Publication: Liberalization of Trade in Financial Services : Lessons from Latin America and the Caribbean
Date
2008-01-01
ISSN
Published
2008-01-01
Author(s)
Stephanou, Constantinos
Abstract
This policy note is based on a project
on financial services and trade agreements in the Latin
America and Caribbean Region. It emphasizes that the
liberalization of trade in financial services is helpful to,
but is not a panacea for, domestic financial system
modernization. It adds that the means of liberalizing trade
in financial services may also determine the extent of the
benefits that can be attained and that any trade commitments
in financial services will need to be aligned with
China's financial system condition and policy
objectives. The author points out however, that China can
also draw useful policy lessons from the Latin America and
Caribbean (LCR) experience when negotiating financial
services in Preferential Trade Arrangement (PTAs) by
firstly, the inclusion of financial services which depends
greatly on the existence of offensive interests and of
asymmetric bargaining powers between the negotiating
counterparts; secondly, the case studies which strongly
indicate the importance of initial conditions and historical
experience in shaping a country's financial services
trade strategy; thirdly, the scheduling approach of the
(typically self-contained) financial services chapter which
both contributes to, and is determined by, the willingness
to liberalize; and finally the authorities should be
cognizant of important nuances between the two main
negotiating templates.
Citation
“Stephanou, Constantinos. 2008. Liberalization of Trade in Financial Services : Lessons from Latin America and the Caribbean. Trade issues in East Asia. © http://openknowledge.worldbank.org/handle/10986/6280 License: CC BY 3.0 IGO.”