New trade model offers middle ground for services liberalization.
The article discusses how traditional trade models focusing on tariffs in goods do not apply to services markets. The researchers developed a new model to explain the different approach to trade agreements in services, like the WTO GATS. They found that sector-by-sector negotiations on policy instruments are key in services trade liberalization. The study suggests a middle ground between deep integration in GATS and shallow integration in GATT for services trade.