56. There are however a number of challenges and impediments to move towards a more
credible services sector liberalisation. The key challenge is to ensure that higher targets of
services liberalisation are met so as to facilitate greater connectivity, not only for trade in
services but also for trade in goods. Among others, domestic legal regulations often constrain
further liberalisation, particularly for the liberalisation of Mode 3 (i.e., commercial presence).
Strong views on protectionism from domestic stakeholders are also another challenge for
progressive liberalisation. Finally, Mode 4 (i.e., movement of natural persons) has seen the
least progress compared to the liberalisation plan of the other modes. Accordingly, alternative
approach on how to move forward with a more liberalised Mode 4 is essential.
56. There are however a number of challenges and impediments to move towards a morecredible services sector liberalisation. The key challenge is to ensure that higher targets ofservices liberalisation are met so as to facilitate greater connectivity, not only for trade inservices but also for trade in goods. Among others, domestic legal regulations often constrainfurther liberalisation, particularly for the liberalisation of Mode 3 (i.e., commercial presence).Strong views on protectionism from domestic stakeholders are also another challenge forprogressive liberalisation. Finally, Mode 4 (i.e., movement of natural persons) has seen theleast progress compared to the liberalisation plan of the other modes. Accordingly, alternativeapproach on how to move forward with a more liberalised Mode 4 is essential.
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