WORLD TRADE REPORT 2019 - World Trade Organization

1 2019 WORLD TRADE REPORT The future of services tradeWhat is the WORLD TRADE REPORT ?The WORLD TRADE REPORT is an annual publication that aims to deepen understanding about trends in TRADE , TRADE policy issues and the multilateral trading is the 2019 REPORT about?The 2019 WORLD TRADE REPORT examines how TRADE in services is likely to evolve in response to some major trends, such as demographic changes and the impact of digital technologies. Find out moreWebsite: enquiries: +41 (0)22 739 51 11 ContentsAcknowledgements and Disclaimer 3 Foreword by the WTO Director-General 4 Key facts and findings 6 Executive summary of services: the non-tradable becomes evolution of TRADE : from agriculture to manufacturing to complex services TRADE requires more coherent it of the TRADE in in TRADE in TRADE in services through all modes of supply is worth US$ trades services?

2 Is the role of services in global value chains? services TRADE gains from services TRADE boosts firms services TRADE affects employment and TRADE in the trends that will affect TRADE in services TRADE in the role for international cooperation on services TRADE policy? governments cooperate on services TRADE countries collaborate in the services for future pieces Alan Beattie, The case of the missing services 23 Sonja Grater, Ali Parry and Wilma Viviers, MSMEs and services TRADE : A pathway to inclusive growth in developing economies? 42 Matteo Fiorini and Bernard Hoekman, Services TRADE policy and the United Nations Sustainable Development Goals (SDGs) 66 Rupa Chanda, Ensuring inclusive services TRADE .

3 Role of complementary domestic policies 78 Richard Baldwin, Digital technology and telemigration 126 Natallie rochester , The potential of TRADE in services for developing countries 166 Jane Drake-Brockman, Why regulatory cooperation matters for business 188 CONTENTS1 WORLD TRADE REPORT 20192 Bibliography200 Technical notes 213 Abbreviations and symbols 218 List of figures, tables and boxes 219 WTO members 225 Previous WORLD TRADE Reports 226 ACKNOWLEDGEMENTS3 DisclaimerThe WORLD TRADE REPORT and its contents are the sole responsibility of the WTO Secretariat, except for the opinion pieces, which are the sole responsibility of their authors.

4 The REPORT does not reflect the opinions or views of members of the WTO. The authors of the REPORT also wish to exonerate those who have commented upon it from responsibility for any outstanding errors or WORLD TRADE REPORT 2019 was prepared under the general responsibility of Xiaozhun Yi, WTO Deputy Director-General, and Robert Koopman, Director of the WTO Economic Research and Statistics Division. The REPORT was coordinated by Emmanuelle Ganne and Stela Rub nov (Economic Research and Statistics Division) and by Antonia Carzaniga ( TRADE in Services and Investment Division).

5 The lead authors of the REPORT are Barbara d Andrea, Andreas Maurer, Roberta Piermartini and Robert Teh (Economic Research and Statistics Division), and Antonia Carzaniga. Other authors are Marc Auboin, Eddy Bekkers, John Hancock, Kathryn Lundquist, Jos -Antonio Monteiro, Coleman Nee, Victor Stolzenburg, Ankai Xu and Qing Ye (Economic Research and Statistics Division); Pamela Apaza, Markus Jelitto, Joscelyn Magdeleine, Juan Marchetti, Martin Roy and Lee Tuthill ( TRADE in Services and Investment Division); and Rainer Lanz (Development Division).

6 Other written contributions were provided by Ege Akbas, Besart Avdiu, Christophe Degain, Chiara Del Giovane, Anesu Gamanya, Emmanuelle Ganne and Stela Rub nov (Economic Research and Statistics Division), and Niccol Consonni, Dale Honeck, Ester Rubio and Ruosi Zhang ( TRADE in Services and Investment Division).External contributions were received from Richard Baldwin (Graduate Institute of International and Development Studies, Geneva and Center for Economic Policy Research, London), Alan Beattie (Financial Times, London), Rupa Chanda (Indian Institute of Management, Bangalore), Jane Drake-Brockman (Institute for International TRADE , Adelaide), Matteo Fiorini (European University Institute, Florence), Sonja Grater (North-West University, South Africa)

7 , Bernard Hoekman (European University Institute, Florence, and Center for Economic Policy Research, London), Ali Parry (North-West University, South Africa), Natallie rochester (Mango Tales Ltd., Jamaica) and Wilma Viviers (North-West University, South Africa). Research inputs were provided by Ali Abdul Raheem, Laura Baiker, Adam Jakubik, Florian Knauth, Antonella Liberatore, Osama Nawab and Steen Wettstein. Xiaolin Chai and Marie-Isabelle Pellan from the TRADE in Services and Investment Division and Marc Bacchetta from the Economic Research and Statistics Division provided useful comments on drafts.

8 David Tinline from the Office of the Director-General provided valuable advice and guidance. The following individuals from outside the WTO Secretariat also provided useful comments on early drafts of the REPORT : Rolf Adlung, Ali Alsamawi, Andrea Ariu, Richard Baldwin, Sebastian Benz, Dan Ciuriak, Jane Drake-Brockman, Matthias Helble, Bernard Hoekman, S bastien Miroudot, Hildegunn Nord s, Jane Stacey and Sherry text production of the REPORT was managed by Emmanuelle Ganne, Stela Rub nov , Anne Lescure and Diana Dent of the Economic Research and Statistics Division, and by Antonia Carzaniga of the TRADE in Services and Investment Division.

9 The production of the REPORT was managed by Anthony Martin and Helen Swain of the Information and External Relations Division. Helen Swain edited the REPORT . Gratitude is also due to the translators in the Languages, Documentation and Information Management Division for the high quality of their TRADE REPORT 20194 Services are often largely overlooked in discussions on global TRADE , yet they account for the majority of TRADE in many developed economies and are growing rapidly in many developing economies as well.

10 This is perhaps because services are less tangible and the issues surrounding services TRADE are often more complex. This REPORT therefore sets out to demystify TRADE in services. It aims to shed new light on this essential part of global TRADE , provide a detailed picture of TRADE in services today and consider how it might evolve in the coming years, particularly as new technologies make some services increasingly REPORT deepens our understanding in a number of ways, including through presenting new data.