GATS, WTO and the current negotiation on trade in education services

1
Robert Stevens CEO, Education New Zealand Trust
GATS, WTO and the current negotiation on trade in
education services
2
Overview

• What exactly is the WTO?
• What is the education services framework?
• What is the timeline for negotiation?

3
(No Transcript)
4
So, what exactly is the WTO?
Established in 1995. Successor to the General
Agreement on Tariffs and Trade (GATT)

• Only global organization dealing with the rules
  of trade between member economies

Currently has 144 member economies, with over 30
others negotiating membership
Present membership accounts for 95 of world trade
5
Goals

• To help trade flow as smoothly, freely and
  predictably as possible (result assurance for
  consumers and producers)
• To improve the welfare of the peoples of the
  WTOs member

Functions
Administering WTO agreements Forum for trade
negotiations Handling trade disputes
Technical assistance and training
Covers goods services (GATS)
6
Education Services Negotiations

• 1993/94 Inaugural negotiating round
• 2000/01 Stocktake and information exchange
• 2001 Preliminary discussions on form and scope
  of negotiation
• 2002/05 Request-Offer Phase

7
GATS Principles

• Most Favoured Nation (MFN) extending to all
  other Members treatment no less favourable than
  that accorded to like services and suppliers of
  any other Member

Market Access extent to which services and
suppliers can enter or operate in a market
National Treatment according the same treatment
to foreign suppliers as extended to domestic
suppliers
8
Education Services Framework

• Modes
• Consumption abroad (student moves)
• Commercial presence (institution moves)
• Presence of natural persons (teacher moves)
• Cross border supply (distance education)

Sectors Primary, secondary, tertiary, other
9
Measures Affecting Trade

• Consumption abroad
• Host economy employment rules, visa requirements,
  foreign exchange requirements

Commercial presence Limits on ownership, rules
on twinning arrangements
Presence of natural persons Visas and
immigration requirements
Cross border supply Importation of educational
materials (textbooks and software to support
distance education) Blanket non-recognition of
this mode of supply
10
Timeline

• 30 June 2002 Initial Requests
• 31 March 2003 Initial Offers
• January 2005 Negotiations conclude