International Trade in Services.pdf - DSpace at Khazar University

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72 International Trade in Services Box 3.3: The Four Modes of Supply for Legal Services The General Agreement on Trade in Services (GATS) of the World Trade Organization defines four modes of supply in the trade in services. The modes of supply have been identified to help trade negotiators determine trade commitments in trade agreements. Essentially, the modes are a construct for trade negotiations and are meant to reflect how businesses operate. Most firms use a combination of some or all the modes of supply to conduct business. The modes focus on the location of the service provider and the location of the service consumer. They are defined in the GATS as follows: Mode 1: Crossborder supply, whereby nonresident service suppliers supply services across the border in a client’s territory; for example, a Tunisian firm e-mails a memo to a client operating in Algeria. Mode 1 trade may be inhibited, for instance, by restrictions on Internet use and weak telecommunications infrastructure. Mode 2: Consumption abroad, whereby a country’s residents purchase services in the territory of another country; for example, a Tunisian firm represents an Algerian client in a Tunisian court. Mode 2 trade may be inhibited, for instance, by excessively restrictive capital controls. Mode 3: Commercial presence, whereby foreign service suppliers establish, operate, or expand a commercial presence in a client’s territory, such as a branch, agency, or wholly owned subsidiary; for example, a Tunisian law firm establishes a front office in Algeria. Mode 3 trade may be inhibited, for instance, by arduous qualification requirements and licensing procedures and by equity limitations. Mode 4: Movement of natural persons, whereby foreign individuals enter and temporarily stay in a client’s territory to supply a service; for example, a Tunisian lawyer visits a client in Algeria to prepare an acquisition. Mode 4 trade may be inhibited, for instance, by excessively restrictive visa fees or unpredictable and time-consuming work permit procedures. Analysts and policy makers can use the modes of supply to identify constraints on the growth in trade. This can then inform policy decisions designed to expand the legal service trade and promote exports. payments statistics do not always contain detailed data that disaggregate beyond broader categories such as professional services or business services or explicitly list legal services. The available data on the trade in legal services are therefore often based on estimates, which should be treated with care. Despite the frequent paucity of detailed data on trade in legal services, the available information suggests that trade takes place and accounts for substantial flows in several developing countries, such as Brazil or India (table 3.1). Moreover, there is quantitative information for some countries on the relative importance of
Legal Services: Does More Trade Rhyme with Better Justice 73 Table 3.1. Trade in Legal Services, 2007 US$, millions Economy Exports Imports Economy Exports Imports Albania 0.2 0.0 India c 758.3 126.0 Anguilla 4.9 — Italy 378.5 412.9 Argentina 749.5 223.3 Jamaica 0.1 9.2 Armenia 2.8 3.8 Kazakhstan 49.2 21.1 Australia a 134.5 64.2 Korea, Rep. 572.3 696.7 Austria 229.2 260.4 Latvia 10.2 10.7 Azerbaijan 1.6 6.2 Lithuania 3.2 5.7 Bangladesh 3.3 1.1 Madagascar b 0.1 0.0 Belarus b 2.0 3.5 Montserrat 0.5 — Belize — 0.8 Mozambique — 1.6 Brazil 1,868.2 421.3 Netherlands Antilles 53.5 13.5 Bulgaria 49.7 18.3 Norway 177.2 112.1 Côte d’Ivoire c — 51.6 Pakistan 8.0 39.0 Cyprus 418.6 60.4 Panama 127.3 16.2 Czech Republic 54.7 26.4 Paraguay f 0.1 0.8 Dominica 0.1 n.a. Portugal 203.3 42.3 Estonia 23.6 5.7 Romania 127.0 44.0 Ethiopia 16.8 2.6 Russian Federation 296.6 345.1 Fiji c 5.7 14.1 Slovak Republic 74.1 69.3 Finland 62.4 137.7 St. Kitts and Nevis 7.3 0.0 Georgia 0.1 0.9 St. Vincent and the 11.9 — Grenada d 0.0 0.0 Grenadines Guatemala e 2.9 0.3 Sweden 449.1 406.7 Guinea 0.7 3.6 Tonga 0.1 0.1 Hungary 116.0 41.6 Turkey — 52.0 Source: International Monetary Fund balance of payments statistics, http://www.imf.org/external/np/ sta/bop/bop.htm. Note: — not available. a. 1997. b. 2005. c. 2006. d. 2004. e. 2003. f. 2002. the different modes of legal service trade (table 3.2). However, even if quantitative evidence is lacking, qualitative information on legal trade flows, such as the number of offices established abroad by major law firms (GATS Mode 3), the number of business visas attributed to lawyers (GATS Mode 4), and the list of
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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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Page 43 and 44: Assessing the Potential of Services
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Page 59 and 60: Increasing Labor Mobility 37 contri
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Page 65 and 66: Provisions on professionals Annex o
Page 67 and 68: Increasing Labor Mobility 45 The EU
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Page 77 and 78: Increasing Labor Mobility 55 Figure
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Page 83 and 84: Increasing Labor Mobility 61 factor
Page 85 and 86: Increasing Labor Mobility 63 indivi
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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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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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