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Traded services in the GATT — What’s all the fuss about?

  • International Trade
  • Published:
Intereconomics

Abstract

International trade in services has not been governed by the GATT in the past. Opinion is divided over whether there is a real need for any separate agreement on services. The following article asks to what extent flows of goods and services can be properly separated in the first place, and whether it makes sense to attempt such separation.

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References

  1. see GATT international Trade, 1988–89, Vol. 1, p. 28.

  2. Cf. e.g. M. A. Kakabadse: International Trade in Services: Prospects for Liberalisation in the 1990s, Atlantic Paper No. 64, The Atlantic Institute for International Affairs, London et al. 1987. He states on p. 54.

  3. Cf. e.g. R. R. Rivers, V. A. Slater, A. A. Paolini: Putting Services on the Table: The New GATT Round, in: Stanford Journal of International Law, Vol. 23 (1987), No. 13, p. 23. See also J. H. Jackson: Constructing a Constitution for Trade in Services, in: The World Economy, Vol. 11 (1988), p. 191.

  4. T.P. Hill, op. cit. On Goods and Services, in: The Review of Income and Wealth, Vol. 23 (1977), p. 315.

  5. Ibid. A similar line is taken by T. P. Hill: On Goods and Services, in: The Review of Income and Wealth, Vol. 23 (1977), p. 318 f.

  6. Ibid. A similar line is taken by T. P. Hill: On Goods and Services, in: The Review of Income and Wealth, Vol. 23 (1977), p. 315.

  7. Ibid. A similar line is taken by T. P. Hill: On Goods and Services, in: The Review of Income and Wealth, Vol. 23 (1977), p. 328; an earlier attempt at classification can be found in M. A. Katouzian: The Development of the Service Sector: A New Approach, in: Oxford Economic Papers, Vol. 22 (1970), pp. 365 ff.

  8. J. N. Bhagwati: Trade in Services and the Multilateral Trade Negotiations, in: The World Bank Economic Review, Vol. 1 (1987), No. 4, p. 552.

  9. G. P. Sampson, R. N. Snape: Identifying the Issues in Trade in Services, in: The World Economy, Vol. 18 (1985), p. 172.

  10. A similar example is cited in R. A. Cass, E. Noam: The Economics and Politics of Trade in Services: A United States Perspective, in: D. Friedmann, E. J. Mestmäcker (eds.): Rules for International Trade in Services, Baden-Baden 1990, p. 47.

  11. J. N. Bhagwati: Splintering and Disembodiment of Services and Developing Nations, in: The World Economy, Vol. 7 (1984), pp. 137 f.

  12. Bhagwati calls this concept “temporary-factor-relocation-requiring”; cf. J. N. Bhagwati: Trade in Services…, op. cit. Splintering and Disembodiment of Services and Developing Nations, in: The World Economy, Vol. 7 (1984), p. 554.

  13. J. N. Bhagwati: Splintering and Disembodiment…, op. cit. Splintering and Disembodiment of Services and Developing Nations, in: The World Economy, Vol. 7 (1984), p. 141.

  14. On this, see e.g. R. M. Stern, B. M. Hoekmann: Issues and Data Needs for GATT Negotiations on Services, in: The World Economy, Vol. 10 (1987), pp. 39–60. Cf. also G. P. Sampson, R. H. Snape, op. cit. Identifying the Issues in Trade in Services, in: The World Economy, Vol. 18 (1985), p. 180.

  15. Kennedy Round Ernest H. Preeg: Traders and Diplomats, Washington D.C. 1970, pp. 132 f.; cf. also J. W. Evans: The Kennedy Round in American Trade Policy, Cambridge, Mass. 1971, p. 21.

  16. P. Nicolaides: Economic Aspects of Services: Implications for a GATT Agreement, in: Journal of World Trade Law, Vol. 23 (1989), No. 4, p. 129.

  17. Ibid. P. Nicolaides: Economic Aspects of Services: Implications for a GATT Agreement, in: Journal of World Trade Law, Vol. 23 (1989), No. 4, p. 131.

  18. D. Nayyar: Some Reflections on the Uruguay Round and Trade in Services, in: Journal of World Trade Law, Vol. 22 (1988), No. 5, p. 44.

  19. P. Nicolaides, op. cit. Economic Aspects of Services: Implications for a GATT Agreement, in: Journal of World Trade Law, Vol. 23 (1989), No. 4, p. 132.

  20. J. H. Jackson, op. cit. Constructing a Constitution for Trade in Services, in: The World Economy, Vol. 11 (1988), p. 188.

  21. D. Nayyar, op. cit. Some Reflections on the Uruguay Round and Trade in Services, in: Journal of World Trade Law, Vol. 22 (1988), No. 5, p. 41 f.

  22. J. H. Jackson, op. cit. Constructing a Constitution for Trade in Services, in: The World Economy, Vol. 11 (1988), p. 194.

  23. M. Gibbs, M. Mashayeki: Services: Cooperation for Development, in: Journal of World Trade Law, Vol. 22 (1988), No. 2, p. 92.

  24. Ibid. M. Gibbs, M. Mashayeki: Services: Cooperation for Development, in: Journal of World Trade Law, Vol. 22 (1988), No. 2, p. 96.

  25. Ibid. M. Gibbs, M. Mashayeki: Services: Cooperation for Development, in: Journal of World Trade Law, Vol. 22 (1988), No. 2, p. 96.

  26. Ibid. M. Gibbs, M. Mashayeki: Services: Cooperation for Development, in: Journal of World Trade Law, Vol. 22 (1988), No. 2, p. 97.

  27. The two alternative strategies are evaluated in L. Hoffmann: Binnenmarktorientierung vs. Weltmarktorientierung—Entwicklungs-strategien im Spannungsfeld zwischen Ökonomie und Politik, in: M. E. Streit (ed.): Wirtschaftspolitik zwischen ökonomischer und politischer Realität, Wiesbaden 1988, pp. 45–59.

  28. E.g. by D. Nayyar: The political economy of international trade in services, in: Cambridge Journal of Economics, Vol. 12 (1988), p. 294.

  29. D. Nayyar: Some Reflections…, op. cit. The political economy of international trade in services, in: Cambridge Journal of Economics, Vol. 12 (1988), p. 40.

  30. cf. J. Whalley: Recent Trade Liberalisation in the Developing World: What is behind it, and where is it headed?, in: NBER Working Paper No. 3057, Cambridge, Mass. 1989, p. 37.

  31. On this, cf. R. B. Reich: The Work of Nations, New York 1991, pp. 154 ff.

  32. J. N. Bhagwati: Trade in Services …, op. cit. Splintering and Disembodiment of Services and Developing Nations, in: The World Economy, Vol. 7 (1984), p. 556; cf. E. J. Mestmäcker: Free Trade in Services: Regional and Global Perspectives, in: D. Friedmann, E. J. Mestmäcker (eds.) op. cit. Rules for International Trade in Services, Baden-Baden 1990, p. 22.

  33. R. Senti: GATT—System der Welthandelsordnung, Zurich 1986, p. 110.

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  1. University of Freiburg, Germany

    Stefan Voigt

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Voigt, S. Traded services in the GATT — What’s all the fuss about?. Intereconomics 26, 177–186 (1991). https://doi.org/10.1007/BF02926342

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