WTO and World Bank Moves to Improve Collaboration on Trade in Developing Countries

Earlier on, The World Trade Organization proposed a plan to increase better collaboration with developing nations in services trade.

According to a report titled "Trade in Services for Development," sponsored by the World Trade Organization and the World Bank, it stated that the growth of developing economy's services exports has surpassed the global average over the last two decades, but there is still more to be completed to realize the importance of services trade to development.

Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation, and Ajay Banga, President of the World Bank, launched the report on Monday during a virtual event.

In her remarks, Okonjo-Iweala said, “The future of trade is services, digital and green and it must be inclusive. This new publication translates that conviction into a call for action. It documents how services trade has become a key ingredient in our members’ growth and development strategies, including by helping countries diversify and expand their export baskets, making them more resilient to external shocks.”

 “The single best way to drive a nail into the coffin of poverty, give people a job. In today’s world and tomorrow’s economy, delivering jobs means a very sharp focus on services. We need to build the tracks for the service train to run on, to run smoothly, quickly, and at scale,” Banga also noted.

According to the report, despite the severe impact of the COVID-19 epidemic, services trade remains the most significant sector of global trade.

“Digitally delivered services have grown at the fastest pace, well ahead of the growth of trade in goods,” it mentioned.

According to the report, services create over two-thirds of the global GDP and will employ 50% of the world's workforce in 2021.

According to the report, services account for 50% of global commerce in terms of value-added.

The research also looked at how developing nations may fully benefit from services trade and improve their chances of succeeding.

“In the broader context of a “Trade in Services for Development” initiative, an Aid-for-Trade package could help strengthen the participation of developing and least-developed economies in services trade,” it said.

It also stressed the importance of increasing resources to help developing countries diversify and increase exports, create and implement services trade reforms, and provide competitive services for international markets.

It went on to say that restoring global cooperation might assist to boost the strong contribution of all WTO members in services trade discussions, as well as promote the openness and stability of services trade policy.

The research also stated that efficient access to traded services ranging from health and education to banking, transport, and logistics will be critical to attaining the United Nations Sustainable Development Goals.