Trade in services continues to face significant regulatory barriers that hamper economic growth and competitiveness. This is according to the OECD’s latest Services Trade Restrictiveness Index (STRI): Policy Developments to 2025*, a tool that tracks developments in 51 economies around the world and in 22 key services sectors.
According to OECD data, trade barriers in the services sector remain high and are even rising in some countries. Asymmetric regulatory conditions create unequal opportunities for businesses across the world. Japan, the UK and the Netherlands have the most open services markets, while 31 of the 51 countries surveyed still apply restrictions above the OECD average.
Although services account for more than $5 trillion in OECD exports, the pace of deregulation is slowing. In 2024, there is a slight increase in restrictions in all 22 services sectors surveyed. The exceptions are reforms in Portugal, Greece and India, where there has been a significant relaxation of rules. Portugal, for example, has facilitated access to foreign doctors for professions in construction, legal and accounting services, Greece has introduced reforms to facilitate the provision of services and promote the movement of people, while India has abolished its monopoly in the postal sector.
The digital sector is facing an increasing regulatory burden. The Digital STRI Index points to stricter rules for cross-border data flows, telecoms services and digital charges. The OECD warns that persistent barriers to digital trade can negatively affect the global economy and the innovation potential of firms.
In Slovakia, there have been several legislative changes in the area of trade in services by 2025. For example, applications for architectural services can be submitted electronically from 2024, and in 2023 a government regulation on screening foreign investments in critical sectors such as telecommunications, banking and transport came into force. The screening applies to certain non-EU investments. Since 2018, Slovakia has eased accounting services procedures regarding the recognition of qualifications obtained in third countries.
“Slovak companies need to react quickly to market needs, but they face various European and national regulations that make it difficult. For example, expanding production is not easy because it has to go through various permitting procedures, which are unreasonably long. Bureaucracy is one of the main reasons why exports cannot respond flexibly enough to foreign demand. We need to simplify the rules for doing business and support the development of Slovak exports ,” said Rastislav Podhorec, CEO of Eximbanka.
The OECD highlights that reforms in the services sector could generate global trade cost savings of up to USD 1 trillion per year. To achieve this, it is essential to renew discussions on international trade in services, simplify regulatory conditions and actively involve the business sector in policy-making.
*Source: OECD Services Trade Restrictiveness Index (STRI): Policy Trends up to 2025, OECD Services Trade Restrictiveness Index: Policy Trends up to 2025, OECD Publishing, Paris, https://doi.org/10.1787/9953845b-en.
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About Eximbanka
As the only direct instrument of the state for export financing, the Eximbank is an important part of the chain responsible for the enforcement of the country’s economic policy in the field of external economic relations. It is an important instrument of state support for exports in the field of financing, provision of guarantees and insurance of credit risks. It offers a wide range of export-related financial products, especially credit insurance, financing and guarantees. As a state export credit agency, it enables Slovak exporters to enter into trade and investment relations where the commercial financial sector is less interested in taking on risk and therefore performs a complementary function.
Media contact Martina Vráblik Solčányiová
EXIMBANKA SR
Tel: +421 903 542 072