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The contribution of service sector to the development of both developed and developing economies is increasing from time to time.However,service sector trade reforms are very limited,especially in developing countries,which affects the efficiency of the sector. Accordingly,Ethiopia has requested to access World Trade Organization in 2003 and the membership request is still underway. Thus,this book gives the macro level policy inputs for the countries membership request.The study has employed both qualitative and quantitative methods of analysis.The qualitative analysis is mainly evaluating the compatibility of the country's service sector policy with GATS principles and concludes that it increases welfare in competitive service sub-sectors.While the qualitative analysis is made using CGE Model and shows that the country derives high welfare gain from liberalizing its service sector.The comparison of welfare gained under goods and services trade liberalization shows that the welfare is high in the former case.The book is useful for any reader including researchers working on trade,academicians,and students.