Elevating Services: Services Trade Policy, WTO Commitments, and Their Role in Economic Development and Trade Integration

Abstract

Services have long been perceived as playing a secondary role in world trade. This article discusses the contribution of services trade in economic development, trade integration, and inclusiveness. It argues that the limited attention given to services trade policies and to international commitments is increasingly out of step with the role of services in the global economy. While services account for about 50% of world trade in value added terms, services trade policies are often restrictive and multinational commitments are generally modest. Taking steps to raise the profile of services trade within government policy-making would help close this gap and highlight the contribution of services trade policy to a wide range of broader national objectives that have an important services dimension, whether small and medium-sized enterprises (SME) and gender policy, or the achievement of Sustainable Development Goals (SDGs).