The World Trade Organization has reached a deal among its members that is expected to save businesses — especially small ones — $150 billion every year.
The WTO said the deal came during its 12th Ministerial Conference (MC12), with members including the US, EU, and Saudi Arabia agreeing to new ways to help businesses.
The agreement is said to have called for members countries and groupings to create domestic regulation for services.
According to the WTO, such regulations would “improve the business climate, lower trade costs, and cut red tape so as to facilitate services trade worldwide.”
A statement from the organization quoted its Director-General Ngozi Okonjo-Iweala as saying: “This is the first set of rules on services in 24 years. It addresses a dynamic and fast-growing segment of global output. This agreement has been completed despite the postponement of MC12.”
He added: “It will save businesses, especially small businesses, $150 billion annually in costs according to WTO and OECD research.”
He went on to say: “This agreement also breaks new ground in that, for the first time in the WTO’s history, members will commit to ensuring non-discrimination between men and women in their services regulations.”
The regulations are expected to cover licensing and qualification requirements and procedures as well as technical standards, said the WTO.
They are also expected to result in particularly important gains for financial, business, communications, and transport services.
The WTO said that the agreement would seek to make the domestic processes regulating the authorization to supply a service clearer, more predictable, more transparent, and not unduly burdensome.