Edited by Pierre Sauvé and Anirudh Shingal
Chapter 2: The preferential liberalization of services trade: economic insights
This chapter takes stock of the most recent wave of PTAs with a view to informing some of the policy choices developing countries face in negotiating preferential agreements in services. The chapter first considers the economics of preferences in services and asks whether services trade differs sufficiently from trade in goods as to require different policy instruments and approaches in the context of preferential liberalization. The chapter discusses whether and how PTAs in services allow deeper forms of regulatory cooperation to occur and highlights the importance for third countries of multilateral disciplines on PTAs and the criteria suggested by economic theory to minimize adverse effects on non-members.
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