Services have a direct impact on the competitiveness of the goods sector. This article illustrates the importance of logistics services, their trade dimension and how regulatory issues act as perhaps one of the most significant barriers to competitiveness. The article discusses recent developments and the role and benefits of logistics services and argues that from a trade agreement standpoint, logistics is a network industry that ultimately provides one service to a final client. It analyses logistics services from a services trade perspective and proposes that trade agreements should ensure access to and use of the infrastructure required to provide these services recognizing their interconnectedness. The article offers suggestions on additional policies World Trade Organization (WTO) members, and countries negotiating services agreements regionally or bilaterally, could follow in order to fully exploit the opportunities provided by logistics services. Local regulations and complementary policies in areas such as trade facilitation will always remain important.
Journal of World Trade