CETA, TTIP, TiSA, and Financial Services

Financial services are considered as an economic sector that is particularly suited for trade liberalization. While many countries opened their markets considerably, financial institutions are at the same time subject to strict domestic regulation and supervision. They lead to financial and organizational burdens for service suppliers which may have an effect similar to trade barriers. However, traditional market access obligations do not apply to these national or, in the case of the EU, supranational regulatory systems. In addition, the GATS as well as bilateral trade agreements contain so-called prudential carve-out provisions. As a consequence, any international attempt for further liberalization in the financial services sector will be limited in its effect as long as regulatory issues are not integrated in these negotiations.