Chong Quan, President of China Society for World Trade Organization Studies and Former Vice Minister of MOFCOM: International Rules Required to Create Predictable Market Environment for Trade in Services

On 3 September 2021, WTCF Beijing Fragrant Hills Tourism Summit & World Conference on Tourism Cooperation and Development opened in China National Convention Center, Beijing. It was organized by the World Tourism Cities Federation (WTCF) and the People's Government of Beijing Municipality together with major international organizations and tourism institutions. The event was themed on "Revitalizing World Tourism and Energizing City Development". Chong Quan, President of China Society for World Trade Organization Studies (CWTO) and Former Vice Minister of MOFCOM, delivered a speech at the opening ceremony. He stressed that the international community should enhance cooperation in times of difficulties as the world is facing instability and transformation and tourism services are being influenced by COVID-19.

Chong Quan, President of CWTO and Former Vice Minister of MOFCOM, delivers a speech at the opening ceremony

Ever since the COVID-19 outbreak, countries have been strengthening border entry and exit control to prevent the import of COVID-19 cases. In this context, trade in services that is highly dependent on the movement of people and other factors across international borders, has suffered the heaviest blow, especially tourism services. Chong Quan stated that the World Trade Statistical Review 2021 released by the World Trade Organization this July has shown that export value of commodities around the world decreased by 8% and trade in services contracted by 21% in 2020. Notably, tourism services posted the most serious decline. In the first quarter of 2021, tourism services trade still registered a remarkable decline of 62%.

Chong Quan observed that tourism is characterized by covering a number of fields and influencing the modern society almost from every perspective. Hence, the sector boasts unique potential in promoting recovery of today's society. As the pandemic repeatedly plagues the world and relevant measures of prevention and control are continuously strengthened, it is necessary to create a new market environment featuring certainty and predictability for the recovery and development of trade in services, especially international tourism services.

The international community has been vigorously trying to curb the pandemic. Chong Quan noticed that the UN World Tourism Organization, World Health Organization and other institutions have strengthened international cooperation. G20 now treats tourism development as a core part of their agenda, and the European Commission has incorporated tourism development into the European Green Deal. WTCF, initiated by Beijing, is the world's first international tourism organization centered on cities. Ever since the pandemic hit the world, WTCF has been promoting cooperation among global cities, pooling industrial wisdom, and helping tourism cities and industries recover in various manners. Specific measures include holding a series of forums and releasing a number of research results. China International Fair for Trade in Services (CIFTIS) not only shows that China will continuously boost the opening-up of the services industry but also provides a significant platform for promoting cooperation in trade in services. Considering this, Chong Quan suggested the international community should never stop boosting cooperation in order to better deal with the pandemic and support tourism recovery.

In addition, Chong Quan mentioned that services trade barriers, a matter of regulation in essence, have always been the focus of industries. In most cases, rules formulated by the World Trade Organization (WTO) help economies conduct cooperation in reducing services trade barriers and regulation measures. After the WTO Doha Round negotiations have deadlocked, Regional Trade Agreements (RTAs) have enhanced the opening-up of trade in services. WTO has, through the implementation of the General Agreement on Trade in Services (GATS), ensured the openness of global services markets. GATS covers 12 services sectors and more than 160 sub-sectors. On average, WTO members are committed to only one third of services sub-sectors, and remarkable differences lie in the coverage of sectors committed by various member groups. Notably, more members have been committed to tourism services sectors.

Chong Quan believes that WTO's overall commitment to market opening-up is yet to be strengthened when compared with the actual opening-up level of services markets in different member countries. Hence, the potential for international cooperation is waiting to be tapped further. He pointed out that the recovery and development of trade in services, and fight against COVID-19 and WTO reforms require greater international cooperation. The 12th Ministerial Conference (MC12) of WTO to be held in late 2021 will provide a precious opportunity for WTO and promoting global economic and trade cooperation. It's hoped that the joint efforts of WTO members will pay off and MC12 will truly bring good news to the world.