## Analysis: Thirty years of trade-led growth since the Marrakesh Agreement This year marks the 30th anniversary of the signing of the Marrakesh Agreement founding the WTO. Since then, the world has witnessed a fivefold increase in global trade, which has coincided with a significant decrease in poverty worldwide, indicating the impact of trade on supporting economic growth and improving people’s lives. The Marrakesh Agreement Establishing the WTO emphasized the need to ensure that developing economies, particularly the least developed, secure a fair share in the growth of international trade. Since the WTO was established 30 years ago, income disparities between economies have dramatically narrowed. Per capita incomes in low- and middle-income economies have nearly tripled, while global per capita income has grown by approximately 65%. Trade and income convergence between developing and developed economies are closely intertwined. There is a striking correlation between the pace of income growth of low- and middle-income economies and their participation in world trade. As shown in Chart 20, both income convergence and trade participation rose in tandem before the global financial crisis of 2008 and fell in unison after the crisis. Economic research helps to reveal the reasons for this. Access to foreign markets for both exports and imports boosts productivity, and ultimately economic growth. This is achieved by greater economies of scale, better access to intermediate goods, enhanced competition, technology diffusion and greater incentives to innovate. --- The United Kingdom saw a 14% increase in services imports, driven by other business services. Financial services exports, some 20% of the country’s exports, rose 13%.