Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...

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In this regard, travel services have the highest potential for intra-regional growth in the region.
Export of travel services in the region have generally outperformed the world market and
commitments made by the WTO members of BSEC suggest that in the area of Market
Access, there are relatively few limitations in cross border supply (mode 1), consumption
abroad (mode 2) and commercial presence (mode 3) – see table below for an example of
different modes of supply. Countries have also made commitments to predominantly not
discriminate against service suppliers from abroad (national treatment principle) in modes 1-3.
Overall travel services present large opportunities for intra-regional trade promotion.
Definition and examples of modes of supply for exporting services
Mode Scope of coverage of mode
Cross-border supply which does not require a physical movement from supplier to consumer
1
(e.g. consultancy services, distance learning, etc.)
Movement of the consumer to the country of the supplier
2
(e.g. tourism, education abroad or attending health care abroad)
Services provided to the consumers of a foreign country through commercial presence
3
(e.g. hotel or bank establishing abroad)
Services provided through the temporary movement of natural persons
4
(e.g. consultant or health worker)
Source: WTO (2006) The General Agreement on Trade in Services: An introduction”, Geneva, March
The second largest intra-regional trade potential was identified as being in transportation
services. Exports of transportation services have outperformed the world market for many
countries. Market Access in modes 2 and 3 is virtually entirely liberalised. However, in mode
1, all countries apply a number of restrictions for around half the subsectors. Typically, all
countries apply restrictions on the temporary movement of natural persons (mode 4). Overall
transportation services present some important opportunities for intra-regional trade
promotion, but significant restrictions and impediments to trade apply which need to be
addressed in order to fully benefit from the regional market.
Other commercial services (which exclude construction, personal/cultural, financial,
insurance, royalties and computer services) have a large potential for the region. All WTO
members of BSEC have liberalised other business services in mode 2 and most of the
subsectors in mode 3. Moreover, with the exception of Greece and Turkey most of the
subsectors have been liberalised in mode 1. Most countries have unbound restrictions for
mode 4 supply. For National Treatment, few restrictions exist in modes 1-3. Albania, Romania
and Turkey have few restrictions in mode 4, while Armenia, Georgia and Greece have
unbound limitations for mode 4. Overall, it appears that other business services presents a
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