GENEVA (AFP) – World Trade Organization negotiations on trade facilitation in services are close to reaching a positive conclusion at the WTO ministerial conference starting later this month, announced Thursday journalists.
The negotiations, launched at the end of 2017, aim to facilitate trade in services by simplifying administrative regulations and technical standards.
“Participating members are on track to adopt a ministerial declaration that will herald a positive conclusion to the negotiations,” said Jaime Coghi, chairman of the talks on domestic regulation of services.
The 12th WTO Ministerial Conference takes place at the headquarters of the World Trade Organization in Geneva from November 30 to December 3.
The 66 WTO members negotiating on domestic regulation of services are still finalizing their schedules of commitments ahead of the conference.
“Implementation between G20 economies can potentially reduce trade costs by up to six percent over three to five years,†Costa Rican diplomat Coghi said.
“The effects would be greatest in highly regulated industries… such as commercial banking, telecommunications and insurance, as well as IT and professional services.
“The savings could amount to over $ 140 billion in the medium term.”
Trade in services has grown considerably over the past decade and the WTO now estimates that it accounts for around half of world trade.
However, the costs of trade in services are about double those of trade in goods.
A significant portion of the costs is attributable to regulatory differences as well as opaque regulations and cumbersome procedures.
WTO members are free to regulate their service sectors. However, a group of WTO members – 66 since the Philippines joined plurilateral negotiations this week – have pledged to develop good regulatory practices so as not to unnecessarily restrict trade.
This group of countries, which the United States joined in July, accounts for about 90 percent of trade in services.
The proposed commitments aim to increase transparency, predictability and legal certainty.
The final text should contain a provision on non-discrimination between men and women, to stimulate the latter’s participation in trade in services – a first for a text negotiated at the WTO.
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