The OECD Services Trade Restrictiveness Index (STRI) report for 2023 outlines the evolving landscape of global services trade policies, focusing on trends until 2022. Key points highlighted:
Main Findings:
Dynamic Regulatory Environment: The global regulatory environment for services trade experienced significant changes in 2022, marked by an increase in regulatory activities compared to the previous year. This reflects collective efforts by countries to address global economic challenges.
Liberalization and Barriers: There was a notable shift towards liberalization, with governments enhancing business operations domestically, improving regulatory transparency, and easing constraints on business travel post-COVID-19. However, new barriers emerged, including limitations on foreign companies providing services locally, restrictions on the movement of service providers, and tightened controls on foreign direct investment.
Level of Restrictions: Non-OECD countries showed significantly higher levels of services trade restrictions (1.5 times) compared to OECD countries, indicating ongoing regulatory fragmentation and uneven conditions for services market access.
Top Performers: Economies like Japan, the United Kingdom, and the Netherlands demonstrated low regulatory barriers to services trade. Countries with the highest impact on trade liberalization in 2022 included Viet Nam, Japan, and Kazakhstan.
Domestic Regulations Impact: Domestic regulations, particularly those concerning licensing and authorization, significantly influence the supply of services. The STRI offers insights into the application of these regulations across countries, revealing a high degree of regulatory alignment in sectors like financial services with best practices identified in the WTO's Reference Paper on Services Domestic Regulation.
Economic Implications: An OECD-WTO joint analysis suggests potential trade cost savings of around USD 150 billion annually if services domestic regulation disciplines were fully implemented. Addressing barriers that increase trade costs for services providers, hinder digital transformation, and undermine competitiveness is crucial for economic recovery and resilience.
Monitoring Changes: In 2022, the volume of global trade in goods and services increased by 7% compared to the fourth quarter of 2019, though services trade recovery lagged behind goods trade. The STRI reflected this dynamic, showing a net increase in services trade restrictiveness compared to the previous year.
Sectoral Analysis: Sectors most affected by new restrictions included audio-visual services, computer services, and physical infrastructure services. Conversely, sectors most impacted by liberalization efforts were professional services (e.g., architecture and engineering) and certain transport and logistics services.
Implications for Future Policy: The report underscores the importance of maintaining open and well-regulated service markets to facilitate economic recovery, strengthen resilience to future shocks, and promote a sustainable trading system. Policy makers should focus on minimizing barriers that increase trade costs for services providers, undermine the benefits of digital transformation, and compromise competitiveness.