Skip to Main Navigation

Service sector protection : considerations for developing countries (English)

The inclusion of services in the Uruguay Round of multilateral trade negotiations has focused attention on the protection of domestic service suppliers against competition from foreign suppliers. Issues arising from these negotiations, however, may obscure another and more important issue : the case for unilateral liberalization. This article first surveys methods of protection in the service sector, and then examines the likely cost of protection. Particular attention is given to developing countries. What evidence there is suggests that the costs of protection may be high. The article also discusses economic principles that could guide a review of policy toward international transactions in the service sector. Quantitative restrictions or bans on foreign service suppliers - whether they wish to supply through trade or establishment - cannot easily be defended in economic terms, and provide an obvious first target.


  • Author

    Hindley, Brian

  • Document Date


  • Document Type

    Journal Article

  • Report Number


  • Volume No


  • Total Volume(s)


  • Disclosure Date


  • Doc Name

    Service sector protection : considerations for developing countries

  • Keywords

    general agreement on tariffs and trade;means of protection;International Trade in Services;international transactions in services;health and safety regulation;political point of view;balance of payment;trade in goods;import of service;domestic service suppliers;trade policy research;infant industry argument;multilateral trade negotiation;foreign supplier;price and quality;international air transport;terms of trade;international trade theory;inflow of capital;national regulatory system;forms of protection;forms of insurance;foreign exchange control;barrier to import;protection against import;motor vehicle industry;high reserve requirement;transborder data flow;federal trade commission;subject to regulation;chance of survival;deregulation of airline;international economic policy;trade and services;voluntary export restraint;state of competition;ocean freight rate;impact of competition;foreign service suppliers;repatriation of profit;crude oil export;import of goods;price of imports;restrictions on imports;sale of service;price or quality;international maritime transport;public procurement practice;financial service sector;factor of production;barrier to entry;lines of credit;gross domestic product;trade and investment;foreign exchange restriction;barriers to trade;domestic producer;foreign producer;nontariff barrier;quantitative restriction;quota rent;regulatory authority;unilateral liberalization;foreign competition;comparative advantage;economic efficiency;domestic buyers;cargo preference;bilateral agreement;raise revenues;international service;protected industry;domestic industry;cost advantage;local producer;public policy;regulatory power;import quota;



Official version of document (may contain signatures, etc)

  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.


Hindley, Brian

Service sector protection : considerations for developing countries (English). Washington, D.C. : World Bank Group.