Reciprocity Across Modes of Supply in the World Trade Organization : A Negotiating Formula

Negotiations on trade in services at the World Trade Organization (WTO) have so far produced little liberalization beyond levels countries have undertaken unilaterally. One reason: limited application of the traditional negotiating principle of rec...

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Bibliographic Details
Main Authors:	Mattoo, Aaditya, Olarreaga, Marcelo
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AGRICULTURE BALANCE OF CONCESSIONS BILATERAL TRADE BORDER TRADE CAPITAL MARKET CARBON CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CENTRAL BANKS COMMERCIAL PRESENCE COMPARATIVE ADVANTAGE COMPETITIVENESS CONCESSIONS CONSUMERS CROSS-BORDER DELIVERY CROSS-BORDER EXPORTS CROSS-BORDER TRADE CURRENT ACCOUNT CURRENT ACCOUNT BALANCE DEVELOPED COUNTRIES DEVELOPMENT DOMESTIC FIRMS DOMESTIC REFORM ECONOMIC THEORY ECONOMISTS ELASTICITY EMPIRICAL EVIDENCE EMPLOYMENT ENTITLEMENTS EQUILIBRIUM EXPORT VOLUME EXPORTERS FACTOR PRICE FACTORS OF PRODUCTION FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN FACTORS FOREIGN INVESTMENT FOREIGN LABOR FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN SERVICE PROVIDERS FORESTRY GATS GENERALIZED SYSTEM OF PREFERENCES IMPORT VOLUME IMPORTS INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INPUT-OUTPUT TABLES JOINT IMPLEMENTATION MARKET ACCESS MODES OF SUPPLY MOVEMENT OF NATURAL PERSONS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS NET EXPORTS NON-DISCRIMINATORY BASIS NON-TARIFF BARRIERS OPENNESS POLITICAL ECONOMY PRICE DIFFERENCES QUOTAS RECIPROCAL REDUCTION RECIPROCITY RETURNS TO SCALE SERVICE SECTOR SERVICE SUPPLIERS SERVICES SERVICES AGREEMENT SERVICES NEGOTIATIONS SERVICES SECTORS TARIFF BARRIERS TARIFF EQUIVALENTS TARIFF REDUCTION TERMS OF TRADE TERMS OF TRADE EFFECTS TOTAL OUTPUT TRADE TRADE BALANCE TRADE EFFECT TRADE IN SERVICES TRADE NEGOTIATIONS TRADE OPENING TRADE PATTERN TRADE POLICIES TRADE POLICY TRADING PARTNERS UNILATERAL LIBERALIZATION URUGUAY ROUND VOLUME OF TRADE WELFARE EFFECTS WELFARE GAINS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WORLD TRADING SYSTEM WTO
Online Access:	http://documents.worldbank.org/curated/en/2000/06/437123/reciprocity-across-modes-supply-world-trade-organization-negotiating-formula http://hdl.handle.net/10986/19831

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Summary:	Negotiations on trade in services at the World Trade Organization (WTO) have so far produced little liberalization beyond levels countries have undertaken unilaterally. One reason: limited application of the traditional negotiating principle of reciprocity. In particular, participants have failed to exploit the scope of the services agreement (General Agreement on Trade in Services -GATS) for the exchange of market-access "concessions" across different modes of supply - cross-border delivery and the movement of capital and workers. Using the Heckscher-Ohlin-Vanek framework, the authors propose a negotiating formula that generalizes the fundamental WTO principle of reciprocity to include alternative modes of delivery. Adoption of this formula as a basis for negotiations could bring greater commitments to liberalization on all modes of delivery, producing substantial gains in global welfare and more balanced outcomes.

Reciprocity Across Modes of Supply in the World Trade Organization : A Negotiating Formula

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