OECD, WTO Issue Joint Study of 67 Countries on Economic Benefits of
New Services Domestic Regulation Deal
·
$150 bn
savings expected by cutting down of red tape
The Organisation for Economic
Co-operation and Development (OECD) and the WTO released on 26 November a trade
policy brief highlighting the economic benefits that would result from a new
deal on services domestic regulation being finalised
by a group of 67 WTO members. The study finds that annual cost savings in
services trade could amount to USD 150 billion
globally due to a reduction in red tape and increased transparency, with
particularly important gains for financial, business, communications and
transport services.
Entitled "Services domestic regulation in the WTO:
Cutting red tape, slashing trade costs, and
facilitating services trade", the study looks at how improved regulatory
systems for licensing and authorizing services suppliers would lead to savings.
The 67 WTO members(1)
taking part in this initiative represent 90 per cent of world services trade.
They are aiming for a successful outcome to be announced
at the 12th
Ministerial Conference (MC12),
which was to begin on 30 November. The final deal will be
applied on a “most-favoured nation” basis,
meaning that it will benefit all WTO members.
The study finds that implementing the outcome will:
·
improve the business climate: by enhancing the transparency,
efficiency and predictability of regulatory frameworks, the new disciplines
will address the practical challenges that affect the ability of businesses and
suppliers to operate in foreign markets.
·
lower trade costs and lead to other trade benefits: annual
savings could amount to USD 150 billion globally, with important gains for
financial, business, communications and transport services. Moreover, the
implementation of the new disciplines would increase the value of services
trade and lead to enhanced participation in global value chains.
·
facilitate services trade: while an increasing number of "new
generation" ambitious trade agreements are being concluded, economies at
all levels are also implementing reforms on services trade. Implementing the
outcome of the negotiations would ensure that domestic regulatory arrangements can open trade opportunities for services providers,
particularly for small businesses.
·
generate widespread gains beyond the participants: exporters from
all WTO members will benefit from the improved regulatory conditions when they
trade with participants in this joint initiative.
A factsheet on the negotiations can be
found here.
Notes:
Albania; Argentina; Australia; Austria;
Bahrain, Kingdom of; Belgium; Brazil; Bulgaria; Canada; Chile; China; Colombia;
Costa Rica; Croatia; Cyprus; Czech Republic; Denmark; El Salvador; Estonia;
Finland; France; Germany; Greece; Hong Kong, China; Hungary; Iceland; Ireland;
Israel; Italy; Japan; Kazakhstan; Korea, Republic of; Latvia; Liechtenstein;
Lithuania; Luxembourg; Malta; Mauritius; Mexico; Moldova, Republic of;
Montenegro; Netherlands; New Zealand; Nigeria; North Macedonia; Norway;
Paraguay; Peru; Philippines; Poland; Portugal; Romania; Russian Federation;
Saudi Arabia, Kingdom of; Singapore; Slovak Republic; Slovenia; Spain; Sweden;
Switzerland; Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu;
Thailand; Turkey; Ukraine; United Kingdom; United States; Uruguay; back
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