Global services exports reached $9.6 trillion last year, equivalent to almost 28% of global trade, while digitally supplied services recorded average annual growth of 8.5% since 2005, above the 4.7% for goods and 5% for other services.
The data was highlighted by the director general of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, during the launch of a joint publication with the Economic Commission for Latin America and the Caribbean (ECLAC) on the promotion of exports of services.
Okonjo-Iweala noted that digitalisation is creating opportunities that did not exist for previous generations and argued that services must feature more prominently in governments’ economic policy priorities.
For the official, the promotion of services requires different strategies than those traditionally used for goods. “Training, reputation, trust, experience and credibility are factors of great importance in the field of services,” he stated.
The publication analyzes the experiences of Chile, Costa Rica, Egypt, India, Jamaica, Malaysia, Mauritius, the Philippines and Uruguay, and suggests that the development of service exports must be articulated with investment, training, digital infrastructure, regulation and competitiveness policies.
Nanno Mulder, head of ECLAC’s International Trade Unit, highlighted that the best results observed in the nine countries studied were linked to policies that exceed the traditional mandate of export promotion agencies, such as capacity development, investment attraction, certification, digital trust and public-private coordination.
The publication also highlights that access to markets, although important, is not enough. According to Anabel González, vice president of Countries and Regional Integration at the IDB, countries need institutions, business capabilities, investment and digital trust to convert market opportunities into exports, investments and jobs.
