Type | Journal Article - Quarterly Monitor |
Title | Barriers for Service Trade in CEFTA Region |
Author(s) | |
Volume | 5 |
Issue | 5.6 |
Publication (Day/Month/Year) | 2011 |
Page numbers | 72-81 |
URL | http://www.fren.org.rs/sites/default/files/qm/L2-eng_0.pdf |
Abstract | The members of the Central European Free Trade Agreement (CEFTA2 ) achieved good economic growth over the past decade. That was especially true up to the start of the world economic crisis which had a serious effect on the CEFTA members as it did on the rest of Europe. Exports certainly contributed to those earlier good results although the participation of goods and services exports in the overall output is still significantly lower than in most European Union member states. The plan for post-crisis recovery in practically all CEFTA member states is based on increasing exports. Even though that would mainly mean increasing goods exports, services could also make a significant contribution both directly in securing export income and indirectly by enabling trade. Services are dominant in the economies of the region and now efforts have to be invested in realizing their export potentials. In the CEFTA economies which do not have access to the sea, services account for an average 10% of the GDP while in coastal countries services account for up to a quarter of the GDP. And while CEFTA members have to a great extent opened up their markets to the goods trade, primarily because of their aspirations to join the EU and World Trade Organization (WHO), numerous obstacles to the services trade remain in place. Some of those obstacles, such as the mobility of the highly educated workforce, are general in character, that is they are true of all sectors, while other obstacles are specific to certain sectors. In this article, we are pointing out the general factors which limit the services trade in construction, information-communication technology and software, legal services and transport. According to our findings, the main general obstacle is the mobility of the workforce, especially qualified and educated (although that is characteristic for many parts of the world including Europe). Viewed by sector – transport and lawyer services are the most limited. |
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