ABSTRACT

Policy-makers and trade negotiators in developing countries recognize the importance of the services sector for economic growth. The characteristic of most services is that they arc intangible and non-storable and must therefore be produced when and where they are consumed. The advent of data services changes the situation fundamentally because data services permit instantaneous, long-distance interactive interactions via transnational computer-communication systems. A number of issues and concepts central to the current discussion on trade in services and data services have been chosen for examination and clarification. In sum, data services play a key role in increasing the tradeability of certain services. They are also of crucial importance for the operations of transnational corporations. The establishment of a framework for trade in services and data services is a difficult undertaking because the effort addresses unchartered territory characterized by a dearth of data and broad intellectual neglect of the services sector.