Liberalizing Trade in Services: Lessons from Regional and WTO Negotiations

Liberalization of trade and investment in services through trade agreements has progressed less than trade in goods. We review the limited progress achieved to date in the WTO and major regional agreements on services and possible explanations why trade agreements have not been more effective at integrating the services markets of participating countries. We argue that the prospects for both services liberalization and welfare-enhancing regulatory reform in the context of trade agreements can be enhanced through mechanisms that enhance transparency, dialogue and cooperation between regulators, trade officials and stakeholders.