The financial sector is a critical component of a nation?s economy: it not only contributes directly to output and employment but also provides an essential infrastructure for the functioning of the entire economy. International trade in financial services?together with enhanced prudential regulation and supervision and other basic structural reforms?can play an important role in helping countries build financial systems that are more competitive and efficient, and therefore more stable. In this study, Sydney J. Key analyzes the role of the General Agreement on Trade in Services (GATS) and the World Trade Organization (WTO) in the liberalization and regulation of the financial services sector. What makes her analysis unique is that it integrates the very different perspectives of trade policy and financial regulatory policy. Throughout, she emphasizes the complementary and mutually reinforcing relationship between efforts to open markets under the GATS and the...

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