Industrial policies are on the rise. All over the world, governments are actively and openly intervening in economies to transform their direction, structure and competitiveness. The new industrial policies thereby created can have both positive and negative impacts in today's hyper-connected global economy, and international cooperation and rules are needed to ensure that these policies encourage expansion and exchange, rather than promoting the technological advance of some economies over that of others. The 2020 World Trade Report looks at the role of innovation and industrial policies in an increasingly digitalized world economy, and explains how the World Trade Organization fits into this changing context. The Report examines how trade in services has evolved in recent years and looks at why services trade matters. Major trends affecting trade in services, including demographic changes, digital technologies, rising incomes and climate change, are reviewed. The Report also estimates how services trade may evolve over the next 20 years and the prospects for enhancing international cooperation on services trade policy. Trade costs for services are higher than those for goods but these costs are falling, largely due to the impact of digital technologies, the Report finds.

It highlights how declining trade costs are expected to expand the share of services in global trade and how this could contribute to more inclusive growth and development. If economies are to reap the benefits of the growing role of services trade, international cooperation will need to intensify.