Services Are Reshaping Global Trade

When we think about global trade, it is easy to picture containers, ships, ports and warehouses.

But increasingly, the goods moving around the world are only part of the story.

A new report from UN Trade and Development (UNCTAD) highlights just how important services have become to the global economy, with services accounting for 71% of global intermediate inputs.

That means services are playing a major role in the production of goods – from finance, insurance and logistics to technology, engineering, telecommunications and professional services.

One of the biggest changes has been the rapid growth of digitally deliverable services – services that can be provided remotely over computer networks. These have grown by an average of 7.1% per year over the past decade and now account for 56% of global services exports.

For businesses, this reflects just how much international trade has changed. A company no longer needs to physically move everything it sells across a border. Design, consulting, software, financial services, technical support and other professional services can increasingly be delivered digitally.

However, the benefits of this growth are not being shared equally.

Least developed countries accounted for just 0.6% of global services exports in 2025, while digitally deliverable services represented only 16% of their services exports, compared with 61% in developed economies.

UNCTAD points to several factors behind this gap, including limited digital connectivity, expensive international payments, skills shortages and differences in regulatory capacity.

Artificial intelligence could add another layer to this divide. Computing capacity, data, finance and technical expertise remain concentrated in a relatively small number of countries and companies, meaning that countries already facing digital disadvantages could find it even harder to keep pace.

The report is another reminder that international trade is no longer simply about moving physical goods from one country to another.

For Australian businesses, global competitiveness increasingly depends on access to reliable logistics alongside digital infrastructure, technology, professional services and international markets.

As more trade becomes digital, the rules governing that trade will also become increasingly important. UNCTAD notes that digital trade provisions are appearing in more preferential trade agreements, although this is also creating a more fragmented regulatory environment.

The global supply chain of the future is likely to be a combination of ships, ports and freight networks – supported by data, technology and digitally delivered services.

For businesses involved in international trade, understanding that bigger picture will become increasingly important.

Source: UN Trade and Development (UNCTAD), Global Trade Update – September 2026.