ABSTRACT

The question of inclusion of services in GATT has resulted in a North-South division. Developed countries want the reduction of restrictions on both cross-border trade and movement of service-providers. Developing countries are apprehensive of what they perceive as a potential loss of policy autonomy over their economies. This chapter first reviews the state of the debate and then, using concepts developed in previous chapters, examines the various proposals on liberalization of services. It concludes that, in view of the complexity of services, liberalization would be an ongoing process requiring binding commitments by participating countries. The following chapter, which examines the concerns of developing countries, suggests that it is in their interests to participate actively in an international agreement on services.