UNCTAD 1 CHECKLIST OF ISSUES FOR THE NEGOTIATIONS ON TRADE IN SERVICES UNCTAD, Commercial Diplomacy Programme

UNCTAD 2 THE BUILT-IN AGENDA ON SERVICES The mandate of article XIX of the GATS: « Members shall enter into successive rounds of negotiations… with a view to achieving a progressively higher level of liberalization. Such negotiations shall be directed to the reduction or elimination of the adverse effects on trade in services of measures as a means of providing effective market access… »

UNCTAD 3 THE NEGOTIATIONS STARTED IN FEBRUARY 2000 The first stage (Feb March 2001): the results of the « stocktaking »: liberalization of services must be progressive, recognition of the special attention given to LDCs and to the participation of the developing countries, negotiations under Article XIX and review of the work done within the Councils and Working Parties on GATS rules, domestic regulations, safeguards, subsidies and government procurement. The second stage (April 2001-March 2002): the main objectives given by “Guidelines and Procedures for the Negotiations on trade in Services”, SL93, 29 March The main objective is a progressive liberalization of the services sector. The “Guidelines” recognize the right of members to regulate and to introduce new regulation in this sector.

UNCTAD 4 THE GUIDELINES AND PROCEDURES FOR THE NEGOTIATIONS ON TRADE IN SERVICES (S/L/93) The negotiations must be integrated into the framework of Art. IV of the GATS and shall aim to increase the participation of developing countries. Flexibility and special attention LDCs shall be granted All sectors of services are included (no exemptions a priori) Requests and offers approach as the main method of negotiations (exchange of concessions)

UNCTAD 5 THE GUIDELINES AND PROCEDURES FOR THE NEGOTIATIONS ON TRADE IN SERVICES (S/L/93) Other methods possible: Sectoral liberalization: (eg. Maritime transport services. Proposal by Hong Kong, China, Japan, Korea, Norway adn Singapore) « Cluster » approach: (EU and Australian proposals for e-commerce and other sectors) Cluster as a group of sector or sub-sectors for which negotiators would seek for an harmonized set of commitments -Consideration for autonomous liberalization undertaken independently by Members since previous negotiations

UNCTAD 6 THE RESULTS OF THE FIRST STAGE OF THE NEGOTIATIONS: MORE THAN 80 PROPOSALS From developing countries or jointly with developed countries On all sectors of services (except health) On all modes including mode 4 (mvt. of persons) On regulatory frameworks, transparency and predictability On small and medium enterprises On the definition of criteria for the classification of services

UNCTAD 7 THE MAIN CHALLENGES FOR THE DEVELOPING COUNTRIES Identify their interests and objectives in the negotiations Formulate their own proposals, or joint other countries’proposals Preserve the « positive list » approach of the GATS which enables to select the sectors and the modes of supply to be included in the schedules of commitments.

UNCTAD 8 ANOTHER CHALLENGE: THE FORMULATION AND THE IMPLEMENTATION OF THE SDT Participation of developing countries shall be facilitated: -Strengthening of their domestic services capacity (art. IV. 1a) -Improvement of their access to distribution channels and information networks (art. IV. 1b) -Liberalization of market access in sectors and mode of supply of export interest to them (art. IV. 1c) Developed country member shall establish contact points to facilitate the access of developing countries Members’ services suppliers to information concerning : -Commercial and technical aspects of supply of services (IV.2a) -Registration, recognition and obtaining of professional qualifications (IV. 2b) -Availability of services technology (IV.2c) Particular attention to LDCs (art. IV.3)

UNCTAD 9 THE MAIN PROBLEMS FACED BY THE DEVELOPING COUNTRIES IN SERVICES ARE: To make effective the « best endeavour clause » contained in art. IV To ensure market access for their exports of services: need to identify the barriers To identify supply constraints: lack of technology, weak insfrastructure, need for investment, etc., and formulate adequate policies

UNCTAD 10 SUGGESTIONS FOR THE IMPLEMENTATION OF SDT Identify sector-specific development needs rather than generic « best endeavour clauses » Grant periods of transition in the fulfillment of certain commitments Link the market access commitments to capacity building programmes (joint ventures, foreign investments)

UNCTAD 11 PARALLEL NEGOTIATIONS TO BE TAKEN INTO ACCOUNT WHEN PREPARING A NATIONAL POSITION FOR THE NEGOTIATIONS ON SERVICES: The negotiations on GATS rules (see UNCTAD/DITC/TNCD/6 and UNCTAD/DITC ppt presentation) Possible subregional commitments or preferences on trade in services Possible inclusion of services in the post-Cotonou agreements Existing or future agreements on investments Ongoing negotiations on the implementation of the existing WTO agreements