UNCTAD 1 Negotiating Trade in Services in the Post-Doha Work Programme UNCTAD Commercial Diplomacy Programme May 2002

UNCTAD 2 THE BUILT-IN AGENDA ON SERVICES The mandate of article XIX of the GATS The GATS rules –Safeguards – Subsidies – Government Procurement

UNCTAD 3 GATS THE BEGINNING The first stage (February 2000-March 2001) –Results of the « stocktaking » More than 80 proposals The second stage (April 2001-March 2002) –“Guidelines and procedures for the negotiations on trade in services”

UNCTAD 4 GUIDELINES AND PROCEDURES Within the framework of Article IV All sectors of services are included Request and offer approach

UNCTAD 5 MAIN CHALLENGES FOR DCs Identify interests and objectives Preserve the «positive list» approach Implement the SDT

UNCTAD 6 SDT Provisions (Article IV) Strengthen domestic service capacity and efficiency Improve access to distribution channels and information networks Liberalize market access in sectors of interest However, Article IV does not specify the actions required to achieve these goals

UNCTAD 7 IMPLEMENTING THE SDT Identify and formulate sector-specific development needs in line with SDT Identify key issues to include in the negotiations. Link market access commitments to capacity-building programmes

UNCTAD 8 THE REQUEST / OFFER PROCESS Timeframe (Doha Ministerial Declaration) Submission of initial requests by 30 June 2002 Submission of initial offers by 31 March 2003 Conclusion: by 1 January 2005

UNCTAD 9 I.Evaluation of Trading Opportunities to establish: Export market value Current barriers to trade in services FORMULATING INITIAL REQUESTS

UNCTAD 10 II.Assessment of the current GATS situation: Inclusion of sectors of export interest Market Access and National Treatment Commitments MFN exemptions FORMULATING INITIAL REQUESTS

UNCTAD 11 III. Defining Negotiating Objectives Including addtional sectors/subsectors Improving Market Access and National Treatment commitments Scheduling of addtional commitments Removing MFN exemptions FORMULATING INITIAL REQUESTS

UNCTAD 12 IV. Circulation of REQUESTS No specified format, a simple letter will do. Circulated bilaterally, only to relevant trading partners Without further procedural obligations FORMULATING INITIAL REQUESTS

UNCTAD 13 FORMULATING INITIAL OFFERS Initial Offers are the “real start” of advanced bilateral negotiations. I. Should reflect Trade and Developmental Interests: Promotion of FDI Infrastructural improvements Transfer of technology Reduction/elimination of domestic supply gaps Other social/economic/ national policy objectives

UNCTAD 14 II. Base offers on an assessment of the totality of received requests Offers need not address each and every specific request Offers should address the four main request areas FORMULATING INITIAL OFFERS

UNCTAD 15 III. Preparation and Circulation of initial OFFERS Circulated multilaterally to all WTO members Presented in the form of a draft schedule of commitments Require considerable technical cooperation FORMULATING INITIAL OFFERS