Global services trade leaders push for openness, warn against decoupling
Celina Ali
Islamabad: Former Greek Foreign Minister George Katrougalos highlighted the negative impact of anti-globalization posing a serious threat to social stability, at the Global Entrepreneurs Summit on Trade in Services in Beijing.
He emphasized that at this historic moment, the world is more interconnected than ever, with global cooperation needed in areas like climate change, nuclear disarmament, biodiversity protection, and pandemic control to safeguard a shared future.
The summit, held during the 2024 China International Fair for Trade in Services (CIFTIS), focused on the theme “High-Level Openness Promotes Win-Win Cooperation” and emphasized the importance of open markets in fostering international collaboration and supporting global economic recovery, China Economic Net reported.
Global Alliance for Trade in Services (GATIS) Chairman, Jiang Zengwei said global services trade has been expanding at a remarkable rate, with a 9% growth in 2023, outpacing global GDP and goods trade. However, he pointed out that growing geopolitical tensions and protectionist policies have significantly increased trade barriers, driving up costs and posing challenges to the global trade landscape.
He called for fewer regulations, higher levels of openness, and a more favorable business environment to support international services trade.
In his keynote address, former Vice Minister of Finance, Zhu Guangyao, emphasized the vital role of services trade in driving global economic growth. He highlighted a significant shift in global trade patterns: “Before 2008, for every 1% increase in global GDP, global goods trade grew by 2% or more. This was a result of the prosperity brought about by globalization. However, today, with every 1% growth in the global economy, goods trade only rises by 0.8% to 0.9%.”
He identified this as a major challenge for global trade and stressed the importance of expanding services trade, particularly in areas related to the digital economy. Zhu also warned of the dangers of “decoupling” and the creation of parallel global economic and supply chain systems, calling such moves “extremely dangerous.”
The summit also marked the release of a report titled “Trend on Higher Level of Liberalization in the Global Trade in Services 2024,” which provided an in-depth analysis of global trade openness. The report emphasized the need for multilateral cooperation to address protectionism and regulatory challenges, outlining nine key recommendations for reducing trade barriers and enhancing international collaboration.
Throughout the event, entrepreneurs and experts from various sectors reaffirmed their commitment to promoting high-level openness, recognizing it as essential for fostering sustainable growth and global cooperation.
