Based on discussions that were part of the APEC EC-GOS Project on Structural Reform, this policy brief focuses on international trade in digitally deliverable services, which are at the forefront of the digital revolution and Artificial Intelligence (AI) augmentation. The paper explores recent developments in digitally deliverable services trade, the impact of AI, policy and regulatory impediments, and the critical role of competition and technical standards-setting in shaping the future of services trade.

The paper highlights the significant growth in digitally deliverable services exports, which nearly doubled globally between 2014 and 2023, reaching USD4.25 trillion. APEC economies experienced similar rapid growth, with digitally deliverable services accounting for 54% of total services exports in 2022, up from 42% in 2014. The ratio of digitally deliverable services exports to GDP in APEC rose from 1.8% in 2014 to 2.3% in 2023.