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A different approach to WTO negotiations in services

Author

Listed:
  • Henk Kox
  • Arjan Lejour

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract
International negotiations on the liberalisation of service trade are concentrated at non-tariff barriers (NTBs). National government measures form important obstacles for service providers when they want to access foreign markets. International studies predict substantial welfare benefits from removing trade obstacles for services. Negotiations on lowering these obstacles are complicated because government regulations are seldom strictly oriented at keeping foreign firms out their domestic service markets. Some of them (e.g. quantity-based restrictions) are clearly at odds with WTO principles. We argue however that in most cases regulators primarily aimed at correcting domestic market failures with disregard for the potential repercussions for foreign providers of services. In negotiations this problem can be approached by introducing economic necessity tests, but that is a very long and tedious process. We propose a different negotiation approach based on lessons learned from WTO negotiations on agricultural support measures.

Suggested Citation

  • Henk Kox & Arjan Lejour, 2004. "A different approach to WTO negotiations in services," CPB Discussion Paper 36, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:36
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    References listed on IDEAS

    as
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    Cited by:

    1. Arjan Lejour & J.W. de Paiva Verheijden, 2004. "Services trade within Canada and the European Union; what do they have in common?," CPB Discussion Paper 42.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Arjan Lejour & J.W. de Paiva Verheijden, 2004. "Services trade within Canada and the European Union; what do they have in common?," CPB Discussion Paper 42, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Nordås, Hildegunn Kyvik, 2007. "International production sharing: A case for a coherent policy framework," WTO Discussion Papers 11, World Trade Organization (WTO), Economic Research and Statistics Division.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L8 - Industrial Organization - - Industry Studies: Services
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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