Quantifying the Impact of FTAs on Canada's Financial Services Sector

39 Pages Posted: 6 Feb 2016

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; C.D. Howe Institute; Centre for International Governance Innovation (CIGI); BKP Development Research & Consulting GmbH; Asia Pacific Foundation of Canada

Ali Dadkhah

Ciuriak Consulting Inc.; Infinity Law

Jingliang Xiao

Infinite-Sum Modeling Inc.; Ciuriak Consulting Inc.

Date Written: December 2015

Abstract

The infrastructure for services trade analysis has improved considerably with the development of databases on services trade for modelling purposes by the World Bank in its Trade in Services Database; on Mode 3 commercial presence trade in the form of foreign affiliate sales (FAS) data sets; on the prevalence of services trade barriers in the OECD’s and World bank’s Services Trade Restrictiveness Index (STRI) databases; new work at the OECD measuring uncertainty of market access in the form of a GATS Trade Restrictiveness Index, (GTRI) which measures bound commitments and can be used to derive “water” in the bindings, a measure of the extent to which existing market access restrictions could be increased without violating WTO commitments; and relatively comprehensive measures of the ad valorem equivalents (AVEs) of services trade barriers. We exploit these resources to develop estimates of the impact of liberalization of both cross-border and commercial presence trade in financial services on Canada’s financial services sector, taking into account both the extent of liberalization that is likely under a model, high-quality financial services chapter of an FTA and the effect of the FTA on binding existing market access commitments.

Keywords: Trade in services, financial services, banking, insurance, trade liberalization, STRI, bindings, FTAs, CGE

JEL Classification: F13, F14, G28

Suggested Citation

Ciuriak, Dan and Dadkhah, Ali and Xiao, Jingliang, Quantifying the Impact of FTAs on Canada's Financial Services Sector (December 2015). Available at SSRN: https://ssrn.com/abstract=2727904 or http://dx.doi.org/10.2139/ssrn.2727904

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

Ali Dadkhah

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

Infinity Law ( email )

200-931 Fort St.
Victoria, V8V 3K3
Canada

Jingliang Xiao

Infinite-Sum Modeling Inc. ( email )

16167,Glenbrooks Pl
Vancouver, BC - British Columbia v4n1t3
Canada
6047245981 (Phone)
6047245981 (Fax)

HOME PAGE: http://www.infsum.com/en/

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

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