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The SADC Trade in Services Agenda – Overview and State of Play

The SADC Trade in Services Agenda – Overview and State of Play. Services Sector in SADC Economies (% of GDP, 2007). Source: WDI, World Bank; Eurostat. WTO GATS Commitments of SADC Member States. SADC Member States. Botswana’s commitments by sector*.

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The SADC Trade in Services Agenda – Overview and State of Play

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  1. The SADC Trade in Services Agenda – Overview and State of Play

  2. Services Sector in SADC Economies (% of GDP, 2007) Source: WDI, World Bank; Eurostat

  3. WTO GATS Commitments of SADC Member States

  4. SADC Member States

  5. Botswana’s commitments by sector* *Denotes incidence of commitments, by sub-sector, without assessment of depth/quality

  6. Liberalization of Trade in Services in SADC • Work on Trade in Services started in 2000 with the development of a framework agreement (initially foreseen as an Annex to the Trade Protocol) • The “Protocol on Trade in Services” was adopted by Ministers of Trade in July 2009 • Protocol to be approved by the Summit on the recommendation of the Council-> August 2012 • Note: Several other SADC Protocols address issues related to trade in Services • Finance and Investment (M3) • Draft Protocol on Movement of Persons (M4) • Sector-specific Protocols (e.g. covering transport, Communications, finance etc.)

  7. SADC - First Round of negotiations 1. Objective for first round of negotiations: • Each Member State will provide better treatment to SADC MS in each priority sector than is provided in their GATS schedule • No new restrictions to be introduced during the negotiations (“standstill”) • Plus: GATS Article V • Substantial sectoral coverage (~ 6 sectors) • And elimination of substantially all discrimination (~better than GATS commitments sufficient(?))

  8. Timelines for first round of Negotiations First phase: requests and offers Sector focus in the first phase: Communication Services Financial Services Transport Services Tourism Services Beginning of Negotiations Requests in at least 2 sectors Requests in at least 2 sectors Offers in at least 2 sectors Offers in at least 2 sectors end November 2012 end March 2013 end June 2013 end August 2012 April 2012

  9. Timelines for first round of negotiations (ctd) -> Thereafter: Energy-related and Construction Services Requests: end August 2013 Offers: End November 2013 Additional Elements: • Sector Studies (market analysis in all MS) • Sector Fora (bringing regional stakeholders together) • Transport ~ 11-12 September 2012 • Communication ~ October 2012

  10. 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

  11. 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?

  12. 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?

  13. 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.

  14. 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?

  15. 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

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