What is trade service industry?

Services trade is a major part of global trade, accounting for two-thirds of world GDP and employing the most people in advanced economies. Services trade also underpins manufacturing, as many products require services inputs to function or even exist at all. In fact, services are deeply imbedded in manufactured goods being traded around the world today – the OECD Trade in Value Added database shows that on average, a whopping 50% of value added in an imported product comes from a country other than its point of production.

With so much at stake, the international trade in services sector requires the highest levels of transparency and regulatory consistency. In wealthy developed economies, this is often achieved through global standard-setting and domestic regulation, and the adoption of a common set of rules that applies across jurisdictions. However, these efforts are not yet fully complete.

As a result, barriers to global trade in services remain pronounced. While tariffs do not apply to services, countries can impose restrictions on non-tariff measures such as market access, licensing and quality standards, as well as on the movement of natural persons.

Despite the best of intentions, there are many factors that can throw a wrench in the gears for businesses that serve this sector. For example, equipment breakdowns, unexpected inspections, or other unforeseen events can leave contractors scrambling to find solutions. In these situations, it helps to have a steadfast ally like Centratel at hand to ensure every call gets the professional attention it deserves.