Trade Therapy: Deepening Cooperation to Strengthen Pandemic Defenses
Sixty-eight jurisdictions (counting EU-25 as one) have made commitments for medical services. Commitments made in the deepest agreements for the four subsectors identified previously are more numerous and often deeper than those in GATS (figure 3.3). There are commitments in at least three of the four medical subsectors for all modes of supply in high- and middle-income economies as well as in at least two low-income economies (limited to parties to the East African Community). The number of economies making RTA commitments for cross-border supply is 11 times higher than in GATS. Benefits of binding policies in trade agreements. Reducing relevant trade barriers in medical services could enhance access to and quality of services, and it also has the potential for cost savings and efficiency gains. Policy makers need to find the right
Figure 3.3 The best bilateral or regional trade agreements include more medical services commitments than in GATS b. Mode 2
3.5
3.5
3.0
3.0
Mean number of subsectors (0–4)
Mean number of subsectors (0–4)
a. Mode 1
2.5 2.0 1.5 1.0 0.5
2.5 2.0 1.5 1.0 0.5 0
0
Best RTA
GATS
Best RTA c. Mode 3
GATS
d. Mode 4
3.5
3.5
3.0
3.0 Mean number of subsectors (0–4)
Mean number of subsectors (0–4)
132
2.5 2.0 1.5 1.0 0.5
2.5 2.0 1.5 1.0 0.5 0
0 Best RTA All
Low-income
GATS Lower-middle-income
Best RTA Upper-middle-income
GATS High-income
Source: World Trade Organization and World Bank, I-TIP services database, GATS and RTA modules (accessed in 2022), https://i-tip.wto.org/services. Note: The charts show the average number of subsectors (out of four) with a modal commitment. The four medical services subsectors are (a) medical and dental services; (b) nurses, midwives, and other paramedical personnel; (c) hospital services; and (d) other human health services. General Agreement on Trade in Services (GATS) modes of supply: (1) cross-border supply, (2) consumption abroad, (3) commercial presence, and (4 presence of natural persons. RTA = regional trade agreement.
