WTO head Pascal Lamy urges developing countries to invest in service talks.

If the Doha Development Agenda is to be completed in December 2006, there will need to be basic movement on several issues to match the ambitions expressed in the title and goals adopted for the round in 2001. Among these issues are services.

Service exporters face many obstacles. Austrade is finding ways to help businesses overcome them.

Services players in several developing countries are setting up coalitions for collaboration to boost the sector.

Trade support institutions can promote national strengths in services. This helps firms in their own marketing and improves the country’s overall image.

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.

Services are the fastest-growing component of international trade.

In recent years, technology advances have had a tremendous impact on the sector as many services can now be marketed and delivered online. However, the service sector is diverse and fragmented and, therefore, difficult to reach.

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.

There are strong prospects for trade in services, particularly between developing countries. Over the past few years, ITC has refocused its activities in this sector to help countries take advantage of new opportunities.

Developing country businesses can shape their trade future.

What it takes: knowing the market, spotting the barriers and voicing interests in the right channels.

There’s growing recognition that “services do matter” to developing countries. The global services sector is undergoing a revolution that enables small firms in these countries to compete in world markets. ITC, reacting to the explosive growth of trade opportunities, has upgraded its programme to equip exporters with all they need to tackle competitive international markets.

1. Publicize successes and innovations of women-owned service firms

Service sectors have been underrepresented at the international trade negotiations table. Despite the launch of the GATS negotiations in early 2000, many service sectors in developing countries are poorly placed to provide inputs to the process — although studies project that they stand to gain most from liberalization. The Cancún Ministerial Conference is an opportunity to take stock and allows the service sector to make its voice heard ahead of the GATS negotiations deadline in January 2005.

The second, ongoing round of negotiations for the General Agreement on Trade in Services (GATS) puts exporters around the world in a position to help shape the future of this important sector. However, many service exporters and industry associations do not know where to begin. This article draws on ITC’s GATS Consultation Kit to explain why and how service industry associations should communicate with their policy-makers.

The seeds of innovation need fertile terrain in order to grow. Innovation strategy is most likely to succeed when it complements service excellence, quality assurance, customization and bench-marking strategies.

Export success depends on several strategic factors, only one of which is innovation. In fact, it is important to think through an optimal level of innovation. With too little innovation, you will lose market share; with too much, you will have trouble assuring consistent quality and may lose customer loyalty.

Innovation is a key success factor behind all successful exporting firms. Being innovative means more than having good ideas. A serious, sustained commitment to innovation implies risk and investment. But the pay-off is tangible. In today’s fast-changing trade environment, innovation is not just a matter of export profitability; it can be a matter of survival.

One of the most promising areas in trade for developing countries is services, with new negotiations underway from March 2000. This article, based on the ITC publication, Business Guide to the General Agreement on Trade in Services, provides an overview of this emerging, fast-growing area. International trade rules in this area are still relatively new, and the opportunity to shape them exists. The article also highlights niche areas for developing and transition economies.