WTO–World Bank Initiative Gains Momentum as Ministers Call Services Trade the New Engine of Global Development

WTO Director-General Ngozi Okonjo-Iweala, delivering the keynote address, underscored a structural shift in the global economy.

On the eve of the 14th WTO Ministerial Conference (MC14), global trade leaders, ministers, and development partners delivered a strong and unified message: services trade is no longer peripheral—it is central to economic transformation, resilience, and inclusive growth in developing economies.

At a high-level gathering in Yaoundé, the World Trade Organization (WTO) and the World Bank Group spotlighted the growing impact of their Trade in Services for Development (TS4D) initiative, a flagship programme launched in September 2024 to help developing economies unlock the vast potential of services-led growth.

The event marked a critical inflection point for global trade cooperation, with new funding commitments, expanded technical tools, and a renewed push for partnerships aimed at bridging long-standing gaps in services trade capacity.

Services Trade: From Supporting Role to Global Growth Driver

WTO Director-General Ngozi Okonjo-Iweala, delivering the keynote address, underscored a structural shift in the global economy. Services, she emphasized, are now as critical as agriculture and manufacturing, accounting for over 50% of economic activity in most economies.

But their influence extends even further.

“Services are not just contributors to GDP—they are enablers of connectivity, drivers of innovation, and critical links in global value chains,” she said, highlighting how digital technologies are transforming services into scalable, exportable assets.

From financial services and logistics to creative industries and digital platforms, services are increasingly shaping how countries integrate into global markets. For developing economies, this represents a once-in-a-generation opportunity to diversify exports, create jobs, and build resilience.

A Targeted Initiative to Close the Development Gap

Despite their potential, developing countries—particularly least-developed countries (LDCs)—continue to face structural barriers in leveraging services trade. These include:

• Complex and fragmented regulatory environments

• Limited access to reliable trade and policy data

• Weak integration of services into national development strategies

• Capacity constraints in designing and implementing reforms

The TS4D initiative directly addresses these gaps through capacity-building, policy advisory, and technical assistance, enabling governments to better understand their services sectors and implement targeted reforms.

According to DG Okonjo-Iweala, the initiative responds to strong demand from developing economies and is designed to translate untapped potential into measurable development outcomes.

New Funding Signals Growing Global Commitment

In a significant boost to the initiative, the United Kingdom announced a new contribution of GBP 500,000 to the WTO Global Trust Fund, specifically to support TS4D-related technical assistance.

UK Minister of State for Trade Policy and Economic Security, Sir Chris Bryant, highlighted the strategic importance of the initiative:

“Services are the fastest-growing segment of global trade. This initiative provides practical tools that help countries improve regulatory environments, reduce business costs, and attract investment—laying the foundation for better jobs and stronger economies.”

The funding underscores a broader trend: increasing recognition among advanced economies that services trade is a cornerstone of future global growth—and that supporting developing countries in this space is both an economic and strategic imperative.

Data-Driven Tools Empower Smarter Policymaking

A major innovation within TS4D is the development of advanced analytical tools such as the Services Trade Competitiveness Diagnostic Dashboard. These tools enable policymakers to identify sectors with comparative advantages, diagnose bottlenecks, and design evidence-based reforms.

Ghana’s Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, emphasized the importance of such tools:

“They allow us to move from broad strategies to targeted action—identifying exactly where reforms are needed and where opportunities lie.”

Similarly, Rwanda’s Minister of Trade and Industry, Prudence Sebahizi, noted that such tools are essential for transitioning toward knowledge-based, export-oriented economies, particularly in sectors like logistics and digital services.

Country Experiences Highlight Diverse Pathways

Ministers from across regions shared practical insights into how services are reshaping their economies:

• Jamaica is leveraging culture, heritage, and creative industries as exportable services, expanding its global footprint in entertainment and fashion.

• Cambodia is investing in a digital-ready workforce and modernizing regulatory frameworks to integrate more effectively into global services markets.

• Ethiopia is advancing reforms in financial services, digital transformation, and trade facilitation to attract investment and enhance competitiveness.

These experiences highlight a common theme: services trade offers flexible, scalable pathways to development that can be tailored to national strengths.

Addressing a Stark Global Imbalance

Despite growing momentum, significant disparities remain. According to UN Trade and Development (UNCTAD), least-developed countries account for less than 1% of global services trade, underscoring the urgency of targeted interventions.

Pedro Manuel Moreno of UNCTAD stressed that coordinated international action can help identify high-potential sectors and close these gaps, while the World Bank reaffirmed its commitment to scaling up financial and technical support.

World Bank Vice President Ndiamé Diop noted increasing demand from client countries to integrate services trade into broader development strategies, signaling a shift toward more holistic, services-driven policy frameworks.

A Call for Scaled-Up Partnerships

The Yaoundé discussions concluded with a clear consensus: unlocking the full potential of services trade will require deeper collaboration, sustained investment, and coordinated action across institutions.

WTO Deputy Director-General Johanna Hill described the strong interest in capacity-building as both encouraging and urgent:

“The next step is turning today’s insights into concrete, country-level reforms. That requires sustained partnerships and a shared commitment to scale.”

DG Okonjo-Iweala echoed this call, urging development banks, international organizations, and donor countries to expand their support.

“If we succeed,” she said, “we can build a global trading system that truly delivers on its promise of inclusive development.”

Transforming Trade for the 21st Century

As the global economy becomes increasingly digital and service-oriented, the TS4D initiative positions itself at the forefront of a new development paradigm—one where trade in services is not just an opportunity, but a necessity for inclusive and sustainable growth.

With fresh funding, innovative tools, and growing political backing, the initiative is poised to help developing economies move beyond traditional export models and claim a stronger, more competitive position in the global marketplace.