New trade policies introduced by the Organization for Economic Cooperation and Development (OECD) and the World Trade Organization (WTO) aim to reduce bureaucratic procedures and increase transparency, which could translate annual cost savings of up to US$150 billion.
The proposed solutions aim to improve the business climate “by enhancing the transparency, efficiency and predictability of regulatory frameworks,” according to the WTO study. The organization’s simplified procedures “will address the practical challenges that affect the ability of businesses and suppliers to operate in foreign markets.”
Overall, WTO plans to lower trade costs and bring trade benefits that would amount to annual savings of up “to US$ 150 billion globally, with important gains for financial, business, communications and transport services.” The changes would lead to an increase in the value of services trade and lead “to enhanced participation in global value chains.”
The reduction of services and trade barriers would address some of the challenges faced by services companies when providing services to foreign jurisdictions. “Streamlined regulations in services sectors could reduce the time and cost required for dealing with administrative barriers and regulatory red tape. These cost savings can incentivize new trade and new investment. They can also be passed on through lower prices to users of these services, including consumers and businesses.”
These changes come at a key period in the time given the current state of the trade industry. Shipment problems worry retail experts and might affect the final cost of goods and interrupt manufacturing chains, as previously reported by MBN. As an increasing number of businesses try to find better ways to transport their products, simplifying services and regulations could bring down costs and incentivize trade between countries.