| 37 The transport and distribution supply chain Transport and logistics services are not only extensively traded in their own right but are also intermediate services at the core of global value chains and just-in-time inventory management, with the related demand for door-to-door services. The importance of transport and logistics services have increased in the context of efforts to address the COVID-19 pandemic. Distribution services, including online retail sales, are essential for bringing goods from the producer to the consumer, for job creation and for demand-driven economic growth. Below are short descriptions of the ten sectors that fall within the category of transport and distribution supply chain. Air transport services are defined as passenger and freight air transport (ISIC Rev 4, code 51), carried domestically or internationally. This sector covers commercial establishment only. Air transport services are traded in their own right and are an intermediate service for other kinds of trade. Air cargo transport is also a key determinant for meeting demand for time sensitive products and often represents the only viable means of transport to remote, peripheral regions and landlocked countries. Maritime freight transport services covers sea shipping and related port activities (ISIC Rev 4, code 5012), but excludes maritime passenger transport and transport on internal waterways. Rail freight transport services includes rail infrastructure management and operation of freight services (ISIC Rev 4, code 4912). Rail transport services are traded and part of a network that provide intermediate services essential to global value chains and just-in-time inventory management. Road freight transport services is defined as freight transport by road (ISIC Rev 4, code 4923). The STRI for this sector covers commercial establishment only. Cross-border trade is governed by a system of bilateral and plurilateral agreements which provide for permits, quotas and other regulations. Courier services is defined under ISIC Rev 4 code 53 as postal and courier activities. Though traditionally mailed letters declined, the rise of e-commerce increases the demand for parcels and express deliveries. Consequently, timely, precise, and reliable delivery services become critical. Distribution services covers general wholesale and retail sales of consumer goods (ISIC Rev 4, codes 46 and 47), though specific regulation of speciality distribution sectors such as pharmaceuticals and motor vehicles are not considered. The STRI in this sector also covers regulations relating to electronic commerce, given the increasing prevalence of multi-channel retail services as a form of distribution services. Logistics services in the STRI are defined as cargo-handling services (ISIC Rev 4, code 5224), storage and warehousing services (including customs warehouse services) (ISIC Rev 4, code 521), freight forward services and customs brokerage services (ISIC Rev 4, code 522). Since the regulatory framework for these four sub-sectors can be different in many countries, separate indices are developed for each of them.
Market bridging and supporting services Economic activity in general and international transactions in particular rely heavily on access to credit, payment systems and insurance. A legal framework supporting the enforcement of contracts is one of the most important pillars of a market economy in which strangers can do business with each other. Trustworthy, transparent and easy to understand accounting information and services further strengthen business structures and enable better regulatory compliance. Below are short descriptions of the four sectors that fall within the category of market bridging and support services. Commercial banking services are defined as deposit-taking, lending and payment services (ISIC Rev 4, code 64). Commercial banking services are traded business to business, as well as business to consumer
THE OECD SERVICES TRADE RESTRICTIVENESS INDEX: POLICY TRENDS UP TO 2022 © OECD 2022