(March 30 – 17:10 ET) – The U.S. Securities Industry Association is encouraging negotiators to move forward and begin the hard work of forging a global trade pact. This urging comes as World Trade Organization members have agreed on broad guidelines for discussing ways to open global services markets.

“The guidelines agreed to yesterday, signal important progress towards new talks to continue liberalizing global markets, including those for financial services trade,” says David Strongin, SIA vice president and director, international finance. “We encourage trade negotiators to build on this momentum, and give the global economy a boost by reducing and eliminating barriers which harm investors, consumers, and businesses.

“Despite the tremendous extent to which securities markets are global, they fail to provide all of the financial services and products demanded by companies and investors. A significant reason is that regulatory and other non-tariff trade barriers continue to prevent investors and securities firms from gaining access easily to capital anytime, anywhere.”

One barrier Strongin cited are the restrictions placed by some countries on the type of corporate structure that foreign-based securities firms, banks and insurance companies can operate within their borders.

“We should achieve a consensus that allows financial institutions to solely choose the type of corporate structure that they think makes the most sense for their clients, rather than having to accept a joint venture or partnership arrangement, for example, because local laws mandate this for foreign companies,” Strongin said. Once a firm is established, it should be allowed to compete on the same terms as companies domiciled in the host country, he added.

The WTO should also work to enhance the transparency of countries’ rule-making procedures, Strongin said.
-IE Staff