This book fills a large gap in the literature on trade in services. It focuses on the dynamics of trade and investment liberalization in a sector of considerable technical and regulatory complexity financial services. This volume chronicles the recent experiences of governments in Latin America that have successfully completed financial services negotiations through preferential trade agreements. One of the unique features of this book is the three in-depth country case studies Chile, Colombia, and Costa Rica all written by trade experts who led the negotiations of their respective countries in financial services. The authors offer analytical insights into the substantive content of the legal provisions governing financial market opening and the way such provisions have evolved over time and across negotiating settings. The studies describe how each of the three governments organized the conduct of negotiations in the sector, the extent of preparatory work undertaken before and during negotiations, and the negotiating road maps that were put in place to guide negotiators. Additional chapters complement the case studies by examining the evolving architecture of trade and investment disciplines in financial services and how best to prepare for negotiations in this sector. 'Financial Services and Preferential Trade Agreements' aims to provide practical lessons for policy makers, trade experts, and negotiators in developing countries who are involved in negotiating trade in financial services in the context of regional trade agreements. Academics and development practitioners interested in trade negotiations will also find the information valuable.

The World Trade Organization's General Agreement on Trade in Services (GATS) sets out a framework and rules for the liberalization of international trade in services. Paragraph 2(a) of the GATS Annex on Financial Services is generally known as the Prudential Carve-Out (PCO). Notwithstanding GATS obligations, it allows WTO Members to pursue prudential regulatory objectives. This book studies the GATS PCO in light of its negotiating history and economic rationale as well as PCOs in all preferential trade agreements notified to the WTO Secretariat up to the summer of 2017. The author clarifies the state of play of international cooperation on financial services regulation; provides a current understanding of the GATS PCO; analyses how PCOs are drafted in preferential trade agreements and, finally, he seeks to understand whether alternative approaches to the mainstream understanding of the PCO are possible and suggests options for reform.

Trade Agreements and Financial Services examines the cross-border agreements that have historically been focused on the trade of merchandise goods. Increasingly, emphasis is being placed on the provision of cross-border services. Notable among these are financial services. There is a clear link between economic development and the availability of financial products. Moreover, the financial services sector is, itself, a major industry that is fueling growth. The conditions under which financial services are offered in an international context are the subject of debate in the Western Hemisphere, Europe, Asia, and Latin America.

The multilateral trade agreements in the Annexes to the Agreement Establishing the World Trade Organization provide a comprehensive structure for international trade. Why would trading partners in different countries feel the need to go outside this framework in order to set up preferential trade arrangements? This book considers the structure of the World Trade Organization’s agreements and the types of preferential trade arrangements, and deliberates the value of the latter in the light of the operation of the former. Preferential Trade Agreements and International Law offers a comprehensive examination of preferential trade agreements and considers the features of specific regional and bilateral trade agreements without drawing upon systematic features and trends. It shows the latest state of knowledge on the topic and will be of value to researchers, academics, policymakers, and students interested in international trade and economic law.

This volume chronicles the recent experience of governments in the Latin American region that have successfully completed financial services negotiations in the context of regional trade agreements. It aims at providing policymakers and negotiators with a better understanding of the complexities involved in financial services negotiations and a deeper understanding of the substantive issues related to financial services liberalization within a regional context, the process negotiators have to go through, and likely effects of financial market opening within regional agreements. The book fills an important gap in the literature on trade in services by focusing attention on the dynamics of trade and investment liberalization in a sector of considerable technical complexity and regulatory intensity - financial services; among a sample of countries (Chile, Colombia, Costa Rica) from a "first mover" region in the financial services liberalization front - Latin America; and in the confines of one specific type of negotiating setting - preferential trade agreements. One of the unique features of this volume is the three in-depth country case studies, all written by trade experts who led the negotiations of their respective countries in financial services. The country studies offer useful analytical insights into the substantive content of the legal provisions governing financial market opening in the region, and how such provisions have evolved over time and across negotiating settings. They describe how each of the three governments organized the conduct of negotiations in the sector; the extent of preparatory work that governments undertook during negotiations, sometimes outsourced to experts in academia or consulting firms; and the negotiating road maps that were put in place to help negotiators. The case studies are complemented with other chapters dealing with the evolving architecture of trade and investment disciplines in financial services and how best to prepare for negotiations in the sector.

Since the early 1990s there has been an explosion of preferential trade agreements between North and South. Arguing that this is based on competition for investment opportunities rather than free trade, Mark Manger offers a new perspective on the roles of the state and corporations in changing patterns of international trade.