International Trade in Services.pdf - DSpace at Khazar University

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Foreword
Beyond describing the trends of trade in services, International Trade in Services
also addresses the complex policy issues related to this topic, because services
trade liberalization remains one of the most complicated and controversial issues
in trade policy making. For trade in goods, liberalization is primarily about eliminating
tariffs and nontariff barriers at the border. Services liberalization not only
requires the elimination of discriminatory barriers that affect both services and
service providers, but also addresses a host of nontrade measures geared to the
protection of health, environment, public order, and morals, and other issues
related to competition and consumer protection. These measures have legitimate
policy objectives but often become difficult to distinguish from protectionist policies
when it comes to services trade. This specific issue is one of the most challenging
policy issues for the cross-border trade in services.
International Trade in Services also provides an assessment of how policy
makers can further bolster their service industries by leveraging the changes
prompted by technological advancements. The book provides policy recommendations
that include the reduction of barriers to services trade across all sectors
and the promotion of health- and environment-related development policies that
should be promoted in parallel with a burgeoning services market. The first recommendation
is considered the most important, because it focuses on the need to
ensure trade openness, which helps ensure the access to services and promotes the
quality of services provision through foreign and domestic competition. Moreover,
the issue of temporary movement of labor is another focus of this book,
given that it is one of the most important means of service exports for developing
countries. This is an issue that is considered technically complex and politically
sensitive because of its political and security implications. The book examines
mechanisms that have been used by various countries to liberalize the temporary
movement of persons and concludes that regardless of the negotiating forum—
multilateral, regional, or bilateral—the policy making results on temporary movement
of labor are, so far, modest and limited to a small range of categories. However,
it proposes alternative ways to move forward that require further analysis by
countries and relevant international organizations, including the World Bank.
It is our hope that this book will serve as a basis for further discussions, a catalyst
for new research on this topic, and a guide for economic policy analysis in the
area of services in developing countries around the world.
Otaviano Canuto
Vice President
Poverty Reduction and Economic Management
World Bank