Why are the Service Sectors Important

• The services sector is the largest and fastest-growing sector of the world economy, providing more than 60% of GDP in many countries, and an even larger share of employment
• Services trade represented over one third of total trade in goods and services in 2000
• Services are critical to competitiveness as inputs for other sectors' outputs. Lower cost and better services substantially reduce costs of production as well as cost and speed to market
• According to the World Travel and Tourism Council, tourism is the world's largest employer, accounting for one in ten workers worldwide
• Service sector liberalization is being addressed in the Doha Round of trade negotiations

Service sector trade is increasingly recognized as a critical component of economic growth:

• Services have been the fastest growing component of the global economy for the past decade
• Total measurable trade in services (as defined under GATS), represents 7.6% of world output, and currently stands at US $2.3 trillion

Service sector trade has large potential for developing countries, and the growing internationalization of services creates opportunity for developing new sources of export growth. USAID is committed to encouraging these opportunities.

For more information on the importance of service sector trade review the WTO website GATS - Fact and Fiction.