March 11 , 2008
IN THIS ALERT:
World Services Exports Grew 18% in 2007
Total world exports of commercial services rose by 18% to $3.3 trillion last year, according to data recently released by the World Trade Organization. The growth was seen in all major regions, and in the three broad categories of transportation, travel, and "other commercial services," the last of which has been the fastest growing category over the last seven years. The 18% growth in world services exports was an acceleration from the 12% growth experienced in both 2006 and 2005.
Merchandise trade grew more slowly, increasing by 5.5% to 13.5$ trillion, down from 8.5% in 2006, and may slow even further in 2008. The WTO attributes the slowdown to a sharp economic deceleration in key developed countries that is being only partially offset by continuing strong growth in emerging economies. For a copy of the WTO's report, click here.
Emerging Markets Experience Record Private Capital Growth in 2007
The Institute of International Finance(IIF) reported that net private capital flows to emerging economies reached an estimated $782 billion in 2007, up from $568 billion in 2006. Citing the slow down of the global economy, the IIF projects a decline in capital flows to $731 billion in 2008. Slight declines are also expected in portfolio equity and bond and commercial bank flows, though the IIF projects an increase in net inward foreign direct investment to $286 billion, up from $256 billion in 2007. For a copy of the IIF press release and related documents, click here.
International Trade Survey Shows Growing Pessimism on Doha Services Negotiations
In a recent poll of trade negotiators, officials and specialists conducted by the Institute for International Trade, University of Adelaide and the International Chair WTO/Regional Integration of the University of Barcelona, respondents indicated broad pessimism that the Doha Round will deliver substantial results in services. No more than 11% of the 220 respondents from around the globe thought that the outcome in the Doha Round services negotiations is likely to provide a substantial increase in real market access. This was down from 22% in a similar poll last September. In addition, only 26% of respondents believed that the NAMA negotiations will create new opportunities for exporters, and more than three-quarters of the respondents thought that the potential for the agriculture negotiations to produce real improvements in market access will be seriously undermined by exceptions for sensitive products and special safeguards.
For more information, contact Andrew L. Stoler, Executive Director, Institute for International Trade, The University of Adelaide, at andrew.stoler@adelaide.edu.au.
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