Commercial Ties in the Atlantic Basin: The Evolving Role of Services and Investment

Scientifc paper nº. 2

More services and investments flow among economies within the Atlantic Hemisphere than among those in the Asian Hemisphere. Services are the sleeping giant of the pan-Atlantic economy. The Atlantic is home to the world's major services economies; Atlantic economies are each other's most important services markets; and Atlantic economies are poised to be major beneficiaries and drivers of the growth in global services.2 Services are not just a North Atlantic story; they represent a growing area of commercial activity among Southern Atlantic countries as well. particularly in energyrelated services; engineering and construction services; and education and managerial services. The United States and Europe are global leaders as outward investors and recipients. But today a rising global share of FDI emanates from the developing nations. And whereas trade and investment ties, and bank lending, between these nations and Africa and South and Central America were once shallow and underdeveloped, such linkages are now thicker, more robust and more sophisticated, particularly from China.
But the EU remains the largest source of FDI on all Atlantic continents. It is also the largest holder of portfolio assets in North America. Its assets in Africa are roughly equal to those of Asia. North America accounted for over half of South and Central America's portfolio holdings in 2012, with the EU the only other major asset holder. South and Central America's holdings in North America and Europe grew rapidly over the past decade, although from a low base. All told, the Atlantic Hemisphere accounted for 83.8% of EU portfolio assets and 70.2% of North American portfolio assets in 2012.