trade policy brief
Joint Initiative on Services Domestic Regulations: Reducing Services Trade Costs in the G20 and beyond
October 2021
S ignificant economic benefits: Adoption and implementation of the Joint Initiative on Services Domestic Regulations can generate services trade cost savings of over USD 140 billion annually across G20 countries. S MEs will be the first to gain: Exporting to new markets involves the navigation of procedural hurdles and compliance costs. SMEs would enjoy an additional 2-3% cost reduction advantage relative to large firms.
Services sectors are key to economic recovery Services represent over 60% of GDP in value-added terms across G20 countries, underscoring their importance in supporting economic recovery, growth and well-being (Figure 1). Moreover, new technologies and the digital transformation enable the easier flow of services across borders and open new market opportunities, especially for smaller firms.
Services are also essential inputs into the production process and along supply chains of goods exports. Services are therefore important drivers of employment, productivity and innovation for developing and developed countries alike, and as such are critical to strong, sustainable and inclusive economic recovery.
Figure 1. Services are major economic drivers across the G20 (Services value added as a percentage of GDP, 2020) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Source: World Development Indicators (2020). Data for the United States is for 2019; for Japan, 2018; and for Canada for 2017.
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