Factor Mobility, Agriculture, Environment and Quantitative Studies
Edited by Miroslav N. Jovanović
Chapter 19: Do Economic Integration Agreements Lead to Deeper Integration of Services Markets?
1 Juan A. Marchetti 2 1 INTRODUCTION Preferential liberalisation of trade in services is not a new phenomenon, but has become a more common and prominent feature of the latest generation of bilateral preferential trade agreements (PTAs) negotiated in this decade. As of 1 September 2009, 73 economic integration agreements (EIAs) have been notified to the World Trade Organization (WTO) under Article V of the General Agreement on Trade in Services (GATS). This list includes all types of EIAs, including inter alia the successive European Union (EU) enlargements, the European Economic Area (EEA), the European Free Trade Association (EFTA), the North American Free Trade Agreement (NAFTA), the South American Common Market (MERCOSUR), the Association of South East Asian Nations (ASEAN) and more recent bilateral or plurilateral PTAs covering services. Most of those notifications arrived before the year 2000 – 61 compared to 12 before that year.3 And many more agreements are currently being negotiated. One might expect that countries entering these PTAs do so with the objective of eliminating barriers to trade in services, but more importantly, in the hope that the agreements will actually increase bilateral services trade between the parties. Lack of reliable data on trade in services (especially of bilateral flows) has made it almost impossible to carry out empirical studies of the determinants of bilateral services trade flows and – in particular – of the effects of PTAs on trade flows in services. However, the availability of statistics on trade in services has improved over the last year, particularly...
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