Reciprocity Across Modes of Supply in the World Trade Organization : A Negotiating Formula

Negotiations on trade in services at the World Trade Organization (WTO) have so far produced little liberalization beyond levels countries have undertaken unilaterally. One reason: limited application of the traditional negotiating principle of reciprocity. In particular, participants have failed to exploit the scope of the services agreement (General Agreement on Trade in Services -GATS) for the exchange of market-access "concessions" across different modes of supply - cross-border delivery and the movement of capital and workers. Using the Heckscher-Ohlin-Vanek framework, the authors propose a negotiating formula that generalizes the fundamental WTO principle of reciprocity to include alternative modes of delivery. Adoption of this formula as a basis for negotiations could bring greater commitments to liberalization on all modes of delivery, producing substantial gains in global welfare and more balanced outcomes.

Bibliographic Details

Main Authors:	Mattoo, Aaditya, Olarreaga, Marcelo
Language:	English en_US
Published:	World Bank, Washington, DC 2000-06
Subjects:	AGRICULTURE, BALANCE OF CONCESSIONS, BILATERAL TRADE, BORDER TRADE, CAPITAL MARKET, CARBON, CARBON DIOXIDE, CARBON DIOXIDE EMISSIONS, CENTRAL BANKS, COMMERCIAL PRESENCE, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CONCESSIONS, CONSUMERS, CROSS-BORDER DELIVERY, CROSS-BORDER EXPORTS, CROSS-BORDER TRADE, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, DEVELOPED COUNTRIES, DEVELOPMENT, DOMESTIC FIRMS, DOMESTIC REFORM, ECONOMIC THEORY, ECONOMISTS, ELASTICITY, EMPIRICAL EVIDENCE, EMPLOYMENT, ENTITLEMENTS, EQUILIBRIUM, EXPORT VOLUME, EXPORTERS, FACTOR PRICE, FACTORS OF PRODUCTION, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN FACTORS, FOREIGN INVESTMENT, FOREIGN LABOR, FOREIGN MARKETS, FOREIGN OWNERSHIP, FOREIGN SERVICE PROVIDERS, FORESTRY, GATS, GENERALIZED SYSTEM OF PREFERENCES, IMPORT VOLUME, IMPORTS, INCOME, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INPUT-OUTPUT TABLES, JOINT IMPLEMENTATION, MARKET ACCESS, MODES OF SUPPLY, MOVEMENT OF NATURAL PERSONS, MULTILATERAL TRADE, MULTILATERAL TRADE NEGOTIATIONS, NET EXPORTS, NON-DISCRIMINATORY BASIS, NON-TARIFF BARRIERS, OPENNESS, POLITICAL ECONOMY, PRICE DIFFERENCES, QUOTAS, RECIPROCAL REDUCTION, RECIPROCITY, RETURNS TO SCALE, SERVICE SECTOR, SERVICE SUPPLIERS, SERVICES, SERVICES AGREEMENT, SERVICES NEGOTIATIONS, SERVICES SECTORS, TARIFF BARRIERS, TARIFF EQUIVALENTS, TARIFF REDUCTION, TERMS OF TRADE, TERMS OF TRADE EFFECTS, TOTAL OUTPUT, TRADE, TRADE BALANCE, TRADE EFFECT, TRADE IN SERVICES, TRADE NEGOTIATIONS, TRADE OPENING, TRADE PATTERN, TRADE POLICIES, TRADE POLICY, TRADING PARTNERS, UNILATERAL LIBERALIZATION, URUGUAY ROUND, VOLUME OF TRADE, WELFARE EFFECTS, WELFARE GAINS, WORLD PRICES, WORLD TRADE, WORLD TRADE ORGANIZATION, WORLD TRADING SYSTEM, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2000/06/437123/reciprocity-across-modes-supply-world-trade-organization-negotiating-formula https://hdl.handle.net/10986/19831
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