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174 International Trade in Services deliveries of large quantities of produce. Farmers with superior endowments in management skills, land, and financing are therefore likely to prosper, while smaller farmers may be pushed down the value chain. Governments need to adopt policies to assist in training and the provision of capital to enable farmers to sell to big retail chains. For the smallest suppliers, market liberalization often represents significant challenges. The sector is regulated directly in relation to physical facilities (for example, location, size, juxtaposition with other buildings, effects on traffic). It is also regulated indirectly to ensure against market failure (for example, anticompetitive practices) and to protect noneconomic values, including societal objectives relating to employment, working conditions, health, the safety of facilities and products, and the impact on farmers, horticulturalists, and the environment. There is no panacea to propose to governments: it may be important to phase in liberalization measures if there are sensitive social issues at stake (such as racial and gender balancing) or if the resources to address the adverse consequences of structural adjustment are lacking and aid in capacity building is necessary. An assessment must be carried out to identify any government policies that can significantly affect the distribution sector either directly or indirectly, especially any regulations that are unnecessarily trade restrictive and therefore should be modified. The direct impacts on the ownership, capitalization, and development of distribution enterprises must be considered first, including initial market access conditions, and the operations of foreign companies that have been permitted to establish a commercial presence should be considered second. More generally, the effect on employment levels, the pace of liberalization, and the need to take into account ethnic makeup and sensibilities in society should also be examined. Finally, it is important to determine whether regulations, including competition law, are adequately enforced. The liberalization of trade in retail services has, so far, principally occurred as a result of the GATS multilateral negotiations and WTO accessions since 1995. The distribution service sector has been the focus of fewer multilateral commitments than most other sectors, highlighting the large gap between the economic importance of the sector and the access conditions in the sector in the context of the GATS. The regulations and practices affecting goods imports can have a major impact on distribution supply chains, which could be strongly influenced in a positive way by the WTO negotiations on trade facilitation. Notes 1. Disaggregated data on distribution services are not published in the National Accounts Main Aggregates Database of the United Nations. Distribution is instead grouped with hotels and restaurants, and this category accounts for 14.6 percent of GDP in developing countries (excluding China)
Market Structure, Liberalization, and Trade 175 and 15.6 percent of GDP in developed countries. However, the numbers hide great variation because developing countries account for both the 11 lowest and 11 highest proportions, or 6–10 percent and 22–33 percent, respectively. The average for the least developed countries is 17 percent. Since 1995, the value added of distribution services has been highest in the least developed countries and in lowincome and Sub-Saharan African countries (UNCTAD 2005). 2. For the balance of payments statistics of the International Monetary Fund, see http://www.imf .org/external/np/sta/bop/bop.htm. 3. The European Union-15 are the members prior to 2004: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. References Arkell, J., and M. D. C. Johnson. 2005. “Sustainability Impact Assessment of Proposed WTO Negotiations: Final Report for the Distribution Services Study.” Report, June, International Trade and Services Policy and Institute for Development Policy and Management, School of Environment and Development, University of Manchester, Manchester, United Kingdom. Borga, Maria. 2006. “Improved Measures of U.S. International Services: The Cases of Insurance, Wholesale and Retail Trade, and Financial Services.” Paper presented at the National Bureau of Economic Research–Conference on Research in Income and Wealth “Joint Conference on International Services Flows,” Bethesda, MD, April 28–29. Boylaud, Olivier. 2000. “Regulatory Reform in Road Freight and Retail Distribution.” Economics Department Working Paper 255, Organisation for Economic Co-operation and Development, Paris. Boylaud, Olivier, and Giuseppe Nicoletti. 2001. “Regulatory Reform in Retail Distribution.” OECD Economic Studies 32 (2001/1), Organisation for Economic Co-operation and Development, Paris. Bradford, Scott. 1995. “The Welfare Effects of Distribution Regulations in OECD Countries.” Economic Enquiry 43 (4): 795–811. Carana Corporation. 2008. “Guyanese Services: Opportunities for Increased Economic Growth and Trade Liberalization.” Report, U.S. Agency for International Development, Washington, DC. Cattaneo, Olivier, Peter Walkenhorst, and S. Ighiliahriz. 2007. “Harnessing the Benefits of Services Trade for Algeria.” World Bank Policy Note, World Bank, Washington, DC. Deloitte. 2008. “2008 Global Powers of Retailing: Standing Out from the Crowd.” Deloitte Consumer Business, London. Dihel, N., and A. El Shinnawy. 2006. “Assessment of Trade in Distribution Services in Egypt in Relation to the GATS.” Report, June, Ministry of Trade and Industry, Cairo. Fink, Carsten, and Martín Molinuevo. 2007. East Asian Free Trade Agreements in Services: Roaring Tigers or Timid Pandas Report 40175. Washington, DC: East Asia and Pacific Region, World Bank. Fiorentino, Roberto V., Luis Verdeja, and Christelle Toqueboeuf. 2006. “The Changing Landscape of Regional Trade Agreements: 2006 Update.” Discussion Paper 12, World Trade Organization, Geneva. Joseph, M., N. Soundararajan, M. Gupta, and S. Sahu. 2008. “Impact of Organised Retailing on the Unorganised Sector.” ICRIER Working Paper 222 (September), Indian Council for Research on International Economic Relations, New Delhi. Kalirajan, Kaleeswaran. 2000. “Restrictions on Trade in Distribution Services.” Productivity Commission Staff Research Paper, August, AusInfo, Canberra. Lawrence, Felicity. 2004. Not on the Label: What Really Goes into the Food on Your Plate. London: Penguin Books. National Accounts Main Aggregates Database. Statistics Division, United Nations. http://unstats.un.org/ unsd/nationalaccount/. Nordås, Hildegunn Kyvik. 2008. “Gatekeepers to Consumer Markets: The Role of Retailers in International Trade.” International Review of Retail, Distribution and Consumer Research 18 (5): 449–72.
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Public Disclosure Authorized Public
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International Trade in Services New
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CONTENTS About the Editors and Cont
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Contents vii Boxes 2.1 Extent of Te
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Contents ix 1.4 Worker Remittances
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Contents xi 6.6 A Checklist of Ques
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xiv About the Editors and Contribut
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xvi Foreword Beyond describing the
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xviii Acknowledgments Finally, this
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1 Assessing the Potential of Servic
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Assessing the Potential of Services
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2 Increasing Labor Mobility: Option
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Increasing Labor Mobility 31 unders
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Table 2.2. Quantitative Estimates o
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Borjas, George “Heaven’s Doors:
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Increasing Labor Mobility 37 contri
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Increasing Labor Mobility 39 must h
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Worker categories covered Specifica
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Provisions on professionals Annex o
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Increasing Labor Mobility 45 The EU
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Table 2.7. Agreements between Austr
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Specified quotas n.a. Entry subject
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Increasing Labor Mobility 55 Figure
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Increasing Labor Mobility 57 Bilate
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Increasing Labor Mobility 59 Jamaic
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Increasing Labor Mobility 61 factor
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Increasing Labor Mobility 63 indivi
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Increasing Labor Mobility 65 that a
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3 Legal Services: Does More Trade R
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Legal Services: Does More Trade Rhy
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Table 3.3. Trade in Legal Services:
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Table 3.8. Uruguay Round Commitment
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Exporting Information Technology Se
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Table 7.3. Information and Communic
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Brunei Darussalam 48.2 2.9 2,954 66
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Honduras 6.0 — 4,081 10.1 3.3 —
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Norway 85.0 30.6 31,726 82.0 78.0 5
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Uganda 3.6 — 306 5.1 — 170.0 41
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8 Accounting Services: Ensuring Goo
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Accounting Services 265 exceeding 5
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Accounting Services 267 Links to la
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Accounting Services 269 The account
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Accounting Services 271 Box 8.3: Ex
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Accounting Services 273 service mar
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Accounting Services 275 Table 8.5.
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Accounting Services 277 Box 8.6: Re
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Accounting Services 279 Box 8.7: An
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Accounting Services 281 Table 8.6.
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Accounting Services 283 Restriction
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Accounting Services 285 Commercial
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Accounting Services 287 Colleges of
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Accounting Services 289 Administrat
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Accounting Services 291 IESBA (Inte
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350 Index Association of Certified
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352 Index Convention on Combating B
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354 Index Former Yugoslav Republic
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356 Index International Public Sect
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358 Index migrants. See labor mobil
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360 Index public-private partnershi
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362 Index Thailand construction ser
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ECO-AUDIT Environmental Benefits St
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