 1,317
Mexico 25,492 302 3,096 17,077
Bermuda 23,578 (*) 1,136 329
Ireland 20,143 35 862 2,567
France 17,531 438 4,450 5,281
Other countries 242,268 (D) 58,051 79,671
Insurance Financial Charges for
services services the use of
intellectual
property n.i.e.
Export
All countries 18,047 109,642 128,364
Total for the top 9,935 72,939 78,748
10 countries (1)
United Kingdom 2,749 16,382 9,865
Canada 1,833 6,964 8,409
China 592 3,934 8,762
Ireland 570 3,180 18,492
Japan 2,570 3,478 7,042
Switzerland 206 1,486 12,367
United Kingdom 328 31,277 137
Islands,
Caribbean (3)
Mexico 420 1,426 3,643
Germany 326 2,850 6,330
Brazil 341 1,962 3,701
Other countries 8,112 36,703 49,616
Imports
All countries 50,665 28,931 51,284
Total for the top 42,108 17,141 37,702
10 countries (1)
United Kingdom 3,498 9,836 4,880
Germany 2,602 602 7,164
Japan 343 1,377 10,808
Canada 613 2,236 1,658
India 67 599 758
Switzerland 8,583 553 5,863
Mexico 33 360 696
Bermuda 21,051 539 3
Ireland 4,833 288 3,191
France 485 751 2,681
Other countries 8,558 11,790 13,582
Telecommunications, Other Government
computer, and business goods and
information services services services n.i.e.
Export
All countries 42,219 154,313 19,329
Total for the top 22,962 92,360 2,737
10 countries (1)
United Kingdom 5,254 12,145 229
Canada 4,022 11,134 410
China 953 3,449 454
Ireland 1,763 23,157 11
Japan 2,385 8,170 760
Switzerland 1,752 17,231 75
United Kingdom 118 2,453 1
Islands,
Caribbean (3)
Mexico 1,297 3,081 456
Germany 1,620 8,410 186
Brazil 3,799 3,128 155
Other countries 19,257 61,953 16,592
Imports
All countries 40,054 104,385 22,047
Total for the top 29,563 58,253 (D)
10 countries (1)
United Kingdom 2,586 14,460 626
Germany 1,185 6,995 4,884
Japan 503 3,550 4,269
Canada 4,372 8,488 268
India 15,432 7,287 115
Switzerland 516 6,473 (D)
Mexico 948 2,855 127
Bermuda 190 323 7
Ireland 3,197 5,152 18
France 633 2,670 141
Other countries 10,491 46,132 (D)
(*) Transactions between zero and $500,000.
n.i.e. Not included elsewhere
(D) Suppressed to avoid the disclosure of data of individual companies.
(1.) The rank is based on the total value of services exports or
imports in 2017.
(2.) All travel purposes include (1) business travel, including
expenditures by border, seasonal, and other short-term workers and (2)
personal travel, including health-related and education-related travel.
(3.) United Kingdom Islands, Caribbean comprises the British Virgin
Islands, the Cayman Islands, Montserrat, and the Turks and Caicos
Islands.
Table D. Trade in Services by Affiliation Type, 2016-2017
Millions of dollars Percent Percent
change of total
from trade in
preceding services
year
2016 2017 2017 2017
Exports of services
Total exports of services 758,888 797,690 5.1 .........
Unaffiliated 529,458 555,846 5.0 69.7
Affiliated 229,430 241,844 5.4 30.3
U.S. parents' exports to 182,939 193,688 5.9 24.3
their foreign affiliates
U.S. affiliates' exports 46,490 48,156 3.6 6.0
to their foreign parent
groups
Imports of service
Total imports of services 509,838 542,471 6.4
Unaffiliated 359,084 382,285 6.5 70.5
Affiliated 150,754 160,186 6.3 29.5
U.S. parents' imports 97,595 106,091 8.7 19.6
from their foreign
affiliates
U.S. affiliates' imports 53,159 54,095 1.8 10.0
from their foreign
parent groups
Table E. Trade in Potentially ICT-Enabled Services by Affiliation Type,
2016-2017
Millions Percent change from
of dollars preceding year
2016 2017 2017
Exports of potentially ICT-enabled
services
Total exports of potentially 410,026 439,126 7.1
ICT-enabled services
Unaffiliated 187,294 203,310 8.6
Affiliated 222,731 235,816 5.9
U.S. parents' exports to (D) 189,513 (D)
their foreign affiliates
U.S. affiliates' exports to (D) 46,304 (D)
their foreign parent groups
Imports of potentially ICT-enabled
services
Total imports of potentially 249,874 266,558 6.7
ICT-enabled services
Unaffiliated 108,083 114,181 5.6
Affiliated 141,791 152,377 7.5
U.S. parents' imports (D) 101,475 (D)
from their foreign
affiliates
U.S. affiliates' imports (D) 50,902 (D)
from their foreign
parent groups
Percent of total trade in
potentially ICT-enabled services
2017
Exports of potentially ICT-enabled
services
Total exports of potentially __
ICT-enabled services
Unaffiliated 46.3
Affiliated 53.7
U.S. parents' exports to 43.2
their foreign affiliates
U.S. affiliates' exports to 10.5
their foreign parent groups
Imports of potentially ICT-enabled
services
Total imports of potentially __
ICT-enabled services
Unaffiliated 42.8
Affiliated 57.2
U.S. parents' imports 38.1
from their foreign
affiliates
U.S. affiliates' imports 19.1
from their foreign
parent groups
(D) Suppressed to avoid the disclosure of data of individual companies.
ICT Information and communications technology
Table F. Services Supplied to Foreign Persons by Industry and by
Country of the Foreign Affiliate and to U.S. Persons by Industry of the
U.S. Affiliate and by Country of the Ultimate Beneficial Owner (UBO),
2016
All Mining Manufac- Wholesale Retail
industries turing trade trade
Services supplied to foreign persons by U.S. MNEs through their
majority-owned foreign affiliates by country of the foreign affiliate
All countries 1,456,288 36,077 34,607 227,712 108,570
Total for the top 937,855 11,911 25,538 154,723 75,588
10 countries (1)
United Kingdom 232,082 5,149 6,972 19,443 23,670
Ireland 125,249 (D) (D) 7,166 251
Canada 117,186 3,763 2,277 18,079 23,190
Singapore 77,847 799 1,369 25,389 2,480
Switzerland 74,918 (D) 369 26,217 3,847
Japan 72,002 0 438 8,895 5,114
Germany 68,278 572 2,209 12,555 6,759
Netherlands 66,227 888 (D) 12,668 1,613
China 55,136 324 2,051 16,182 6,274
France 48,930 179 3,433 8,129 2,390
Other countries 518,433 24,166 9,070 72,989 32,982
Services supplied to U.S. persons by foreign MNEs through theeir
majority-owned U.S. affiliates by country of the UBO
All countries 995,073 26,814 91,132 188,994 60,899
Total for the top 816,505 17,115 82,528 153,108 48,748
10 countries (2)
Japan 158,600 (D) 13,874 63,921 6,683
United Kingdom 143,328 (D) 11,038 9,414 10,144
Germany 133,973 (D) 27,248 15,604 8,469
Canada 108,463 854 7,633 11,305 12,028
France 97,242 (D) (D) 8,880 (D)
Netherlands 51,858 (D) 5,886 8,478 9,977
Switzerland 47,451 (D) 7,662 3,388 683
Bermuda 25,698 (D) (D) 6,061 4
Korea, Republic 25,651 (D) 396 24,089 (D)
of
Ireland 24,242 (D) (D) 1,968 (D)
Other countries 178,568 9,699 8,604 35,886 12,151
Information Finance Real estate Professional,
and and rental scientific,
insurance and leasing and technical
services
Services supplied to foreign persons by U.S. MNEs through their
majority-owned foreign affiliates by country of the foreign affiliate
All countries 257,593 224,510 68,148 234,233
Total for the top 188,554 124,227 46,677 148,295
10 countries (1)
United Kingdom 35,711 55,382 6,817 39,150
Ireland 71,418 10,405 (D) 18,730
Canada 9,259 10,616 4,602 15,811
Singapore 21,779 7,011 1,844 7,934
Switzerland 5,833 1,718 (D) 15,801
Japan 11,239 22,413 1,187 13,849
Germany 11,464 4,681 2,071 12,975
Netherlands 13,228 5,964 2,709 8,413
China 2,736 1,758 1,258 6,988
France 5,887 4,278 1,791 8,643
Other countries 69,039 100,283 21,472 85,938
Services supplied to U.S. persons by foreign MNEs through theeir
majority-owned U.S. affiliates by country of the UBO
All countries 120,666 179,214 22,984 120,078
Total for the top 104,602 157,886 16,904 95,841
10 countries (2)
Japan (D) 25,631 1,685 4,243
United Kingdom 24,644 19,757 (D) (D)
Germany (D) 19,416 1,468 8,714
Canada 8,747 34,500 5,956 9,433
France 1,491 19,075 (D) 38,716
Netherlands (D) (D) 1,042 2,154
Switzerland 111 (D) 672 376
Bermuda (D) 9,598 61 8
Korea, Republic 228 242 (D) 372
of
Ireland 192 (D) (D) (D)
Other countries 16,064 21,328 6,081 24,237
Other industries
Services supplied to foreign persons by U.S. MNEs through their
majority-owned foreign affiliates by country of the foreign affiliate
All countries 264,836
Total for the top 162,343
10 countries (1)
United Kingdom 39,790
Ireland 6,755
Canada 29,588
Singapore 9,240
Switzerland (D)
Japan 8,867
Germany 14,992
Netherlands (D)
China 17,566
France 14,200
Other countries 102,494
Services supplied to U.S. persons by foreign MNEs through theeir
majority-owned U.S. affiliates by country of the UBO
All countries 184,293
Total for the top 139,774
10 countries (2)
Japan (D)
United Kingdom (D)
Germany (D)
Canada 18,006
France (D)
Netherlands (D)
Switzerland (D)
Bermuda (D)
Korea, Republic (D)
of
Ireland (D)
Other countries 44,519
(D) Suppressed to avoid the disclosure of data of individual companies.
MNE Multinational enterprises
Table G. Services Supplied Through Affiliates by Destination, 2015-2016
Billions Percent change Percent of
of dollars from preceding total
year services
supplied
2015 2016 2016 2016
Services supplied by U.S. MNEs through their majority-owned foreign
affiliates
Total services supplied 1,661.3 1,663.1 0.1 __
Services supplied to 198.5 206.8 4.2 12.4
U.S. persons
Services supplied to 1,462.8 1,456.3 -0.4 87.6
foreign persons
To the host 1,104.1 1,082.2 -2.0 65.1
country
To other foreign 358.7 374.1 4.3 22.5
countries
Services supplied by foreign MNEs through their majority-owned U.S.
affiliates
Total services supplied 1,056.4 1,097.9 3.9
Services supplied to 957.8 995.1 3.9 90.6
U.S. persons
Services supplied to 98.5 102.8 4.4 9.4
foreign persons
MNE Multinational enterprises
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