Services Trade Liberalization and Regulatory Reform : Re-invigorating International Cooperation

Trade and investment in services are inhibited by a range of policy restrictions, but the best offers so far in the Doha negotiations are on average twice as restrictive as actual policy. They will generate no additional market opening. Regulatory concerns help explain the limited progress. This paper develops two proposals to enhance the prospects for both liberalization of services trade and regulatory reform. The first is for governments to create mechanisms ("services knowledge platforms") to bring together regulators, trade officials, and stakeholders to discuss services regulatory reform. Such mechanisms could identify reform priorities and opportunities for utilization of "aid for trade" resources, thereby putting in place the preconditions for future market opening. The second proposal is for a new approach to negotiations in the World Trade Organization, with a critical mass of countries that account for the bulk of services production agreeing to lock-in applied levels of protection and pre-committing to reform of policies affecting foreign direct investment and international movement for individual service providers -- two areas where current policy is most restrictive and potential benefits from liberalization are greatest. If these proposals cannot be fully implemented in the Doha time frame, then any Doha agreement could at least lay the basis for a forward-looking program of international cooperation along the proposed lines.

Bibliographic Details

Main Authors:	Mattoo, Aaditya, Hoekman, Bernard
Language:	English
Published:	2011-01-01
Subjects:	ABUSE, ACCOUNTING, ADVERSE CONSEQUENCES, AGRICULTURE, ASYMMETRIC INFORMATION, AUDITS, BEST PRACTICE, BRAIN DRAIN, BUSINESS ASSOCIATIONS, BUSINESS PROCESS OUTSOURCING, CAPITAL ADEQUACY, CD, CIRCULAR FLOW, COMMERCIAL PRESENCE, COMPARATIVE ADVANTAGE, COMPETITION FRAMEWORK, COMPETITION LAW, COMPETITION POLICIES, COMPETITIVENESS, COMPLETE LIBERALIZATION, CONFIDENCE, CONSULTING SERVICES, CONSUMERS, CRITICAL MASS, CROSS BORDER TRADE, CURRENT ACCOUNT SURPLUSES, DAMAGES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING ECONOMIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT POLICY, DIRECT INVESTMENT, DISCRETION, DISTRIBUTION NETWORKS, DISTRIBUTION SERVICES, DOHA DEVELOPMENT AGENDA, DOMESTIC FIRMS, DOMESTIC REFORM, DOMESTIC REGULATION, ECONOMIC LAW, ECONOMIC ORDER, EFFECTIVE REGULATION, EMERGING MARKETS, ENERGY SERVICES, ENTRY BARRIERS, EXCHANGE RATE, EXPORT MARKETS, EXPORTS, EXTERNALITIES, FINANCIAL CRISIS, FINANCIAL MARKETS, FINANCIAL SERVICES, FOREIGN BANKS, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREIGN ENTRY, FOREIGN FIRMS, FOREIGN MARKETS, FOREIGN PROVIDERS, FOREIGN SERVICE PROVIDERS, FOREIGN SERVICES, FOREIGN SUPPLIERS, FOREIGN TRADE, GATS, GDP, GDP PER CAPITA, GLOBAL GOVERNANCE, GLOBAL TRADE, GOVERNMENT EXPENDITURES, GOVERNMENT OFFICIALS, HOME COUNTRY, HUMAN CAPITAL, INCOME, INDUSTRIAL COUNTRIES, INDUSTRIAL COUNTRY, INFORMATION SYSTEMS, INFORMATION TECHNOLOGIES, INFRASTRUCTURE INVESTMENTS, INITIATIVE, INNOVATIONS, INSURANCE, INSURANCE COMPANIES, INTERNATIONAL COMPETITION, INTERNATIONAL COOPERATION, INTERNATIONAL TRADE, INTERNATIONAL TRADE IN SERVICES, INTERNATIONAL TRANSPORT, KEY INDUSTRIES, KNOWLEDGE ECONOMY, KNOWLEDGE RESOURCES, LAWYERS, LEARNING, LEGAL SYSTEM, LIBERALIZING COMMITMENTS, LIBERALIZING TRADE, MANUFACTURING INDUSTRIES, MARKET ACCESS, MARKET ACCESS COMMITMENTS, MARKET ACCESS OPPORTUNITIES, MARKET FAILURES, MFN, MFN EXEMPTIONS, MINISTERS, MODES OF SUPPLY, MOVEMENT OF NATURAL PERSONS, MULTILATERAL TRADE, NATIONAL TREATMENT, NATIONAL WELFARE, NATURAL MONOPOLY, NATURAL PERSONS, OLIGOPOLY, OPEN MARKETS, OUTSOURCING, PARTICULAR COUNTRY, PER CAPITA INCOME, POLITICAL ECONOMY, PREFERENTIAL, PRESENCE OF NATURAL PERSONS, PROCOMPETITIVE REGULATION, PROCUREMENT, PRODUCTIVITY GROWTH, PROFESSIONAL SERVICES, PROTECTIONISM, PUBLIC INFORMATION, RECOGNITION AGREEMENTS, REFORM PROGRAMS, REGIONAL INTEGRATION, REGIONAL INTEGRATION AGREEMENTS, REGIONAL TRADE, REGULATOR, REGULATORS, REGULATORY AGENCIES, REGULATORY AUTHORITIES, REGULATORY BARRIERS, REGULATORY FRAMEWORKS, REGULATORY PRINCIPLES, REGULATORY REFORM, REGULATORY REGIME, REGULATORY RESTRICTIONS, REGULATORY STANDARDS, REGULATORY SYSTEMS, REVERSE AUCTION, SATELLITES, SAVINGS, SECURITY CONCERNS, SERVICE ACTIVITIES, SERVICE DELIVERY, SERVICE SECTOR, SERVICE SECTORS, SERVICE SUPPLIER, SERVICE SUPPLIERS, SERVICES ACTIVITIES, SERVICES AGREEMENTS, SERVICES CONTEXT, SERVICES INDUSTRIES, SERVICES INPUTS, SERVICES LIBERALIZATION, SERVICES MARKETS, SERVICES NEGOTIATIONS, SERVICES PROVIDERS, SERVICES REGULATION, SERVICES SECTOR, SERVICES SECTORS, SERVICES SUPPLIERS, SERVICES TRADE, SINGLE MARKET, TECHNICAL ASSISTANCE, TECHNOLOGY TRANSFER, TELECOMMUNICATION, TELECOMMUNICATIONS, TELECOMS, TRADE BARRIERS, TRADE IN SERVICES, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRADE RESTRICTIONS, TRADING PARTNERS, TRADING SYSTEM, TRANSACTION COSTS, TRANSACTIONS COSTS, TRANSPARENCY, TRANSPORT SERVICES, UNEMPLOYMENT, UNIVERSAL ACCESS, UNIVERSAL ACCESS FUNDS, URUGUAY ROUND, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110103094557 https://hdl.handle.net/10986/3290
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