The entry into force of new disciplines on Good Regulatory Practice for Services Trade services domestic regulation was announced recently at the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) in Abu Dhabi.
Progress on new disciplines on good regulatory practice in services trade:
- These disciplines aim to address unintended trade-restrictive effects of measures related to licensing, qualification requirements, and technical standards.
- This makes the regulatory environment more favorable for businesses, particularly micro, small, and medium-sized enterprises (MSMEs) and women entrepreneurs.
- The application of these disciplines on a “most-favored nation” principle ensures benefits for all WTO members, 52 of whom completed the certification process.
- Costa Rica, as the coordinator of the initiative, proposed the updation of WTO rulebook, with over 92% of world services trade committed to implementing these practices.
Benefits of the New Disciplines:
- Their implementation will lead to a 10% reduction in services trade costs for lower-middle-income economies and a 14% reduction for upper-middle-income economies.
- It may result in an overall savings of USD 127 billion, global real income increase by at least 0.3%, and global service exports by 0.8% by 2032.
- If all WTO members adopt these disciplines, welfare and trade will increase, especially for developing economies.
- There is a potential for job creation, particularly for women and young people, and the importance of services trade in driving commercial growth.
- The transparent and open nature can positively reflect the WTO’s effectiveness and its role in facilitating trade.
- The initiative demonstrates the possibility of finding common ground among diverse members to support and strengthen the multilateral trading system.
- The European Commission emphasized transparent and efficient authorization procedures for businesses that could improve the treatment of businesses across 72 countries globally.
- Their incorporation into members’ services commitments represents collective efforts for modernizing trade rules and a conducive environment for global services trade.
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