Increasing exports is a central aim of the Creative Industries Sector Plan and it is hoped this Trade Restrictions and UK Creative Services report will be a useful resource for policymakers working on trade policy whilst also equipping industry bodies with data on the challenges their subsectors face in exporting to a range of markets.

The report contains granular data on trade restrictions by sub-sectors according to OECD’s Services Trade Restrictions Index definitions; including motion pictures, computer services, and sound recording.

About the research

The Creative Industries Sector Plan outlines intentions to boost exports through strengthening relationships with existing primary growth markets (e.g. the USA and EU) and by building closer trading relationships with fast-growing future growth markets (e.g. South Korea and Brazil).

 Bringing down trade barriers is key to achieving this aim, especially for creative services, which previous research has shown to account for 13% of all the UK’s exports. 

Key findings

• The US and EU dominate UK creative services exports, accounting for around 42% and 41.8% respectively 
• Future growth markets represent only 2% of exports, indicating significant untapped potential 
• Trade restrictions have increased in many key markets over the past decade, particularly for creative services 
• Restrictions on foreign market entry are the most common barrier facing creative businesses. Other major barriers include:  
  • restrictions on the movement of people 
  • discriminatory measures (such as tax treatment) 
  • regulatory and competition-related barriers 
• Digital trade restrictions are rising, including those affecting data flows, data localisation and online services 
• The report identifies ongoing regulatory barriers between the UK and EU, particularly around visas, employment permits, data protection, procurement, copyright and competition law 
• Different creative subsectors face different challenges, with barriers affecting sectors such as architecture, film, broadcasting, sound recording and computer services in distinct ways

Implications

The findings suggest that UK creative exports remain resilient but could grow further if trade barriers are reduced. Key implications include: 

• the forthcoming UK-EU Trade and Cooperation Agreement review provides an opportunity to address barriers, particularly those related to workforce mobility
• government and industry should place greater emphasis on expanding exports to high-growth international markets, where current export levels remain low
• trade and diplomatic efforts should focus on reducing restrictions on foreign entry and improving market access for creative businesses
• the refreshed Creative Industries Trade and Investment Board could play an important role in shaping policy and advocating for the removal of barriers affecting specific creative subsectors