Surprisingly little is known about policies that affect international trade in services. Previous analyses have focused on policy commitments made by countries in international agreements, but in many cases, these commitments do not reflect actual policy. This paper describes a new initiative to collect comparable information on trade policies for services from 103 countries across a range of service sectors and relevant modes of service delivery. The resulting database reveals interesting policy patterns. Although public monopolies are now rare and few services markets are completely closed, we observe numerous "second-generation" restrictions on entry, ownership, and operations. Even in instances in which there is little explicit discrimination against foreign providers, market access is often unpredictable because the allocation of new licenses remains opaque and highly discretionary in many countries. Across regions, some of the fastest-growing countries in Asia and the oil-rich Gulf states have restrictive policies in services, whereas some of the poorest countries are remarkably open. Across sectors, professional and transportation services are among the most protected industries in both industrial and developing countries, whereas retail, telecommunications, and even finance tend to be more open. JEL codes: F13, F14, L80 Compared to the vast empirical literature on policies affecting trade in goods, empirical analysis of trade policy for services remains in its infancy. A major constraint has been inadequate data on policies affecting services trade, particularly

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Every major regional trade agreement now has a services dimension. Is trade in services so different that we need to modify the conclusions on preferential agreements reached so far in the realm of goods? This paper examines, first, the implications of unilateral policy choices in a particular services market. It then explores the economics of international cooperation and identifies the circumstances in which a country is more likely to benefit from cooperation in a regional rather than multilateral forum. Finally, it reviews some evidence on services liberalization under the European Union's Single Market Program.• JEL Classification: F13, F15•

ABSTRACT:The General Agreement on Trade in Services (GATS), created under the auspices of the World Trade Organization, aims to regulate measures affecting international trade in services-including health services such as health insurance, hospital services, telemedicine, and acquisition of medical treatment abroad. The agreement has been the subject of great controversy, for it may affect the freedom with which countries can change the shape of their domestic health care systems. We explain the rationale behind the agreement and discuss its scope. We also address the major controversies surrounding the GATS and their implications for the U.S. health care system.