Good Regulatory Practices to Facilitate Trade in Services
This joint publication by the World Trade Organisation (WTO) and the World Bank explores how good regulatory practices (GRPs) can reduce the high costs associated with global services trade and unlock significant economic opportunities for countries at all income levels.
Services are the backbone of modern economies, contributing over two-thirds of global GDP and driving employment, innovation, and economic diversification. Yet, services trade remains far more expensive than trade in goods—often due to complex, unclear, or inconsistent regulatory procedures across markets.
The report highlights that regulatory inefficiencies, such as opaque licensing systems, fragmented information, high authorisation fees, and unpredictable approval timelines, create significant barriers for both domestic and foreign service suppliers. Small businesses and women-owned enterprises are particularly affected.
To address these challenges, the WTO’s new Disciplines on Services Domestic Regulation (SDR), which entered into force in 2024, promotes transparency, predictability, and efficiency in regulatory frameworks. The report outlines 14 key good regulatory practices that can cut trade costs by 8–14%, strengthen market competition, improve governance, and support inclusive economic growth. These include:
- Clear and time-bound processing of authorisation applications
- Acceptance of electronic submissions and digital payments
- Publication of regulatory requirements through consolidated online portals
- Stakeholder engagement and advance publication of draft regulations
- Independent and impartial decision-making
- Reasonable and transparent authorisation fees
- Enquiry points to support information access
- Regulatory impact assessments
- International and inter-agency cooperation for regulatory coherence
The report further illustrates practical country experiences from Costa Rica, Indonesia, the Philippines, and Thailand, showing how GRP reforms, supported by strong institutions and digital systems, can streamline processes, enhance service delivery, and lower business costs.
With services driving global competitiveness, the adoption of GRPs is essential for developing countries seeking to expand services exports, integrate into value chains, and promote inclusive, gender-responsive economic outcomes.