ISSUE 2/2005

Business and professional services form more than a third of global service exports - and their share continues to grow.According to the International Monetary Fund, business and professional services have been the fastest-growing sector of world trade from an export earnings perspective since the General Agreement on Trade in Services was launched in 1995, with an average annual growth rate of 7.6%. This compares with growth of 4.9% for goods exports and 3.8% for tourism. Since 1999, the average annual growth rate has risen to 8.9%.

Services contribute to everything a society produces. Even getting goods to market is heavily linked to services. Take, for example, a 5-kilo bag of rice exported from Pakistan to Europe. How does the rice move from the exporter to the consumer?

© International Trade Centre, International Trade Forum - Issue 2/2005 Photo: ITC/E. Barreto Telecommunications Telecommunications reform in developing countries introduces new market opportunities in information and communications technology services, such as for mobile phone operators, sof

© International Trade Centre, International Trade Forum - Issue 2/2005 Influencing and Meeting International Standards: Challenges for developing countries Vol. 2. 174 pages. Second volume of a joint ITC-Commonwealth Secretariat two-volume study dealing with technical assistance needs of developing

Debates thrive between African and developed nations over a "MarshallPlan" for Africa, debt cancellation and support for small firms. Toensure competitiveness, Africa's own financial institutions must pointthe way in supporting trade and investment.

Because many national strategy-makers and businesses are not aware of the potential of service exports, they do not tap into this growing opportunity. Raising awareness about services is an important first step.

In many developing countries, not being taken seriously in the global marketplace is the single greatest barrier to exporting services. Building credibility abroad is the springboard to success.

Large corporations in the tourism sector are finding that investing in local community development brings healthy returns. An interview with the manager of Hotel Sofitel in Bahia, Brazil, gives an example of corporate social responsibility in practice.

ONLINE RESOURCES Have the articles in this issue addressed your needs? Are you looking for more information on specific topics? These resources, from ITC and other organizations, can give you more insight into specific service topics.Services as export and development opportunitiesInternational Trade Centre (ITC)http://www.intracen.org/servicexport/welcome.htm The site for ITC's Trade in Services Section provides technical information and resources to help enterprises, service sector associations and governments boost exports of services.

Study after study shows that services - and service exporting - are generally misunderstood. Creating awareness about service exporters and their needs is the first step to increasing trade in this promising area for developing countries.

When you picture "trade", "the world trading system" or "exports", what image springs to mind? You'd be hard-pressed to find anyone who thinks of trade in services. The most frequent responses are goods loaded in containers on a ship, boxes on a truck or cargo on a plane. In part, this reflects the relatively recent growth of the service economy in world trade. But that we have such a reaction is also because services are intangible, thus more invisible.This makes service exports a challenge to promote. Exporters sell a "promise", rather than a product that buyers can physically inspect. Selling services hinges on good impressions and referrals that give the buyer confidence. For exporters in developing and transition economies, this can be a real barrier.