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Overview of Lesotho’s and its Trading Partners’ Services Liberalization Commitments National Seminar on Trade in Services Negotiations under SADC and SADC EPA Maseru Sun, 2-4 July 2012 firstname.lastname@example.org
Distribution of by services sectors *Red bars denote SADC priority sectors
Lesotho’s commitments by sector* *Denotes incidence of commitments, by sub-sector, without assessment of depth/quality
An even closer look (1) 1. Communication Services • Full commitment on courier services • M1 & 3 commitments on value-added telecom services • No commitment on basic telecom services • M1 commitments on audiovisual services 2. Construction Services • M 2& 3 commitments on all categories, except • Pre-erection work at construction sites (511) • Special trade construction work • Renting services of equipment with operator
An even closer look (2) 3. Financial Services • M2 &3 commitments on all insurance services except auxiliary services (broking and agency services) • M3 commitments in banking services except • Financial Leasing • Participation in issues of securities • Settlement and clearing services for financial assets • Advisory and auxiliary services • Provision and transfer of financial information 4. Tourism and travel-related services • M 2&3 commitments on Tour Guide Services • No commitments on Hotels and Restaurants (exc. M2), and Travel Agencies and Tour Operator Services
An even closer look (3) 5. Transport Services • M3 commitments in Road freight and passenger, and maintenance and repair of equipment • No commitments on • Maritime, Internal Waterways, Air, Space, Pipeline, auxiliary services 6. Energy-related services • No distinct classification category in WTO • Commitments in the following “energy-related services: • Engineering and integrated engineering • Management consulting and related services • Technical Testing • Construction for civil engineering • Wholesale trade services of solid, liquid and gaseous fuels • Retailing services of fuel oil, bottled gas, coal, and woods • No commitments in: • Services incidental to mining (883 & 5115) • Engineering-related scientific and technical consulting services
Overall assessment • Few priority sectors in which new commitments can be made • Basic Telecom • Some Financial Services • Tourism (Hotels, tour operators) • Auxiliary transport services • Services Incidental to Mining • …but some potential for improving existing commitments • M3 audiovisual services • M1 road transport services • M1 Insurance • M1/2 Banking Services M4: Commitment to allow “4 expat senior executives and specialized skill personnel” Room for improvement?
Economic partnership with the EU in services and investment • EU likely to bring commitments in some 90% of services sectors to the table (based on Cariforum outcome) • Commitments comprise 27 EU Member States • Usability of commitments needs to be evaluated closely against Lesotho’s trade potential
Economic partnership with the EU in services • EU proposes chapters on best practice regulation in certain sectors (telecom, financial services, computer services, postal and courier, maritime transport) • Commitments comprise 27 EU Member States • Usability of commitments needs to be evaluated closely against Lesotho’s trade potential
Negotiations under SADC –main principles • Conducted through request - offer method • Requests exchanged before offers • Requests to one or more trading partner • To be circulated through the SADC Secretariat • Full transparency: requests to any trading partner shared with all trading partners
Making requests to trading partners 1. Evaluate trading opportunities in the relevant sectors • Where are you trading already now? • what sectors? what markets? What modes? • Potential to expand services trade ? • what sectors? what markets? What modes?
Making requests to trading partners 2. Examine current market situation • Are the sectors of interest listed in commitments of trading partners? • What is the level of commitments? • Have relevant Modes been bound? • Are they subject to quotas or equity restrictions? Etc. • Are your suppliers facing discrimination? • Are certain regulatory measures of concern? • Are there MFN exemptions that affect your interests?
Making requests to trading partners 3. Strategic Considerations • Evaluate the requests in accordance with their economic, and strategic importance • Requests also to non-key markets? • Horizontal requests? ->covering all sectors, MS, equally • Compare the value of your requests with the value of your offers – are they roughly commensurate? • …take into account current level of openness, LDC status etc.
Formulating offers 1 Assess the REQUESTS received 2 Evaluate trade & development interests • Promotion of FDI? • Improvements in business and/or social infrastructures? • Promotion of knowledge transfer? • Reduction/elimination of domestic supply gaps? • Other social/economic/regional policy objectives?
3 Draft proposed offer Consult with relevant ministries & stakeholders • Use existing schedule/or list of MFN exemptions as a basis, then clearly mark changes (use agreed editorial conventions) • Consider technical corrections and clarifications • Consult SADC Secretariat for advice if needed
Summary: What do you want? Underpin national development objectives Strategic drivers Trade offs
Thankyouverymuch for your attention Question? Comments?