APEC Moves Cut Barriers for Fast-Growing Services Trade

APEC economies are moving to cut regulatory barriers to services trade, advancing work on cross-border data flows, professional licensing and technical standards as they begin implementing a new regional services roadmap.

Officials meeting in Dalian are working on an implementation plan for the APEC Roadmap for Innovative, Competitive and Resilient Services, endorsed by trade ministers in May. The Group on Services has 12 months from the endorsement to develop the plan, which will guide APEC’s  work for building more open, predictable, innovative and resilient services sectors across the Asia-Pacific region.

The work focuses on addressing practical barriers encountered by businesses when selling services across borders. Economies are advancing discussions on services domestic regulation and technical standards, recognition of professional qualifications and licensing, as well as manufacturing-related services and structural reform.

Digital trade is emerging as another major focus. Officials are examining the treatment of artificial intelligence (AI)-related services across APEC economies, measures affecting digital trade in services and how trusted data flows can support policymaking and business operation.

“The full potential of digital services in terms of trade and investment will also not be realized if barriers still hinder data flows,” said Peter Ta-Lin Shih, Convenor of the APEC Group on Services.

The push follows discussions a day earlier among policymakers, business representatives and experts on how AI and digital technologies are changing services trade and firms’ participation in global value chains.

The dialogue zeroed in on barriers affecting cross-border data flows and digitally delivered services, the measurement of digital services trade and ways economies can cooperate to manage the risks accompanying digital transformation.

“When we talk about how to embrace digital transformation by examining practical barriers affecting cross-border data flows and digitally delivered services, we in reality aim for freer and more open trade and investment,” Shih said.

The discussions are also feeding into APEC’s work toward a Free Trade Area of the Asia-Pacific (FTAAP), with officials considering where services cooperation could deliver earlier progress. Areas under discussion include greater coherence in services policies and technical standards, capacity building and information sharing, as well as approaches to future services commitments.

Officials are now turning to how the new roadmap will work in practice, including what individual economies will contribute, how work across APEC groups can be coordinated, and how progress will be tracked and reported.

The implementation plan will translate the roadmap into a work program for APEC economies, with the Group on Services responsible for developing it within the timeframe set by ministers.