Import Export Services
International trade and investment services plays an important part of a global economy.
Advances in information and telecommunication technologies have expanded the scope of import export services that can be traded cross-border.
Large corporations now allow foreign investments for key infrastructure services, such as telecommunications, energy, and transport. More and more people are “going international” to consume tourism, education, and medical services, and to supply services ranging from call centres, software development, to construction services. In fact, according to economic experts, this type of services are the fastest growing components of the global trade and foreign direct investments.
Import Export Services affected by Policy Barriers
Import export services , however, continue to be affected by policy barriers especially to foreign investment and the movement of service-providing individuals.
With trade in goods, traditional analysis of barriers has focused primarily on the effects of tariffs or the discriminating taxes levied on foreign-produced goods at the border of a country.
Barriers to trade in services are typically regulatory barriers, rather than explicit taxes. They need not discriminate against foreigners. Indeed, barriers to market access are often designed to protect incumbent firms from any new entry, be it by domestic or foreign firms.
Import export services will be affected by changes in general trade liberalization, international legislation, international treaties and the establishment of key international organization.
The world Trade Organization (WTO), created on January 1, 1995 with equal status alongside the World Bank and the International Monetary Fund, has strengthened global trade. It is an organization that deals with the rules of trade between nations.
Another critical development in international legislation concerning trade in services was the creation of the General Agreement on Trade and Services (GATS). The system was initiated in 1994 during the “Uruguay Round” of WTO negotiation. The GATS significantly broadened the coverage of the multicultural trading system by establishing rules and disciplines on policies affecting access to import export services.
Looking at services liberalization measures for more than fifteen years after the Uruguay Round, one sees that more than a decade is a very short time for negotiating a framework conducive to international trade.
In the Doha Development Agenda, for example, the service sector of international trade have received surprisingly little attention. Much of the negotiations and public discourse has found on protectionist policies in agriculture.
Therefore, rules that enhance import export services and a framework that permits and promotes the liberalization of the service sector were and are important elements of the trade agenda.
For fruitful negotiations, countries must recognize mutual interests in reciprocal liberalization, supported by broader international cooperation.
Developing countries must see the advantages of international agreements to increase competition in import export services, enhance credibility of potential domestic reform, and strengthen domestic regulation.
Global cooperation is needed to provide support for developing countries. Secondly, industrial and developing countries must see advantages to allowing the temporary movement of individual service providers. Facilitating such movement will require greater cooperation between source and host countries than has been provided for in the framework of GATS and other regional trade agreements.
So if you are looking for more information about Import Export Services or you want to know the ins and outs of running an import export business then go to www.importexporthomestudy.com and claim your free report.
If you enjoyed reading about Import Export Services then see our next article about Starting a business
Tags: Import Export Services