WTO advocates for enhanced trade collaboration through canvassing
During a virtual event on Monday, the Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, and the President of the World Bank, Ajay Banga, presented a report titled "Trade in Services for Development." The report, sponsored by the WTO and World Bank, highlights the necessity for enhanced collaboration among developing countries to enhance services trade.
Over the past two decades, the report states that the growth of services exports from developing economies has outpaced the global average. However, to fully realize the potential contribution of services trade to development, the report emphasizes the importance of further efforts.
During her speech, Okonjo-Iweala expressed, "The future of trade lies in services, particularly in the digital and green sectors, and it should embrace inclusivity. This newly released publication transforms this belief into a call for decisive steps. It provides evidence of how services trade has emerged as a vital element in the growth and development strategies of our member nations. By enabling countries to diversify and expand their export portfolios, services trade enhances their resilience against external disruptions."
Banga also emphasized, "If we want to eradicate poverty, the most effective method is to provide people with employment. In today's and tomorrow's economy, creating jobs necessitates a strong emphasis on services. We must establish a robust infrastructure to facilitate the seamless, rapid, and scalable operation of the services sector."
The report additionally highlighted that despite being significantly impacted by the COVID-19 pandemic, services trade maintained its position as the most dynamic aspect of global trade. It specifically mentioned that digitally delivered services have experienced rapid growth, surpassing the expansion rate of trade in goods.
The report reveals that services play a crucial role in the global economy, contributing to over two-thirds of the world's GDP and comprising 50 percent of the global workforce in 2021.
In terms of value-added, services account for 50 percent of global trade, highlighting their significant economic impact.
Furthermore, the report explores how developing economies can fully partake in the advantages offered by services trade and enhance their prospects for development.
As part of a broader "Trade in Services for Development" initiative, the report suggests that an Aid-for-Trade package could be instrumental in bolstering the involvement of developing and least-developed economies in services trade.
The report stressed the importance of allocating increased resources to enhance the capabilities of developing economies in diversifying and expanding their exports, as well as in designing and implementing reforms for services trade. It also underscored the significance of providing competitive services to global markets.
Additionally, the report emphasized the significance of revitalizing international cooperation to strengthen the active participation of all WTO members in services trade negotiations. This cooperation would also contribute to improving the transparency and predictability of policies related to services trade.
Furthermore, the report highlighted that ensuring effective access to a wide range of traded services, such as healthcare, education, finance, transportation, and logistics, will play a crucial role in advancing the United Nations Sustainable Development Goals.
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