Services in a Development Round: What is at Stake for Developing Countries
Does the Trade in Services need a magic wand?
In the opening session of the Hong Kong Ministerial Conference, Mr. Lamy began his address by producing a large magic wand. He pointed out: “I have kindly been provided with a magic wand but I’m afraid it’s not working well yet and it’s the type of magic wand that only works if everyone believes in it.”
One could argue instead that in order for developing countries (DCs) to achieve sustainable development in the trade in services and ward off all the risks involving the liberalization of the sector there is no magic whatsoever. In reality, what one has to bear in mind is that prior to advancing in any liberalization process certain relevant conditions, among others, need to be met, to wit: (i) the maintenance of GATS original flexible structure; and (ii) the adoption of certain horizontal rules, such as the right to regulate (domestic regulation), subsidies and especial safeguard mechanism (ESM).
This article is intended to briefly discuss some of such essential conditions.