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346 International Trade in Services It should be noted, however, that the liberalization of environmental services is not without controversy. There has been much debate about the potential conflict between efficiency and the equity induced by liberalization disciplines. Recent high-profile failures of efforts at privatization in water services have fueled this debate and strengthened opposition groups. In this context, many analysts underline that liberalization disciplines need to be preconditioned or complemented by regulatory reforms that increase access to essential facilities and quality services. The chapter identifies priority areas for reforming and liberalizing environmental services in developing countries, as follows: 1. In environmental infrastructure and noninfrastructure services, effective competition is essential to increase efficiency. Effective competition in the market or, in infrastructure segments that have natural monopoly characteristics, effective competition for the market (such as bids for concession contracts) can be ensured through sound procurement policies, privatization, and publicprivate partnerships. Furthermore, in several basic environmental services such as water and sanitation, universal access is a priority. Wider access to basic environmental services can be ensured by an incentive framework aimed at consumers or at the private actors involved in the provision of these services. While targeting remains a challenge, experience shows that the most effective way to target involves subsidizing connection to infrastructure rather than subsidizing more consumption of the associated goods or service. In several environmental infrastructure and noninfrastructure services, standards that specify results-based requirements (for example, requirements on service quality, reliability, and continuity) or input requirements (for example, requirements related to the types of materials or procedures that the operators must use) are necessary to deal with negative externalities. Policy makers could strengthen environmental services by using appropriate standards and implementing them through market-based instruments. 2. Trade reform then needs to be integrated into an open and transparent process of regulatory reform in which decisions on the nature and pace of reform are supported by careful analysis and an understanding of best practices. At the multilateral level, policy makers could lock in or seek greater access for foreign environmental companies on a nondiscriminatory basis. Investment in environmental infrastructure and noninfrastructure services is likely to generate significant gains for developing countries. At the regional level, policy makers could engage in deeper cooperation on issues such as capacity building or the enforcement or harmonization of standards. At the bilateral level, policy makers from developing countries could engage in discussions on the movement of the personnel relevant to noninfrastructure environmental service exports,
Understanding Trade in Environmental Services: Key Issues and Prospects 347 such as personnel in environmental engineering, testing and analysis, research and development, and consulting, where these segments have a potential comparative advantage. Finally, policy makers can use a variety of export promotion programs to increase the trade in environmental services. Notes 1. http://www.enviroserv.co.za/pages/. 2. Data, taken from Geloso Grosso (2004), were based on the best estimates derived from interviews conducted by Environmental Business International with companies, researchers, and government agencies. 3. The economies examined are Brazil, Chile, China, Cuba, the Czech Republic, the Dominican Republic, Guatemala, Honduras, Israel, Kenya, the Republic of Korea, Mexico, Nicaragua, Pakistan, Panama, Thailand, and Vietnam. 4. Trade commitments may require investment in public policy mechanisms, the creation of independent regulatory authorities and inquiry points, and changes in legislation, regulation, or administrative rules and practices. References AllBusiness. 2008. “New Recycling Law in China Positions Sancon Resources Recovery for Strong Growth.” Business Wire, October 14, AllBusiness, San Francisco. Asia Pulse. 2007. “Industrial Waste Management Services Markets in Southeast Asia.” November 2. http://www.asiapulse.com/. Business News Americas. 2008a. “British Firms Interested in Environment Sector: Peru.” September 22. ———. 2008b. “EPM to Invest US$2.2 Billion from 2009–11: Launches New International Division.” October 9. ———. 2008c. “Manantial Eyes Ecuador, Cuba as Part of International Expansion.” October 16. ———. 2008d. “Pro Inversion: Brazilian Firms Aim to Invest around US$2.5 Billion.” September 22. ———. 2008e. “Canadian Investors See ‘Enormous’ Potential in Environment Sector.” April 21. Claro, E., N. Lucas, M. Sugathan, M. Marconini, and E. Lendo. 2007. “Trade in Environmental Goods and Services and Sustainable Development: Domestic Considerations and Strategies for WTO Negotiations.” Policy Discussion Paper, December, International Centre for Trade and Sustainable Development, Geneva. Cossy, Mereille. 2005. “Water Services at the WTO.” In Fresh Water and International Economic Law, ed. Edith Brown Weiss, Laurence Boisson de Chazournes, and Nathalie Bernasconi-Osterwalder, 117–42. London: Oxford University Press. EnviroServ. 2003. Annual Report 2003. Germiston, South Africa: EnviroServ. Euclid Infotech. 2008. “United Arab Emirates: Mubadala, Veolia in Water Treatment JV.” Euclid Infotech–Utilities News, October 7, Euclid Infotech, Mumbai. Ferrier, Grant. 2008. “The Evolution of the Environmental Services Industry in Mexico 1995–2005.” Paper presented at the Commission for Environmental Cooperation (Canada) “Fourth North American Symposium on Assessing the Environmental Effects of Trade,” Phoenix, April 23. Geloso Grosso, Massimo. 2004. “Managing Request-Offer Negotiations under the GATS: The Case of Environmental Services.” OECD Trade Policy Working Paper 11, Trade Directorate, Organisation for Economic Co-operation and Development, Paris. ———. 2007. “Regulatory Principles for Environmental Services and the General Agreement on Trade in Services.” Trade in Services Series, Issues Paper 6, International Centre for Trade and Sustainable Development, Geneva. ISI Emerging Markets. 2008a. “WWE Holdings Berhad (Malaysia) Company Profile.” Company report, ISI Emerging Markets, New York.
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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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Figure 6.6. Number of Days Required
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7 Exporting Information Technology
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Exporting Information Technology Se
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Table 7.1. Major Exporters and Impo
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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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Page 372 and 373: 350 Index Association of Certified
Page 374 and 375: 352 Index Convention on Combating B
Page 376 and 377: 354 Index Former Yugoslav Republic
Page 378 and 379: 356 Index International Public Sect
Page 380 and 381: 358 Index migrants. See labor mobil
Page 382 and 383: 360 Index public-private partnershi
Page 384 and 385: 362 Index Thailand construction ser
Page 386: ECO-AUDIT Environmental Benefits St
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