State regulation of international trade

Date: 2015-10-07; view: 378.

Trade policy instruments used to restrict trade in services, for the most part the same as those in the trade in goods. The similarity is based on the fact that the majority of trade in services is accompanied by trade in goods and, therefore, subject to the restrictions on trade in goods. The differences stem from the fact that trade in some services not connected with the movement of goods and the movement of capital, control methods which are somewhat different than the regulation of trade in goods. However, as in the case of restriction of imports, domestic subsidies to domestic producers, administered by the importing country, is considered the preferred method of limiting imports of services than the import tariff. And import tariff as a means of restricting imports of services in their impact on the economy is better or equal to the import quota in the case where the license for import quotas are sold at auction.

Measures to regulate access to the market - the tools of trade policy, restricting or prohibiting foreign manufacturers to operate services on the local market. Measures to regulate access to the market gain in most cases, the form of quantitative restrictions, and include:

- Restrictions on trade in services. For example, a legal requirement that all imported goods must be insured only by local insurance companies. It automatically eliminates foreign competition on the domestic market of insurance services for the importing companies. The lack of competition, in turn, leads to an overestimation of prices, which is passed on to exporters and ultimately consumers of imported goods. For exports and in particular cabotage between ports of the same State in many countries legislated for national transport companies.

- The introduction of quantitative quotas on imports of foreign services. An example is the mandatory amount of air time to be given to the national radio stations, which is a direct discrimination against foreign radio stations. Or limit the number of foreign films that can be purchased or shown on national television channels over a period of time.

- Restrictions on the establishment of domestic branches of foreign companies providing services. For example, in many countries, the law prohibits the establishment of branches of banks, insurance, travel and other foreign companies. Sometimes create foreign subsidiaries are not prohibited, but the list of services they can provide to local buyers, the law is very limited. Such legislation is used when necessary to protect the fragile local producers of services. Although the general theory of international trade is well known that the most preferred forms of protection in this case are the internal subsidies and local taxation of foreign service providers.

- Restrictions on the movement of service providers. Usually take the form of state licensing of importing labor, which is associated to a local importer to the passage of the bureaucratic procedures, and paying the appropriate license. An example is the compulsory licensing and even tested in many foreign doctors before they are permitted to do medical practice. And in this case, some form of local grants, or at least import tariff is preferable to the quota entry.

- Restrictions on the movement of the users. Acquire, for example, the form of limiting the number of tourist visas that can be issued to non-residents for a period of time. In order to regulate international trade in services, some countries have resorted to imposing restrictions on the use of this mode nonresidents.

Exemptions from national treatment - tools of domestic economic policy that discriminates against domestic foreign service suppliers than domestic.

Thus, trade policy instruments used in trade in services can be divided into measures to regulate access to the market, restricting or prohibiting foreign manufacturers to operate services on the local market (restrictions on trade in services and movement of producers and consumers, quantitative restrictions) and exemptions from national treatment, discriminatory domestic foreign service providers compared to local (price incentives for local producers and discrimination against foreigners). Efforts to liberalize international trade in services are taken at the level of international organizations, in individual sectors and on a bilateral basis between individual countries.