GENEVA, September 10 — The numbers tell a story of a region sprinting forward while still standing near the starting line. Exports of digitally delivered services from Latin America and the Caribbean have grown fivefold over the past two decades, outpacing goods and other services exports alike, according to a new report from the World Trade Organization, produced with the Inter-American Development Bank and the World Bank. And yet the region accounts for just 2% of world exports of digitally delivered services.
That gap — between the pace of growth and the size of the prize — is the central tension in the report, titled “Digital Trade in Latin America and the Caribbean: Connecting Markets, Powering Growth.”
A fivefold rise, a sliver of the market
The report estimates that deeper digitalization and adoption of new technologies, paired with stronger improvements in the policy environment of relatively lower-performing economies, could lift the region’s exports of digitally deliverable services by 4.5% per year on average. That is a projection, not a promise, and it hinges on decisions made in capitals across the region. Digital trade also offers a route to deepen integration within Latin America and the Caribbean itself.
Intra-regional digital trade among LAC economies is limited compared to Europe, Asia and North America, and sits well below the level of intra-LAC goods trade. The report flags that shortfall as evidence of sizeable scope for expanding cross-border digital activity inside the region.
What shapes a country’s digital trade performance
The report examines the factors that determine how deeply an economy participates in digital trade. Among them: digital infrastructure and connectivity, market openness for backbone inputs, regulatory policies, cross-border payments, logistics and customs processes, export promotion and firms’ capabilities, digital skills, and access to finance. Drawing on available information, it assesses where LAC economies stand across those dimensions.
From that analysis comes a menu of practical policy actions for governments. Depending on their specific circumstances, challenges and priorities, LAC economies can choose the initiatives that best fit their needs and develop a customized plan — one that supports prioritizing actions, mobilizing resources and engaging key stakeholders.
The WTO, the IDB and the World Bank say they can continue to play an important role in supporting those efforts through technical assistance, policy advice and financing, in accordance with their specific mandates. The full report is available through the WTO website. What to watch next is whether LAC governments translate the menu into national plans — and whether the three institutions follow through on the technical and financial support they have offered.
