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Mexico’s commercial services exports fell 46.3%

Mexico

‘s commercial services exports registered a year-on-year decline of 46.3% in 2020, to $ 16.937 billion, according to data from the World Trade Organization (WTO).

Among these types of services are tourism, telecommunications, construction, transportation, education, financial, and social and health services.

As a percentage of the Gross Domestic Product (GDP), Mexico’s commercial services comprised 1.57 percent.

Above all, Mexico directs these external sales through tourism, which totaled 11.025 million dollars in 2020, a drop of 55.1% year-on-year.

Regarding transport services, these were for 1,923 million dollars, which was equivalent to a decrease of 34.5% year-on-year.

Since 1995, the WTO General Agreement on Trade in Services (GATS) remains the only set of multilateral rules governing international trade in services.

The Agreement reflects the gradual transfer of many services from state providers to the private sector and the greater possibilities that advances in information and communications technology represent for trade in services.

Commercial services

The GATS recognizes that in many cases providers and customers have to be physically close for the service to be delivered.

Until now, the services covered by the GATS are not automatically open to competition.

WTO Members guarantee access to their markets only for the sectors and modes of supply specified in their «schedules of commitments», subject to any «limitations» they wish to maintain.

Thus, these lists do constitute legally binding commitments. The only obligation that applies to all services covered by the GATS is the most-favored-nation (MFN) principle, which means that service providers in all countries are treated the same.

The GATS covers all services, except “services supplied in the exercise of governmental authority” and most air transport services.

After reaching $ 27.411 million in 2017, Mexico’s commercial services exports rose to $ 28.826 million in 2019.