Trade in services bounced back by around 12 per cent in FY21 while trade in goods jumped by 18 per cent. In the following year, trade rebounded modestly, as reflected in growth rates. Due to the Covid-19 pandemic, services trade declined by around 8.50 per cent in FY20 while goods trade plunged by 12 per cent. The country's services trade recorded a robust 31-percent growth in the fiscal year 2018-19 (FY19) when trade in goods posted a modest growth of 5.20 per cent. Though the trade in services is increasing in Bangladesh, its significance has yet to be fully understood in this era of interconnected global society. These are (i) cross-border supply (ii) consumption abroad (iii) commercial presence and (iv) presence of a natural person. The agreement also covers four modes of supply for the delivery of services in global trade. These are: business communications construction and engineering distribution education environment financial health tourism and travel recreation, cultural, and sporting transport and others. A total of 12 sectors of services are negotiated under GATS. The General Agreement on Trade in Services or GATS is the World Trade Organisation's multilateral agreement for all services-related international trade. Thus, one-fifth of global trade is services in nature. At the same time, the value of trade in goods, as measured by the average of the dollar value of exports and imports, rose 12 per cent to US$ 25.26 trillion. The value of trade in commercial services, as measured by the average of exports and imports, increased 15 per cent last year to US$ 6.8 trillion, according to the World Trade Organisation (WTO). Thus trade in services 'drives the exchange of ideas, know-how and technology, although it is often restricted by barriers such as domestic regulations.' Again, unlike trade in goods, it is not easy to trace the actual flow of trade in services due to its intangibility.Īccording to the Organisation for Economic Co-operation and Development (OECD), trade in services records the value of services exchanged between residents and non-residents of an economy, including services provided through foreign affiliates established abroad. So, it is not possible to get a correct picture of the international trade without adding up trade in services. Though trade in goods is predominant globally, trade in services has emerged as a critical portion of the world trade in recent decades.
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