Integrating trade in education services between Australia and India. Complementarities and challenges

• Date: 15 June 2012
• Pages: 133-147
• DOI: https://doi.org/10.1108/14770021211239659
• Published date: 15 June 2012
• Author: M. Rafiqul Islam,Shawkat Alam,Pundarik Mukhopadhaya
• Subject Matter: Economics

Integrating trade in education

services between Australia and

India

Complementarities and challenges

M. Rafiqul Islam and Shawkat Alam

Macquarie Law School, Macquarie University, Sydney, Australia, and

Pundarik Mukhopadhaya

Department of Economics, Macquarie University, Sydney, Australia

Abstract

Purpose – The multilateral liberalisation of trade in education under the General Agreement on

Trade in Services (GATS) has achieved little progress. In a bid to overcome this lacklustre education

trade liberalisation under the World Trade Organization (WTO), the purpose of this paper is to

examine education trade bilateralism between Australia and India as an alternative to multilateralism.

The end is to maximise bilateral trade liberalisation in education as a means to facilitate dynamic

productivity gains, export opportunities, market competition, and FDI in the sector. The combined

effect of this bilateralism would help accelerate economic growth in both countries, which is likely to

generate domino effects on other WTO members, thereby contributing to the multilateral liberalisation

of trade in services under the WTO.

Design/methodology/approach – The research methodology is analytical, based on pertinent

empirical and secondary information.

Findings – Strong complementarities and synergies are found for the integration of trade in

education services between Australia and India. Of the major exporters of education services,

Australia enjoys the most competitive edge and comparative advantage in the Asia-Pacific. India faces

strong demands for quality education services due to its economic reforms and expansion requiring

knowledge-based workforce for high efficiency and productivity and has become a major importer of

education services in the region.

Originality/value – The paper identifies new means of consolidating Australia and India’s existing

trade, niche areas of further opportunities, and potential challenges to be confronted for greater

economic integration through trade in education. The originality of the paper lies in its core message

that education trade bilateralism can be a valuable stepping stone, in many instances, to multilateral

trade in education.

Keywords Australia, India,Trade, Education, Bilateralism,Liberalisation, World TradeOrganization

Paper type Research paper

1. Introduction

Education has widely been recognised as an essential catalyst for bolstering economic,

social,and personal development. An educated and knowledge-basedworkforce is looked

upon as an engine of growth and has become a tradable service. Traded education

services have becomeone of the major components of multilateral trade in services under

the World Trade Organization (WTO).Trade in education services in the Asia-Pacific is

dominated by four major exporters, namely the USA, Canada, the UK, and Australia.

Although these countries have surpluses in education services, Australia is the most

The current issue and full text archive of this journal is available at

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Trade in

education

services

133

Journal of International Trade Law

and Policy

Vol. 11 No. 2, 2012

pp. 133-147

qEmerald Group Publishing Limited

1477-0024

DOI 10.1108/14770021211239659