Trade in Services Negotiations
200 Pages
English

Trade in Services Negotiations

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This book aims at contributing to address some of the challenge that developing countries, especially the least-developing countries, face in the design of trade in service policies and to provide governments with tools to better incorporate services in their export strategies, including negotiations and cooperation with trading partners, and unilateral reforms.
This book helps to identify key policy challenges faced by developing country trade negotiators, regulatory policy officials and/or service suppliers. Management of both policy reforms and trade agreements requires investments in sounder regulatory regimes and the establishment of enforcement mechanisms to help countries gradually opening and mitigate any potential downside risks. A successful strategy requires a proper sequencing that through an orderly and transparent process allows to prepare for greater competition.

Developing countries face serious resource and administrative constraints to adequately negotiate multiple services agreements that serve their trade interest. For many developing countries, the administrative burden of handling and negotiating multiple trade agreements has become a serious concern and this can hamper their opportunities to obtain adequate market access for their services exports. The book develops in detail the methodological framework for the construction of a database and the core elements that will comprise it, to help countries to organize and manage their services commitments.
Little attention has been devoted to the organization/preparation and the development, assessment and conclusion of the negotiation process. The book presents a simulation exercise designed for policymakers, trade negotiators, and trade practitioners working in the area of services. This exercise will help them to better understand the preparatory and negotiating stages of the process leading to liberalization of trade in services.

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Published by
Published 25 June 2010
Reads 39
EAN13 9780821384114
Language English

DIRECTIONS IN DEVELOPMENT
Trade
Trade in Services Negotiations
A Guide for Developing Countries
Sebastián Sáez, EditorTrade in Services NegotiationsTrade in Services Negotiations
A Guide for Developing Countries
Edited by Sebastián Sáez© 2010 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
Internet: www.worldbank.org
E-mail: feedback@worldbank.org
All rights reserved
1 2 3 4 13 12 11 10
This volume is a product of the staff of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions expressed in this
volume do not necessarily reflect the views of the Executive Directors of The World Bank or the
governments they represent.
The World Bank does not guarantee the accuracy of the data included in this work. The bound-
aries, colors, denominations, and other information shown on any map in this work do not imply
any judgment on the part of The World Bank concerning the legal status of any territory or the
endorsement or acceptance of such boundaries.
Rights and Permissions
The material in this publication is copyrighted. Copying and/or transmitting portions or all of this
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All other queries on rights and licenses, including subsidiary rights, should be addressed to the
Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax:
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ISBN: 978-0-8213-8410-7
eISBN: 978-0-8213-8411-4
DOI: 10.1596/978-0-8213-8410-7
Library of Congress Cataloging-in-Publication Data has been applied for
Cover photo © Comstock/Corbis.
Cover design by Quantum Think.Contents
List of Contributors ix
Foreword xi
Acknowledgments xiii
Abbreviations xv
Chapter 1 The Strategic Development Role of Trade in Services 1
Sebastián Sáez
Why This Book? 4
Understanding the Strategic Nature of
Liberalization 6
The Strategic Role of International Agreements
in Services 11
Notes 14
References 15
Chapter 2 Negotiating Trade in Services: A Practical Guide
for Developing Countries 19
Mario Marconini and Pierre Sauvé
Introduction 19
vvi Contents
Mapping a Strategy for Services in National
Development Plans 21
Preparing for Service Negotiations 25
Conducting Service Negotiations 44
Enhancing the Capacity to Supply 63
The Challenge of Aid for Trade in Services 76
Conclusion 81
Notes 81
References 84
Chapter 3 The Negotiation and Management of Regulations
in the Trade in Services 87
Sebastián Sáez and Marcel Vaillant
Understanding Service Regulations: The Basic
Components of SERET 88
Building SERET: The Positive List Approach 101
The Case of PTAs and the Negative List Approach 109
Conclusions 112
Annex 3A Statistics on Service Agreements 113
Notes 115
References 116
Chapter 4 Liberalization in the Trade in Services:
A Negotiation Exercise 121
Sebastián Sáez and Anna Lanoszka
The Trade Dimension of Logistics Services 123
The Trade Dimension of Health Services 134
Trade in Services: A Negotiation Exercise 147
Annex 4A Health-Related Services 163
Notes 168
References 168
Index 171
Boxes
2.1 The Place of Services in National Development Strategies 24
2.2 The Policy-Making Benefits of Effective Intragovernmental
Coordination 28Contents vii
2.3 Performing a Trade-Related Regulatory Audit in Services 37
2.4 Illustrative Examples of TrAudits 41
2.5 Key Questions during the Preparatory Phase of Service
Negotiations 43
2.6 The Doha Round Shift toward Collective Requests 47
2.7 Concerns Arising in Service Negotiations 54
2.8 Examples of Best Practice Capacity Building in Services 59
2.9 Best Practices in Trade-Related Training: Course Design
and Delivery 62
2.10 The Implementation Phase of the Service Trade
Negotiation Cycle 64
2.11 The Strengths and Weaknesses of Domestic Suppliers 67
2.12 Organizing Service Coalitions in Developing Countries 69
2.13 Providing Market Intelligence to Developing-Country
Suppliers: The Trade Facilitation Office, Canada 73
2.14 Strengthening the Supply-Side Capacity of
Developing-Country Exporters 75
2.15 Addressing Aid for Trade in Services: The
CARIFORUM–European Community Economic
Partnership Agreement 78
3.1 Sector Classification 89
3.2 Annex 1: Type of Reservation: United States–Chile
Free Trade Agreement 111
Figures
2.1 Checklist for Trade Policy Formulation, Thailand 34
2.2 Negotiating Essentials: Interagency Coordination and
External Stakeholder Consultations 35
4.1 Overperformers and Underperformers: Gross National
Income per Capita and the Logistics Performance Index 124
Tables
1.1 Analytical Structure for the Description of Service
Regulations 9
2.1 Sample List of Exporters and Other Domestic
Stakeholders in Selected Service Sectors 31
2.2 Factors to Consider in Formulating a Request or Offer 50
3.1 Reasons, Objectives, and Instruments of Regulation in
Selected Service Sectors 90
3.2 Discrimination and Rules 90viii Contents
3.3 Foreign Suppliers and Types of Impact: Discriminatory
and Nondiscriminatory Restrictions 91
3.4 Modes of Supply and the GATS 92
3.5 Schedule of GATS Commitments 93
3.6 Comparative Coverage of Rules in GATT and the GATS,
Market Access Modes 94
3.7 PTAs to Achieve Service Liberalization 100
3.8 An Example of a Service Schedule 102
3.9 First Commitment Schedule Downloaded 104
3.10 Pasting the W/120 Code for Each Mode of Supply
in the Subsector 106
3.11 Nesting Horizontal Commitments 107
3A.1 Service Trade Agreements by Type, Hub Country,
Partner, and WTO Notification Year 113
4.1 Trade in Logistics Services: Examples of Restrictions 127
4.2 Freight Logistics Checklist 132
4.3 Logistics Services: Issues in the Development of
Negotiating Positions 135
4.4 The Modes of Trade in the Health Sector 139
4.5 Health Service Trade: Issues to Consider in Developing
Negotiating Positions 144
4A.1. Health-Related Services: Relevant Sectors and the
Corresponding CPC Classifications 163