Kiel Working Papers, Kiel Institute for World Economics
No 1168:
Assessing EU Concessions for Service Trade Liberalization in the Doha Round. What Frequency Indices Suggest
Rolf J. Langhammer
Abstract: While the EU is a customs union in merchandise trade
(goods), it has not yet reached this stage of integration in service trade.
How far the EU is from a customs union in service trade is very difficult
to assess because of the nonquantitative nature of trade restrictions in
this sector. The paper tries to present first indirections of how far the
EU is from being a customs union by calculating frequency indices of trade
measures using the Hoekman approach based on the February 2003 EU first
offer regarding service trade in the Doha Round. The calculations show that
differences in national policies against nonmember states are particulary
relevant in modes of supply via factor movements. Inter alia, policy
measures comprise national needs tests, residence criteria, and nationality
criteria. The paper concludes that there is reason to assume that in the
course of the Doha Round negotiations some if not many of national measures
will be given up. Therefore multilateral trade negotiations will be
instrumental to bring the EU to a complete customs union as it happened in
goods trade between 1958 and 1968 when the Dillon Round and the Kennedy
Round helped to complete the customs union in industrial goods.
Keywords: trade liberalization, services, EU policy, Doha Round; (follow links to similar papers)
JEL-Codes: F1,; F2; (follow links to similar papers)
16 pages, June 2003
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