On Monday, the World Bank and WTO presidents urged countries to make global services trade more open and predictable to eliminate poverty in developing nations.
The two institutions’ joint research, “Trade in Services for Development,” noted that services like tourism and telecommunications account for two-thirds of global GDP yet face higher trade barriers than products.
It stated that the WTO is responsible for liberalizing services, but its member nations have not jointly enhanced market access since the telecoms treaties 1997.
“There is a need to reignite international cooperation in the services sector,” said World Bank President Ajay Banga and WTO Director-General Ngozi Okonjo-Iweala in the report’s foreword.
“Such efforts need to expand trade and investment, reduce trade costs, bring about greater transparency and predictability on trade policy regimes and, ultimately, increase the participation of developing economies…,” it stated.
The paper sought to “recall the benefits of advancing the negotiating agenda on trade in services and the opportunity costs of doing nothing” rather than offer answers. It stated the two bodies would assist governments.
Last month, Banga became World Bank president and ordered staff to increase development and climate efforts to speed the bank’s global problem-solving.
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