The UK services industry is set to be a major beneficiary as members of the World Trade Organization (WTO) agreed to a deal that could cut trade costs by £113 billion a year.
Banking, information technology, telecoms, architecture and engineering are among the service sectors which could benefit most from the deal.
In a first of its kind for the WTO, the agreement also contains a provision on gender equality. This will support the participation of women entrepreneurs in the global services trade and improve the inclusiveness of services trade. WTO members aim to bring the new rules into force in 2023.
Determination to end red tape
As the world’s second-largest services exporter, the UK has joined 67 members in agreeing to cut red tape around licensing and qualifications with Services Domestic Regulation which is set to reduce services trade costs by up to seven per cent annually.
The signatories, which also include the United States, EU and China represent 90 per cent of all services trade, but are a minority of the WTO’s 164 members.
The UK, which has now taken its seat at WTO as an independent trading nation, has been an active participant throughout negotiations since they were launched at the 11th Ministerial Conference in Buenos Aires in 2017,
British businesses consistently cite complex administrative procedures as barriers to accessing international markets.
The new rules will make it easier for businesses of all sizes – particularly small and medium-sized enterprises (SMEs) – to navigate foreign markets and obtain authorisation to export overseas.
How will the UK benefit from the deal?
Once the rules are in force, businesses can expect licensing applications to be processed promptly, acceptance of electronic copies of qualifications by competent authorities, and an end to unreasonable and hidden fees.
The UK will be among a handful of nations applying the new rules across the broadest possible range of services sectors, including financial services. The biggest savings are likely to be in finance and tech – helping ensure London retains its position as Europe’s leading financial centre.
Secretary of State for International Trade Anne-Marie Trevelyan said: “We are delighted to have played our part in bringing about this historic deal, which shows exactly the kind of cooperation we want to see at the WTO and demonstrates it can deliver trade rules fit for the 21st century.
“As the world’s second-largest services exporter, the UK is particularly aware of how important it is to cut red tape and get trade flowing to build back better from the pandemic.”
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