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Reciprocity Across Modes of Supply in the WTO: A Negotiating Formula

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Author Info
Mattoo, Aaditya
Olarreaga, Marcelo

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Abstract

The negotiations on trade in services at the WTO have so far produced little liberalization beyond levels unilaterally undertaken by countries. One reason is the neglect of the traditional negotiating principle of reciprocity. In particular, there has been a failure to exploit the scope built into the services agreement (GATS) for exchange of market access 'concessions' across the different modes of supply - cross-border delivery, and the movement of capital and individuals. Using the Heckscher-Ohlin-Vanek framework, this paper proposes 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 help deliver greater liberalization commitments on all modes - producing substantial gains in global welfare and more balanced outcomes.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2481.

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Date of creation: Jun 2000
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Handle: RePEc:cpr:ceprdp:2481

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Related research
Keywords: GATS; Services; Trade;

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Mattoo, Aaditya & Olarreaga, Marcelo, 2000. "Should credit be given for autonomous liberalization in multilateral trade negotiations?," Policy Research Working Paper Series 2374, The World Bank. [Downloadable!]
    Other versions:
  2. Arvind Panagariya, 2003. "The Millennium Round and Developing Countries: Negotiating Strategies and Areas of Benefits," International Trade 0308018, EconWPA. [Downloadable!]
    Other versions:
  3. Kyle Bagwell & Robert W. Staiger, 1999. "An Economic Theory of GATT," American Economic Review, American Economic Association, vol. 89(1), pages 215-248, March. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Akiko Suwa-Eisenmann & Thierry Verdier, . "Reciprocity, Harmonisation and Mutual and Mutual Recognition of Regulatory Measures: A Political Economy Perspective," Research Unit Working Papers 0102, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
  2. Mattoo, Aaditya, 2001. "Shaping future GATS rules for trade in services," Policy Research Working Paper Series 2596, The World Bank. [Downloadable!]
  3. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Eliminating excessive tariffs on exports of least developed countries," Policy Research Working Paper Series 2604, The World Bank. [Downloadable!]
    Other versions:
  4. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers 2747, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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