Massimo Geloso Grosso

Logistics and Time as a Trade Barrier

This paper analyses the relation between time for exports and imports, logistics services and international trade. Time is found not only to reduce trade volumes, but more importantly lengthy procedures for exports and imports reduce the probability that firms will enter export markets for timesensitive products at all. Furthermore, a broader range of products are becoming time-sensitive following the proliferation of modern supply chain management in manufacturing as well as retailing. Labourintensive products such as clothing and consumer electronics are increasingly time-sensitive and many developing countries urgently need to shorten lead time in order to stay competitive in these sectors. The report argues that reforms to this effect can be implemented at relatively low cost also in low-income countries. The study provides case studies as well as econometric estimates of the relation between time, logistics services and trade performance and draws policy implications.

Market Structure in the Distribution Sector and Merchandise Trade

This study aims at exploring how recent developments in the retail sector affect trade in consumer goods. It focuses on three areas of development: i) internationalisation; ii) market structure; and iii) the growing market share of retailers? private labels. It distinguishes between food and non-food products as there are significant differences between the sourcing patterns of these two product categories. The gravity model is extended by integrating a retail intermediary sector, and a novel estimation technique (zero inflated Poisson) is proposed. It is found that the foreign operations of a retailer are positively related to imports from the host to the home country of the retailer. The rate of market concentration and the market share of private labels are both found to be negatively related to imports of food and positively related to imports of non-food consumer goods, but private labels tend to shift sourcing towards low-income countries. Lower tariffs yield a stronger import response in countries with a less concentrated retail sector, particularly for food items suggesting that competition policy and trade policy are complementary. In developing countries the entry of international retailers can have a positive impact on exports and product quality.

Services Trade Liberalisation and Tourism Development

This study analyses the role that services trade liberalisation could play in fostering tourism growth in developing countries. The economic and social importance of tourism means that the industry is high on the list of development priorities in many developing countries and LDCs. In order to have a successful tourism export industry, effective linkages need to be established with many different sectors, most of which are other services. Trade and investment liberalisation at the national, regional and multilateral levels can be a means to complement national efforts to attain these goals. Sustainable tourism development, though, requires strong public sector management and support. Due consideration needs to be given to develop effective regulation, including competition policy and institutions, to avoid exceeding the carrying capacity of assets, and to strengthen national capacity in order to minimise financial leakages.

Managing Request-Offer Negotiations Under the GATS

This study forms part of on-going OECD work on trade in services, in co-operation with UNCTAD, aimed at assisting WTO Members in managing request-offer negotiations under the GATS. The key objective is to help officials of WTO Members in both gaining a greater insight into the particular issues of importance in the legal services sector and how they might be approached in the negotiations. While only modest liberalisation of legal services trade was achieved during the Uruguay Round, the current negotiations offer the opportunity to achieve greater levels of liberalisation, which may lead to significant economic benefits to all countries. In addition, the peculiar characteristic of legal services is that the potential downsides stemming from liberalisation — both in terms of market failures to achieve social objectives and of the displacement of local suppliers — are likely to be less significant in these services.

Liberalising Network Infrastructure Services and the GATS

This study reviews key issues in liberalising network infrastructure services ? including telecommunications, postal/courier, energy, water and sewage ? in the national and multilateral contexts. The economic and social significance of these services means that they are high on the list of development priorities in many countries. Enhanced trade and investment in network infrastructure services can help achieve these development goals. Liberalisation, however, is no easy task and requires sound regulation and effective institutions to address market failures and ensure public policy objectives. If appropriately designed, bound liberalisation under the GATS can contribute to the advancement of national objectives by improving investor?s confidence when countries decide to allow private sector participation in these services. The WTO services agreement can affect the regulatory conduct of governments in some areas of network infrastructure services, particularly when specific commitments are made. This is intensified by the fact that the GATS is a relatively young agreement and some of its provisions remain to be tested in practice. It is thus crucial to carefully examine its provisions and tailor-specific commitments to national policy objectives.

Analysis of Subsidies for Services

This study presents an exploratory analysis of export subsidies in the services field. It draws from a variety of sources in an effort to provide insights into the characteristics and use of these measures. The report, while not generating accurate measures of the extent and effects of export subsidies for services, provides evidence that these measures are used by many countries in the developed and developing worlds to support a wide range of services sectors. The analysis also indicates that broadly speaking the definitions contained in the WTO Agreement on Subsidies and Countervailing Measures (ASCM) are relevant for services. The most important types of export support appear to be direct tax incentives, particularly profit tax exemptions or reductions. Based on the detailed analysis of export subsidies for services, the study then discusses some possible elements of a definition of these measures.