SERVICES NEGOTATIONS UNDER THE DOHA DEVELOPMENT AGENDA

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SERVICES NEGOTATIONS UNDER THE DOHA DEVELOPMENT
AGENDA
Trade in Services Division WTO
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Doha Work Programme Services

• The negotiations on trade in services shall be
  conducted with a view to promoting the economic
  growth of all trading partners and the
  development of developing and least-developed
  countries.
• We recognize the work already undertaken in the
  negotiations, ... and the large number of
  proposals submitted by Members on a wide range of
  sectors and several horizontal issues, as well as
  on movement of natural persons.
• We reaffirm the Guidelines and Procedures for the
  Negotiations ... as the basis for continuing the
  negotiations.

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Guidelines and Procedures for the Services
Negotiations - Main Elements

• Objectives and Principles
• progressive liberalization increasing
  participation of developing countries
  appropriate flexibility for individual developing
  countries special priority for LDCs no change
  in structure and principles of GATS due respect
  for national policy objectives.
• Scope
• no prior exclusion of sectors or modes
  negotiation of (current) MFN exemptions
  deadlines for negotiations on GATS Rules and
  Domestic Regulation.
• Modalities and Procedures
• current schedules as starting-point
  request/offer as main method credit for
  autonomous liberalization ongoing assessment of
  trade consideration for needs of small services
  suppliers of developing countries.

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Treatment of Autonomous Liberalization
Relevant Provisions Article XIX3 The
Guidelines and Procedures for the Negotiations
shall "establish modalities for the treatment of
liberalization undertaken autonomously by Members
since previous negotiations, ". Negotiating
Guidelines and Procedures ... "based on
multilaterally agreed criteria, account shall be
taken and credit shall be given for autonomous
liberalization undertaken since previous
negotiations. Members shall endeavour to develop
such criteria prior to the start of negotiation
of specific commitments.
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Treatment of Autonomous Liberalization

• Critical Issues
• Situation of recently acceded Members
• Negotiating credit for developing country
  Members
• or for all Members?
• Compensatory concessions for trade in goods?
• Relationship between autonomous liberalization
• and bindings

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Assessment of Trade in Services
Relevant Provisions Article XIX3 ... the
Council for Trade in Services shall carry out an
assessment of trade in services in overall terms
and on a sectoral basis with reference to the
objectives of this Agreement, including those set
out in paragraph 1 of Article IV. Negotiating
Guidelines and Procedures The Council for
Trade in Services shall continue to carry out an
assessment of trade in services negotiations
shall be adjusted in the light of the results of
the assessment.
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Assessment of Trade in Services

• Critical Issues
• Individual versus collective assessment
• Sector-specific versus economy-wide perspective
  
• Relevant benchmarks
• - Interpretation of Article IV1
• Data problems

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Technical Review of the GATS

• First brought up in discussion on Negotiating
  Guidelines
• Basic idea improve legal clarity of the GATS
• Issues under discussion include
• Articles XVI, XVII and XX2
• Article XVI2
• Definition of service supplier in Article
  XXVIII and Annex on Financial Services
• Article V (Economic Integration)

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New Services Round Groundwork
1. Rule-making Programme (Safeguards, Government
Procurement, Subsidies) 2. Disciplines on
Domestic Regulation 3. Classification and
Scheduling Problems 4. Review of
Provisions/Understandings (MFN Exemptions,
Coverage of Air Transport, Telecom Accounting
Rates)
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New Services Round Country line-up (Distribution
of current Commitments across Members)
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New Round Sector line-up (Number of WTO
Members, February 2002)
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New Round Line-up by mode (Commitments on
Market Access, per cent, July 2000)
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Relationship between level of economic
development and number of commitments (Feb 2002)
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Members negotiating interests(Number of Members
tabling proposals, Feb 2002)
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The Request Offer Process Relevant
Provisions

• Article XIX4 The process of progressive
  liberalization shall be advanced through
  bilateral, plurilateral or multilateral
  negotiations directed towards increasing the
  general level of specific commitments
• Negotiating Guidelines (S/L/93) The main method
  of negotiation shall be the request-offer
  approach.

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Formulating Initial Requests
Relevant Steps

• I. Evaluation of Trading Opportunities
  (consultations with relevant Ministries,
  associations, etc.)
• II. Examination of Current Situation under GATS
• III. Definition of Negotiating Objective
• Inclusion of additional sectors?
• Improvements in existing Commitments on Market
  Access and National Treatment?
• Scheduling of Additional Commitments (Art.
  XVIII)?
• Removal of MFN Exemptions?

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Scope for Improvement? Case A.
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Scope for Improvement? Case B.
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MFN Exemption - Case C. reciprocity
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MFN Exemption - Case D. preferential
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• IV. Circulation of REQUESTS
• No specified format
• Only to the relevant trading partner(s)
• Without further procedural obligations (no
  notification or transparency requirements, etc.)

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Formulating Initial OFFERS Relevant Steps

• I. Assessment of the REQUESTS Received
• II. Evaluation of Trade and Developmental
  Interests
• Promotion of FDI?
• Improvements in business and/or social
  infrastructures?
• Promotion of technology transfer?
• Reduction/elimination of domestic supply gaps?
• Other social/economic/regional policy objectives?

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• III. Need for Accompanying Regulatory Reform?
• IV. Preparation and Circulation of initial
  OFFERS
• Highlight envisaged improvements in draft
  schedule and/or List of MFN Exemptions
• Consider scope for additional technical
  modifications and clarifications
• Circulate to all Members

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What else?

• Continued Negotiating Process to Improve Overall
  Results (essentially bilateral)
• Parallel Multilateral Processes
• Development of common frameworks/understandings/
  reference papers?
• Review of existing GATS rules?
• Ensuring transparency
• Treatment of any other relevant issue
• Ongoing Assessment of Trade in Services
• (? Article XIX and Negotiating Guidelines)