TECHNICAL ASSISTANCE
ITC's trade-related technical assistance programme to promote trade in services:
Introduction

The service sector is the fastest growing component of international trade. The greatest export potential is in the business to business services such as information technology, accounting, construction services, etc and also in tourism. Technology has had a tremendous impact on the service sector, as many services can now be marketed and delivered online, eliminating the need to travel, in many cases. However, the sector is diverse and fragmented and therefore difficult to reach. Traditionally, service exporters have not relied on government assistance with their trade promotion initiatives, due to the fact that programmes are primarily oriented to exporters of goods. However, studies have revealed that very small businesses are successfully exporting their services in all economies.

With little knowledge about the sector, governments in developing countries are facing tremendous challenges in effectively participating in the General Agreement on Trade in Services (GATS) process.

Promoting trade in services offers developing countries the opportunity to diversify trade and potentially contribute directly to job creation and development. Unfortunately, due to flawed and understated trade statistics, and the fact that many exporters do not even realize that they are exporting, the service sector is often overlooked as a development opportunity.

 

Challenges faced by exporters of services
  • Most are very small businesses with limited resources, yet must establish international profile and credibility.
  • Since the service they provide is intangible, potential exporters are, in effect, selling a “promise” and their service cannot be tested or demonstrated.
  • Principals of the firms must undertake business development activities themselves, as it is not possible to work through an agent or trading house like the goods exporter.
Objectives
  • Heighten awareness of the potential to increase exports of services.
  • Include services in national export strategies.
  • Build capacity among services industry associations and other trade support institutions to deliver export marketing training to SMEs.
  • Foster networking and south/south trade by creating web portals for beneficiary countries and organizing regional meetings.
  • Increase participation of developing nations in the WTO General Agreement on Trade in Services (GATS).
  • Enhance the skills of women entrepreneurs in the service sector to export their services.

 

 

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