mode 1 Archives — LIRNEasia


On the benefits of services trade

Posted on February 17, 2010  /  0 Comments

Services trade, especially mode 1 services trade where the buyer remains in the buyer’s country and the seller remains in the seller’s country, is critical to the development of emerging economies. India has been one of the greatest beneficiaries of liberalized trade, but the NYT article below shows that the US is also a clear winner. The full article is worth a read. For example, will Washington offer tax breaks or other export incentives? While businesses may clamor for them, these would be a setback for freer trade — after all, for years it has been America that has been hectoring other countries to end their subsidies to exporters.