OECD ranks New Zealand’s service sector amongst most open

New Zealand’s service sector ranked amongst the most open in a recent survey of 40 countries conducted by the Organisation of Economic Cooperation Development (OECD) says Trade Minister, Tim Groser, speaking from the OECD's annual Ministerial Council Meeting in Paris. 

The OECD’s new Services Trade Restrictiveness Index (STRI) aims to quantify the restrictiveness of policy measures related to trade in services for the 34 OECD members countries as well as Brazil, China, India, Indonesia, Russia and South Africa across 18 sectors.

"New Zealand’s overall STRI report card demonstrates just how open, competitive and efficient our services economy is. 

"We have a better STRI score than the average for 15 out of the 18 sectors covered by the index. In areas such as accounting services, engineering, road and air transport, we are assessed to have some of the most open regimes amongst the countries surveyed, says Mr Groser. 

Service exports are an important component of New Zealand’s trade profile in their own right, totalling around NZ$16 billion in 2013 and comprising around 25% of total exports. While tourism is the biggest contributor, exports of commercial services in areas like communications, finance and information technology, now make up around a quarter of New Zealand’s total services exports.

"In addition to the revenues New Zealand can earn directly from services exports, well-functioning transport, logistics and finance systems are the oil in the wheels for New Zealand’s more than $60 billion worth of exports.

"According to the OECD, the value added from the services sector accounts for around 46% of the total value of New Zealand exports. 

"With world trade increasingly taking place within global value chains, our exporters need to be able to access and participate in these service sectors in other countries where they are doing business. We will therefore continue to use our FTA agenda, services negotiations in Geneva and participation in economic fora like the OECD to encourage our trading partners to reduce barriers to services trade," Mr Groser says. 

For more information on the OECD’s recently released STRI, refer to http://www.oecd.org/tad/services-trade/services-trade-restrictiveness-index.htm