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Services Liberalization by Developing Countries: Is More Progress Possible Regionally than under the GATS?

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Services Liberalization by Developing Countries: Is More Progress Possible Regionally than under the GATS? Dr. Sherry M. Stephenson Trade Unit Organization of American States [email_address] 18 June 2002
Outline ,[object Object],[object Object],[object Object],[object Object]
How do RTAS Compare with GATS? SHARED OBJECTIVES ,[object Object],[object Object],[object Object]
How does GATS fulfill these objectives ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Regional Trade Agreements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Regional Forms of Integration: Must be GATS Plus- Subject to Article V ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RTAs: Approach to Liberalization (Modality) ,[object Object],[object Object],[object Object],[object Object],Positive list (Bottom-up) National schedules list specific commitments to provide national treatment and market access for particular service sectors and modes of supply
RTAs: Approaches to Liberalization Western Hemisphere ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RTAs OFFER ALTERNATIVE STRUCTURE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RTAs: STRONGER DISCIPLINES THAN GATS ,[object Object],[object Object],[object Object],[object Object],[object Object]
RTAs: HEIGHTENED TRANSPARENCY ,[object Object],[object Object],[object Object],[object Object]
RTAs: GREATER STABILITY ,[object Object],[object Object],[object Object],[object Object]
RTAs : TARGET DEEPER INTEGRATION-1 ,[object Object],[object Object],[object Object],[object Object],[object Object]
RTAs: TARGET DEEPER INTEGRATION-2 ,[object Object],[object Object],[object Object]
RTAs: LIBERALIZING BIAS ,[object Object],[object Object],[object Object],[object Object],[object Object]
What have RTAs been able to accomplish ? ,[object Object],[object Object],[object Object],BUT, HAS LIBERALIZATION GONE FURTHER?
NAFTA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],MEXICO
MERCOSUR ,[object Object],[object Object],Limitations on mode 3 across most committed sectors, either on foreign ownership or for joint venture requirements (except distribution services) Commitments for MERCOSUR members identical to GATS schedule except for few subsectors of business services MERCOSUR BRAZIL GATS
Differences between BRAZIL’s MERCOSUR and GATS commitments in services Not included Authorization requirement; limitation on foreign ownership 3 Rail freight/ Road freight Committed. Joint venture requirement Unbound 3 Technical testing and analysis services & related scientific and technical consulting 3 1,2,&3 1,2,&3 2 Mode Committed. No restriction Unbound R&D services on natural sciences Committed. No restriction Unbound Computer and computer related business services Committed. No restriction Unbound Pharmacy and librarian services No restriction Unbound Accounting, auditing and bookkeeping / courier MERCOSUR GATS ,[object Object]
RTAs & Liberalization ,[object Object],[object Object],[object Object],[object Object]
What have RTAs contributed so far in services area? ,[object Object],[object Object],[object Object],[object Object],[object Object],Can we therefore say that RTAs are “ building blocs” rather than “stumbling blocs”?
Can RTAs help foster services liberalization? ,[object Object],[object Object],[object Object],[object Object],BUT: Does liberalization make sense at the regional level?
Usefulness of RTAs ,[object Object],[object Object],[object Object],[object Object],[object Object]

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  • 1. Services Liberalization by Developing Countries: Is More Progress Possible Regionally than under the GATS? Dr. Sherry M. Stephenson Trade Unit Organization of American States [email_address] 18 June 2002
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