Developing Countries and Preferential Services Trade

AUTHOR: Charlotte Sieber-Gasser



WTO law sets the global minimum standards for trade regulation, while allowing some regulatory flexibility for developing countries. The exact scope of regulatory flexibility is often unclear and, at times, flexibility may be counterproductive to sustainable economic growth in developing countries. Undisputedly, developing countries would have some flexibility with respect to tailoring preferential services trade agreements to their individual economic needs and circumstances, but empirical data from over 280 preferential services trade agreements worldwide shows that this flexibility is rarely used. This volume clarifies the regulatory scope of flexibility for preferential services trade agreements between developing countries by linking the legal interpretation of WTO law with evidence from research in economics and political sciences. The book suggests that the current regulatory framework leaves room for meaningful flexibility for developing countries, and encourages policymakers and scholars to take these flexibilities into consideration in their design and study of trade policies.

• Combines empirical data with legal research
• Elaborates on the law with reference to economic and political science literature
• Develops new suggestions for the better use of WTO law for the benefit of developing countries

Table of Contents

Foundations
1. Special and differential treatment in the WTO
2. The rationale for South-South services trade
3. The quest of this study

Part I. Preferential Services Trade:
4. History and geography of preferential services trade
5. Stock-taking of preferential services trade agreements
6. The current level of liberalisation
7. The special case of South-South preferential services trade

Part II. Legal Regime for Preferential Services Trade:
8. Historical background of preferentialism in services trade and its regulation
9. GATS Art. V
10. Regulatory flexibilities in the GATS: special and differential treatment
11. Compliance with GATS worldwide
12. Loopholes in the GATS: problems in practice
13. Innovation in South-South agreements?
14. In summary

Part III. Legal Regime for South-South Preferential Services Trade:
15. The legal scope of flexibilities for South-South preferential services trade
16. Legal arguments for a large scope of flexibilities in the GATS
17. New approach to a better use of the scope of flexibilities
18. Systemic considerations
19. In summary

Part IV. Conclusions:
20. Lessons for the WTO
21. Lessons for the architecture of international economic law
22. Critical issues for future research.



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