Services trade makes a vital contribution to Australian prosperity
Services are a significant part of Australia's trade with other countries. In 2023, Australia's services exports were worth $113 billion and represented 17 per cent of Australia's total exports.
Services trade supports Australian businesses to grow and innovate by facilitating access to highly skilled technical specialist services suppliers and investors.
For more information, see DFAT Trade and investment data and publications for the latest statistics and analysis on Australia's services trade.
Australia's services trade policy agenda
Australia's services trade policy agenda is guided by the following principles:
Diversity
Diversity in what, how and with whom we trade ensures Australian services suppliers can take full advantage of global markets while being resilient to trade disruptions. This is achieved by providing Australian services suppliers with access to new export markets and reducing or removing obstacles to existing markets.
Inclusivity
Services trade must be accessible to all Australians, including First Nations people, women, micro, small and medium enterprises (MSMEs) and rural and regional areas. This ensures that the benefit of trade can reach all Australians.
Open markets
Open services markets foster competition and provide consumers with access to a wider range of services and expertise domestically and internationally. This puts downward pressure on prices. For Australian services exporters, open markets means more export opportunities.
Transparency
Transparent regulations allow Australian services exporters to more easily access overseas markets and reduce the cost and complexity of doing business. A transparent regulatory framework also provides a predictable business environment that can support Australian investment.
Rules-based
A multilateral rules-based trading system, centred on the World Trade Organization, is important for creating rules for new issues or where there are gaps in the rulebook, and resolving disputes. For Australian services suppliers, a rules-based trading system means greater certainty and predictability in export markets.
Australia supports services trade at the World Trade Organization
Services trade between countries is regulated by the World Trade Organization (WTO) General Agreement on Trade in Services (GATS). The GATS is an agreement signed by all WTO Members that sets out the rules for international services trade. It aims to give all WTO Members equal access to services markets and provide certainty to business. The GATS applies to any measure affecting the trade in services but provides exceptions for measures typically exercised by a governmental authority, such as health or education.
Under the GATS, each WTO Member specifies the access foreign services suppliers have to particular sectors in their market (referred to as ‘market access' commitments) and whether they are treated differently to local providers (referred to as ‘national treatment' commitments). Australia's GATS commitments are available on the WTO website.
Australia also supports open and transparent services trade through WTO 'joint statement initiatives' (JSIs) which are plurilateral agreements involving a subset of WTO Members on a particular issue. WTO JSIs are transparent and open to all WTO Members to join and help to improve global trade rules. Australia is participating in two JSIs to support services trade:
Services Domestic Regulation Joint Statement Initiative (SDR JSI)
- The SDR JSI will require applications and licences to supply a service to be based on objective and transparent criteria, decisions be made impartially and processed without undue delay and that fees are reasonable.
- The SDR JSI will make it easier for Australian services suppliers to export to existing markets and open opportunities in new global markets by reducing red tape and regulatory costs.
- The WTO estimates that the implementation of the SDR JSI could generate global savings of USD127 billion.
- For more information see the WTO website.
E-Commerce Joint Statement Initiative
- The E-Commerce JSI will support Australian workers, consumers, and businesses to realise the increased benefits of a rapidly digitising economy.
- It will provide certainty and ensure minimal costs for businesses, particularly MSMEs, in accessing and participating in global markets and facilitate digital trade and electronic transactions including by creating rules on paperless trading and e-signatures, addressing spam and protecting personal information and privacy.
- These rules will lower barriers to trade, strengthen trust in the online trading environment and support inclusive growth in the global economy, creating new markets for Australian businesses and greater choice for Australian consumers.
- For more information see the WTO website.
Australia promotes services trade through other international organisations and free trade agreements
Australia also promotes inclusive, open and transparent services markets and advances services trade issues in forums such as the Organisation for Economic Co-operation and Development (OECD), the G20, the Asia-Pacific Economic Cooperation (APEC) and the Indo-Pacific Economic Framework (IPEF). We work with the Inclusive Trade Action Group (ITAG) and the Global Trade and Gender Arrangement (GTAGA) to promote sustainable, equitable and inclusive services trade. We also support services exports by negotiating free trade agreements with other countries to remove barriers to trade and investment.
Australia is working to support services sectors
Education-related travel services
Exports: $48 billion (2023)
Australia supports this sector by securing access to foreign markets through free trade agreements and multilateral forums while protecting Australia's public education system. This includes identifying opportunities to support the expansion of Australia's high-quality education offerings in overseas markets. Australia also encourages our trading partners to adopt best-practice regulation of services, like education, through agreements like the WTO Services Domestic Regulation JSI. Stakeholders can engage on education services trade by contacting the DFAT Services Trade and Policy Section.
Tourism
Exports: $18.7 billion (2023)
Australia supports this sector by sharing insights and encouraging best-practice through the APEC and G20 Tourism Working Groups and the OECD Tourism Committee. Australia also encourages our trading partners to adopt best-practice regulation of services, like tourism, through agreements like the WTO Services Domestic Regulation JSI. Stakeholders can engage on tourism issues and policy by contacting Austrade or Tourism Australia.
Professional Services
Exports: $7.5 billion (2023)
Australia makes it easier for professionals to practise overseas by securing access to foreign markets through free trade agreements and facilitating the recognition of professional qualifications and licensing through mutual recognition agreements. Australia also encourages our trading partners to adopt best-practice regulation of services, like professional services, through agreements like the WTO Services Domestic Regulation JSI. Stakeholders are encouraged to attend the biannual DFAT Professional Services Roundtable or contact the DFAT Professional Services & Mutual Recognition Unit.
Financial Services
Exports: $4.7 billion (2023)
Australia supports this sector by securing access to foreign markets through free trade agreements and multilateral forums while protecting Australia's robust consumer protection and prudential systems. Australia also encourages our trading partners to adopt best-practice regulation of services, like financial services, through agreements like the WTO Services Domestic Regulation JSI. Stakeholders can engage on financial services trade policy issues by contacting the DFAT Services Trade and Policy Section.
Telecom, computer & information services
Exports: $3.6 billion (2023)
Australia supports this sector by securing access to foreign markets through free trade agreements and multilateral forums while protecting Australia's public telecommunications system. Australia also encourages our trading partners to adopt best-practice regulation of services, like telecom, computer and information services through agreements like the WTO Services Domestic Regulation JSI. Stakeholders can engage with these issues by contacting the DFAT Services Trade and Policy Section.