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Did You Know?
Least Develo ped Co untries and
Trade in Services By Jane Drake-Brockman Senior Services Advisor, International Trade Centre
about ldcs A recent International Trade Centre (ITC) Technical Paper1 not only shows that Least Developed Countries (LDCs) do export services, but that many – nearly one quarter of them - are in fact net services exporters. This contradicts commonly held assumptions that export opportunities in trade in services are marginal in the trade aspirations and development trajectory of LDCs.
How much? • LDC commercial services exports more than doubled (to US$22 billion) in the 6 years to 2011, growing at an average annual rate of 15%, much faster than the world average of 9%. • The LDC share in total world commercial services exports is therefore increasing, but from a very 1 2 3
Key findings • Without exception, all LDCs (for which there is data) are exporting commercial services2. • As a group, LDCs export a highly diversified set of services, recording exports in all 10 categories of services as per in the balance of payments3. • LDCs typically run an overall services deficit, but as a group they tend to record a surplus in travel, reflecting the importance of inbound tourism in their economies. • Other than travel, LDCs most frequently do well in communications, construction, finance, and personal, cultural and recreational services in that order. 38 LDCs export financial services and/or insurance services.
low base. The LDC share is still only 0.6%, comparing poorly with their 1% share in total world trade. • For the LDCs as a whole, commercial services are only 10% of total exports about half the global average - and the services share is lower than a decade ago. • For about half of the LDCs, however, the services share of exports is well
Asia
Oceania
Africa
Haiti
geographic differences For example, LDCs in Oceania are more likely to export construction services than LDCs in Africa, and are more likely to export personal, cultural and Recreational services than Asian LDCs. 38% of Asian LDCs manage to earn income from royalties and license fees, whereas only 19% of African LDCs and 20% of LDCs in Oceania do so. Haiti earns a net surplus on royalties and license fees.
above the global average. ▶ This is very evident in the Pacific; commercial services are 46% of Tuvalu’s exports, 44% of Vanuatu’s and 43% of Samoa’s. For Haiti, services are 16% of export earnings, well above the LDC average.
LDC Services Exports, Trends and Success Stories”, ITC Technical Paper, July 2013 Disaggregated data is not available for Afghanistan, Central African Republic, Chad, Eritrea, Kiribati, Mauritania, Somalia Travel, Transport, Communications, Computer and Information services, Construction, Financial, Insurance, Other Business Services, Personal, Cultural and Recreational and Royalties and License Fees.
ANNUAL PUBLICATION 2014
services scoop
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