After the crisis sparked by the pandemic and the resulting border closures, Spain has embarked on a strategy of gradual liberalization and barrier removal in international trade. This approach has propelled Spain to second place, behind only Japan, on the OECD’s annual Services Trade Restrictiveness Index (STRI). The United Kingdom ranks third.
Commercial banking, telecommunications, and the logistics of goods — including transport and warehousing — stand out as sectors where Spain shows greater openness than the average of the 50-country ranking gathered by the OECD. The most restrictive and closed economy at the bottom of the list is Russia, positioned a few points above Indonesia, Thailand, and Iceland.
Other European countries, such as Germany and France, have exhibited contrasting patterns. The French regulatory framework has become more permissive since the pandemic, though it remains above the OECD average. Germany, by contrast, has appeared as one of the states that has imposed the most barriers in recent years, even though its regulation remains more open than most peers on the list. Italy, which has hardly moved up the ladder, Belgium, and Greece, which closed its services market since the Covid era, are identified as the three most prohibitive EU members.
More barriers in sight
Pushed by some progress, several countries have eased their laws (Brazil, Canada, India, Korea, and even China). The OECD notes that in 2023 there was a broad tightening of services trade restrictions, including new or revised policies controlling foreign direct investment that affect digital trade and e commerce platforms — complicating the work of global service providers. There is also a trend toward more fragmented regulatory environments.
The organization highlights, on the other hand, policies that helped ease regulatory obstacles in some countries. It is particularly notable, it says, the liberalization of infrastructure-related services such as construction, architecture, and engineering in Canada and China, among others. Other examples are more sector-specific, affecting financial services in Brazil, professional services in India, or digitally enabled services in Korea and India. It also emphasizes the reduction of government involvement in key companies in places like Israel, Lithuania, and the United Kingdom. Overall, the report concludes that the number of policy reforms identified in 2023 was lower than in 2022, but the liberalizing policies added up to more than the new restrictions introduced.
According to OECD calculations, the cost of trade could fall by roughly 20 to 37 percent for commercial banking providers — a key intermediate service across the economy — if countries implement ambitious reforms. In addition, a shift in air transport — a sector noted for its high restrictions — could raise manufacturing productivity by an average of 8.4 percent across 17 manufacturing industries. The OECD ultimately urges more national and multilateral action to accelerate the liberalization of services trade policies and counter the large buildup of barriers seen in recent years.