Policy of Policy of International Trade International Trade

in Servicesin Services

Policy of Policy of International Trade International Trade

in Servicesin Services

Chapter FourChapter Four

Learning objective: ※the evolution of ITS policy;• ※the laws on which it is based;• ※the applications;• ※the different characteristics of

•

• from to

policy development

liberalization protectionism

• 1. Evolution of trade policy in services• （服务贸易政策演变）• Ⅱ world war by 1990s

•

• Features: complex,diverse,uncertain,subjective,arbitrary

①transport,②remittances,

③other banking services, ect.

①tele,②computer software,③information,④superhighway,⑤multimedia,⑥technology,⑦intellectual proterty right,⑧life-style-related services, etc.

2. Policy of trade liberalization in services 自由服务贸易政策

2.1 Trade liberalization and economic efficiency

自由贸易与经济效率

※ boosts productivity growth controversy :※

Trade liberalization and economic efficiency 自由贸易与经济效率

Theory of new growth 新增长理论

Relation between productivity increase and liberalization生产力的提高与自由贸易的关系

Relative theory in services 服务的相关理论

•

barrier dismantledwider range firm

participationMacroeconomic stability

liberalization

productivity increasing

2.2 Welfare analysis of liberalization of trade in

services （服务贸易自由化的福利分析）

walfare analysis

comparative advangtage theory

comsumer surplus producer surplus

2.3 Policy selection of liberalization of trade in services

服务贸易自由化的政策选择

• Macro impact 宏观影响 :

• ※national security• ※national competitive

ness

• six basic elements:

capital productsmarket

technology resource management

Policy orientation 政策取向 ( developed countries)

• (1) to open their commodity market as the conditions for developing countries to open their services markets;

• (2) for the same level of development of the country or region, they need to open their markets to each other;

commodity market service market

Policy orientation 政策取向 ( developing countries)

• Mixed, progressive liberalization of services trade development strategy is taken as the option

• for developing countries.1 step gradually relax control of the domestic services market;

2 step the gradual opening up of their merchandise trade market, lowering commodity tariffs;

3 step gradually open service market, reduce service products in the field of non-tariff barriers;

4 step gradually open elements market of services, reduce tariffs on trade in services and tangible non-tariff barriers;

3. Policy of protecting trade in services

保护服务贸易政策• 3.1 Trade in services barriers and types 服务贸易壁垒及类型• 3.1.1 Cause of barriers to services trade 服务贸易壁垒产生的原因

• the source of micro-economics, which is the main basis for the government to implement interference with the natural monopoly, asymmetric information and economic externalities;

the consideration for their economic independence;

political and cultural considerations.

• Types of trade barriers in services:

marketing permittion, national treatment

Product moving barriers 产品移动壁垒

Barriers to capital mobility 资本移动壁垒

Personnel movement barriers 人员移动壁垒

The right of establishment business barriers 开业权壁垒

trade trade barriers barriers

typetype

trade trade barriers barriers

typetype

• ※ Product moving barriers 产品移动壁垒

•

• •

•

• ※Barriers to capital mobility 资本移动壁垒

number limitation

tax system

government procurment

discriminatory techniqual standard

local requirment

government subsides, incomplete intetectual property protection system

foreign exchange control,floating exchange rate,

export restrictions on investment income

• ※The right of establishment business barriers 开业权壁垒

regulations on foreign producers

rights

• ※Personnel movement barriers 人员移动壁垒

homeland foreign countries

restriction

restriction

3.2 Measure of trade in services protection level

服务贸易保护程度的衡量• # NRP( 名义保护率 ) :

• # Effective protection rate (ERP) （有效保护率） :

• # Producer subsidy equivalent (PSE) ( 生产者补贴等值 )

domestic prices- import prices ——————————————— ×100% import prices

Value-added domestic processing- Import value-added processing_____________________________________________________ × 100% Import value-added processing

3.3 Comparison and selection of protective policy of trade in services （服务

贸易保护政策的比较与选择）• # Tariff, subsidy and quota(policy sequence )• • output subsides>tariff≧quota

• # Import restrictions, opening barriers and control(policy sequence )• （进口限制、开业障碍和管制）

• control>Import restrictions≧opening power

• Rational Choice: combination of direct subsides and control measures

conclusion• 1 、 Like goods trade, there are two different policy in the field of trade in s

ervices: • liberalization protectionism

• 2 、※ microcosmic-effect: • economic effectiveness,• rational allocation, • resources saving, • wealfare level increase• ※macroscopic-effect: • national security,• national competition•

• 3 、 different policy choices:• dev-ed countries dev-ing countries:• • dev-ed countries:

• mutual open service market

• deveoping countries dev-ing countries: •

hibrid,step liberalization

servicegoods

• product movement capital movement

• producer establishment human movement

4 、 trade barriers in services

• 5 、 Measure of trade in services protection level

• • Nominal rate of protection (NRP)• • Effective protection rate (ERP) • • Producer subsidy equivalent (PSE)

• 6 、 Protective policy of trade in services ：• • tarrif effectiveness based on th

e • size of different countries.

policy

tarrif

non-tarrif

government control

import restriction

subsides

quota

• 7 、 rational choice• output

sibsidestarrif quota

controlimport

restrictionopeningpower

Home work• 1 、 What is the policy orient

ation of China’s trade in services ？

• 2 、 What does China’s choice in policy of trade in services rely on ？

• 3 、 How do you express welfare analysis of policy on liberalization of trade in services?