Good regulatory practices to facilitate trade in services

Services are currently the largest and most dynamic sector of many economies, underpinning growth, productivity and employment. Yet, the costs of trading services remain significantly higher than those for goods, largely due to regulatory and governance differences across economies. Furthermore, opaque and inefficient authorization procedures for service providers can limit participation in services trade, particularly for developing economies. To address these challenges, over 70 WTO members adopted new Disciplines on Services Domestic Regulation, which entered into force in 2024. These disciplines aim to embed good regulatory practices (GRPs) into services policies and facilitate services trade by fostering transparency, predictability and efficiency in regulatory frameworks. This publication examines how GRPs can reduce trade costs, enhance economic performance and support financial inclusion. It outlines 14 core GRPs for improving transparency and efficiency in authorization and licensing processes, with the aim of promoting international regulatory cooperation. Four case studies, focusing on Costa Rica, Indonesia, the Philippines and Thailand, illustrate how reforms anchored in clear legal frameworks can reduce compliance costs, enforce quality standards and reduce processing times. The publication also introduces the Diagnostic and Reform Planning Tool, a new instrument developed to assist policymakers and regulators in mapping their domestic regulatory frameworks against the 14 GRPs set out in this publication.