Trade in Services in the Doha Round: a Plurilateral Agreement for the Elite?

Olga Biryukova

Olga Biryukova - PhD in Economics, Lecturer at the Department of International Economic Organisations and European Integration, Research Fellow at the Institute for Trade Policy of the National Research University Higher School of Economics; 101000, 20, Myasnitskaya, Moscow, Russian Federation; E-mail:obiryukova@hse.ru

Abstract

Expanding access to international services market has become a priority for trade policies of the developed countries-members of the WTO. However, the majority of developing countries do not support this approach. The article analyzes the factors impeding the services trade negotiations under the Doha Round, examines interconnections between countries trade policy interests and possible options for a new International Services Agreement on Trade in Services both in the framework of the WTO and beyond its mandate.

Barriers in international services trade lead to decrease of the services sectors and increase costs for service providers. This has a negative impact on productivity and competitiveness, given their dependence onthe scale of costs, quality of transport, distributional, communication and financial services.Productivity, in its turn, has a significant impact on economic growth.

The author demonstrates that it is difficult to overestimate the importance of current trade in services negotiations in the Doha Round for Russia, as the services sector itself has exceptional importance for national economic security. And the growth of the supply of services in the next few years is almost the only opportunity for diversification of Russian exports which is currently dominated by energy and raw materials.

The author asserts that Russia’s presidency in the G20 provides a unique opportunity to contribute to the new architecture of international trade in services. Russia should agree a shared approach with the other BRICS countries on a new trade agreement in services defining the principles of the services trade instruments regulation rational use to enhance the economies openness while minimizing the negative consequences of petition with foreign providers. The author concludes that the BRICS members need to develop a road map for the Agreement on trade in services, which would allow take into account their national development policy objectives countries and the regulatory and institutional capabilities for liberalization.

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Contacts

Olga Biryukova¹
¹ National Research University Higher School of Economics, 20 Myasnitskaya Str., Moscow, 101000, Russian Federation