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Doha Round Opportunities for Services

?Services trade liberalization can generate far greater economic growth than liberalization of agriculture or manufacturing,? according to a study released this week by the Coalition of Service Industries (CSI). By one estimate, service sector liberalization could yield a global welfare gain of $1.7 trillion, which is actually more than double the potential gain from goods liberalization. Services are essential components of trade in agriculture and goods, and the opinion of many analysts is that if they are not liberalized, the potential for trade in agriculture and goods will be stunted.

For the sake of the argument, it is estimated by some that services for agriculure and manufacturing account for 50-60% of economic activity in most developing countries, and a whopping amount of over 70% in some of the planet`s developed countries. Foreign direct investment in services far exceeds that of both goods and primary products, yet according to the Chairman of the Coalition of Service Industries, Norman Sorensen, says that ??services account for only 20% of world trade, and this demonstrates the need for liberalization of services in the Doha Round, and the great scope for growth of global trade in services.?

The premise of the Doha Round of trade talks for the World Trade Organization (WTO) is that liberalization creates better lives for all peoples. This promise can be realized, according to Sorensen, ?but only if WTO members use the time remaining to seize the development opportunities the Doha Round offers. WTO members should make new offers to liberalize services by July 31 of this year, and to have final offers ready by October 31.?