Prospects for Services Trade Negotiations
AbstractTrade and investment in services are difficult to measure, and the regulatory barriers that inhibit the free flow of services are hard to quantify. As a result, very little attention has been paid to dismantling barriers to services trade and investment in free trade negotiations. This paper examines what has been achieved in both regional and multilateral compacts by surveying international precedents involving Asian countries which have included services trade reforms. We then assess the prospects for services trade negotiations and explore how services trade negotiations could be pursued over the next decade through two distinct channels: the Trans-Pacific Partnership (TPP) and a plurilateral approach among groups of WTO countries. We find that in the case of developing Asia, free trade agreements have largely excluded services or have only committed to "lock in" current practices in a narrow subset of service sectors. This is also the case in agreements negotiated between developing countries, which have produced less substantial commitments to liberalize services than those negotiated between developing and developed countries. Multilateral negotiations on services have also underperformed, as substantive negotiations on services in the Doha Round never really got underway. We advocate a stronger effort by developing Asian countries to prioritize services negotiations in their regional arrangements, and to expand coverage of services in those pacts to a broad range of infrastructure services that are included in other FTAs in force or under construction in the Asia-Pacific region.
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Bibliographic InfoPaper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP12-17.
Date of creation: Oct 2012
Date of revision:
International trade; services; regional trade agreements; Association of Southeast Asian Nations; General Agreement on Trade in Services; Doha Round; Trans-Pacific Partnership; Asia-Pacific;
Other versions of this item:
- F10 - International Economics - - Trade - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-20 (All new papers)
- NEP-CWA-2012-10-20 (Central & Western Asia)
- NEP-INT-2012-10-20 (International Trade)
- NEP-SEA-2012-10-20 (South East Asia)
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