Geneva, 2 December 2021 (TDI): 67 members of the World Trade Organization (WTO) agreed on Thursday to rescind regulations such as licensing requirements imposed on overseas service providers, a move that could save $150 billion in annual trade costs.
A group of developed and other developing countries from Peru to the Philippines is committed to transparency. Legal certainty, and a simple control system with electronic applications and clear and reasonable payments.
The signatories, including the United States, China, and EU members, are a minority of 164 WTO members but represent 90% of all trade services. The Organization for Economic Co-operation and Development (OECD) has estimated that implementing looser regulations in the G20 countries could reduce trade costs by up to 6%, with annual savings rising to $ 150 billion.
Banking, information technology, telecommunications, construction, and engineering will be among the most profitable service sectors. The agreement aims to provide transparency to service companies that are often obliged to submit large amounts of paperwork to regulators and to be left in the dark about how their applications are processed.
The European Services Forum, whose members range from Apple to Zurich Financial Services. Warmly welcomed the conclusion of negotiations in a deal, saying the industry has been looking for something like this for more than 20 years.
The treaty included the provision for non-discrimination against men and women, for the first time in the WTO agreement. It also provides a seven-year transition period for compliance with developing countries.
Although most WTO members have not signed the agreement. They are free to do so and their businesses will still benefit from the transparent and effective rules of the 67 participating members.
WTO is an international organization working worldwide. Among the many roles of WTO, it is conducting the rules and regulations of trade between and among states. The objective of WTO is to ensure the free and smooth flow of trade.
