SERVICES: SECTOR BY SECTOR

Computer and related services

Computer and related services (CRS) underpin the modern economy and the digital transformation of business and trade. CRS provide the infrastructure for global communications, electronic commerce and corporate operations. In addition, the creation and uptake of new technologies owe their evolution to innovative computer programs and software developers. Artificial intelligence, cloud computing and the Internet today are but a few examples.

For many years, the sector was largely unregulated and faced few, if any, trade restrictions. Over the past decade, global growth in information and communication technology trade (of which CRS accounts for about two-thirds) averaged 9 per cent annually, compared with 6 per cent for services trade overall.

The sector has become increasingly global, characterized by webs of cross-border partnerships between IT companies. Firms in one country will collaborate with and subcontract to firms in another country, creating trade opportunities for developing countries and small-and medium sized enterprises. Recently emerging trade barriers, such as restrictions on how data may flow or where data may be stored or processed, may have severe implications for this sector.

This service sector falls within the broad category of business and professional services in the General Agreement on Trade in Services classification system. It includes consultancy related to the installation of computer hardware, software implementation services, data processing services, and database services.

Current market access commitments

CRS is among the most frequently committed sectors for WTO members within the business and professional services category. It is also one of the sectors where cross-border supply (mode 1) has more commitments than in other service sectors, with few, if any, limitations. This is a reflection of the openness of the sector when the vast majority of market access commitments were undertaken in the mid-1990s during the Uruguay Round negotiations. It is also a recognition of the global reach of, and interlinkages between, IT companies.

Major exporters in 2020 were India, China, the United States and the European Union, but many other developing countries, despite being smaller players, have dynamic and forward-looking IT sectors that welcome the export opportunities guaranteed by members' GATS schedules of market access commitments.

For consolidated information on countries' commitments and exemptions on computer services, go to the services database (opens a new window), click “predefined reports”, then click “All sectors and each level of development”. From the list of sectors select “Computer services”. Information is broken down by the country's level of development (developed, developing, least developed or transition). Data covers the period January 1995 to December 1999. It does not include data on current negotiations or on countries which joined the WTO since January 2000.

Treatment of the sector in negotiations

CRS were included in the services negotiations that began in 2000. Further commitments in the sector were the subject of negotiating proposals by developed and developing countries. Moreover, proposed new and improved Doha Round commitments on CRS (in draft offers) were made by a large number of members.

By 2005, a collective proposal on market access for CRS was formulated and submitted jointly by developed and developing countries. Members demonstrated widespread interest in the growth potential of CRS in global trade and as a priority in the negotiations.

Some of the submissions by members in the context of the WTO’s e-commerce work reaffirm the view that improved commitments are needed in the sector. While the importance of more commitments on cross-border trade (GATS mode 1) via remote delivery has been emphasized, the role of trade in the form of investment and formation of foreign subsidiaries (GATS mode 3) in the global CRS ecosystem has also been noted by members.

Additional information

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  • Secretariat background notes on computer and related services (Document code S/C/W/* and keyword “computer and Background note”)  > search > help

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