TISA means Trade in Services Agreement, 50 participating countries involved constitute 75 per cent of the global trade in services, but the BRICS, including China, are excluded.
The agreement will open the door for large private corporations and countries because they will be more likely to coordinate and control supra-national labor laws, health systems, financial and industrial policy provisions, which would undermine the government’s Protect the rights and interests of citizens.
In addition, if a country like China wants to participate in the TISA, it would have to cancel all the different treatment of foreign companies with the practice, for example, foreign companies can set up hospitals in China.
As the core competitiveness of the US service industry, contributing 80% of GDP, compared to the development of goods trade, the United States is more inclined to the development of trade in services.
In China, the opening up of services such as finance and telecommunications is related to national security. At the same time, China’s state-owned economy is the mainstay. Many state-owned enterprises come from monopoly and government support, and their survival will face great challenges under the TISA rules.
According to Petersen Institute of International Economics’ report, China and India have achieved effective tariffs of 68%, although Brazil and Russia have not fallen far, at 56 per cent and 51 per cent, respectively, according to research conducted by the American think tank Petersen Institute of International Economics. If tariffs between 6-7 %of the United States and the European Union trade in services with these countries, then they themselves will be in a huge disadvantage.
The reduction of tariff and non-tariff barriers between the member states, the long-term trend towards zero tariffs, triggering the transfer effect of trade in services, the specific impact depends on the competitiveness of China and other members of the export products and mutual substitutability.
In addition, China plays an important role in the Pacific Rim economic circle, which remains a crucial one, even if it is not under an agreement.