Implications for developing and transition economies

At the beginning of the Uruguay Round, many assumed that trade in services was a post-industrial issue. As discussions progressed, though, Members began to realize that most economies obtain the largest part of their gross domestic product from services industries. Re-examination of economic development showed that, of the countries commonly looked to as economic leaders, neither the United States nor Japan has ever been primarily a manufacturing economy. Both countries went from basically agricultural economies to mainly services economies at the beginning of this century. Some developing and transition economies continue to believe that protecting the emerging domestic services industries is critical to development. Actual experience has shown that, because services enterprises are both suppliers and users of services, they typically benefit overall from rapid liberalization initiatives and are constrained by any service inefficiencies that result from protection.

Sustainable Development Goals:

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions