1. « The voice of the European Service Industries for International Trade Negotiations in Services » The New Economic and Free Trade Agreement between the EU and Canada “The Opportunities from a EU-Canada FTA for the EU Services Sectors” Pascal Kerneis Managing Director ESF (European Services Forum)

2. « The voice of the European Service Industries for International Trade Negotiations in Services » Content 1.The European Services Forum 2.The significance of services to the world economy and world trade 3.EU- Canada trade – Share of Services 4.What does ESF expect from the EU- Canada FTA?

3. « The voice of the European Service Industries for International Trade Negotiations in Services » ESF covers the majority of European services sectors that export or do business outside the EU: Insurance Banking Business services: IT & Computer; consulting, advertising, after-sales services Professional services: legal services, accountants, architects, engineers Construction services Distribution services 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

4. « The voice of the European Service Industries for International Trade Negotiations in Services » ESF Members include:

5. « The voice of the European Service Industries for International Trade Negotiations in Services » The Services sector generates 90% of new jobs in the EU15 Services Agriculture Industry

6. « The voice of the European Service Industries for International Trade Negotiations in Services » World Economy: Percentage of GDP by Sector, 2007

7. « The voice of the European Service Industries for International Trade Negotiations in Services » Trends in World Trade in Services

8. « The voice of the European Service Industries for International Trade Negotiations in Services » International Trade in Services 28.9% 42.2%

9. « The voice of the European Service Industries for International Trade Negotiations in Services » RankCountryTrade Volume ExportsImportsBalance 1USA266 852 139 135127 71711 417 2Switzerland105 490 61 50343 98717 516 3Japan33 183 19 37813 8055 573 6China31 535 17 76613 7693 996 4Russia31 268 19 23812 0307 208 5Norway30 920 19 00811 9127 096 7Canada21 343 11 6959 6482 047 8Singapore18 530 11 3977 1334 264 9Turkey18 517 6 61711 900-5 282 10Australia17 031 10 7476 2844 463 EU-27 International Trade in Services with non-EU Countries 2007, EUR bn

10. « The voice of the European Service Industries for International Trade Negotiations in Services » Trade between Member States exceeds Extra-EU trade Source: Eurostat TOTAL EXPORT (intra + extra: 1178.1 Bio €) € 679.6bn € 498.5bn

11. « The voice of the European Service Industries for International Trade Negotiations in Services » What does FDI include? FDI Capital Flows FDI income FDI stocks in a country at the end of the year

12. « The voice of the European Service Industries for International Trade Negotiations in Services » Services contribute to the largest share of FDI (1) 444,1 Bn € were invested in Services sectors by the EU in 4 years (63,6 % of total 697,5 Bn €) (extra EU)

13. « The voice of the European Service Industries for International Trade Negotiations in Services » Services contribute to the largest share of FDI (2)

14. « The voice of the European Service Industries for International Trade Negotiations in Services » 86% of the investment coming to the EU are done in the Services sectors;

15. « The voice of the European Service Industries for International Trade Negotiations in Services » EU-Canada Trade - Share of services (2006 - € Bn) Total Trade Volume62.2 Total Trade Vol. Ser.16.0 EU Goods Exports26.6 EU Goods Imports19.6 Balance7 EU Services Exports8.5 EU Services Imports7.5 Balance1 24% 27.7% 200520062007 Outflows11.94.9%31.19.8%42.98.9% Inflows8.06.2%10.65.3%10.32.8% EU FDI Flows 2005 -2007 with Canada If 65% outflows in services = 55,8 € Bn in 3 years If 86% inflows in services = 24.8 € Bn in 3 years

16. « The voice of the European Service Industries for International Trade Negotiations in Services » W HAT DOES ESF EXPECTS FROM THESE FTA NEGOTIATIONS (1) Removal of FDI restrictions in non sensitive sectors (energy, telecommunications, transport) Openness of the automotive insurance sector Improve access to Canada’s procurement market (beyond federal level, extension of coverage to include procurement in public services space like health, education, IT, etc.) Improvement of Mode 4 access at provincial level Singing of Mutual Recognition Agreements of diplomas and qualifications in professional services

17. « The voice of the European Service Industries for International Trade Negotiations in Services » W HAT DOES ESF EXPECTS FROM THESE FTA NEGOTIATIONS (2) GATS + DDA + NAFTA + or NAFTA Parity !? Regulatory Cooperation Dialogue Early Warning Mechanism Regulatory alert system Prior consultation with business community

18. « The voice of the European Service Industries for International Trade Negotiations in Services » W HAT DOES ESF EXPECTS FROM THESE FTA NEGOTIATIONS (3) ESF Preliminary Assessment of Canada’s Revised Offer A rather weak offer, Lack of leadership A weak offer in the GATS negotiations reflects negatively on Canada’s image as an open global trading partner. Canada’s offer remains weak in many important services sectors, like Financial Services, Distribution services, postal & courier services, etc. Lack of clear-cut new commitments The revised offer does not cover many services sectors. The EU’s requests to the Canadian negotiators - reflecting the requests of the European services industry - have been largely ignored.

19. « The voice of the European Service Industries for International Trade Negotiations in Services » W HAT DOES ESF EXPECTS FROM THESE FTA NEGOTIATIONS (4) ESF Preliminary Assessment of Canada’s Revised Offer 1.Horizontal Commitments: Good offer in Mode 4 2.Professional Services: Very little 3.Other Business Services: Disappointing offer 4.Postal and courier Services: Very little new 5.Telecommunications: Very little new 6.Construction: Acceptable offer 7.Distribution Services: Disappointing offer 8.Environmental Services: Disappointing offer 9.Financial Services: Very disappointing offer 10.Tourism and Travel-related Services: Very little 11.News Agency Services: No offer 12.Transport Services: Disappointing offer 13.Energy Related Services: No offer – Bad Offer

20. « The voice of the European Service Industries for International Trade Negotiations in Services » 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: esf@esf.be www.esf.be