Regulations for international trade in the service sectors (for instance, cross-border transactions by banks, insurance companies, the legal profession, accounting, telecommunications) were first negotiated in the Uruguay Round (1986-1994). At the end of that round, many observers argued that only a skeletal framework had been constructed for services and that real liberalization awaited future negotiations. An eight-year gap between the Uruguay and Doha rounds has led to further inaction.

Thus, services form an important component of negotiations in the current Doha Round of trade talks. Yet because other politically more volatile and difficult issues--agricultural trade reform, patents and AIDS, textiles, and apparel--have stolen the spotlight in the run-up to the ministerial meeting in Cancun, little public analysis has emerged regarding feasible goals for the Doha services negotiations. AEI has asked authorities on services trade issues to assess the state of services negotiations--what is possible and what are the major substantive and political barriers to greater trade liberalization in major trade service sectors.