The future is here, and it's all about services trade! 🌐 At the 2024 China International Fair for Trade in Services (CIFTIS), Johanna Hill, Deputy Director-General of the World Trade Organization (WTO), delivered an inspiring speech highlighting how services trade is powering global growth, creating jobs, and opening up opportunities for everyone. Let's dive into the exciting insights she shared!
Services Mean Growth 📈
Did you know that since the WTO was established nearly 30 years ago, services have been the most dynamic part of world trade? 🌍 Commercial services trade has outpaced goods trade, growing at an average annual rate of 6.8%, compared to 5.5% for goods. And the momentum isn't slowing down! Last year, commercial services exports grew by 9%, while merchandise exports decreased by 5%.
China, among the top five services exporters globally, is a shining example of harnessing this potential. 🚀
Services Mean Jobs 👩💼
Services aren't just numbers—they're jobs and opportunities! Today, the services sector generates around half of employment worldwide and is creating new jobs, especially for women and young people. 💼 As manufacturing becomes more automated, services like technical testing, industrial design, and supply chain management are adding value and creating high-quality jobs.
China’s transition to smart manufacturing has been fueled by fast-growing information technology services. 📲
Opportunities for All 🌍
Services trade isn't just for the big players—it opens doors for everyone, especially in developing countries. It's a key to diversifying exports, integrating into value chains, and attracting foreign investment, which boosts employment and living standards. 🌱
Services sectors employ most women and youth, and are home to many micro, small, and medium enterprises. In 2021, 59% of employed women globally worked in services, and youth employment in services is growing fast! 🙌
Top Trends Shaping Services Trade 🔮
Johanna Hill highlighted key trends that are transforming services trade:
1. Digital Revolution 💻
The growth in services trade is propelled by digitalization. Between 2005 and 2023, exports of digitally delivered services quadrupled! Asian economies, especially China, have been leading the way. However, other regions like Africa still have room to grow. The WTO is working to support developing countries to seize these digital opportunities. 🌐
2. Rise of Artificial Intelligence 🤖
AI is the new frontier! Technologies like ChatGPT are reshaping how we work and trade. AI can boost productivity and reshape the global economic landscape. The WTO can play a crucial role in supporting AI development through facilitating trade and investment in core services that enable AI. Stay tuned for the WTO's event on AI and trade in November! 🗓️
3. Supporting the Green Transition 🌿
Services trade can drive the shift to a low-carbon economy. From consulting to energy distribution, services support renewable energy transitions and decarbonizing industries. 🌞 Services liberalization enhances access to environmental goods, technologies, and know-how, helping address climate change. 🌎
4. Investment and Cooperation 🤝
Policies on services trade and foreign direct investment are closely linked. Reducing barriers and facilitating services trade translates into easier FDI, boosting economies. The WTO is at the heart of fostering international cooperation, with initiatives like the Investment Facilitation for Development Agreement. 🏗️
Looking Ahead 🚀
Hill emphasized that to tackle future challenges—from digital trade to climate-related services—we need more commitments and a uniform approach to services trade. China's efforts in opening up services markets and participating in WTO initiatives are commendable. 🌟
\"Services trade holds the promise of shared prosperity,\" Hill concluded. \"It's time to realize that promise together!\" 🤗
Reference(s):
WTO calls for services trade growth and cooperation on standards
cgtn.com
