Editor's note: Sung Hwan Cho is the president of the International Organization for Standardization. This article is his speech given at the ongoing 2024 China International Fair for Trade in Services in Beijing on Saturday. It has been edited for brevity and clarity.

In recent years, trade in services has become the most dynamic segment of global trade, growing faster than trade in goods. Developing countries and transition economies have increasingly played a more prominent role in this sector. As a result, their share of global trade has grown significantly.

Parallel with such growth, the services sector needs standards to establish good practices, encourage consistently high service quality, and build consumer confidence. Given these developments, policymakers face challenges in evaluating whether current rules for services trade are sufficient and whether new risks require targeted government regulation. International standards can play a crucial role in facilitating these efforts.

When widely adopted, international standards can serve as powerful enablers of trade. They provide a common language and a consistent framework that can be recognized and relied upon globally. They help reduce trade barriers by aligning regulatory requirements and facilitating mutual recognition among countries. This is crucial in a sector as diverse and rapidly evolving as services.

Through our network of 172 members, the International Organization for Standardization (ISO) develops international standards that define excellence and ensure reliability, safety, and quality. By collaborating with diverse stakeholders, ISO creates benchmarks that simplify choices, build trust, and support global trade. This collaborative approach delivers broad economic, environmental, and social benefits.

Here are some examples of how the standards can enable trade-in services:

International standards are aligned with the General Agreement on Trade in Services (GATS). This is the first multilateral trade agreement to cover trade in services and applies to the 162 countries and customs territories that are members of the World Trade Organization (WTO). Although GATS aims to facilitate progressive liberalization of services sectors, related negotiations are still ongoing in the WTO.

With these negotiations in progress, an interim solution has to be put in place: WTO members must ensure that any new regulations on services they introduce in sectors they have liberalized do not constitute unnecessary trade barriers. Thus, for WTO members, following international standards provides a presumption of conformity.

In this context, ISO standards help ensure service regulations comply with international trade objectives. For example, management consultancy, tourism and related services, education, and learning services are significant components of trade in services.

In recent years, China has been actively advancing its service sectors via standardization. A prime example is the ISO Technical Committee on Tourism and Related Services, to which Chinese stakeholders have made a significant contribution. The Committee has developed International standards that span a wide range of areas, from tourist information services and online travel agencies to exhibitions and events. This underscores the huge importance of synergy between trade development and standards cooperation.

All stakeholders in global trade in services should place ISO standards at the core of their strategies. Doing so can help foster a brighter, more sustainable future for all.