Presentation is loading. Please wait.
The Third World Services Congress in Bogotá “Multilateral Trading System and New Challenges of FTAs, RTAs towards Sustainable Development” « The view of the European Services Industry » Pascal Kerneis, Managing Director ESF (European Services Forum) « The voice of the European Service Industries for International Trade Negotiations »
« The voice of the European Service Industries for International Trade Negotiations in Services» ESF covers most services sectors, including: Insurance Banking Business services: IT & Computer; consulting, advertising, after-sales services Professional services: legal services, accountants, architects, engineers Construction services Distribution services Publishing services (incl. Music) Postal & Express Delivery services Audio-visual services Energy related services Environmental services Telecommunication services Tourism Air Transport Maritime Transport But no members in Education or Health services For more information, see www.esf.be
« The voice of the European Service Industries for International Trade Negotiations in Services» BARCLAYS BANK BT (British Telecom) CLIFFORD CHANCE COMMERZBANK DEUTSCHE BANK DHL FRANCE TELECOM GOLDMAN SACHS IBM EUROPE KPMG LLOYD’S PRICEWATERHOUSE- COOPERS ROYAL AHOLD NV SIEMENS AG STANDARD CHARTERED BANK TELECOM ITALIA TELEFONICA TNT TUI VEOLIA ENVIRONMENT ESF MEMBERS INCLUDE: For more information, see www.esf.be
« The voice of the European Service Industries for International Trade Negotiations in Services» EUROPEAN TRADE FEDERATIONS OF MANY SERVICES SECTORS/ Banks (FBE, EACB, ESBG) Insurance (CEA, BIPAR) Telecommunications (ETNO) Architects (ACE) Engineers (EFCA) Construction (FIEC, EIC) Accountants (FEE) Lawyers (CCBE) Distribution services (Eurocommerce, ERRT) Maritime transport (ECSA) ETC… ESF MEMBERS INCLUDE: For more information, see www.esf.be
« The voice of the European Service Industries for the GATS negotiations » Trade in Services as a way to sustainable development GATS negotiations are a tool to achieve Sustainable economic development = –better infrastructure of the economy ( Transport, Energy, Telecom/IT, Finances for other services sectors, manufacturing sectors and agriculture) –Creation of local jobs, of companies, –Better choice or cheaper services to consumers (businesses & private individuals) Unfortunately DCs and LDCs do not want to participate to DDA GATS negotiations (No LDC offers, only 16 DC revised offer) and few FTA have services commitments so far (only 2 for the EU = EU/Chile & EU/Mexico)
Hierarchy of European Interests in Trade Negotiations What EU companies want: 1.WTO DDA 2.Regional Trade Agreements (with Integrated Markets) 3.Bilateral Agreements 4.Autonomous Liberalisation… BUT =>What is happening in the reality: 1.Autonomous Liberalisation 2.FTAs 3.RTAs 4.WTO ?? !!!
WHAT is in the pipeline for the EU ? EU Free Trade Agreements (FTA & RTA) EU/GCC (Gulf Cooperation Council) (2007?) 6 EU/Mercosur (negotiations since 1999)(?) 5 EU/ACP (6 Economic Partnership Agreements = 12/2007?) 79 EU/Mediterranean countries (EuroMed)(2008) 9 EU/Central America 6 EU/Andean Countries 4 EU/South Korea(2007?) 1 EU/ASEAN 10 EU/China 1 EU/India(2008?) 1 EU/Ukraine + EU/Russia (?) 2 EU= 27countries + 124 countries = 151 « The voice of the European Service Industries for the GATS negotiations »
India ASEAN 2007 Bulgaria Romania
« The voice of the European Service Industries for the GATS negotiations » Almost 60% of EU-ITS transactions took place between the EU Member States (Intra-EU transactions). In 2004, the European Union remained the world’s largest exporter and importer of services. The EU25 accounted for 27.8% of global exports and 24.5% of imports. the USA was by far the biggest trade partner for the EU. In 2004, 32.1% of total exports of the EU25 went to and 32.9% of total imports came from the USA.
« The voice of the European Service Industries for the GATS negotiations » Total Word Trade in Services <= (Trade in Volume – Balance of Payment) 1 658,3 Bn € Rest of the world (incl. ACP) = 254,1 Bn € (15% world ITS)
RankCountryTrade Volume ExportsImportsBalance 1 USA221,394116,284105,11011,173 2 Switzerland77,01643,93433,0829,921 3 Japan29,25518,92710,3283,798 4 Norway22,12512,9619,1642,758 5 China16,0508,7867,2641,522 6 Canada15,2878,0627,2258,37 7 Russia14,8728,2226,6501,572 8 Turkey13,3923,8759,517-5,642 EU-25 International Trade in Services with non-EU Countries 2004, EUR bn All ACP Countries 30,72215,75914,963796
« The voice of the European Service Industries for International Trade Negotiations in Services» List of criteria that a CEO looks at when taking a decision to invest in a developing countries: Potential market (size, income per capita) Existing competition, special treatment for local players Benefits prospects at short, medium and long terms Good governance (level of corruption, transparency of the legislation, etc.) State of the regulation (existing barriers at all levels, implementation of the regulations) FDI incentives (special zones, tax incentives, etc.) Country Risk Assessment: political stability, GATS/Trade agreement sector specific binding commitments. > The GATS and/or FTA commitments are only additional good reason for companies to invest. But they can often make the difference. For the Developing countries, it is an additional opportunity to seize as to attract FDI.
« The voice of the European Service Industries for the GATS negotiations » The objectives and requests of the companies are the same whether they are dealt with in WTO or in FTAs. The work to persuade the negotiators to take on board our priorities is basically the same (list of trade barriers); BUT the level of commitments will have to be higher in RTAs and even higher in FTAs than in WTO (“WTO +”)… since the starting point is also higher (current practice, FTA with other Countries, etc.) BUT in services negotiations, differentiation and “preferred access” does not mean much (MFN through national legislation)
WHAT THE EUROPEAN SERVICES SECTOR WANTS FROM THE INTERNATIONAL TRADE IN SERVICES NEGOTIATIONS? Improved market access via Commercial Presence Abroad Mode 3 of the GATS – i.e. joint ventures; subsidiaries; branching, i.e. FDI. Improved access within the EU for foreign consumers (Mode 2 of the GATS), i.e. Tourism, Outsourcing, etc. Commitments for Cross-Border Supply via Mode 1 of the GATS, i.e. e-commerce, internet, sending electronic data to call centers, back offices, etc. Movement of Natural Persons via Mode 4 of the GATS, i.e. moving skilled business personnel within a company (intra- corporate transferees) and to a company’s clients on a temporary basis « The voice of the European Service Industries for the GATS negotiations »
TO CONCLUDE: The main priority remains the DDA GATS negotiations… to reach out commitments from major trading partners (62% of existing ITS with EU) and preserve the WTO Multilateral system; But, we need to be realistic and take any opportunities that are offered to increase our business opportunities in the rest of the world, notably through numerous Regional Trade Agreements (RTA), Free Trade Agreements (FTA), Trade and Investments Agreements (TIA), Partnership and Cooperation Agreements (PCA), Economic Partnership Agreements (EPA), Association Agreements, etc...
Thank you for your attention! Pascal KERNEIS Managing Director European Services Forum – ESF 168, Avenue de Cortenbergh B – 1000 – BRUSSELS Tel: + 32 2 230 75 14 Fax: + 32 2 320 61 68 Email: email@example.com « The voice of the European Service Industries for International Trade Negotiations in Services» Website : www.esf.be
© 2023 SlidePlayer.com Inc.
All rights reserved.