Islamic Development Bank Multilateral Negotiations on Trade in Services Introduction to the GATS Daniel C. Crosby - Casablanca, 15 June 2009 Budin & Associés

OUTLINE Evolution du commerce des services Les fondamentaux du commerce des services AGCS Budin & Associés 2

Services Evolution The beginning – simple « self-service » Services as « public goods » Vertical integration Fee for private services Services competition Budin & Associés 3

Uruguay Round Package of tradable interests Goods (+ beyond the border) Services IPRs Budin & Associés 4

GATS Scope General Obligations Specific Commitments Budin & Associés 5

Scope Applies generally to all measures affecting trade in services Qualified exclusion of « public services » Air transportation « hard rights » Definitions Budin & Associés 6

Modes of Supply Mode 1: sold across borders Mode 2: consumed abroad Mode 3: through foreign investment Mode 4: people move to supply service Budin & Associés 7

General Obligations Most-Favored Nation Transparency Development FTAs Domestic Regulation Budin & Associés 8

Most-Favored Nation « General obligation » applies generally Immediate and « unconditional » application Subject to conditions - Annex on MFN Exemptions Budin & Associés 9

Transparency Publication of all measures Notify to WTO Council for Trade in Services Enquiry point Budin & Associés 10

GATS & Development (a)the strengthening of their domestic services capacity and its efficiency and competitiveness, inter alia through access to technology on a commercial basis; (b)the improvement of their access to distribution channels and information networks; and (c)the liberalization of market access in sectors and modes of supply of export interest to them. Budin & Associés 11

Economic Integration Part of comprehensive economic integration Stand-alone / services-only PTA Budin & Associés 12

Domestic Regulation General obligation « where specific commitments are undertaken » « reasonable, objective and impartial manner » Budin & Associés 13

Domestic Regulation Domestic review tribunals Information requirements Budin & Associés 14

Domestic Regulation Development of additional disciplines Domestic regulatory requirements: (a)based on objective and transparent criteria, such as competence and the ability to supply the service; (b)not more burdensome than necessary to ensure the quality of the service; (c)in the case of licensing procedures, not in themselves a restriction on the supply of the service. Budin & Associés 15

Additional DR Rules Monopolies Emergency safeguards Payments & transfers BoP Government procurement Subsides Budin & Associés 16

Specific Commitments Market access National treatment Schedules of commitments Modification Budin & Associés 17

Specific Commitments Market access schedules Limitations Horizontal Sector-specific « Additional commitments » Budin & Associés 18

GATS Schedules 1. Business; 2. Communication; 3. Construction and Engineering; 4. Distribution; 5. Education; 6. Environment; 7. Financial; 8. Health; 9. Tourism and Travel; 10. Recreation, Cultural, and Sporting; 11. Transport; 12. “Other” Budin & Associés 19

GATS Annexes Annex on Article II Exemptions Annex on Movement of Natural Persons Supplying Services under the Agreement Annex on Air Transport Services Annex on Financial Services Second Annex on Financial Services Annex on Negotiations on Maritime Transport Services Annex on Telecommunications Annex on Negotiations on Basic Telecommunications Budin & Associés 20

News rules / Interpretations Dispute settlement Negotiations Built-in agenda Doha Development Round Budin & Associés 21

IsDB & Morocco MERCI THANK YOU 22