Governments which account for more than 90 per cent of the global financial services market agreed yesterday that a pact opening up banking and insurance to greater competition should come into force on March 1st.

The 52 governments - including big players such the United States, Japan and almost all of the European Union (EU) - also decided to give others which have not yet ratified the deal until June 15th to do so, the World Trade Organisation (WTO) said.

The deal, formally an agreement on financial services, was reached in December, 1997, after years of on-off negotiation.

A total of 70 countries signed up to it and pledged to finish domestic ratification by January 29th this year.

But 18, including major economies like Australia and Brazil as well as EU member Luxemburg with its strong financial services sector, have yet to complete the ratification process.

The countries which have ratified decided to stick to their March 1st start date despite fears they could be at a disadvantage by opening up their markets while others dragging their heels enjoy greater protection.

The agreement assures right of establishment for firms from one signatory country in another, the right to majority ownership of local firms by foreign companies, and equal treatment by national authorities of foreign and local firms.

Service industry lobbyists had urged the countries which have already ratified the deal to go ahead with implementation and not wait for the others to catch up.

The New York Stock Exchange was closed for the Presidents' Day holiday