Commercial Diplomacy
Programme
&
TrainForTrade
NEGOTIATIONS ON
SERVICES
General Features:
Trade in Services
Importance of Services in the Global
Economy :
 Technological advances have served to
change the provision of services as well as
the perception of the services sector as a
whole
 Growing importance of services for
economic growth:
Chart 1: Services as percentage of GDP.
Economic Importance of Services


Mayor contributor to GDP and employment in all
developing countries, approximating indicators of
developed countries
50-70 per cent of GDP
60-80 per cent of employment
Importance of assessing the structure and dynamic of
services in developing countries:
- growth of traditional activities (retail, restaurants, repair
shops, tourism, personal services)
- growth of the “informal economy”
- weight of government tends to overestimate economic
significance. (Brazil 16% GDP)
Services as percentage of GDP.
% of GDP
services as percentage of GDP in 2000
120
100
80
60
40
20
0
G
32.4
29.8
29
32
35.7
32
29
20
64.3
68
70.9
80
66.8
67.6
70.2
71
68
33.2
m
er
y
an
U
K
C
a
d
a
an
M
o
ix c
e
services
C
a
ih n
B
il
z
ra
n
a
p
Ja
industry and agriculture
Fr
e
c
an
A
U
S
Growing importance of
services for employment

Key services industries

The provision of services such as insurance,
information technology, accountancy and research
has an impact on economic competitiveness
through interaction with industrial activities and
other services.

Increasing Importance of International Trade in
Services
Growing importance of
services for employment
68
71
75
Fr
an
industry and agriculture
US
A
53
ce
25
pa
a
Ch
in
M
ex
services
27
29
Ja
56
32
n
73
47
il
74
ico
74
44
Br
az
26
da
m
an
y
64
26
Ca
na
36
UK
120
100
80
60
40
20
0
Ge
r
% of total employment
employment in services. 2000 estimates
Increasing Importance of
International Trade in Services
growth in international trade in services by region.
1990-2001
9%
8%
8%
7%
6%
6%
6%
5%
5%
Western
Europe
Africa
5%
4%
3%
2%
1%
0%
North
America
Latin
America
Asia
Increasing Contribution of
Services to World Trade
% of GDP
services as a proportion of world trade in 1980
70
60
50
40
30
20
10
0
59
42
39 41
27 25
37
36
25
16
16
4
services
manufactures
low income
industry
middle income
agriculture
high income
Leading Services Traders:
A Comparison of Developed,
Developing & Transitional
Economies
leading service traders in 2001
3.70%
24.10%
72.10%
market economy countries
Eastern Europe countries
developing countries
Leading Service Exporters. A
comparison of various countries
leading service exporters in 2001. in percentage of world
export of services
18.1
2
ap
ur
1.8
Si
ng
re
a
a
hi
n
C
g
Ko
n
on
g
H
2.3
C
ly
Ja
2.9
Ko
3.9
Ita
pa
n
y
4.4
hi
na
5.5
m
an
ce
5.5
Fr
an
K
U
U
SA
7.4
G
er
20
18
16
14
12
10
8
6
4
2
0
Leading Service Importers
leading service importers in 2001. in percentage
of world imports of services
13
9.2
6.3
Ch
Ko
n
Ho
ng
1.6
ia
ina
1.7
g
Ko
re
a
2.3
In
d
2.7
a
ly
3.9
Ita
ce
Fr
an
UK
n
pa
Ja
Ge
r
m
an
y
4.3
Ch
in
7.4
US
A
14
12
10
8
6
4
2
0
Structure of Service Exports
Shift towards Telecommunications,
Computing Services and Information
structure of service exports in 1980
% of total
50
40
30
35
29
34
39
36
33 30
30
24
20
10
2
5
3
0
transport
travel
low income
communication,
computer
information etc.
middle income
insurance and
financial
services
high income
Structure of Service Exports
structure of service exports in 2000
44.5
% of total
50
40
30
20
32.6
23.823.2
18.8
29.7
46
41.6
29.8
10
2.6 2
5.5
0
transport
travel
low income
communication,
computer
information etc.
middle income
insurance and
financial
services
high income
Role of Services in Trade and
Development





Basic economic infrastructure required for systemic
competitiveness, and overall welfare. [education, health,
energy, sanitation, transport, telecom, financial services]
“Producer services” content in goods, and in other services
increasingly generate a higher proportion of value added:
externalisation of supply as a source of sectoral dynamism
and specialization, services efficiency a source of
competitiveness
Logistic chains as a source of overall trade
competitiveness: [ports, airports, transport services,
telecom, information services, distribution networks]
Trade of integrated packages of goods and services (high
technology products) every day more important.
Services are increasingly tradable in themselves:
Key Analytical Questions



Are services performing adequately their role in trade and
development?
- national assessment of services and trade in services
What strategies and policies should be implemented to
enhance services contribution to trade and development?
- definition of national and sectoral development policies
What role could international agreements, multilateral,
regional and bilateral, play in supporting national
developmental policies in the services sector?
- definition of negotiating strategies and positions on the
basis of national developmental policies safeguarding
required policy spaces.
National Assessment of Services
Statistical requirements: National Accounts
and Balance of Payments.
 Sectoral Analysis of domestic supply,
market dynamism, trade, competitiveness,
and regulatory framework
 Participation of stakeholders in assessment

National Developmental Policies
Policy options are within a continuum ranging
from protection, through “infant industry
promotion” (active public policies) to full
liberalization (market reliance).
 There is no “one size fits all” policy. It has to be
defined by sector in the light of developmental,
social and cultural objectives
 National policies and objectives are expressed
through the regulatory framework and by
established limitations to market access and
national treatment
