enabling framework for an expansion in mode 4‐trade. What matters of course at the end of the day is that actions are taken to implement the reforms that have been identified by governments as priorities.

In many cases implementation will involve a need for investments: in training, in infrastructure, data and information systems, etc. The multilateral aid for trade initiative that was launched at the 2005 WTO ministerial in Hong Kong provides a mechanism through which low‐income developing country governments can obtain financial and technical assistance to implement regulatory improvements. To date most aid for trade assistance has focused on infrastructure investments and trade facilitation – not on regulation or service sector policies, but there is no reason why aid for trade would not be provided for services policy reforms is these are identified as priorities by developing country governments (Hoekman and Mattoo, 2007).

# **_Dealing with data gaps and improving transparency_**

The types of cooperation discussed above should extend to – and benefit from – a concerted effort to enhance transparency of policies and address data lacunae. Statistics on services trade and investment flows are generally very limited, greatly constraining the scope for analysis of the impediments, determinants and impacts of such flows. For most countries services data are highly aggregated, often not available on an origin‐destination (bilateral) basis, and generally reported on a less timely basis than are data on trade in goods. Data on applied policies are not reported to or by the WTO on a comprehensive basis as a result of the positive list approach to scheduling in the GATS. As noted above, few WTO members have fully complied with notification requirements for scheduled sectors. In principle, this is a task that should be undertaken by and through the WTO. Ideally a final Doha package would include a commitment by WTO members to report on applied policies in scheduled sectors and give the WTO secretariat the mandate to collect and report data on all applied policies, whether scheduled or not. But independent of whether this can be achieved, better data are a precondition for assessing the impacts of policy and regulation, for monitoring and evaluation, as well as for effective negotiation.

# **4.  A new approach to services negotiations**

It is possible to have two levels of ambition for services negotiations. One is to see international negotiations as a means to advance liberalization beyond unilateral levels. The other is simply to harvest unilateral liberalization. That latter view accepts that many of the constraints identified in the Section 2 cannot be overcome through a reciprocal exchange of policy commitments.

We believe that the primary role of the WTO is to act as a lock‐in, harvesting mechanism. The reduction in uncertainty associated with binding applied levels of protection is very important even if often ignored by firms, analysts and policymakers. But we also believe that once legitimate regulatory concerns are addressed, it should be possible to take a bolder approach to the services negotiations, to break out of the low‐level equilibrium of diminished business expectations and limited business engagement, and to negotiate a reduction in actual barriers to trade and investment.

For the Doha Round to be brought to a successful conclusion, a final package that is balanced and commercially relevant will need to be agreed. Significant movement in the direction of liberalization 17