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WTO asked to improve free trade in finance services

Global financial groups on Thursday lobbied the World Trade Organisation to tear down trade barriers in financial services by making rules more transparent and easing access to markets.

Representatives from banking, insurance, pensions, securities and asset management urged the WTO to speed talks with member states on liberalisation, saying both rich and poor nations would benefit.

Toru Kusukawa of Fuji Research Institute Corp said freeing up financial services helped governments implement economic policy and balance budgets and accelerated modernisation in developing countries via greater access to capital and know-how.

Experts from an array of global institutions were in Geneva to give WTO delegates -- more used to trade talks than the workings of financial markets -- a crash course in industry dynamics in a bid to convince them to open up financial borders.

All participants agreed that lifting the veil of secrecy over regulation in many countries required urgent attention.

"The lack of transparency is as harmful to free trade in financial services as tariffs are in the goods industry," said Matthew Goodman, executive director and head of European government affairs at investment bank Goldman Sachs.

"We're talking here about the openness of the administrative process within a country, so all parties know the rules and why they are there, can anticipate the rules and are not subject to arbitrary investigations.

"This doesn't mean regulators cannot regulate...we just want the process to be open," he said.

POOR MARKET ACCESS

Other grievances were limited access to markets due to obstacles to foreign firms taking majority stakes in other companies, or joint ventures, lengthy and difficult approval for new products and licensing restrictions or prohibitions.

Insurance industrial officials complained about difficulties in expanding a market presence once companies had gained an initial foothold, while participants also lamented stringent rules on the movement of foreign personnel.

"Once you get market access, there needs to be a level playing field," said Brant Free, senior vice president of international external affairs at Chubb Corporation.

But firms know from experience that convincing the WTO to act and getting signatories to conform, will be a long process.

The first financial services agreement was reached in 1997 -- three years after the Uruguay global trade round was completed -- but many of the WTO's 142 members have still to ratify and implement that deal.

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