International Trade in Services.pdf - DSpace at Khazar University

130 International Trade in Services
The difficulty of the regulatory review and reform exercise should not be
underestimated. First, some regulations that apply to the health sector are not sector
specific (for example, some rules on foreign investment or visa approvals).
Second, not all rules are set by the government. In many professions, including the
medical profession, the professional orders or associations may enjoy important
delegated public authority to regulate the profession (for example, in the recognition
of qualifications or the certification to practice). For these reasons, a health
sector strategy requires cooperation among the government, ministries, the private
sector, and professional associations.
Promoting exports
In a highly competitive global market, it is not enough to fix the fundamentals,
including the regulatory framework, to become an exporter of health services.As in
any other sector, a trade promotion strategy is necessary to gain market shares
abroad. The elaborationof this strategyis mainlytheresponsibilityof theprivatesector
(or health service providers generally),but the government also has a major role.
Business strategies: Niches and prospective markets
The description of the drivers of trade in health services under Mode 2 suggests
that not all markets may be contested and not all business strategies can be successful.
For example, targeting the French market for medical treatments that are
fully covered by health insurance cannot succeed; in contrast, targeting the U.K.
market for medical procedures that are not readily accessible in the United
Kingdom may be rewarding. The knowledge of foreign markets, including health
care needs (such as the age structure of the population), medical care supply
factors (such as the density and shortages in medical personnel, particularly in
specialty areas), and gaps in health insurance coverage, is essential in the design of
efficient export promotion strategies. The United States is and will remain the
world’s largest consumer of health services and therefore a main target of health
service exports. The increasing demand for health services in high-income countries
and, in parallel, the increasing shortages in health care supply could have
major effects on trade opportunities. Not only might net exporting countries
become major importers of health services, but they could experience shortages in
the resources they need to supply those developing countries that now import
their services. Thus, there would be room for the most advanced developing countries
to compete for market share in the North and in the South.
A good knowledge of global supply, that is, competition, is also required. Innovation,
as in the trade in goods, is important for success. This could take the form