Global Forum on Trade › Session I. Services trade and services in global value chains
Services account for about a fifth of world trade when measured in gross terms, but almost half when measured in value added terms. Services play an important role in global value chains, linking and coordinating activities and creating value through product development, design and marketing. Services links are important for manufacturers’ decisions on where to locate activities, and services may constitute the core of industrial clusters in developing as well as developed countries. Understanding the nature of services trade flows within the context of global value chains is crucial for trade policy making that addresses the realities of current market conditions.