GENEVA, Mar 2: An agreement marking a turning point in liberalisation of trade in financial services look effect yesterday more than a year after 71 countries agreed to the deal at the World Trade Organisation (WTO), says AFP.

The pact widens market access in banking, insurance and fund management in countries representing 95 per cent of all global financial activity.

Participants promise it will boost investment in emerging economies including those of hard-hit Asia, bring crucial advances in technology to inefficient firms and give consumers a better deal.

WTO Director General Renato Ruggiero has stressed the accord was not aimed at liberalising capital flows but at creating opportunities for businesses to establish toeholds and expand overseas.

The size of the financial service sector has exploded in the last decade.

About 1.5 trillion dollars are traded daily in the foreign exchange markets and total banking assets are estimated at more than ,20 trillion dollars, and insurance premiums at two trillion dollars.

Some 53 governments have ratified the pact, including those of the United States. Japan, and all but one of the European Union (EU) states.

Seventeen governments among the 71 signatory parties, among which is the European Commission, have still not completed the necessary domestic procedures.

These countries are expected to come on board before a ratifying deadline of June 15, 1999. which replaced an original cutoff date of January 29,

Most Asian countries who joined the pact have ratified the protocol, including Thailand. Indonesia and South Korea.

The Philippines is the one notable Asian county still outstanding. Australia. Brazil.

Luxembourg and Costa Rica are also among the have-nots.

Though committed to carry out their liberalisation commitments. countries who have not ratified cannot be judged by the WTO's dispute settlement machinery when the pact takes effect.

The deal, struck after nine months of tough negotiations in December 1997, liberalises key domestic financial sectors to varying degrees and with differing time frames.

As the United States is already the world's most open banking and insurance market. Washington pressed hard to secure more concessions for its financial services industry, mainly from previously fastgrowing economies in Asia.

US negotiators insisted that serious commitments from these countries would reassure investors who had fled the region when the currency and stockmarket turmoil first started in July 1997.