World Trade Organization: Four major trends in global trade in services

Johanna Hill, Deputy Director-General of the World Trade Organization (WTO), delivered a speech at the forum, introducing several major trends in global trade in services observed by the WTO:

Firstly, the growth of trade in services is driven by digital transformation. From 2005 to 2023, the global export value of digitally delivered services quadrupled, reflecting significant business opportunities and employment prospects in this field.

She said Asian economies had been particularly successful in exploiting these opportunities. Asia’s exports of digitally delivered services grew faster than those of other regions over the period.

The second factor is the rise of artificial intelligence. AI is likely to have a significant impact on trade in services. By boosting productivity and increasing demand, AI can drive the development of trade in services in the coming years. It can also reshape the global economic landscape, redefine comparative advantages, and disrupt existing trade flows.

Hill stated that the regulation and standardization of trade in services that incorporate or embody artificial intelligence can promote technological development and assist economies at different levels of development in seizing relevant opportunities.

Thirdly, trade in services can play a significant role in supporting the transition to a low-carbon economy. The shift towards renewable energy requires extensive support. Liberalization of trade in services will increase opportunities to access environmentally friendly products, technologies, and expertise, which in turn can enhance the possibility of addressing climate change.

Fourthly, the government's policies on trade in services and foreign direct investment are closely intertwined and mutually reinforcing.