Change in the Service Trade Regime with CEE Countries

Austria's service trade with the CEECs is still hampered by high trade barriers. The EU's eastern enlargement should thus produce substantial integrative effects especially in the tertiary sector. In view of the competitive advantages enjoyed by Austria, particularly with regard to complex market services, further liberalisation will open up a considerable demand potential, while at the same time suppliers of labour-cost-intensive services will find themselves faced with keener competition from cross-border shopping and providers in the CEECs. It is therefore advisable to develop a consistent strategy to prepare for enlargement which should focus on facilitating market penetration by Austrian providers.