When is a product a good or a service?The link between goods and services is increasing, as access to services becomes more of a prerequisite for the strong economic performance of many manufactured products. Show
Trade in services covers a wide variety of sectors, such as transport, telecommunications, professional services, financial services, postal and courier services, retail and distribution, environmental services and tourism services. EU trade agreements typically cover trade in services. The EU's objective is to ensure that EU service providers are allowed to supply services in foreign markets and are not discriminated against vis-à-vis national operators or other foreign operators in the same sector. Producers and exporters of goods such as textiles, cars or computers, for example, cannot be competitive without access to efficient banking, insurance or accountancy – or to telecommunications and transport systems. The purchase of many products often involves a service component. Cloud computing allows services such as technical infrastructure, platforms and software to be provided on a global basis. Instead of installing hardware at their customers’ premises, service providers can now offer their services from the cloud remotely – and across borders – demonstrating how services can substitute goods in certain cases.
Why is it relevant?
EU trade policy on goods and servicesThe EU wants to free up global trade in goods and services through WTO negotiations and through bilateral and regional trade agreements. Multilateral and plurilateral negotiations on goods and services:Certain WTO members including the EU have joined the Information Technology Agreement (ITA) which provides duty-free access to IT products, including computers, telephones and inputs and components such as semiconductors.
More information on the ITA and its update On services, the EU is currently participating in two WTO plurilateral negotiations regarding e-commerce and domestic regulation.
Bilateral negotiations on goods and servicesA number of the EU's bilateral trade agreements have significantly liberalised trade in goods. Some also include provisions covering non-tariff barriers and trade in services. For example:
The way forward on goods and servicesThe EU continues to negotiate ambitious provisions to improve access to goods and services markets with several regions and countries including:
The EU also concludes Economic Partnership Agreements with African, Caribbean and Pacific (ACP) countries. More on goods and services
What are the policies to protect domestic industries in the global market?protectionism, policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors.
What government policies are likely to restrict international trade?Governments three primary means to restrict trade: quota systems; tariffs; and subsidies. A quota system imposes restrictions on the specific number of goods imported into a country.
Which tool gives protection to domestic industry from the following?Common examples of protectionism, or tools that are used to implement a policy of protectionism include tariffs, quotas, and subsidies. All of these tools are meant to promote domestic companies by making foreign goods more expensive or scarce.
How can a tariff protect domestic industries?Tariffs are intended to protect local industries by making imports more expensive and driving consumers to domestic producers. Unfair trading practices. Some tariffs are meant to counteract specific measures taken by foreign countries or firms.
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