Members agree on topics for experience-sharing sessions on services trade

Members also explored the linkages between services trade and environmental sustainability at an event organized by the WTO Secretariat on 12 March.

Giving effect to ministerial mandate

The agreement to organize informal experience-sharing sessions on good regulatory practices and recognition of professional qualifications stems from the February 2024 ministerial mandate to  reinvigorate work on trade in services and to facilitate the increased participation of developing members in services trade. Members will also continue discussions on the possibility of organizing sessions on the green transition and digitalization.

Several members reiterated their call for not duplicating the work carried out in the Council's subsidiary bodies and for having balanced deliberations.

Participation of least-developed countries (LDCs) in services trade

Members responded favourably - pending final discussions on technical issues - to a request by the WTO LDC group to collect information through a survey hosted on the WTO website on how their service suppliers are engaging with consumers and enterprises in other economies. Particular attention will be paid to the 51 WTO members that have notified preferences for LDC services and service suppliers. Members reiterated their commitment to support the participation of LDCs in services trade.

Members have notified preferences for LDC service suppliers in line with a ministerial mandate to operationalize the “LDC Services Waiver”, which was adopted at the 8th Ministerial Conference in 2011.

A total of 37 WTO members are classified as LDCs. More information on the waiver can be found here.

Services trade concerns

Members discussed three previously addressed specific trade concerns involving cybersecurity measures and mobile applications, among other services-related topics.

Japan and the United States, supported by several other members, reiterated concerns about the cybersecurity measures of China and Viet Nam. China repeated concerns with certain services measures of the United States. China also reiterated its concerns regarding India's measures in relation to mobile applications.

Trade in financial services

Members continued discussing how to reinvigorate work on trade in services in the Committee on Trade in Financial Services. A new proposal, bringing together three earlier submissions from China, the Philippines and India, calls for information-sharing sessions on digital payments, interoperability of payment systems and cost of remittance services. The proposal also refers to crisis preparedness as advocated by Pakistan. Details of previous discussions can be found here.

The Committee is one of the Services Council’s subsidiary bodies.

Classification of environmental services

At a meeting of the Committee on Specific Commitments held on 11 March, members heard from Costa Rica and Switzerland about how the Agreement on Climate Change, Trade and Sustainability is helping its parties define, classify and make commitments in environmental services.

In the Agreement, Costa Rica, Iceland, New Zealand and Switzerland set out the commitments they have made on 114 services ranging from environmental protection to resource management and climate change adaptation and mitigation.

Members welcomed the presentation and agreed to engage further on this topic.

The Committee is one of the Services Council’s subsidiary bodies.

Recent developments in services trade policy

An event held on 12 March entitled "Nexus between Trade in Services and Environmental Sustainability:  Evidence from Recent Research" looked at the role of services trade in promoting environmental sustainability and the impact of environmental policy on services trade.

Introducing a forthcoming research paper titled "Services Trade and Environmental Sustainability: Conceptual Linkages and Empirical Patterns", the Organisation for Economic Co-operation and Development highlighted the important role that services trade can play in tackling environmental challenges. This is particularly important as services represent two-thirds of global output and are among the most dynamic sectors in international trade.

The value that services trade adds to supply chains can support greener production functions and consumption patterns, the OECD noted. For example, engineering services can be used in the green hydrogen production supply chain and financial services can support carbon mitigation projects.

The OECD paper makes the case for removing restrictions to services imports and for examining synergies with environmental policymaking. Countries at all levels of development stand to benefit from increased openness and participation in services trade as a result of increased domestic productivity, the OECD noted.

This event was organized by the WTO's Trade in Services and Investment Division as part of the “Simply Services” speaker series, an informal platform for sharing the latest information on trends in services trade. The webcast of the event can be watched here.

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