OECD Services Trade Restrictiveness Index

The OECD’s quantification of services regimes across countries and over time seeks to inform the decisions of policymakers and regulators, to convey transparent and accessible information to exporters, and to provide a source of data for academic research on drivers and impediments to trade in services. This report presents the key findings and trends identified in the 2024 edition of the OECD Services Trade Restrictiveness Index (STRI).

• Market access and regulatory barriers continue to impede fair trade in services. New OECD STRI data demonstrate that impediments to trade in services remain at high levels and, in some countries, continue to increase over time. These restrictions are asymmetric across countries and sectors, creating an uneven playing field on a global scale. For example, some economies are, on average, 56% more closed than OECD Member countries. Services are a powerful engine of economic growth, accounting for over USD 5 trillion in exports from OECD member countries. International action and domestic regulatory reforms can create a more predictable and transparent international trading system, thereby reducing trade imbalances and promoting economic growth.

• Slowdown in action to ease regulatory hurdles for trade in services. Across all services sectors, the pace and magnitude of reforms were moderate in 2024 compared to 2023. This suggests a slowdown in global efforts to ease regulatory hurdles for services trade. Increases in levels of restrictiveness are identified in all 22 services sectors covered. Examples of meaningful trade liberalisation are concentrated in just a handful of sectors, including postal services and some professional services.

• Japan, the United Kingdom and the Netherlands are the top performers in 2024 with the most open markets for services. Spain, Czechia, Latvia, Portugal, Germany, Chile and Lithuania round out the top ten. Conversely, 31 of the 51 economies in the index maintain restrictions exceeding the OECD average.

• Portugal, Greece, and India are the leading reformers in 2023-24, having implemented the highest degree of liberalising reforms. Portugal eased foreign practitioners’ access to professions in construction, legal and accounting services, Greece introduced reforms to facilitate services provision and promote movement of people, while India ended a monopoly in the postal sector.

• Regulatory changes on conditions for foreign investment in services and the temporary movement of services suppliers are common in 2024. A large share of the regulatory developments identified in 2023-24 relate to new or revised conditions for supplying services through commercial affiliates. Several countries such as the Netherlands, Singapore or Sweden, adopted new screening mechanisms for foreign direct investment covering also services sectors. Several European countries have also revised existing screening procedures to enhance transparency and clarity on the process. While restrictions on the temporary entry of services suppliers remain high in general, many countries implemented more flexible conditions on assessing the need for foreign talents in order to address labour shortages. For instance, Australia and Czechia eased conditions related to demonstrating the need for foreign talent, Greece increased the duration of stay for non-EU services providers, and Denmark introduced some exemptions for short stays.

• Restrictions on digital trade are high. The OECD Digital Services Trade Restrictiveness Index (Digital STRI) shows that restrictions on digital trade have been growing over time and continue to be highly divergent across countries. The regulatory environment affecting digital trade also evolves at a rapid pace, with some common changes in 2024 affecting key policy areas such as cross-border data flows, telecommunications services and levies on digital services.

• Revitalising services trade discussions for global growth. OECD STRI data from the past decade reveal that global barriers to services trade remain high. Reducing these barriers can enhance supply chain efficiency, boost access to foreign inputs, and promote innovation. Services trade also holds significant potential for sustainable development and environmental stewardship. The implementation of ambitious services trade reforms could potentially lead to trade cost savings up to USD 1 trillion annually. To realise these benefits, governments should strengthen efforts to revitalise international services trade discussions, undertake whole-of-government reforms at the national level, and set measurable targets, with active business involvement to ensure effective implementation.