The domestic dynamics of preferential services liberalization: the experience of Australia and Thailand

doi:10.1017/CBO9780511812392.021

18 - The domestic dynamics of preferential services liberalization: the experience of Australia and Thailand

Published online by Cambridge University Press: 05 December 2011

Malcolm Bosworth and

Ray Trewin

Edited by

Juan A. Marchetti and

Martin Roy

Show author details

Malcolm Bosworth: Affiliation:
Australian National University, Canberra
Ray Trewin: Affiliation:
Australian National University, Canberra
Juan A. Marchetti: Affiliation:
World Trade Organization
Martin Roy: Affiliation:
World Trade Organization

Book contents

Get access

Summary

Both Australia and Thailand have keenly pursued bilateral preferential trading agreements in recent years. These have covered services, though to varying degrees. Services, domestically important and in some areas sensitive to both economies, need to be liberalized as an important means of improving overall productivity and economic performance.

Given its development status, Thailand has been somewhat reserved in opening key sectors, such as distribution and financial services, in part due to the adverse effects of the Asian financial crisis. Consequently, liberalization has occurred largely on an ad hoc basis, either as default or as a “last resort” strategy when the situation was considered to have deteriorated so much that changes were seen as necessary. Australia is keen to develop key services exports, such as education, financial services, and telecommunications. On the other hand, like various developed countries, it is more cautious regarding mode 4 (the temporary movement of people), an area in which Thailand and some other developing countries consider they have a comparative advantage and export potential.

This chapter examines the bilateral and multilateral commitments of Australia and Thailand, and attempts to identify the underlying economic and political economy factors that help explain why different outcomes have been achieved (or not) in various negotiating contexts, including through unilateral liberalization. In doing so, it addresses the extent to which the GATS and PTAs have liberalized services in these countries.

Type: Chapter
Information: Opening Markets for Trade in Services
Countries and Sectors in Bilateral and WTO Negotiations
, pp. 633 - 666

DOI: https://doi.org/10.1017/CBO9780511812392.021 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Book purchase

Temporarily unavailable

References

,Access Economics. 2001. Cost and Benefits of a Free Trade Agreement with Singapore, Canberra: Access Economics.

Banks, Gary. 2003. “Gaining from Trade Liberalization: Some Reflections on Australia's Experience,” paper presented to the conference “New Horizons in Trade: The WTO Round and Australia's Free Trade Negotiations,” jointly organized by the Institute for International Business, Economics and Law and the Committee for Economic Development of Australia, Adelaide, June 5.

Banks, Gray, and Carmichael, Bill. 2007. “Domestic Transparency in Australia's Economic Trade Reforms: The Role of the Commission,” paper prepared for the Lowy Institute for International Policy and Tasman Transparency Group conference “Enhancing Transparency in the Multilateral Trading System,” Sydney, July 4, available at www.lowyinstitute.org/Publication.asp?pid=629 (accessed October 26, 2007).

Bhagwati, Jagdish. 1999. “Regionalism and Multilateralism: An Overview,” in Bhagwati, Jagdish, Krishna, Pravin, and Panagariya, Arvind (eds.), Trading Blocs: Alternative Approaches to Analyzing Preferential Trade Agreements, Cambridge, MA: MIT Press, 3–32.

Bird, Kelly, Cuthbertson, Sandy, and Hill, Hal. 2007. Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia, Working Paper no. 2007/01, Division of Economics, Research School of Pacific and Asian Studies, Australian National University, Canberra.

Bonapace, Tiziana, and Mikic, Mia. 2006. “Asia-Pacific Regionalism Quo Vadis? Charting the Territory for New Integration Routes,” in Lombaerde, Philippe (ed.), Multilateralism, Regionalism and Bilateralism in Trade and Investment: 2006 World Report on Regional Integration, New York: Springer, 75–98.Google Scholar

Bosworth, Malcolm, and Narjoko, Dionisius. 2006. Desirability, Feasibility and Options for Establishing ESM within the AFAS, REPSF Report no. 05/007, Association of Southeast Asian Nations, Jakarta.

Carmichael, Bill. 2005 Trade Policy at the Cross-roads, Pacific Economic Paper no. 351, Australia–Japan Research Centre of the Asia Pacific School of Economics and Government, Australian National University, Canberra.

,CIE. 2002. Economic Impacts of an Australia–Thailand FTA, Canberra: Centre for International Economics.Google Scholar

,CIE 2004a. Economic Analysis of AUSFTA: Impact of the Bilateral Free Trade Agreement with the United States, Canberra: Centre for International Economics.Google Scholar

,CIE 2004b. The Australia–Thailand Free Trade Agreement: Economic Effects, Canberra: Centre for International Economics.

,CIE 2005. Free Trade Agreements: Making Them Better, RIRDC Publication no. 05/035 Canberra: Centre for International Economics.Google Scholar

,CIE 2007. “Services Trade: The Need for Better Transparency,” paper presented at the Lowy Institute for International Policy and Tasman Transparency Group conference “Enhancing Transparency in the Multilateral Trading System,” Sydney, July 4. available at www.lowyinstitute.org/Publication.asp?pid=629 (accessed October 26, 2007].

Clogstoun, Roy, Bosworth, Malcolm, and Trewin, Ray. 2006. “Would Emergency Safeguard Measures Work for Services?,” Asia-Pacific Economic Literature, 20(2): 56–69.Google Scholar

Crook, Clive. 2006. “The Fruitful Lie,” The Atlantic, 298(3): 4–5.Google Scholar

Dee, Philippa. 2004. The Australia–US Free Trade Agreement: An Assessment, paper prepared for the Senate Select Committee on the Free Trade Agreement between Australia and the United States of America; available at www.aph.gov.au/senate_freetrade/report/final/index.htm.

Dee, P. 2005. East Asian Economic Integration and Its Impact on Future Growth, Pacific Economic Papers no. 350, Australia–Japan Research Centre of the Asia Pacific School of Economics and Government, Australian National University, Canberra.Google Scholar

Dee, Philippa and Findlay, Christopher. 2007. “Services in PTAS – Donuts or Holes?” background paper for the conference, “Setting Priorities for Services Trade Reform,” Canberra, November 29–30.

Findlay, Christopher and Warren, Tony (eds.). 2000. Impediments to Trade in Services: Measurement and Policy Implications, London: Routledge.Google Scholar

Fink, Carsten and Molinuevo, Martin. 2007. East Asian Free Trade Agreements in Services: Roaring Tigers or Timid Pandas?, Report no. 40175, World Bank, Washington, DC: available at http://go.worldbank.org/5YFZ3TK4E0 [accessed October 26, 2007].

Garnaut, Ross 2003. “Requiem for Uldorama; A Plain But Useful Life,” paper presented at the trade forum on “New Horizons in Trade: The WTO Round and Australia's Free Trade Negotiations in Post-Iraq 2003,” organized by the Committee for Economic Development of Australia, Adelaide June 5.

Garnaut, R. 2004a. “Discussion,” in Tow, William (ed.), Changing Utterly? Australia's International Policy in an Uncertain Age,” Sydney: Lowy Institute for International Policy, 128–36.

Garnaut, R. 2004b. “Australia–United States Free Trade Agreement,” “Vital Issues” seminar speech gives at a Parliament House, Canberra, June 17.

Garnaut, R. 2005. “FTAs: Protectionism in Disguise,” ABC Inside Business, April. available at: www.abc.net.au/insidebusiness/content/2005/s1352265.htm (accessed October 26, 2007).

Garnaut, Ross and Bhagwati, Jagdish. 2003. “Say No to This Free Trade Deal,” The Australian, Op-Ed, July; available at: www.cfr.org/publication/6116/say_no_to_this_free_trade_deal.html?breadcrumb=%2Fbios%2F1753%2Fjagdish_n_bhagwati%3Fpage%3D3 (accessed October 26, 2007).

Hoekman, Besnard and Messerlin, Patrick. 2000. “Liberalizing Trade in Services: Reciprocal Negotiations and Regulatory Reform,” in Sauvé, Pierre and Stern, Robert (eds.), GATS 2000: New Directions in Services Trade LiberalizationWashington, DC: Brookings Institution Press, 487–508.Google Scholar

Ikenson, Daniel. 2006. Leading the Way: How US Trade Policy Can Overcome Doha's Failings, Trade Policy Analysis no. 33, Cato Institute, Center for Trade Policy Studies, Washington, DC available at: www.freetrade.org/files/pubs/pas/tpa033.pdf.

Ikenson, D. 2007. “Is Trade Liberalization a Product of Domestic or International Processes? Lessons from Doha,” paper presented at the Lowy Institute for International Policy and Tasman Transparency Group, conference “Enhancing Transparency in the Mulilateral Trading System,” Sydney, July 4: available at www.lowyinstitute.org/Publication.asp?pid=629 (accessed October 26, 2007].

Kinnman, Susanna, and Lodefalk, Magaus. 2007. “Potential Gains from Trade Liberalization in the Baltic Sea Region,” paper presented at the seminar “The Baltic Sea Region's Integration in the Gobal Economy,” Stockholm, May 22.

Ochiai, Ryo, Dee, Philippa, and Findlay, Christopher. 2007. “Services in Free Trade Agreements,” background paper for the conference “Setting Priorities for Services Trade Reform,” Canberra, November 29–30.

,Productivity Commission. 2003. The Trade and Investment Effects of Preferential Trading Arrangements: Old and New Evidence, staff working paper, Productivity Commission, Canberra.

Ranald, Patricia. 2006. “The Australia–US Free Trade Agreement: A Contest of Interests,” Journal of Australian Political Economy, 57: 30–56. available at www.aftinet.org.au/campaigns/US_FTA/jape_article_Oct06.html.Google Scholar

Roy, Martin, Marchetti, Juan, and Lim, Hoe. 2006. Services Liberalization in the New Generation of Preferential Trade Agreements: How Much Further than the GATS?, Staff Working Paper no. ERSD-2006-7, World Trade Organization, Geneva.

Sally, Razeen. 2007. “Thai Trade Policy: From Non-discriminatory Liberalisation to FTAs,” World Economy, 30(10): 1594–620.CrossRef Google Scholar

,Senate. 2004. Inquiry into the Free Trade Agreement between Australia and the United States of America, chap. 2: available at www.aph.gov.au/senate/committee/freetrade_ctte/report/final/ch02.htm.

Thirlwell, Mark. 2004. The Good, the Bad and the Ugly: Assessing Criticism of the Australia–United States Free Trade Agreement, occasional paper, Lowy Institute for the International Policy, Sydney.Google Scholar

Viravan, Amnuay. 1987. Trade Routes to Sustained Economic Growth, New York: Palgrave Macmillan.CrossRef Google Scholar

,WTO. 2007a. Trade Policy Review: Australia, Report by the Secretariat WT/TPR/S/178/Rev./, Geneva: World Trade Organization.

,WTO 2007b. Trade Policy Review: Thailand, Report by the Secretariat WT/TPR/S/191/Rev./, Geneva: World Trade Organization.