cross analysis of the doha development agenda (services)
TRANSCRIPT
Services represent the fastest growing sector of the global economy
66%of global output
33%of global employment
20%of global trade
General Agreement on Trade in Services (GATS)
The main text containing general obligations
and disciplines
Annexes dealing with rules
for specific sectors
Individual countries’ specific commitments
to provide access to their markets
The coverage of GATSThe agreement covers all internationally-traded services (banking, telecommunications, tourism, professional services)
Cross-border supply1
2
3
4
Consumption abroad
Commercial presence
Presence of natural persons
It defines 4 modes of trading services:
General Obligations and Disciplinesof GATS
Most-favoured-nation (MFN) treatment
Commitments on market access and national treatment
Recognition
Transparency
Regulations
International payments and transfers
Progressive liberalization
The annexes:services are not all the same
Movement of natural persons
Financial services Telecommunications Air transport services
Summarizing the basic principles• All services are covered by GATS
• Most-favoured-nation treatment applies to all services, except the
one-off temporary exemptions
• National treatment applies in the areas where commitments are made
• Transparency in regulations, inquiry points
• Regulations have to be objective and reasonable
• International payments: normally unrestricted
• Individual countries’ commitments: negotiated and bound
• Progressive liberalization: through further negotiations
Doha’s round of negotiations• To open, improve and clarify the rules on regulations
• A la carte system
The Main concernDoes the GATS force governments to privatize and deregulate all services to allow foreign competition from transnational corporations?
No legal obligation Right to set limits, qualification requirements,
standards and introduce new regulations
Key issues in the negotiation
New export opportunities
Opportunities for individual service providers under mode 4
Similar opportunities Clear disciplines on domestic regulations
Signalling Conference• At ministerial level on 26 July 2008
• Opportunity to exchange indications on their commitments
as well as the contributions expected from others
The Negotiating method
Request-offer procedure The final offers then become legally-binding commitments