With the growth of the digital economy and globalization, services have become one of the pillars of international trade. To maximize the potential of services exports, governments around the world are implementing strategic incentive policies and signing international agreements that open up new opportunities for companies in different sectors. In this week’s article, Bring Consulting explores how these policies work and how companies can benefit.
The Importance of Service Exports in the Global Economy
✔ Growing Sector:
According to the World Trade Organization (WTO), services account for around 24% of global trade, including areas such as technology, consulting, finance, healthcare and entertainment.
✔ Added Value:
Services generally have a higher added value compared to goods, which makes them a strategic opportunity for governments and companies seeking to compete globally.
Main Incentive Policies for Exports of Services
✔ International Trade Agreements:
Governments enter into bilateral and multilateral agreements that reduce regulatory and tax barriers. Examples include:
- WTO General Agreement on Trade in Services (GATS), which regulates and facilitates trade in services globally.
- Regional agreements, such as T-MEC, which include specific clauses for digital and financial services.
✔ Reduction of Regulatory Barriers:
Simplifying licensing and approval processes for services is essential for companies to export efficiently.
✔ Tax Incentives:
Tax exemptions and tax reductions for companies exporting services, such as tax refund programs on exported services.
✔ Support for Small and Medium Enterprises (SMEs):
Many governments offer specific lines of credit and technical assistance to help SMEs become competitive in the international market.
✔ Investment in Technology:
Incentive programs that promote digitalization and innovation in exporting companies, allowing for greater competitiveness.
Success Stories in Incentive Policies
✔ India – Technology and Digital Services:
India has become a global leader in exporting digital services thanks to tax incentives and the creation of technology-focused special economic zones.
✔ Canada – Global Partnerships:
The Canadian government supports the export of creative and technological services through subsidies and trade agreements.
✔ Brazil – Export of Creative Services:
Although challenging, Brazil has expanded policies to promote the export of services in the creative sector, such as audiovisual and design, with programs such as Proex.
How Companies Can Take Advantage of These Incentives
✔ Map Opportunities:
Analyze international agreements relevant to your company's sector of activity.
✔ Adapt to Local Standards:
Make sure your services are aligned with the regulations of your target market.
✔ Invest in Qualification:
Empower your team to handle the complexities of international trade in services.
✔ Strategic Partnerships:
Collaborate with local businesses in international markets to strengthen your presence and expand the reach of your services.
Policies to encourage exports of services offer significant opportunities for companies looking to expand globally. With government support, international agreements and well-designed strategies, it is possible to access new markets, increase competitiveness and generate sustainable growth.
Want to know how to take advantage of incentive policies to expand your service exports? At Bring Consulting, we connect your company to the best international opportunities. Contact us for a personalized analysis!
