The GATS and regional approaches to services trade and investment liberalization

Abstract

This paper examines the approaches to liberalization of trade in services adopted within existing PTAs as compared to prevailing GATS’
commitments. The paper aims to gain a better understanding of whether and how the difficult issues associated with services trade and

investment liberalisation are tackled in the PTA-type arrangement and how much further access is granted under PTAs. Using information and
data from a selection of 30 PTAs most of them negotiated after 2000 (from Africa, Latin America, Asia, and Europe, among others), the paper
establishes that most major PTAs are at the same pace with GATS in securing the rule-making interface between domestic regulation and trade
in services. With exception of rules -making (safeguard mechanism, disciplines on subsidies or domestic regulation), where GATS prevails overall
when considered in aggregate, PTAs appear to offer superior value added over GATS in all other areas. Across modes and sectors, PTA
commitments tend to go significantly beyond GATS offers in terms of improved and new bindings. However, commitments on temporary
movement of labour though superior in PTAs remain modest in scope.

IPRAA WORKING PAPER 91

JEL Classification: F13, F15.
Key words: Trade in Services, Regionalism and Multilateralism, Developing Countries, Africa and GATs.

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