The Impact of COVID-19 on Commonwealth Services Trade

This International Trade Working Paper examines the effect of the pandemic on the services trade of Commonwealth countries using both descriptive statistics and qualitative analysis. It finds that at least 40 per cent of Commonwealth services exports and more than 45 per cent of its imports could be compromised by COVID-19. Caribbean and Pacific Commonwealth countries are likely to be most severely impacted, while African and Asian Commonwealth countries are likely to be less vulnerable. Delayed recovery in services trade will affect both services and manufacturing sector activity in Commonwealth member countries, given their increasing ‘servicification’ of economic activity and exports.