Stronger global trade rules are important to enable developing countries to seize the benefits of the digital economy as their participation in services trade offers critical opportunities for economic growth, diversification, and development, according to the UN Conference on Trade and Development (UNCTAD).
In the March edition of the Global Trade Update, UNCTAD said expanding service exports can help diversify economies beyond traditional goods sectors, generate higher value-added activities, and create new employment opportunities in modern sectors such as information technology, fintech, logistics, and business services.
The report said services trade often supports productivity gains in the wider economy, enabling firms to upgrade operations, adopt new technologies, and integrate into global value chains.
“Without stronger multilateral disciplines and predictable access in rapidly growing service sectors, including digital trade, data flows, financial services, and professional services, developing countries risk being left on the periphery of global innovation networks, limiting their ability to capture the full benefits of the digital and knowledge-driven economy,” it said.
UNCTAD said the limited participation of many developing countries in global services trade partly reflects the incomplete and fragmented nature of the international regulatory framework governing services markets.
“Differences in regulatory frameworks, licensing procedures, and professional standards, among others, often create barriers that limit the ability of developing country firms to expand their services exports,” it said.
The report said improved cooperation at the multilateral level could help address these challenges.
“Greater transparency in domestic regulations, mutual recognition of professional qualifications, and enhanced technical assistance could facilitate broader participation of developing countries in the rapidly expanding global services economy,” it added.
UNCTAD said a reformed World Trade Organization (WTO) could help developing countries unlock the full development potential of services trade and ensure that they participate in the global economy on fair and equitable terms.
“Without clearer commitments and enforceable rules, many developing economies and least developed countries struggle to participate effectively in global services markets, missing opportunities to diversify their economies, create higher-value jobs, and capture the benefits of knowledge-intensive and digitally deliverable services,” it added.
The WTO is holding its 14th Ministerial Conference in Cameroon from March 26-29, where governments are expected to examine how the multilateral trading system can better respond to today’s evolving economic realities.
The UNCTAD report also warned that rising policy volatility and fragmentation in the global trading system risk undermining the stable conditions many developing countries rely on to expand exports, attract investment and diversify their economies.
It found that the guardrails that once provided long-term stability for global trade are weakening, with certainty increasingly giving way to persistent policy volatility.
March 30, 2026
March 30, 2026
