Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?

Based on a novel approach to measuring the cost of trade in services for Modes 1 (cross-border supply), 2 (consumption abroad), and 4 (temporary movement of service suppliers), developed by the World Trade Organization Secretariat, this paper revie...

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Main Authors:	Echandi, Roberto, Sauve, Pierre
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	INVESTMENT FACILITATION SERVICES TRADE TRADE IN SERVICES COST OF TRADE WORLD TRADE ORGANIZATION CROSS-BORDER INVESTMENT DISPUTE RESOLUTION FOREIGN DIRECT INVESTMENT
Online Access:	http://documents.worldbank.org/curated/en/698571588702481484/Investment-Facilitation-and-Mode-3-Trade-in-Services-Are-Current-Discussions-Addressing-the-Key-Issues http://hdl.handle.net/10986/33711

id	okr-10986-33711
recordtype	oai_dc
spelling	okr-10986-337112022-09-20T00:12:12Z Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues? Echandi, Roberto Sauve, Pierre INVESTMENT FACILITATION SERVICES TRADE TRADE IN SERVICES COST OF TRADE WORLD TRADE ORGANIZATION CROSS-BORDER INVESTMENT DISPUTE RESOLUTION FOREIGN DIRECT INVESTMENT Based on a novel approach to measuring the cost of trade in services for Modes 1 (cross-border supply), 2 (consumption abroad), and 4 (temporary movement of service suppliers), developed by the World Trade Organization Secretariat, this paper reviews available evidence on factors affecting trade costs for services supplied via a commercial presence in a host country market, so-called Mode 3 trade. It does so with a view to answering the question of whether the current “facilitation” agendas on services and investment proceeding at the World Trade Organization focus on the most important factors affecting Mode 3–related trade costs, by far the most important of all modes of supplying services internationally. The paper explores the policy opportunity costs arising from the decision to focus the investment facilitation agenda on matters of regulatory transparency and the streamlining of administrative procedures. It recalls how reducing regulatory heterogeneity, tackling discriminatory impediments to cross-border investment, and developing investor-state conflict management mechanisms to retain and expand investment and prevent dispute escalation -- all issues left unaddressed by ongoing negotiations -- hold important potential for reducing Mode 3 trade costs and facilitating expanded investment. 2020-05-07T18:22:29Z 2020-05-07T18:22:29Z 2020-05 Working Paper http://documents.worldbank.org/curated/en/698571588702481484/Investment-Facilitation-and-Mode-3-Trade-in-Services-Are-Current-Discussions-Addressing-the-Key-Issues http://hdl.handle.net/10986/33711 English Policy Research Working Paper;No. 9229 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INVESTMENT FACILITATION SERVICES TRADE TRADE IN SERVICES COST OF TRADE WORLD TRADE ORGANIZATION CROSS-BORDER INVESTMENT DISPUTE RESOLUTION FOREIGN DIRECT INVESTMENT
spellingShingle	INVESTMENT FACILITATION SERVICES TRADE TRADE IN SERVICES COST OF TRADE WORLD TRADE ORGANIZATION CROSS-BORDER INVESTMENT DISPUTE RESOLUTION FOREIGN DIRECT INVESTMENT Echandi, Roberto Sauve, Pierre Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?
relation	Policy Research Working Paper;No. 9229
description	Based on a novel approach to measuring the cost of trade in services for Modes 1 (cross-border supply), 2 (consumption abroad), and 4 (temporary movement of service suppliers), developed by the World Trade Organization Secretariat, this paper reviews available evidence on factors affecting trade costs for services supplied via a commercial presence in a host country market, so-called Mode 3 trade. It does so with a view to answering the question of whether the current “facilitation” agendas on services and investment proceeding at the World Trade Organization focus on the most important factors affecting Mode 3–related trade costs, by far the most important of all modes of supplying services internationally. The paper explores the policy opportunity costs arising from the decision to focus the investment facilitation agenda on matters of regulatory transparency and the streamlining of administrative procedures. It recalls how reducing regulatory heterogeneity, tackling discriminatory impediments to cross-border investment, and developing investor-state conflict management mechanisms to retain and expand investment and prevent dispute escalation -- all issues left unaddressed by ongoing negotiations -- hold important potential for reducing Mode 3 trade costs and facilitating expanded investment.
format	Working Paper
author	Echandi, Roberto Sauve, Pierre
author_facet	Echandi, Roberto Sauve, Pierre
author_sort	Echandi, Roberto
title	Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?
title_short	Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?
title_full	Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?
title_fullStr	Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?
title_full_unstemmed	Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?
title_sort	investment facilitation and mode 3 trade in services : are current discussions addressing the key issues?
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/698571588702481484/Investment-Facilitation-and-Mode-3-Trade-in-Services-Are-Current-Discussions-Addressing-the-Key-Issues http://hdl.handle.net/10986/33711
_version_	1764479352889671680

Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues?

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