policies in the area of cross-border supply of auditing and distribution services (commercial presence requirements), legal services being closed to foreigners, and labor market tests being applied for mode 4.

But how does this relative openness compare with goods trade policy (as measured by their tariffs)? Most high-income economies present relatively liberal policies for both manufactured goods and services (Figure 4). Some are much more liberal for goods than they are for services (e.g. Indonesia and Oman) and _vice-versa_ (the Republic of Korea, Chile and South Africa). Upper middle-income economies tend to be more protective for goods trade, whereas lower-middle income economies tend to have restrictive policies for trade in both goods and services. Also, economies in East and South Asia are appreciably more restrictive in services than in manufactured goods trade. Latin American economies are surprisingly open in services, while most of them retain substantial goods trade barriers (bottom left quadrant).

**Figure 4:  Services trade and goods trade policies, 2016**

<!-- Start of picture text --> Goods vs Services Trade Barriers<br>IDN IND<br>CHN MMR<br>PAN<br>PHL MYS<br>OMN THA EGY<br>TUN<br>VNM<br>ISL TUR ISR KAZ LKA ARG<br>MEX<br>SGPCHENOR CAN AUS NZL CRI EU23 UKRRUS KOR COL URY BRA PAKKEN NGA BGD<br>HKG USA PER DOMZAF CHL<br>JPN<br>ECU<br>0 5 10 15<br>Median<br>Applied Tariff Rates Manufactures (trade weighted) 2016<br>Color key: blue = OECD; navy = ECA; orange = EAP; dark orange = SAS;<br> green = LAC; black = SSA or MENA.<br>For Myanmar, Sri Lanka, Panama, Peru and Thailand 2015 tariff data are used.<br>Average STRI 2016 used for 23 EU member states.<br>70<br>60<br>50<br>40<br>STRI 2016<br>30<br>20<br><!-- End of picture text --> Across services sectors, distribution and telecommunications are on average the most open (Figure 5). The generally lower level of restrictiveness in telecommunications (both fixed and mobile telephony) reflects the continuous liberalization and regulatory reform of the sector across economies since the 1990s. Within distribution, not surprisingly, wholesale distribution is less restricted than retail distribution, where regulation in some economies has tended to protect smaller retailers from competition (Figure 6).

Financial and transport services are on average more restricted. Commercial banking and insurance services – sectors where there has been gradual liberalization over the last two decades – now constitute the midfield within the sectors covered by the STPD. In transport, the supply of rail and air transportation services are the most restricted (average scores above 50), reflecting in rail transport the difficulties in introducing competition, and in air transport the persistence of policies protecting domestic suppliers from competition. Maritime and road freight transport present the lowest average scores in transport.<sup>15</sup> The maritime transport is fairly open, reflecting in particular the openness in international shipping services. Road transport has traditionally been heavily

> 15 Maritime covers maritime freight transport and auxiliary services (agency, freight forwarding, cargo handling, storage and warehousing).

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