Measures of services trade policy currently available provide information on the average level of regulations restricting entry into an importing country. This prevents the implementation of standard estimation techniques that rely on bilateral variation to identify the effect of trade barriers on bilateral trade flows. To address this problem, I build on Redding and Venables (2004) and Helpman, Melitz and Rubinstein (2008) to develop a method that consistently estimates the effects of country-level variables on trade between countries, a natural extension of existing empirical models of international trade. The method relies on the theoretical structure of a model of international trade to generate empirical measures of multilateral resistance and fixed production costs for each country. Applying my method, I find that policy barriers are statistically significant and quantitatively important in predicting services trade flows. Further, consistent with the theoretical model, I find that increases in measured importer and exporter fixed costs reduce bilateral trade.