WTO Advances Work on Services Trade, GRPs, and Digital Payments in June Talks

WTO members convened for a series of meetings from 10 to 13 June under the Council for Trade in Services, where they took significant steps to advance the multilateral trade agenda in services. The meetings focused on regulatory reform, digital finance, environmental services, and the participation of developing and least-developed countries (LDCs) in global services markets. These discussions come in the wake of mandates from the 13th Ministerial Conference (MC13) to reinvigorate services trade, with broad recognition that services are central to economic transformation, digital innovation, and sustainable development.

Good Regulatory Practices: Strengthening Services Governance

A highlight of the week was a thematic session on Good Regulatory Practices (GRPs), held on 12–13 June. GRPs involve strategies to improve regulatory design and implementation—emphasizing transparency, stakeholder engagement, and digitalization. Representatives from international organizations such as the OECD, World Bank, UNCTAD, APEC, ASEAN, and the International Trade Centre presented empirical data and case studies demonstrating how well-implemented GRPs can enhance services trade and resilience.

National experiences from Australia, China, the EU, Hong Kong China, the Philippines, Korea, and the UK illustrated how GRPs help reduce administrative burdens, increase predictability, and foster cross-border regulatory cooperation. Members underscored the benefits of digital tools, single-window portals, and inter-agency coordination in enabling agile and transparent regulation.

“GRPs do more than facilitate trade — they enhance national competitiveness and consumer welfare,” emphasized Council Chair Ambassador Ram Prasad Subedi of Nepal, highlighting the critical link between sound regulation and economic growth.

Responding to Ministerial Mandates

Members also advanced their response to MC13 instructions by exploring new proposals that align services trade with sustainability and resilience objectives. The ACP Group submitted a paper emphasizing the importance of services trade in crisis response and resilience building, particularly in developing countries.

In addition, Barbados, South Africa, and the UK jointly proposed a thematic session on the green services economy. Members broadly supported this initiative, aiming to hold an experience-sharing session in December 2025, contingent on agreement over the agenda and speakers.

Also scheduled is an October session on the recognition of professional qualifications, reinforcing the Council’s emphasis on mobility and equitable access in international services markets.

Boosting LDC Participation in Services Trade

The WTO LDC Group reiterated its request to launch a survey on LDC service suppliers' market engagement, in line with the 2011 LDC Services Waiver. Despite ongoing resistance from one member, consultations continue. The LDC Group emphasized the survey’s potential to inform targeted capacity-building and support strategies, in alignment with the MC13 agenda to increase LDC participation in services trade.

Tensions and Cooperation: Services Trade Concerns

Members also used the Council platform to raise specific trade concerns, reflecting persistent tensions in global trade policy:

• China raised objections to recent U.S. tariff measures, urging consideration of total trade balances, including services.

• The U.S. responded by criticizing China's continued market restrictions and opaque practices in several services sectors.

• Cybersecurity-related regulations in China and Viet Nam were again challenged by Japan and the U.S., with some support from other members.

• China raised concerns about certain U.S. restrictions and India's measures targeting mobile applications.

Despite these frictions, members reaffirmed the WTO’s role as the appropriate forum for multilateral cooperation and dispute avoidance.

Focus on Financial Services: Digital Payments and Remittances

The Committee on Trade in Financial Services, chaired by newly appointed Will Nixon of Australia, discussed proposals to hold an informal thematic session on digital payment systems and remittances, reflecting the growing relevance of financial technology in global services trade.

• The proposal—first introduced by China, India, Pakistan, and the Philippines—focuses on interoperability, cost reduction, and cross-border integration of digital financial platforms.

• Unless objections are raised by 20 June, the proposal will be adopted and the session scheduled for late September 2025.

• A new Moroccan proposal emphasized the importance of remittance cost reduction for economic stability in developing economies. Morocco signaled its intention to bring the topic to the 14th Ministerial Conference (MC14) in 2026.

Environmental Services Classification Gains Momentum

Under the Committee on Specific Commitments, chaired by Sirapat Vajraphai of Thailand, members examined efforts to define and classify environmental services. The UK’s comparative analysis of the APEC Reference List and the ACCTS List was praised for providing clarity in this evolving policy area.

Members agreed to hold an experience-sharing session in October on environmental services classification, building on Canada’s earlier proposal. These sessions aim to bridge gaps between trade and climate action by identifying sustainable service sectors for liberalization and cooperation.

Simply Services Series: East Asia & Pacific in the Spotlight

On 12 June, the WTO hosted a session under its “Simply Services” series, entitled “Services Unbound: Digital Technologies and Policy Reform in East Asia and the Pacific.” The event addressed the region’s unique challenges in adapting digital services frameworks and identified reforms needed to foster innovation and competitiveness in rapidly changing markets.

Speakers called for:

• Greater competition in foundational services like telecom and finance

• Stronger domestic regulatory reforms

• Enhanced regional and global cooperation to address digital divides

Looking Ahead: Next Steps for Services Trade at the WTO

The Council reaffirmed its commitment to further thematic dialogues, regulatory learning, and inclusive participation in services trade policymaking. Members are expected to reconvene in September and October 2025 for a new round of thematic and formal discussions, including sessions on:

• Digital payments and financial innovation

• Green and environmental services

• Professional qualification recognition

• LDC survey resolution and support

The WTO Secretariat will continue facilitating technical assistance and cross-sectoral analysis to support members in implementing domestic services reforms and leveraging international agreements.

“Regulatory reform is not a one-off task—it is an ongoing journey shaped by collaboration, innovation, and shared goals,” concluded Chair Ambassador Subedi.