The president of the International Organization for Standardization (ISO), Sung Hwan Cho, emphasized the crucial role of international standards in enhancing global trade in services during his speech at the 2024 China International Fair for Trade in Services in Beijing on Saturday.
Cho highlighted that trade in services has emerged as the most dynamic segment of global trade in recent years, outpacing the growth of trade in goods. He noted, “Developing countries and transitioning economies have increasingly played a more prominent role in this sector, significantly expanding their share of global trade.”
As the services sector expands, Cho underscored the need for international standards to establish best practices, ensure consistent service quality, and build consumer trust. He stated, “Policymakers face challenges in evaluating whether current rules for services trade are sufficient and whether new risks require targeted government regulation. International standards can play a crucial role in facilitating these efforts.”
International standards, when widely adopted, provide a common language and consistent framework that can be globally recognized and relied upon. They help reduce trade barriers by aligning regulatory requirements and facilitating mutual recognition among countries. “This is crucial in a sector as diverse and rapidly evolving as services,” Cho added.
Through its network of 172 members, ISO develops standards that define excellence and ensure reliability, safety, and quality. By collaborating with diverse stakeholders, ISO creates benchmarks that simplify choices, build trust, and support global trade, delivering broad economic, environmental, and social benefits.
Cho pointed out that ISO standards are aligned with the General Agreement on Trade in Services (GATS), the first multilateral trade agreement to cover trade in services, which applies to the 162 members of the World Trade Organization (WTO). While GATS aims to facilitate progressive liberalization of services sectors, related negotiations are ongoing. Cho explained, “With these negotiations in progress, an interim solution has to be put in place: WTO members must ensure that any new regulations on services they introduce in sectors they have liberalized do not constitute unnecessary trade barriers. Following international standards provides a presumption of conformity.”
He cited examples where ISO standards help ensure service regulations comply with international trade objectives, including sectors like management consultancy, tourism and related services, and education and learning services—significant components of trade in services.
Cho also commended China for its active advancement of service sectors via standardization. He highlighted the ISO Technical Committee on Tourism and Related Services, to which Chinese stakeholders have made significant contributions. The committee has developed international standards spanning a wide range of areas, from tourist information services and online travel agencies to exhibitions and events. “This underscores the huge importance of synergy between trade development and standards cooperation,” he remarked.
Concluding his speech, Cho called on all stakeholders in global trade in services to place ISO standards at the core of their strategies. “Doing so can help foster a brighter, more sustainable future for all,” he affirmed.
Reference(s):
Development of trade in services calls for international standards
cgtn.com