Services Are the New Fault Lines in Global Trade
Geopolitics and digital sovereignty concerns are fragmenting cross-border trade in digital services, raising costs and complexity for providers and customers alike.
Summary
The authors note that services make up to 60% of global GDP and that services trade, about $8.7 trillion in 2024, is projected to grow twice as fast as goods trade. Digitally delivered services such as cloud, SaaS and streamed media have become targets because they power AI, carry cross-border data and shape public discourse. Governments are asserting control over data, content, advertising and payments, banning some foreign platforms and using
Editor's opinion
Geopolitics and digital sovereignty concerns are fragmenting cross-border trade in digital services, raising costs and complexity for providers and customers alike.
Key concepts
Services trade fragmentation · Digital sovereignty · Data localization