Trade in Services and the Multilateral Trade Negotiations

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Abstract
The dispute between developed and developing countries over the inclusion of services in the Uruguay Round of trade negotiations reflects critical differences in perspective on substantive issues. In particular, these substantive divisions arise from the differences between services and goods in matters such as regulation and the requirement in many instances of freedom to move productive factors across national boundaries—for example, the “right to establish” that would permit the provider of services to get to the user. In addition, developing countries see the developed countries as seeking concessions on service trade in exchange for removal of the latter's existing and potential barriers on trade in goods, rather than establishing quid pro quos within the service compact itself. Developing countries have possible export advantages in the service sector and have much to gain by joining actively in negotiating a services compact that permits them to exploit these advantages.

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