Liberalizing Global Trade in Energy Services (Aei Studies on Services Trade Negotiations)

Globalization, privatization, and liberalization of energy markets are dramatically changing the nature of services to the energy sector. But the providers of the services underpinning the production, transport, and distribution of energy are likewise changing the nature of services to the energy sector. Firms are increasingly supplying energy services through cross-border trade, the establishment of a local presence in foreign countries, and the temporary entry of skilled personnel and equipment.

Global trade negotiations have not encompassed all ramifications of this sector, which is vital to the world economy. Peter C. Evans examines current efforts to deepen trade commitments regarding energy services. The author reviews benefits of and barriers to liberalization of the energy market
, analyzes the deficiencies of the current trade regime and the implications of extending General Agreement on Trade in Services rules to the energy sector, considers the most meaningful additional commitments in the energy trade sector, explores issues yet to be negotiated, and forecasts prospects for a comprehensive GATS agreement on energy services.

Liberalizing Global Trade in Energy Services is one in a series of new AEI studies on negotiations to liberalize trade in services. Each study focuses on a particular service sector, indentifies the major obstacles to liberalization in that area, and presents policy options for trade negotiators and interested private-sector participants.