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International Trade in Services.pdf - DSpace at Khazar University

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Market Structure, Liberaliz<strong>at</strong>ion, and <strong>Trade</strong> 167<br />

unnecessary barriers to trade, such as licens<strong>in</strong>g requirements th<strong>at</strong> are determ<strong>in</strong>ed<br />

to be more burdensome than necessary to ensure the quality of the service and<br />

thus <strong>in</strong> viol<strong>at</strong>ion of GATS article VI.4 on domestic regul<strong>at</strong>ion, the rules for which<br />

are be<strong>in</strong>g discussed <strong>in</strong> the multil<strong>at</strong>eral Doha Round (USITC 2008).<br />

<strong>Trade</strong> facilit<strong>at</strong>ion<br />

The regul<strong>at</strong>ions and practices affect<strong>in</strong>g goods imports can have a major impact on<br />

<strong>in</strong>tern<strong>at</strong>ional supply cha<strong>in</strong>s, which could be strongly <strong>in</strong>fluenced <strong>in</strong> a positive way<br />

by the WTO negoti<strong>at</strong>ions on trade facilit<strong>at</strong>ion. Inadequ<strong>at</strong>e port management and<br />

customs practices <strong>in</strong> many develop<strong>in</strong>g countries result <strong>in</strong> long delays and give rise<br />

to unnecessary trade transaction costs. The demands of border and port officials<br />

for <strong>in</strong>formal payments may impede trade. The Doha negoti<strong>at</strong>ions address ways to<br />

help exporters of goods who need <strong>in</strong>form<strong>at</strong>ion on import and export regul<strong>at</strong>ions<br />

and customs procedures <strong>in</strong> other countries. Cutt<strong>in</strong>g the red tape associ<strong>at</strong>ed with<br />

imports of goods <strong>in</strong>to a country and provid<strong>in</strong>g easier access to accur<strong>at</strong>e <strong>in</strong>form<strong>at</strong>ion<br />

on import requirements are two ways of facilit<strong>at</strong><strong>in</strong>g trade. The aim is to clarify<br />

and improve the relevant articles of the General Agreement on Tariffs and<br />

<strong>Trade</strong> of the WTO with a view to expedit<strong>in</strong>g the movement, release, and clearance<br />

of goods, <strong>in</strong>clud<strong>in</strong>g goods <strong>in</strong> transit. However, develop<strong>in</strong>g countries and the least<br />

developed countries will not be obliged to undertake <strong>in</strong>vestments <strong>in</strong> <strong>in</strong>frastructure<br />

projects beyond their means.<br />

The negoti<strong>at</strong>ions also aim <strong>at</strong> enhanc<strong>in</strong>g technical assistance and support for<br />

capacity build<strong>in</strong>g <strong>in</strong> develop<strong>in</strong>g countries and <strong>at</strong> improv<strong>in</strong>g the provisions for<br />

effective cooper<strong>at</strong>ion among customs authorities and other appropri<strong>at</strong>e authorities<br />

on trade facilit<strong>at</strong>ion and customs compliance issues. This is considered vital<br />

to enabl<strong>in</strong>g these authorities to particip<strong>at</strong>e fully <strong>in</strong> the negoti<strong>at</strong>ions and to benefit<br />

from them. There will be a collabor<strong>at</strong>ive effort <strong>in</strong> this area by the WTO, the<br />

<strong>Intern<strong>at</strong>ional</strong> Monetary Fund, the OECD, the United N<strong>at</strong>ions Conference on<br />

<strong>Trade</strong> and Development, the World Customs Organiz<strong>at</strong>ion, and the World<br />

Bank.<br />

Questions Governments Should Assess as They<br />

Advance the Reform of the <strong>Trade</strong>-Rel<strong>at</strong>ed<br />

Aspects of Distribution <strong>Services</strong><br />

A number of issues merit the <strong>at</strong>tention of policy makers as they advance the trade<br />

<strong>in</strong>tegr<strong>at</strong>ion agenda for distribution services. A checklist of questions th<strong>at</strong> might<br />

help structure the assessment and guide a comprehensive approach to regul<strong>at</strong>ory<br />

reform and the formul<strong>at</strong>ion of trade policy follows.

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