1 / 18

Implemented by Enabling Environments Ltd. and Cardno

Workshop on Services Trade Negotiations Kingstown, 16-18 May 2012 Module 1: WTO and Other Services Negotiations. Implemented by Enabling Environments Ltd. and Cardno. Up Front: Ever seen anything like this before?.

lukas
Download Presentation

Implemented by Enabling Environments Ltd. and Cardno

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Workshop on Services Trade NegotiationsKingstown, 16-18 May 2012 Module 1: WTO and Other Services Negotiations Implemented by Enabling Environments Ltd. and Cardno

  2. Up Front: Ever seen anything like this before? Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

  3. Warm-Up Exercise • What are services? (What are goods?) • How do you trade services internationally? • How are different services traded differently? • Are there services that cannot be traded? • Are there services that should not be traded? Why? • How is trade in services regulated? 3

  4. What is Trade in Services? • Definition depends on the territorial presence of the supplier and the consumer at the time of the transaction. • (a) from the territory of one Member into the territory of any other Member(Mode 1 - Cross‑border trade); • (b) in the territory of one Member to the service consumer of any other Member (Mode 2 – Consumption abroad); •  (c) by a service supplier of one Member, through commercial presence, in the territory of any other Member (Mode 3 - Commercial presence); and •  (d) by a service supplier of one Member, through the presence of natural persons of a Member in the territory of any other Member (Mode 4 - Presence of natural persons). 4

  5. Negotiations on Trade in Services – What Being is Negotiated? • Market Access • Usually by sector, subsector and mode of supply (schedules) • National Treatment (Non-Discrimination) • Usually by sector, subsector and mode of supply (schedules) • Domestic regulation disciplines, including mutual recognition • General and/or sector-specific • Special case: Obligations to provide pro-competitive regulation in certain sectors, e.g. Telecommunications • Other commitments • Exemptions and Exceptions • MFN exemptions • General policy exceptions • Prudential exceptions • Security exceptions 5

  6. SVG‘s Trade Policy Interests Regarding Services? • Consider Three (not Two) Main Types of Interests • Offensive Interests • Defensive Interests • (Positive) Import Interests 6

  7. WTO Negotiations on Services Recalled: Unfinished GATS Business • Art. XIX: Progressive liberalization – “successive rounds of negotiations”, starting within 5 years  GATS 2000 • NB: Para. 2: “appropriate flexibility for developing country Members” • Art. VI: Disciplines on Domestic Regulation • Art. X: Emergency Safeguards • Art. XIII:2: Government Procurement • Art. XV: Disciplines on Subsidies 7

  8. Update: WTO Negotiations on Services: Market Access • GATS 2000/DDA negotiations ongoing since 2000 • (Revised) Requests, (Revised) Offers • Plurilateral Requests • Scheduling issues (e.g. Express Delivery Services) • 2008 “Signalling Conference” • (Official) negotiations “hostage” to progress in NAMA and AG (“single undertaking”) 8

  9. Update: WTO Negotiations on Services: Market Access (cont‘d) • 2012: Initial (but vigorous) talks about a new plurilateral International Services Agreement • Discussion on plurilateral solution had been building up over the past few years • Strong demands from business communities (esp. in OECD countries, but also elsewhere) • Group «Really Good Friends of Trade in Services» (RGF) – currently around 72% of world trade in services • Developed countries plus Chile, Costa Rica, Colombia, Korea, Mexico, Pakistan, Peru – spec.: Barbados, Malaysia, Panama, Vietnam may join • BRICS (currently) opposed 9

  10. Update: WTO Negotiations on Services: Market Access (cont‘d) • 2012: Talks about a new plurilateral International Services Agreement (cont’d) • Inside, outside or attached to the WTO? • Contours of the ISA very unclear – market access, but how much DR? • Negative list approach or agreed target objectives? • How to deal with MFN – extend or exclude? • Interesting ideas re mode 4, e.g. bonding requirement for lower-skilled service providers, generally better tailoring of mode 4 requirements • Disciplines on Government procurement, competition policy, mutual recognition, transparency, DR/regulatory coherence? 10

  11. Update: WTO Negotiations on Services: Market Access (cont‘d) • 2012: Talks about a new plurilateral International Services Agreement (cont’d) • Some «cutting edge» ambitions floating around, e.g. disciplines on • State-owned enterprises • Cross-border data flows • Forced localization • Investment protection and guarantees • Subsidies • Emergency safeguards 11

  12. Update: WTO Negotiations on Services: Domestic Regulation • Recalled: • Currently only weak DR disciplines in the GATS (Art. VI) • Built-in mandate to negotiate DR disciplines (Art. VI:4) • Pilot “Accountancy Disciplines” 1998 • Since 1999 negotiations in “Working Party on Domestic Regulation” (WPDR) • Concerns in particular • Licensing requirements • Licensing procedures • Qualification requirements • Qualification procedures • Technical standards (for services) 12

  13. Update: WTO Negotiations on Services: Domestic Regulation (ct‘d) • Major issues include, for example: • Fees (cost-based or more?) • Recognition of work experience (instead of or complementing formal qualifications?) • Transparency (prior comment?) • Necessity test (none, full, or something in the middle?) • Use of international standards (TBT/SPS as guidance?) • Consider: Interests of regulators vs. Interests of service exporters (if same country  same negotiators!) • Current status: The DR negotiations are alive (even if not exactly kickin’) • Chairman’s July 2006 “Working Paper” • The Chairman’s “Informal Note” of 23 January 2008 (a draft text) • Various renditions of Chair’s drafts • Currently thematic technical discussions on details 13

  14. Update: WTO Negotiations on Services: “GATS Rules“ • GATS: Mandated negotiations on • Subsidies • Government Procurement • Energency Safeguards • Negotiations technically ongoing, but de facto virtually no negotiations 14

  15. Update: WTO Negotiations on Services: The LDC Waiver • WTO Ministerial 2011: Waiver for services and service providers from Least-developed Countries • Authorizes (but does not require) WTO Members to grant preferences • Market Access: All preferences automatically covered • Other preferences (National Treatment, Domestic Regulation) can be authorized by the CTS • Origin: Who is an “LDC Service Provider”? (How to avoid free-riding through shell companies?) • Owned/controlled by LDC persons • Engaged in substantive business operations in any LDC 15

  16. SVG: Current WTO Commitments and Offers Made • Current Commitments (see WTO doc S/DCS/W/VCT): • Financial Services: Only Reinsurance • Health Services: Only Hospital Services • Tourism Services: Only Hotel & Resort Development • Entertainment Services • Sporting Services (apparently excl. Mode 3) • Maritime Transport (International, Passengere & Freight) • Ancillary to Transport: Transshipment Services and Free Zone Operation • In other words: Very few commitments 16

  17. SVG: Current WTO Commitments and Offers Made • 2005 SVG Initial Offer (see WTO doc TN/S/O/VCT): • Business-Related: Research & Development (engineering, tech) • Aircraft rental/leasing without operator • Courier services • Telecoms: Varous commitments and limitations (e.g. Mode 1 unbound for basic public telecoms services) • Life and Accident Insurance (Mode 3: capital reqquirements) • Hospital services: Mode 3 further liberalized/clarified • Tourism: Hotel and other lodging (mode 3 subject to Hotel Aid Act) – but «none» for NT ( subsidies!) • Entertainment and Sporting: Clarified/modified • Maritime transport and auxiliary: Clarified/modified 17

  18. Discussionrnmsts@yahoo.ca / fc185627@skynet.behannes.schloemann@wtiadvisors.com

More Related