IDEAS home Printed from https://ideas.repec.org/p/zbw/wtowps/ersd201204.html
   My bibliography  Save this paper

Poison in the wine? Tracing GATS-minus commitments in regional trade agreements

Author

Listed:
  • Adlung, Rudolf
  • Miroudot, Sébastien

Abstract

Commitments in regional trade agreements (RTAs) that fall short of the same countries' obligations under the General Agreement on Trade in Services (GATS) are a relatively frequent phenomenon. However, they have gone widely unnoticed in the literature to date and drawn very little attention in relevant WTO fora either. Nevertheless, 'minus commitments' are potentially poisonous and, for various reasons, would deserve close attention. Given the broad definitional scope of the GATS, extending inter alia to commercial presence, such commitments may impinge upon the rights of third-country investors in the RTA economies. Their existence casts doubts on the legal status of the respective agreements under the GATS and can have severe implications for the trading system overall. If not complemented by comprehensive Most-favoured-Nation clauses, the RTAs concerned are disconnected from the WTO and virtually impossible to multilateralize. Based on a review of some 80,000 commitments in 66 agreements, this study seeks to develop a reasonably comprehensive picture of the frequency of 'minus commitments' and their dosage in terms of sectors, measures and modes of supply. It also discusses potential remedies from a WTO perspective.

Suggested Citation

  • Adlung, Rudolf & Miroudot, Sébastien, 2012. "Poison in the wine? Tracing GATS-minus commitments in regional trade agreements," WTO Staff Working Papers ERSD-2012-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd201204
    DOI: 10.30875/262f4dfa-en
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/57593/1/684915472.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.30875/262f4dfa-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    2. Bhagwati, Jagdish, 2008. "Termites in the Trading System: How Preferential Agreements Undermine Free Trade," OUP Catalogue, Oxford University Press, number 9780195331653.
    3. Evenett, Simon, 2011. "Did WTO rules restrain protectionism during the recent systemic crisis?," CEPR Discussion Papers 8687, C.E.P.R. Discussion Papers.
    4. Gary P. Sampson & Richard H. Snape, 1985. "Identifying the Issues in Trade in Services," The World Economy, Wiley Blackwell, vol. 8(2), pages 171-182, June.
    5. Rudolf Adlung & Peter Morrison, 2010. "Less than the Gats: 'Negative Preferences' in Regional Services Agreements," Journal of International Economic Law, Oxford University Press, vol. 13(4), pages 1103-1143, December.
    6. Roy, Martin, 2011. "Services commitments in preferential trade agreements: An expanded dataset," WTO Staff Working Papers ERSD-2011-18, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Sébastien Miroudot & Jehan Sauvage & Marie Sudreau, 2010. "Multilateralising Regionalism: How Preferential Are Services Commitments in Regional Trade Agreements?," OECD Trade Policy Papers 106, OECD Publishing.
    8. Bagwell,Kyle W. & Mavroidis,Petros C. (ed.), 2011. "Preferential Trade Agreements," Cambridge Books, Cambridge University Press, number 9781107000339.
    9. Rudolf Adlung & Antonia Carzaniga, 2009. "MFN Exemptions Under the General Agreement on Trade in Services: Grandfathers Striving for Immortality?," Journal of International Economic Law, Oxford University Press, vol. 12(2), pages 357-392, June.
    10. Craig VanGrasstek, 2011. "The Political Economy of Services in Regional Trade Agreements," OECD Trade Policy Papers 112, OECD Publishing.
    11. André Sapir & Henrik Horn & Petros Mavroidis, 2011. "EU and US Preferential Trade Agreements: Deepening or Widening of WTO Commitments ?," ULB Institutional Repository 2013/174316, ULB -- Universite Libre de Bruxelles.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sébastien Miroudot & Ben Shepherd, 2014. "The Paradox of ‘Preferences’: Regional Trade Agreements and Trade Costs in Services," The World Economy, Wiley Blackwell, vol. 37(12), pages 1751-1772, December.
    2. Yoshifumi Fukunaga & Hikari ISHIDO, 2013. "Assessing the Progress of Services Liberalization in the ASEAN-China Free Trade Area (ACFTA)," Working Papers DP-2013-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Lucian, Cernat & Ana, Norman-López & Ana, Duch T-Figueras, 2014. "SMEs are more important than you think! Challenges and opportunities for EU exporting SMEs," DG TRADE Chief Economist Notes 2014-3, Directorate General for Trade, European Commission.
    4. Sébastien Miroudot & Ben Shepherd, 2015. "Regional Trade Agreements and Trade Costs in Services," RSCAS Working Papers 2015/85, European University Institute.
    5. Erik der Marel & Sébastien Miroudot, 2014. "The economics and political economy of going beyond the GATS," The Review of International Organizations, Springer, vol. 9(2), pages 205-239, June.
    6. Messerlin, Patrick, 2013. "The Mercosur–EU Preferential Trade Agreement: A view from Europe," CEPS Papers 7764, Centre for European Policy Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernard M. Hoekman & Aaditya Mattoo, 2013. "Liberalizing Trade in Services: Lessons from Regional and WTO Negotiations," RSCAS Working Papers 2013/34, European University Institute.
    2. Erik der Marel & Sébastien Miroudot, 2014. "The economics and political economy of going beyond the GATS," The Review of International Organizations, Springer, vol. 9(2), pages 205-239, June.
    3. Rafael Leal-Arcas & Valentina Caruso & Raphaela Leupuscek, 2015. "Renewables, Preferential Trade Agreements and EU Energy Security," Laws, MDPI, vol. 4(3), pages 1-43, August.
    4. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1139, October.
    5. Jean-Christophe Bureau & Sébastien Jean, 2013. "Trade liberalization in the bio-economy: coping with a new landscape," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 173-182, November.
    6. Gianluca Orefice, 2015. "International migration and trade agreements: The new role of PTAs," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 310-334, February.
    7. Gary P Sampson, 2018. "Challenges Facing the World Trade Organization: An Overview," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(4), pages 453-473, December.
    8. Peter H. Egger & Filip Tarlea, 2021. "Comparing Apples to Apples: Estimating Consistent Partial Effects of Preferential Economic Integration Agreements," Economica, London School of Economics and Political Science, vol. 88(350), pages 456-473, April.
    9. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1130, October.
    10. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    11. Staiger, Robert & Bagwell, Kyle & Bown, Chad, 2015. "Is the WTO Passé?," CEPR Discussion Papers 10672, C.E.P.R. Discussion Papers.
    12. Egger Peter & Wamser Georg, 2013. "Effects of the Endogenous Scope of Preferentialism on International Goods Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 709-731, July.
    13. Adlung, Rudolf, 2009. "Services liberalization from a WTO/GATS perspective: In search of volunteers," WTO Staff Working Papers ERSD-2009-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    14. Stephenson, Sherry & Roberts, Maryse, 2011. "Evaluating the Contributions of Regional Trade Agreements to Governance of Services Trade," ADBI Working Papers 307, Asian Development Bank Institute.
    15. Bernard M. Hoekman & Petros C. Mavroidis, 2013. "WTO 'à la carte' or WTO 'menu du jour'? Assessing the case for Plurilateral Agreements," RSCAS Working Papers 2013/58, European University Institute.
    16. Tristan Kohl, 2014. "Do we really know that trade agreements increase trade?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 443-469, August.
    17. del Carmen Vásquez Callo Müller, María, 2014. "The regulation of trade in information and communication technology services in Chile, Colombia and Peru. A comparative analysis of the rules contained in regional trade agreements," Papers 945, World Trade Institute.
    18. Ka Zeng & Yue Lu & Ya‐wei Li, 2021. "Trade agreements and Global Value Chain (GVC) participation: Evidence from Chinese industries," Economics and Politics, Wiley Blackwell, vol. 33(3), pages 533-582, November.
    19. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    20. Ganeshan Wignaraja, 2013. "Regional Trade Agreements and Enterprises in Southeast Asia," Trade Working Papers 23718, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    Trade in Services; GATS; Regionalism;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wtowps:ersd201204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wtoerch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.