Potential of trade in services

The proliferation of Regional Trade Agreements (RTAs) in Asia-Pacific economies that started in 1990s is continuing and, with the passage of time, their contents and composition have changed. The present RTAs go beyond conventional goods agreements and cover a wide range of issues that are WTO-plus and WTO-beyond. Services agreements are now part of these RTAs, whereby the countries make commitments going beyond what they have offered in the WTO General Agreement on Trade in Services (GATS). As of January 2016, there were 271 physical RTAs in force globally, of which 132 cover agreements related to services. The inclusion of services in RTAs not only invigorates trade in services and investment flows among the RTA partners, it also enhances opportunities to trade in goods and integrates the partners through regional and global supply chains. Due to the importance of services to the RTA partners’ economies, liberalization in services could become a powerful factor for trade-driven sustainable development.

Sustainable Development Goals:

Peace, Justice and Strong Institutions