Services & digital trade
Services trade policy
Services trade is a vital component of Australian prosperity
Services trade makes up a significant part of Australia's exports to other countries. In 2022, services trade was valued at $171 billion and made up 11 per cent of Australia's total exports.
Services trade supports Australian business grow and innovate by facilitating access to highly skilled technical specialist services suppliers and investors.
For more information, see the annual DFAT publication: Trade and Investment at a Glance for the latest statistics and analysis on the composition and direction of Australia's services trade.
Australia's services trade policy agenda
Australia's services trade policy agenda is guided by the following principles:
Diversity
Diversity in what, how and with whom we trade ensures Australian services suppliers can take full advantage of global markets whilst also being resilient to trade disruptions. This is achieved by providing Australian services suppliers with access to new exports markets and reducing or removing obstacles to existing markets.
Inclusivity
Ensuring services trade is accessible to all Australians, including First Nations people, micro, small and medium enterprises (MSMEs) and rural and regional areas. This ensures that the benefit of services trade can reach all Australians.
Open markets
Open services markets foster competition and provides consumers with access to a wider range of services and expertise. This puts downward pressure on prices. For Australian services exporters, open markets mean more opportunities in new markets.
Transparency
Opaque or arbitrary regulations can undermine the ability of services exporters, particularly MSMEs, to access overseas markets. For Australian services exporters, transparent regulations will make it easier to access overseas markets and reduce the cost and complexity of doing business.
Rules-based
A multilateral rules-based trading system, that is centred on the World Trade Organization, is important for creating rules for new issues, or where there are gaps in the rulebook, and resolving disputes. For Australian services suppliers, a rules-based trading system means greater certainty and predictability in export markets.
Australia supports services trade at the World Trade Organization
Services trade between countries is regulated by the World Trade Organization (WTO) General Agreement on Trade in Services (GATS). The GATS is an agreement signed by all WTO Members that sets out the rules for international services trade. It aims to give all WTO Members equal access to services markets and provide certainty to business.
Under the GATS, each WTO Member specifies the access foreign service providers have to their market and whether they are treated differently to local providers. The GATS applies to any type of service in any sector except those supplied in the exercise of governmental authority, such as public health or education services. Australia’s GATS commitments are available on the DFAT website
Through the WTO, Australia is supporting open and transparent services trade. This includes 'joint statement initiatives' (JSIs) which are WTO plurilateral agreements involving a subset of WTO Members on a particular issue. Australia is participating in two JSIs to support open and transparent services trade:
Services Domestic Regulation Joint Statement Initiative (DR JSI)
- The DR JSI will require applications to supply a service to be based on objective and transparent criteria, decisions be made impartially, processed without undue delay and that fees are reasonable.
- The DR JSI will make it easier for Australian businesses to export to existing markets and open opportunities in new markets.
- An OECD-WTO study found that implementation of the DR JSI could generate annual trade cost savings of USD150 billion.
- For more information see the WTO website.
E-Commerce Joint Statement Initiative
- The E-Commerce JSI will prohibit unjustified restrictions on data, create rules on paperless trading and e-signatures, address spam and protect personal information and privacy.
- these rules will lower barriers to trade and support growth in the global economy, creating new markets for Australian businesses and greater choice for Australian consumers.
- For more information see the WTO website.
Australia promotes services trade through other international organisations and free trade agreements
Australia also takes a leading role in promoting open and transparent services markets in forums such as the Organisation for Economic Co-operation and Development (OECD), the G20, Asia-Pacific Economic Cooperation (APEC) and the Indo-Pacific Economic Framework (IPEF). We also support services exports by negotiating free trade agreements with other countries.
Australia is working to support services sectors
Education-related travel services
Exports: $27 billion (2022)
The Government supports this sector by securing access to foreign markets through free trade agreements while protecting Australia's public education system. It also encourages transparent and consistent approaches to the domestic regulation of services through multilateral agreements. Stakeholders can engage on education services trade issues by contacting the Services Trade and Policy Section.
Recreational travel services
Exports: $7 billion (2022)
The Government supports this sector by sharing insights and encouraging best practices through the APEC and G20 Tourism Working Groups and the OECD Tourism Committee. It also encourages transparent and consistent approaches to the domestic regulation of services through multilateral agreements. Stakeholders can engage on tourism issues and policy by contacting Austrade or Tourism Australia.
Professional Services
Exports: $7 billion (2022)
The Government makes it easier for professionals to practise overseas by securing access to foreign markets through free trade agreements and facilitating the recognition of professional qualifications and licensing through mutual recognition agreements. It also encourages transparent and consistent approaches to the domestic regulation of services through multilateral agreements. Stakeholders are encouraged to attend the biannual Professional Services Roundtable, or can contact the Professional Services & Mutual Recognition Unit.
Telecom, computer & information services
Exports: $7 billion (2022)
The Government supports this sector by securing access to foreign markets through free trade agreements while protecting Australia's public telecommunications system. It also encourages transparent and consistent approaches to the domestic regulation of telecom, computer and information services through multilateral agreements. Stakeholders can engage with these issues by contacting the Services Trade and Policy Section.
Financial Services
Exports: $4 billion (2022)
The Government supports this sector by securing access to foreign markets through free trade agreements while protecting Australia's robust consumer protection and prudential systems. It also encourages transparent and consistent approaches to the domestic regulation of financial services through multilateral agreements. Stakeholders can engage on financial services trade policy issues by contacting the Services Trade and Policy Section.