THE NEW APPROACH TO INTERNATIONAL TRADE IN SERVICES IN VIEW OF SERVICES SPECIFICITIES: ECONOMIC AND REGULATION ISSUES

Damien Broussolle ()

Working Papers of LaRGE Research Center from Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg

Abstract: The paper deals with the issue of integration and trade of services industries. It argues that the specificities of services producing industries compared to goods producing industries explain several difficulties of the new approach to international trade in services. First, the paper discusses the definition of services to remind that long distance trade of services is quite difficult, even if new information and communication technologies have made it easier in some cases. Second, the paper shows that the balance of payments presents an incomplete and confusing image of trade in services. Third, the paper describes the four modes, pertaining to the new approach to trade in services, developed for GATS. It outlines that some of these modes are distorting traditional economic concepts. The last part of the paper focuses the consequences of the Mutual Recognition Principle (MRP), the Country of Origin Principle (COP) in relation with Freedom of Establishment and Free movement of Services principles. It is argued that even if COP is a natural following of MRP –basically developed to deal with trade in goods–, the shift to services brings new drawbacks not yet extensively assessed.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:lar:wpaper:2006-05

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