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Services liberalization in the new generation of Preferential Trade Agreements (PTAs): How much further than the GATS?

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  • Roy, Martin
  • Marchetti, Juan
  • Lim, Hoe

Abstract

This paper attempts to fill a gap in the trade literature by providing a comprehensive overview of services liberalization commitments in the new generation of preferential trade agreements (PTAs) as compared to prevailing GATS commitments and Doha Round offers. By developing a new database, the paper reviews the commitments undertaken by 29 WTO Members (counting the EC as one) under mode 1 (cross-border supply) and mode 3 (commercial presence) in 28 PTAs negotiated since 2000. The paper presents a general analysis from both a cross-country and cross-sector perspectives, and also examines in more detail the GATS+ commitments undertaken in a number of key sectors (audiovisual, distribution, education, financial, professional, and telecommunication services). The paper also discusses the potential economic costs arising from these preferential agreements, as well as the potential implications for the multilateral trading system, and for the Doha round of negotiations in particular. The paper concludes by discussing possible approaches to overcome the potential downsides of PTAs, including proposals for a more pro-active role for the WTO in the surveillance of these agreements.

Suggested Citation

  • Roy, Martin & Marchetti, Juan & Lim, Hoe, 2006. "Services liberalization in the new generation of Preferential Trade Agreements (PTAs): How much further than the GATS?," WTO Staff Working Papers ERSD-2006-07, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd200607
    DOI: 10.30875/beee1f21-en
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    References listed on IDEAS

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    1. S. M. Thangavelu & Mun‐Heng Toh, 2005. "Bilateral ‘WTO‐Plus’ Free Trade Agreements: The WTO Trade Policy Review of Singapore 2004," The World Economy, Wiley Blackwell, vol. 28(9), pages 1211-1228, September.
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    3. Jansen, Marion, 2006. "Services Trade Liberalization at the Regional Level: Does Southern and Eastern Africa Stand to Gain from EPA Negotiations?," CEPR Discussion Papers 5800, C.E.P.R. Discussion Papers.
    4. S.M. Thangavelu & Toh Mun Heng, 2005. "Bilateral “WTO-Plus†Free Trade Agreements : The WTO Trade Policy Review of Singapore 2004," Trade Working Papers 22590, East Asian Bureau of Economic Research.
    5. Agata Antkiewicz & John Whalley, 2005. "China's New Regional Trade Agreements," The World Economy, Wiley Blackwell, vol. 28(10), pages 1539-1557, October.
    6. Adlung, Rudolf & Roy, Martin, 2005. "Turning hills into mountains? Current commitments under the GATS and prospects for change," WTO Staff Working Papers ERSD-2005-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Crawford, Jo-Ann & Fiorentino, Roberto V., 2005. "The changing landscape of regional trade agreements," WTO Discussion Papers 8, World Trade Organization (WTO), Economic Research and Statistics Division.
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    9. S.M. Thangavelu & Toh Mun Heng, 2005. "Bilateral “WTO-Plus” Free Trade Agreements: The WTO Trade Policy Review of Singapore 2004," SCAPE Policy Research Working Paper Series 0505, National University of Singapore, Department of Economics, SCAPE.
    10. Marchetti, Juan A., 2004. "Developing countries in the WTO services negotiations," WTO Staff Working Papers ERSD-2004-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    11. Jansen, Marion, 2006. "Services trade liberalization at the regional level: Does Southern and Eastern Africa stand to gain from EPA negotiations?," WTO Staff Working Papers ERSD-2006-06, World Trade Organization (WTO), Economic Research and Statistics Division.
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    Cited by:

    1. Arpita Mukherjee & Paramita Deb Gupta & Prerna Ahuja, 2007. "Indo-U.S. FTA - Prospects for Audiovisual Services," Trade Working Papers 22232, East Asian Bureau of Economic Research.
    2. Kirkegaard, Jacob Funk, 2012. "Transactions: A New Look at Service Sector Foreign Direct Investment in Asia," ADB Economics Working Paper Series 318, Asian Development Bank.
    3. Bala Ramasamy & Matthew Yeung, 2007. "Malaysia – Trade Policy Review 2006," The World Economy, Wiley Blackwell, vol. 30(8), pages 1193-1208, August.
    4. Lodefalk, Magnus, 2017. "Servicification of Firms and Trade Policy Implications," World Trade Review, Cambridge University Press, vol. 16(1), pages 59-83, January.
    5. Innwon Park & Soonchan Park, 2011. "Regional Liberalisation of Trade in Services," The World Economy, Wiley Blackwell, vol. 34, pages 725-740, May.
    6. de Melo, Jaime & Vijil, Mariana, 2014. "Barriers to Trade in Environmental Goods and Environmental Services: How Important Are They? How Much Progress at Reducing Them?," Climate Change and Sustainable Development 172425, Fondazione Eni Enrico Mattei (FEEM).
    7. Philippa Dee & Anne McNaughton, 2013. "Promoting Domestic Reforms through Regionalism," World Scientific Book Chapters, in: Services Trade Reform Making Sense of It, chapter 14, pages 381-427, World Scientific Publishing Co. Pte. Ltd..
    8. Tanu M. Goyal, 2021. "Technology Uncertainty and Incompleteness in Trade Agreements: Reflections from the Design of India’s Bilateral Agreements Covering Services," Foreign Trade Review, , vol. 56(3), pages 322-340, August.
    9. Panizzon, Marion, 2010. "Standing Together Apart: Bilateral Migration Agreements and the Temporary Movement of Persons under “Mode 4” of GATS," Papers 34, World Trade Institute.
    10. Ayoki, Milton, 2015. "The GATS and regional approaches to services trade and investment liberalisation," MPRA Paper 91118, University Library of Munich, Germany, revised Dec 2016.
    11. Lalanne, Alvaro, 2019. "Tendencias del sistema de comercio exterior relevantes para analizar la inserción internacional del Uruguay," Estudios y Perspectivas – Oficina de la CEPAL en Montevideo 45020, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Mia Mikic, 2007. "Health-related Services in Multilateral and Preferential Trade Arrangements in Asia and the Pacific," Working Papers 3007, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    13. Iris Claus & Les Oxley & Hejing Chen & John Whalley, 2014. "China'S Service Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 746-774, September.
    14. Arpita Mukherjee & Paramita Deb Gupta & Prerna Ahuja, 2007. "Indo-U.S. FTA: Prospects for Audiovisual Services," Indian Council for Research on International Economic Relations, New Delhi Working Papers 192, Indian Council for Research on International Economic Relations, New Delhi, India.
    15. Nianli Zhou & John Whalley, 2014. "How Do the "GATS-Plus" and "GATS-Minus" Characteristics of Regional Service Agreements Affect Trade in Services?," NBER Working Papers 20551, National Bureau of Economic Research, Inc.
    16. Philippa Dee, 2008. "The role of microeconomic policy reform in regional integration  analytical and empirical issues," EABER Working Papers 21793, East Asian Bureau of Economic Research.
    17. Prud'homme, Dan, 2011. "An SIA analysis of the Investment Chapter in the EU-Canada Comprehensive Economic and Trade Agreement (CETA)," MPRA Paper 44014, University Library of Munich, Germany.
    18. Nag, Biswajit & De, Debdeep, 2008. "Services in Regioanl Trade Agreements: Implications for India," MPRA Paper 15871, University Library of Munich, Germany.
    19. Nyahoho Emmanuel, 2010. "Determinants of Comparative Advantage in the International Trade of Services: An Empirical Study of the Hecksher-Ohlin Approach," Global Economy Journal, De Gruyter, vol. 10(1), pages 1-24, February.
    20. World Bank, 2007. "East Asian FTAs in Services," World Bank Publications - Reports 19240, The World Bank Group.
    21. Philippa Dee, 2010. "Alternative Growth Strategies in Asia: Liberalization, Deregulation, Structural Reforms," Chapters, in: Masahiro Kawai & Jong-Wha Lee & Peter A. Petri & Giovanni Capanelli (ed.), Asian Regionalism in the World Economy, chapter 4, Edward Elgar Publishing.
    22. Dee, Philippa, 2014. "Does AFAS have bite? Comparing services trade commitments with actual practice," Journal of Asian Economics, Elsevier, vol. 35(C), pages 46-64.

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    More about this item

    Keywords

    GATS; trade in services; regionalism; preferential trade agreements;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L8 - Industrial Organization - - Industry Studies: Services
    • F2 - International Economics - - International Factor Movements and International Business

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