The Request-Offer process in SADC

1. The Request-Offer process in SADC SADC Workshop on Trade in Services The Hyatt, 12-13 June 2012 Markus Jelitto mjelitto@sadc.int

2. Basic Options For Negotiating Liberalization in Services • Bilateral (Request & Offer) • Plurilateral(Reference Papers, Understandings, Model Schedules) • Multilateral ( Formula approaches (?)) • SADC Guidelines foresee only request-offer process

3. Main principles • Request exchanged before offers • Requests to one or more trading partner • To be circulated through the SADC Secretariat • Full Transparency: all requests shared with all trading partners

4. The Request/Offer Process: Mechanics Step 1: Formulate requests Useful Groundwork: • Set up domestic consultative process • Include all stakeholders – suppliers and consumers • Public: All relevant government ministries & agencies, including investment and export promotion agencies • Private sector companies - including SME’s and reps of major user companies or industries, Chambers of commerce, trade associations, consumer groups Maintain throughout the negotiations... and beyond!

5. The Request/Offer Process: Mechanics Step 1: Formulate requests 2. Evaluate trading opportunities in the relevant sectors • Potential to expand services trade in: • what sectors? what modes? What markets? • Identify barriers to your trade in these markets? • Do the barriers fall under relevant scheduling provisions?

6. The Request/Offer Process: Mechanics Step 1: Formulate requests 3. Examine current market situation • Are sectors of interest listed in commitments? • What is the Level of Commitments? • Have relevant Modes been bound? • Are they subject to quotas or equity restrictions? Etc • Are there departures from National Treatment? • Are certain regulatory measures of concern? • Are there MFN exemptions that affect your interests?

7. The Request/Offer Process: Mechanics Step 1: Formulate requests 4. Strategic Considerations • Evaluate requests according to 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?

8. The Request/Offer Process: Mechanics Step 2: Formulate offers 1 Assess the REQUESTS received 2 Evaluate trade & development interests • Promotion of FDI? • Improvements in business and/or social infrastructures? • Promotion of technology transfer? • Reduction/elimination of domestic supply gaps? • Other social/economic/regional policy objectives?

9. 3. Use a consultative process Include all stakeholders – suppliers and consumers • Public: All relevant government ministries & agencies, including investment and export promotion agencies • Private sector companies - including SME’s and reps of major user companies or industries, Chambers of commerce, trade associations, consumer groups Maintain throughout the negotiations... and beyond

10. 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

11. 4 Circulate the OFFERS • Offers are made to all SADC MS (through SADC Secretariat) • Submit further revisions as often as necessary or desirable, throughout the negotiations • No offer is “final” until the end of the negotiations