RESTRICTED  
  
S/C/W/ 428 
 
28 February 2023  
(23-1365) Page: 1/2 
Council for Trade in Services    
 
 
IMPROVING LDCS' SERVICES EXPORTS DATA  
NOTE BY THE SECRETARIAT1 
1.  This Note has been prepared at the request of the Council for Trade in Services at its meeting of 
8 December 2022 under the item on "Operationalization of the LDC Services Waiver ".2 It presents a 
possible approach to improving LDCs' services export data . Exploring improvements in LDC services 
export data is one of the tasks that the Council for Trade in Services was instructed to carry out by 
Minsters at MC12 .3 
2.  In 2020, the COVID -19 pandemic and associated restrictions ravaged international tourism and 
passenger transport sectors. Other services, which did not require the physical presence of the 
supplier or the consumer, remained resilient. Trade continued through digital means, boosted by 
remote working, learning, and entertaining. Three years later, the  international travel sector is on 
its path to full recovery as mobility restrictions are removed in most countries and consumers' 
preferences shift back to services.  
3.  Prior to the pandemic, tourism and passenger transport receipts accounted for the bulk o f LDCs' 
services exports. The combined supply and demand shock of COVID -19 resulted in estimated travel 
revenue losses of over USD 26 billion for 2020 and 2021.  
4.  To a large extent, LDCs were not able to take advantage of growth opportunities brought about  
by increased services digitalization due to lack of infrastructure, skills, and a digital divide. According 
to Secretariat estimates, LDCs' exports of digitally delivered services were up only marginally in 
2020, and declined by 4% in 2021, while other eco nomies recorded a 14% rise  over the same period . 
There is a need for LDCs to diversify their services exports to fully benefit from services trade -led 
economic development and to foster poverty alleviation.  
5.  An important conclusion of the CTS Dedicated Ses sion on the LDC Services Waiver in 2019, and 
of the webinar held  in 2021, was the scarcity of detailed trade in services data, especially in highly 
traded sectors, such as business services. Another crucial point was the lack of bilateral services 
trade da ta in both LDCs and other countries, making it virtually impossible to assess whether trade 
takes place through  the preferences  notified under the LDC services Waiver .  
6.  Specific issues flagged to the Secretariat by representatives from LDCs in technical as sistance 
activities in this domain were the lack of coverage or under -coverage of entire sectors, the fact that 
existing data collection systems were not designed to capture details, and the significant time lag s 
that occurred between surveys.  
7.  Scaling up data collection is essential for LDCs to better understand their services sector, inform 
policymakers and negotiators,  and allocate resources, with a view to increas ing their participation in 
global services exports. In 2021, LDCs' share was negligible, at  0.5%, down from 0.7% in 2019.  
8.  Surveys are needed to collect and compile timely, internationally comparable, and granular 
statistics on services trade by sector, mode of supply, and by partner, in accordance with the Manual 
 
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice to 
the positions of Members and to their rights and obligations under the WTO.  
2 Document S/C/M/151, paragraph 5.31.  
3 Document WT/L/1135 , paragraph 8.  S/C/W/ 428 
 
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  on Statistics of International Trade in Services and the Compiler's Guide on trade in services statistics 
by mode of supply.  
9.  The identification of services sectors on which data collection efforts should focus could be 
informed by the  list of services in the Collective Request submitte d by the LDC group ,4 possibly 
based on a priority list  of sectors . Targeted surveys can  also help captur e informal trade in services . 
10.  In terms of modes of supply, the focus could be  on exports through modes 1, 2, and 4, which 
are easier to capture. Surveys should be designed to collect data on LDCs' services exports through 
digital means, including through digital intermediation platforms, which are on the rise also in 
developing eco nomies. To this end, the forthcoming revised Handbook on Measuring Digital Trade 
by the OECD -UNCTAD -WTO and IMF can be seen as the reference guide.  
11.  Surveys in LDCs could also provide information on the characteristics of services suppliers, such 
as the si ze of exporting firms, gender, ownership, etc. At the same time , improving LDCs' services 
exports data should be considered a joint effort by both LDCs (the exporters) and importing 
countries. The latter should also improve their data collection systems to  capture services imports 
from LDCs.  
12.  The development of surveys requires financial and human resources. Funds will be needed to 
cover the survey design phase (building on existing best practices and national efforts), data 
collection, cleaning, compilatio n according to international statistical standards, dissemination 
through appropriate tools, as well as the cost of onsite consultants.  
13.  The data improvement project could be completed in three to maximum five years. It should 
be accompanied by sustained t echnical assistance and statistical capacity building in LDCs, including 
on the use of statistical software and alternative data sources. The Secretariat is ready to assist the 
LDC Group in the development and execution of the project.  
14.  The contours and spe cifics of the project could be further explored in an informal event  
organised by the Secretariat , for instance  in the form of a one -day hybrid workshop. The  event could 
bring together delegates and capital -based representatives of Central Banks and Nation al Statistics 
Offices to discuss and he lp define the way forward.  
 
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4 Document S/C/W /356 and Corrigendum 1 .