Liberalization of Trade in Financial Services : Lessons from Latin America and the Caribbean

This policy note is based on a project on financial services and trade agreements in the Latin America and Caribbean Region. It emphasizes that the liberalization of trade in financial services is helpful to, but is not a panacea for, domestic financial system modernization. It adds that the means of liberalizing trade in financial services may also determine the extent of the benefits that can be attained and that any trade commitments in financial services will need to be aligned with China's financial system condition and policy objectives. The author points out however, that China can also draw useful policy lessons from the Latin America and Caribbean (LCR) experience when negotiating financial services in Preferential Trade Arrangement (PTAs) by firstly, the inclusion of financial services which depends greatly on the existence of offensive interests and of asymmetric bargaining powers between the negotiating counterparts; secondly, the case studies which strongly indicate the importance of initial conditions and historical experience in shaping a country's financial services trade strategy; thirdly, the scheduling approach of the (typically self-contained) financial services chapter which both contributes to, and is determined by, the willingness to liberalize; and finally the authorities should be cognizant of important nuances between the two main negotiating templates.

Bibliographic Details

Main Author:	Stephanou, Constantinos
Language:	English
Published:	2008-01-01
Subjects:	ACCESS TO MARKETS, ACCOUNTING, ADMINISTRATIVE PROCEDURES, ADVERSE EFFECTS, ASSET MANAGEMENT, AUDITING, BALANCE OF PAYMENTS, BANK ASSETS, BANKING SERVICES, BANKING SYSTEM, BOND MARKET, BOND MARKETS, BUSINESS ENVIRONMENT, BUSINESS PEOPLE, CAPITAL ACCOUNT, CAPITAL ACCOUNTS, CAPITAL ALLOCATION, CAPITAL CONTROLS, CAPITAL FLOW, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITAL REQUIREMENTS, CENTRAL AMERICA, CENTRAL AMERICAN, CENTRAL BANK, CIVIL SOCIETY, COLLATERAL, COLLECTIVE INVESTMENTS, COMMERCIAL PRESENCE, COMMITTEE ON TRADE, COMMON MARKET, COMMON MARKETS, CONSOLIDATION, CONSUMPTION ABROAD, CORPORATE BOND, CREDIT BUREAUS, CREDIT CARD, CREDIT PORTFOLIO, CREDIT RISK, CROSS-BORDER PROVISION, CROSS-BORDER SUPPLY, CROSS-BORDER TRADE, CURRENCY, CUSTOM UNIONS, CUSTOMS, CUSTOMS UNION, CUSTOMS UNIONS, DEBT, DEPOSITORS, DEREGULATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DISCRIMINATION, DISPUTE SETTLEMENT, DISPUTE SETTLEMENT MECHANISMS, DOMESTIC AUTHORITIES, DOMESTIC BANKS, DOMESTIC CAPITAL, DOMESTIC REFORM, DOMESTIC REGULATION, DOMESTIC SUPPLIERS, ECONOMIC COOPERATION, ELECTRONIC PAYMENT, ENTRY BARRIERS, ENTRY RESTRICTIONS, EQUITY MARKET, EXCHANGE RATE, EXCHANGE RATE REGIME, EXCLUSION, FACTORING, FEDERAL RESERVE, FEDERAL RESERVE BANK, FINANCIAL ACCESS, FINANCIAL FRAGILITY, FINANCIAL GLOBALIZATION, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTEGRATION, FINANCIAL LIBERALIZATION, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL REFORM, FINANCIAL SECTOR, FINANCIAL SECTOR REFORM, FINANCIAL SECURITIES, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SERVICES LIBERALIZATION, FINANCIAL SERVICES PROVIDERS, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL TRANSACTIONS, FOREIGN BANK, FOREIGN BANKS, FOREIGN CAPITAL, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREIGN ENTRY, FOREIGN EQUITY, FOREIGN EQUITY PARTICIPATION, FOREIGN FINANCIAL INSTITUTIONS, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FOREIGN OWNERSHIP, FOREIGN PROVIDERS, FOREIGN SERVICE PROVIDERS, FOREIGN SUPPLIER, FREE TRADE, FREE TRADE AGREEMENT, FREE TRADE AGREEMENTS, GATS, GENERAL AGREEMENT ON TRADE IN SERVICES, GLOBALIZATION, GREATER ACCESS, HARMONIZATION, INCREASED COMPETITION, INDIRECT BARRIERS, INSURANCE, INSURANCE INDUSTRY, INSURANCE SERVICES, INTEREST RATE, INTEREST RATE CEILINGS, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL FLOW, INTERNATIONAL COMPETITION, INTERNATIONAL TRADE, LACK OF CAPITAL, LAWS, LENDING POLICIES, LEVEL PLAYING FIELD, LIBERALIZATION, LIBERALIZATION OF TRADE, LIBERALIZING TRADE, LOAN, LOCAL CONSUMERS, MARKET ACCESS, MARKET ACCESS COMMITMENTS, MARKET CAPITALIZATION, MARKET PLAYERS, MARKET SHARE, MODES OF SUPPLY, MULTILATERAL CONTEXT, MULTILATERAL LEVEL, NATIONAL TREATMENT, PACIFIC REGION, PAYMENT SERVICES, PAYMENT SYSTEMS, POLICY RESEARCH, PORTFOLIO, PREFERENTIAL ACCESS, PREFERENTIAL ARRANGEMENTS, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENTS, PREFERENTIAL TREATMENT, PRIVATE SECTOR DEVELOPMENT, PRUDENTIAL REGULATIONS, RATING AGENCIES, REGIONAL LEVEL, REGULATORY BURDEN, REGULATORY CONDITIONS, REGULATORY REFORM, REGULATORY REQUIREMENTS, REGULATORY RESTRICTIONS, REGULATORY STANDARDS, RISK MANAGEMENT, RULE OF LAW, RULES OF ORIGIN, SAVINGS, SECURITIES, SERVICES PROVIDERS, SERVICES SUPPLIER, SERVICES TRADE, SOCIAL SECURITY, SUBSIDIARIES, TAXATION, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE NEGOTIATORS, TRADE POLICY, TRANSPARENCY, WORLD ECONOMY, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2008/01/9066764/liberalization-trade-financial-services-lessons-latin-america-caribbean https://hdl.handle.net/10986/6280
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