The objective of the session is to raise awareness about the importance of services in World Trade and the potential that developing and least developed countries (LDCs) have in Services Export. Services represent 45% of World export according to the new OECD/WTO database in trade in value added terms.
Today, the services sector is significantly contributing to both the agribusiness and manufacturing sectors. To remain competitive, agri-business and manufacturing companies are using an increasing number of services in their production. Services are added to goods to add value.
The session will discuss the role of services value-added as well as key drivers of services competitiveness that services exporters especially from developing countries and LDCs have to acquire to become export ready. Services export success depends on the following competitiveness drivers:
- Availability of Human Capital and adequate skills (services are more skills-intensive than other sectors);
- Quality of Institutions and rule of law
- Protection and development of Intangible Assets (i.e corporate intellectual property such as copyright, business methodologies and brands) and a supportive environment for services Innovation for Export
- Enabling Digital Infrastructure, in particular ability to connect outward
Some other factors more specifically determine the potential for growth in services export, in particular the regulatory environment.
- Movement of persons
- Efficiency of Domestic Regulation
- Efficiency of international agreements
- Targeted policies to build centres or hubs of excellence in services
The session will provide an opportunity to highlight the main challenges faced by exporters from LDCs to access global value chains and will identify concrete capacity building interventions to be deployed in the context of Aid for Trade to upgrade LDCs services exporters’ knowledge and skills.
The session will benefit from inputs and perspectives from business champions, government officials and development partners.