TRADE IN FINANCIAL SERVICES UNDER GATS, NAFTA AND THE EC - A REGULATORY JURISDICTION ANALYSIS

This article analyzes the trade regulation aspects of international tr ade in financial services as a conflict of laws or regulatory jurisdic tion problem. It categorizes and compares various methods of instituti onalizing trade in financial services, using GATS, NAFTA and the EC as case studies. It examines how trade regulation in financial services might affect prudential and other traditional types of regulation of f inancial services, without addressing the regulatory perspective per s e. This article analyzes national treatment, market access, proportion ality, harmonization and recognition as both trade terms and regulator y terms, and shows that each of these terms may be analyzed as either a current or future choice of regulatory jurisdiction. It shows that i ncreased free trade in financial services depends on the reduction of regulatory barriers. It argues that some reduction in these barriers m ay be achieved without sacrificing regulatory goals, by virtue of harm onization and recognition where appropriate regulatory standards are s et. Some reduction of regulatory barriers may be achieved by appropria te rules of regulatory jurisdiction. Further reduction of regulatory b arriers may require the reduction of regulatory benefits to society, p resumably in exchange for trade benefits.