At a recent webinar hosted by Deputy Director-General Johanna Hill on May 16, experts from the WTO, World Bank, Economic Commission for Latin America and the Caribbean, and Inter-American Development Bank explored the immense opportunities services trade offers for growth in Latin America and the Caribbean. The event built on insights from “Trade in Services for Development,” a report co-published by the WTO and World Bank, discussing strategies to enhance participation in services trade for developing economies in the region.
The webinar emphasized that services trade has become the most dynamic component of global trade, yet Latin American and Caribbean economies have not fully harnessed its benefits. The event, titled "Trade in Services for Development: Empowering Latin America and the Caribbean Countries to Reap Development Dividends," highlighted the region's average annual growth rate of 4.8% in commercial services exports since 2010, lagging behind the global average of 5.5%. Additionally, growth in digitally supplied services exports in the region has been below the global rate.
Deputy Director-General Hill pointed out the significant potential of services trade for the region. Citing the WTO’s latest Global Trade Outlook and Statistics Report, she noted, “While the value of world merchandise trade in dollars decreased by 5 percent in 2023, commercial services grew by 9 percent in value.”
José Manuel Salazar, Executive Secretary of the Economic Commission for Latin America and the Caribbean, called for developing "realistic and flexible strategies" to capitalize on new globalization opportunities. He emphasized advancing toward a more productive, inclusive, and sustainable future.
Anabel González, Vice-President of the Inter-American Development Bank (IADB), highlighted the significant growth opportunities in services trade for the region. She underscored the potential of knowledge-based services and mentioned the IADB’s roadmap to leverage these benefits, focusing on digital infrastructure, regulatory streamlining, innovation ecosystems, skills development, and regional integration.
Francisco Lima Mena, Secretary General of the Secretariat for Central American Economic Integration, noted that while services account for nearly 69 percent of Central America's GDP, their export contribution is much lower. He stressed the need to address data gaps, facilitate participation in international negotiations, and build digital capabilities.
The World Bank suggested elements for an Aid for Trade work programme on services, such as expanding trade statistics coverage, improving policy transparency, developing competitiveness diagnostic tools, and identifying best practices in trade and investment promotion. Pierre Sauvé, Senior Trade Specialist, emphasized the importance of scaling up Aid for Trade for services to support sustainable and inclusive growth.
National leaders like Vilma I. Arbaje de Contreras from the Dominican Republic, Alejandro Buvinic from Chile, and Dr. Richard Brown from Jamaica shared their experiences and highlighted the importance of an Aid for Trade strategy for services.
In her closing remarks, Deputy Director-General Hill stated, "The webinar marks a first step towards new joint efforts by international and regional organizations to support the countries of the region in the context of Trade in Services for Development."
The WTO-World Bank report, “Trade in Services for Development,” launched in July 2023, emphasizes the role of services trade in economic diversification, growth, and regulatory governance in developing economies. It advocates for an Aid-for-Trade work programme to bolster the capacities of developing and least-developed economies in services trade and negotiations.
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