This paper assesses the effectiveness of regional agreements (RTAs) in tackling many of the hurdles that potentially impede access to and presence in services markets.

Findings on RTAs vs. GATS:

From the approaches and disciplines within the services trade frameworks and the framework of the GATS, most major RTAs are at the same pace as GATS in securing the rule-making interface between domestic regulation and trade in services, the necessity test, cross-border trade in services, and mutual recognition, as well as emergency safeguards and subsidies issues. However, they lag behind GATS in areas of policy sensitivities and the handling of critical sectors such as telecommunications and financial services. As such, regionalism may not be a preferred means of pursuing trade liberalisation in sectors where policy sensitivities are high.

Broader policy coordination:

Second, effective access to services markets and services export performance involves the interplay of a large number of policy measures, including those not typically falling within the scope of services trade frameworks. Beyond reforms in services trade frameworks—such as pursuing regional regulatory harmonisation—Africa needs to be alert to domestic policies and ensure that proper coordination exists with national officials in related policy areas.

Entry restrictions and regulatory barriers:

Third, entry restrictions and regulatory barriers retard the growth of the services export sector, as incumbent firms have no incentive to improve productivity to stay ahead of competition.