Barriers to services trade remained high in 2025, as new restrictions offset market-opening reforms and momentum to ease existing barriers slowed, according to new data from the OECD.
The OECD Services Trade Restrictiveness Index 2026: Policy Trends shows that reforms were fewer than in the previous year, pointing to a stagnation in services trade policymaking activity at a time when trade debates remain largely focused on manufacturing. This stagnation in services reform compromises future competitiveness, where advancing artificial intelligence foreshadows a surge in cross-border service activities.
The data reveal wide differences in regulatory performance across economies. In 2025, Japan, the Netherlands and Spain ranked among the most open services markets, while nearly two-thirds of economies covered by the Index remained more restrictive than the OECD benchmark. Although the gap between OECD and non-OECD economies has narrowed over the past decade, regional disparities persist, contributing to uneven competitive conditions and ongoing trade imbalances.
Addressing persistent asymmetries in services trade restrictiveness should be a priority in the context of action to reduce global imbalances. In 2024, OECD economies exported over USD 6 144 billion in services, emphasising the importance of services in trade balances. Among the top-10 services exporters, the United States, the United Kingdom, Ireland, France, India, Singapore, and the Netherlands had a trade surplus in services, meaning that they sold more services to other countries than they bought.
Some economies continued to push ahead with reforms. New Zealand, Indonesia and India led reform efforts in 2024–25, easing procedures for business travel, lowering restrictions on foreign entry across several services sectors, and liberalising insurance services, respectively. Air transport, legal and accounting services remain among the most restricted sectors overall, limiting competition and economic efficiency.
Digital services are the fastest-growing segment of international trade, yet fragmented regulations risk holding back growth. OECD Digital Services Trade Restrictiveness Index data show that local presence requirements and restrictions on cross-border data flows remain widespread. Over the past decade, regulatory barriers have eased in Africa and the Americas, but have increased in other regions, notably in Europe and the Asia-Pacific. Despite recent easing, digital services regulations in many African economies remain high, with restrictions that are, on average, three times those in OECD countries.
The report highlights that modernising services regulation could deliver significant economic gains. OECD estimates suggest that comprehensive services trade reforms could reduce global trade costs by around USD1.6 trillion a year, with the largest benefits in some professional services, financial services, transport and communications. Renewed reform efforts will prevent economies from missing out on productivity gains and value creation linked to the next phase of digital and AI-driven services growth.
For more information on OECD work on services trade, visit https://www.oecd.org/en/topics/services-trade.html
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