ABSTRACT
This paper has examined what the special characteristics of services imply for trade policy. The main conclusion which emerges is that foreign service-providers should be treated in the same manner as domestic providers. The objective of consumer protection does not justify measures that discriminate against foreign providers on any grounds other than their competence to perform high-quality services. Nor will discrimination be eliminated if trade barriers are reduced on the basis of some ‘equivalent reciprocity’. The pursuit of equivalent reciprocity will not lead to equal treatment of all service-providers in a market.
