Juin 11, 2012MJ Grand Hotel, EastLagon, Accra, Ghana

ARCHITECTURE OF SERVICESDISCIPLINES IN INTRA-REGIONALAGREEMENTS IN SUB-SAHARAN AFRICA

REGIONAL INTEGRATIONAND SERVICESSékou F. Doumbouya

Programme Officer

Foreword

• Results presented here come from ILEAP past andongoing research on▫ Trade in Services in intra-regional agreements in

SSASSA

• Analyzed agreements are: ECOWAS

UEMOA

ECCAS

EAC

COMESA

SADC

Notes

• IA: Integration Agreement

• RIA: Regional Integration Agreement

• SSA: Sub-Saharan Africa

• REC: Regional Economic Communaties

• NT: National Treatment• NT: National Treatment

• MA: Market Access

• ISP: Independant Services Providers

• CSP: Contractual Services Providers

• IW: Independant Workers

• VSE: Vendors of Services to Enterprises

• ICT: Intra-Corporate Transfer

Overview

1. Why “services” in agreements ?

2. Why the weakness of Commitments at WTO?

3. What role for Regional Integration?

4. Architectural Elements in RIA4. Architectural Elements in RIAa. Scheduling Approach

b. Investment in services

c. Movement of Natural Persons

d. Rules of Origin

e. Trade Rules

5. Conclusions

1. Why negociate for trade inservices?

• To lock in existence openning , especially on cross-borders trade and consumption abroad

• To gradually phase-out barriers, especially intransport and foreign investmentstransport and foreign investments

• To at least begin to allow and facilitate themovement of individual service providers

2. Reluctance at multilateral levelSubsectors No.of Members

(LDC)List of WTO Members (committments of Members)

20 or less 42(21) Angola, Bahreïn, Barbade, Bénin(12), Botswana, Burkina Faso(2), Cameroun, République Centrafricaine,

Tchad, Congo, République Démocratique du Congo, Costa Rica, Chypre(25), Fidji, Gabon, Guinée(9),

Guinée-Bissau(2), Guyane, Haïti, Honduras, Madagascar, Malawi, Maldives, Mali(2), Malte(12),

Mauritanie(3), Maurice, Mozambique, Myanmar, Namibie, Niger(7), Paraguay, Rwanda, Saint-Kitts-et-

Nevis, Saint-Vincent-et-les-Grenadines, Îles Salomon, Sri Lanka, Suriname, Swaziland, Tanzanie, Togo(5),

Ouganda, Zambie.

21-40 23(6) Bangladesh, Bolivie, Brunéi Darussalam, Burundi, Côte d’Ivoire(29), Djibouti, Dominique, El Salvador,

Ghana(30), Grenade, Guatemala, Kenya, Macao, Mongolie, Nigéria(32), Papouasie-Nouvelle-Guinée,

Pérou, Qatar, Sénégal(29), Sierra Léone (110), Tunisie, Uruguay, Zimbabwe.Pérou, Qatar, Sénégal(29), Sierra Léone (110), Tunisie, Uruguay, Zimbabwe.

41-60 11 Antigua-et-Barbuda, Belize, Cuba, Inde, Maroc, Antilles néerlandaises, Nicaragua, Pakistan,

Roumanie(58), Trinité-et-Tobago, EAU.

61-80 14 Brésil, Bulgarie(80), Equateur, Egypte, Hong Kong(Chine), Israël, Jamaïque, Koweït, Liechtenstein,

Panama, Pologne(61), Roumanie(58), Singapour, Venezuela.

81-100 17(1) Argentine, Cap-Vert (99), Chili, Chine, Finlande(99), République Tchèque(86), République Dominicaine,

Indonésie, Lesotho, Nouvelle Zélande, Oman, Panama, République Slovaque(94), Slovénie(84),

Suède(98), Afrique du Sud, Turquie.

101-120 24(1) Albanie, Allemagne(115), Australie, Autriche(114), Belgique(115), Bulgarie(80), Canada,

Danemark(115), Espagne(115), Estonie(103), France(115), Gambie(111), Grèce(115), Irlande(115),

Italie(115), Jordanie, Lituanie(110), Luxembourg(115), Pays-Bas(115), Philippines, Portugal(115),

Royaume-Uni(115), Suisse, Thaïlande.

121 and more 15 Colombie, Croatie, Géorgiea, Hongrie(102), Island, Japon, Korée, République kirghize, Lettonie(121),

Malaisie, Mexique, Moldavie, Norvège, USA.

2. Reluctance at multilateral level

• Weakness of SSA commitments

• No notification of SSA RIA in services at WTO

• Some concerns: frictions▫ Loss of regulatory freedom

▫ Regulatory impreparedeness

▫ Lack of Regulatory cooperation

3. What role for Integration

• Lesser friction: Fertile for regulatorycooperation▫ Lesser number of participants

▫ Lesser inequal participants

▫ Learning by experience,……▫ Learning by experience,……

• But, Architecture is important for its▫ Content of liberalization

▫ Transparency

▫ Credibility

• What we know on services architecture in SSARIA?

4. Architectural Elements

• Scheduling Approach▫ Sectoral and modal carve-outs

▫ Lists

• Main disciplines▫ National Treatment▫ National Treatment

▫ Market Access

▫ MFN Treatment

• Investment in services

• Movement of Natural Persons

• Rules of Origin and Trade Rules

Sectoral Carve-outs

Agreements Sectoral Carve-outs

ECOWAS, UEMOA, ECCAS, EAC,COMESA

No

SADC Core air transport services

Exclusions modales

Agreement Modal Carve-outs

ECOWAS, ECCAS Modes 1 et 2

UEMOA ?UEMOA ?

EAC, SADC, COMESA No

Sectors subject to trade committments

Positive List Negative List

Basic scheduling approaches

Level of Openness

Positive List

Pure positiveList

Positive/Negative List

Hybride List(GATS)

Level of Openness

Negative List

NegativeList

Scheduling Approaches

Agreement Listing of sectors Listing of level ofopenness

ECOWAS, UEMOA,ECCAS

Not applicable, thecontent is defined in the

Not applicable, thecontent is defined in theECCAS content is defined in the

agreement framework.content is defined in theagreement framework.

EAC, COMESA, SADC Positive Hybride

National Treatment

Agreement Standard of likeness Standard oftreatment

ECOWAS, UEMOA,ECCAS

Referring to serviceproviders

identicalECCAS providers

EAC, COMESA, SADC Referring to services andservice providers(services chapters) andLike circonstances(investments chapters)

No less favorable

Limitations on NT

Agreement Limitations to full NT

ECOWAS (Article4.2 of Protocol onestablishment)

However, if for a given activity, a Member State is notable to provide such treatment, it shall disclose in writing........

UEMOA (article 94) .... The Member States may maintain restrictions on theexercise by citizens of other member states or byexercise by citizens of other member states or bycompanies controlled by them, certain activities whenthese restrictions are justified for reasons ..................... of... General interest.

ECCAS (article 4.6.aof annex VII)

For the application of national treatment will be studiedin priority to activities where freedom of establishmentwill be a particularly valuable contribution to thedevelopment of production and trade.

Market Access

• Non-discriminatory Quantitative Restrictions▫ No disciplines in ECOWAS, UEMOA and ECCAS

• Reproduction of GATS disciplines• Reproduction of GATS disciplines▫ EAC, COMESA, SADC

NPF Treatment

• Intra-regional and Extraregional▫ No disciplines in ECOWAS, UEMOA and ECCAS

• Reproduction of GATS disciplines• Reproduction of GATS disciplines▫ EAC, COMESA, SADC

Treatment of Investment inservicesAgreement Definition of

commercialpresence

Standard ofinvestment inthe Right ofEstablishmentdisciplines

Standard ofInvestment onhorizontalInvestmentdisciplines

ECOWAS, ___ Access and FDI and assetsECOWAS,UEMOA,ECCAS

___ Access andExercice of self-employmentactivities,Constitution andManagement

FDI and assetsauthorized (titreIV of protocol onestablishment)

Treatment of Investment inservicesAgreement Definition of

commercialpresence

Standard ofinvestment inthe Right ofEstablishmentdisciplines

Standard ofInvestment onhorizontalInvestmentdisciplines

EAC GATS Access andExercice of self-

FDI, portfolioinvestment and variousExercice of self-

employmentactivities

investment and variousforms of tangible andintangible property

COMESA,SADC

GATS --- FDI, portfolioinvestment and variousforms of tangible andintangible property

Treatment of Investment inservices

• Dual Coverage in some agreements▫ Complementarities

▫ Overlapping▫ Overlapping

• Need to define relation between servicesdisciplines and establishment/investmentdisciplines

Movement of Natural persons

Agreement Mode 4Definition

Separate chapter or agreementrelated to movements of naturalpersons

ECOWAS No Additional Protocols on FreeECOWAS No Additional Protocols on FreeMovement of Persons, Right ofResidence and Establishment

UEMOA ? Freedom of movement and residence(Article 91 of theTreaty)

ECCAS Rien Movement of persons (Article 3 ofannexe 7 of the Treaty)

Movement of Natural persons

Agreement Mode 4Definition

Separate chapter or agreementrelated to movements of naturalpersons

EAC GATS Free movement of persons and LabourEAC GATS Free movement of persons and Labour(Part D), Right of Residence andEstablishment (Part E) of the commonmarket protocol for EAC

COMESA GATS Protocol on the movement of persons,labor, services, right of establishmentand residence of COMESA

SADC GATS ?

Treatment of movement of naturalpersons

• Dual coverage in some agreements (eg: EAC)▫ Complementarities

▫ Overlapping▫ Overlapping

• Need to define relationship between servicesdisciplines and horizontal movement of naturalpersons disciplines

ECOWAS: Categories of Nat.Pers.Catgories ofpersons

Trade benefits bounded Eg. Link with GATSMode 4

IntinerantWorkers

Entry without visa, circulation,stay period 90 days, renewable,NT and MA in all sectors exceptreserves

ISP, CSP, VSE

Seasonnal Entry without visa, circulation, IW (services related toSeasonnalWorkers

Entry without visa, circulation,residency with permit, NT andMA in all sectors except reserves

IW (services related toagriculture), ICT

Border AreaWorkers

Entry without visa, circulation,NT and MA on all sectors exceptreserves

Foreign Workers toForeign enterprises ofservices

Migrant Workers Access to Labour Market, right ofstay (contract duration), NT andMA on all sectors except reserves

Foreign Workers toForeign enterprises ofservices

ECCAS: Categories of Nat.Pers.Catgories ofpersons

Trade benefits bounded Eg. Link with GATSMode 4

Business Persons Entry, circulation, NT in allsectors, except reserves

Visiting BusinessPersons

IndependantProfessionals

Entry, circulation, establishment,TN dans tous les secteurs saufréserves

No link, but relevant toGATS Mode 3

Workers Access to Labour Market, right ofstay (contract duration), NT in allsectors, except reserves

Foreign Workers toForeign enterprises ofservices

COMESA: Categories of Natural Persons

IndependantProfessionals

ContractualServicesSuppliers

Business Visitors

Service sellersService sellers

Persons responsible for setting up acommercial presence

Intra-corporate transferees

Managers Specialist

Movement of natural persons andprofessional recognitionAgreements Provisions

ECOWAS To facilitate access to non-salaried activities and the exercise ofsuch activities, the Commission shall recommend to theCouncil, which shall propose to the Authority that decisions betaken for the mutual recognition at Community level ofdiplomas, certificates and other qualifications.(Article 4.5 of thediplomas, certificates and other qualifications.(Article 4.5 of theProtocol on the right of establishment).

ECCAS Member States undertake to facilitate access to self-employment and their free exercise by a recognition of certainprofessions (Article 2.4.c of Annex 7)

EAC Annexes to the common market protocol will be negotiated forthe implementation of the recognition (Article 11 of Protocol).

Movement of natural persons andprofessional recognition ssanceAgreement Provisions

COMEA Member States shall encourage the relevant professional bodiesand Qualification Authorities or regulators in their respectiveterritories to jointly develop and provide recommendations onmutual recognition for the purpose of the fulfilment in whole orin part by service suppliers of the criteria applied by each bodyin part by service suppliers of the criteria applied by each bodyfor the authorization, licensing, operation, and certification ofservice suppliers and in particular professional services.

SADC The Parties undertake to establish within two years thenecessary steps in the negotiation of mutual recognitionagreements (Article 7 of the Protocol on services)

Rules of Origin: Services

Agreement Definition of« service supply byanother party » inmode 1 and 2

Denial of Benefits inmode 1 and 2

CEDEAO, UEMOA,CEEAC

No definition of mode 1and 2

NothingCEEAC and 2

EAC, COMESA, SADC Definition of mode 1 and2

Nothing

Rules of origin: Judicial PersonsAccord Benefits of the Agreement

…extended tojudicial personsconstitued underdomestic law ofthat member andhaving :

…extended to judicial personshaving:

ECOWAS (article3 of protocol onestablishment),COMESA (article2.s)

A real and continuouslink with thatmember

their registered office, centraladministration or principal place ofbusiness in the territory of any othermember of the Agreement

UEMOA (article92 of revisedTreaty)

their registered office,centraladministration orprincipal place

their registered office, centraladministration or principal place ofbusiness in the territory of any othermember of the Agreement

Rules of origin: Judicial Persons

• ECCAS (Article 1.f of annex)▫ 30% of the share capital must be held by citizens

or public agencies of this member

• EAC (Article 1)▫ The benefits are extended to judicial of each

member

▫ Each member defines its judicial person

• SADC (Articles 1 and22)▫ Reproduction of GATS rule

Rules of Origin: Natural Persons

• ECOWAS, UEMOA, ECCAS, COMESA:▫ Benefits limited to domestic national (or citizens)

• SADC• SADC▫ Benefits limited to domestic national (or citizens)

▫ Extended to permanent residents

Trade Rules

• Domestic Regulation▫ Transparency

▫ Necessity Tes

▫ Sectoral disciplines▫ Sectoral disciplines

• Government Procurement

• Subsidies

• Safeguards

Transparency (1)

Features EAC COMESA SADC

Publication of lawsand regulations

__ Yes Yes

Notification -Notification of allmeasures of generalapplication affectingTIS at entry into forceof CMP- Prompt notification

Notification to Secretary General Prompt notification toTNF of measuressignificantly affecting Tisin covered commitments

- Prompt notificationof new measures

Enquiry Points

Non, mais obligationde répondre à toutedemande par un autreMembre concernantles informationsspécifiques sur l’unede ses mesuresd’application générale.

-Information to services suppliers.

Detailed list of obligations, including to:- (1) provide preliminary information on

laws and regulations;- (2)how to access public registers,- (3) contact details of other authorities,

and associations and organizations,- (4) means of redress in case of dispute- (5) Completion of formalities through

electronic means at enquiry points (Art33:1 –endeavor clause)

- Information aux EtatsMembres seulement,

- Infos limitées à ce quidoit être rendudisponible

Prior Comment __ (best endeavour)

Transparency (2)

Features EAC COMESA SADC

AdditionalCommitments

Yes Mentioned but notdefined in services

regulations…but definedin Guidelines

No

Reasonable, objectiveand Impartial

Yes Yes Yesand Impartialapplication of laws andregulations

Révision judicaire No Yes Yes

Développement desdisciplines

No Yes Yes

Information sur lesdécisions et sur le statutdes demandes

No Oui No

Necessity Test

• Recall: Necessity Test (GATS article VI.5(a):▫ Weak Test as concerns only licencing and

qualification and technical standards

• COMESA has reproduced GATS necessity Test

• No test in other agreements

Trade Rules

Agreement GovernmentProcurement

Subsidies Safeguards

CEDEAO,UEMOA, CEEAC,

No No NoUEMOA, CEEAC,EAC, COMESA

SADC No Mandate (Article 11) No

Sectoral Disciplines

• Sectoral disciplines can better account for theregulatory environment in which specificservices are provided

• Particulary progress in telecommunications▫ Cf. ECOWAS Additional act on Telecom

5. Conclusions

• Differences between REC scheduling approachees▫ What impact for Integration at continental level?

• Dual coverage of Investment and movement ofnatural persons▫ Best practce (complementarities) but need to resolve▫ Best practce (complementarities) but need to resolve

Overlapping

• How to move forward in mutual recognition in eachREC

• Few experience with GATS plus and AGCS-Xdisciplines▫ What implication for the EPA?

ENDEND

s.doumbouya@ileap-jeicp.orgwww.ileap-jeicp.org