Services cover every aspect of human activity today and is considered the most dynamic component of the global trading economy. The contribution of the services sector to Gross Domestic Product (GDP) has been rapidly growing both in the developed and developing parts of the world. World Bank statistics show that the services sector accounted for 68.5% of the global GDP in 2014.
Their inclusion in the Uruguay Round of trade negotiations led to the signing of the General Agreement on Trade in Services (GATS) in 1994 by all members to the World Trade Organisation (WTO). GATS is considered the first attempt to globalize trade in services. Since GATS, trade in services has become an important component of trade agreements.