1 WTO and Road Transport – How it works – What it has achieved – What it may achieve in the future
Jan 03, 2016
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WTO and Road Transport
GATS commitments:- Guarantee the conditions of operation of foreign
services suppliers at a certain negotiated level of market access and national treatment
- Ensure that this level cannot be deteriorated- Make this level available as a minimum to all
WTO Members - Are subject to periodic negotiations with a view to
improve them
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WTO and Road Transport
“Scheduling” principles:
- Positive listing of sectors
- Negative listing of restrictions- M.A: * discriminatory and
non discriminatory measures * 6 exhaustive categories: number of
suppliers, value of transactions/assets, number of operations,number of persons, legal form,foreign capital
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WTO and Road Transport
Scheduling principles: (continued)
- NT: any discriminatory measure de facto or de jure
- The modes of delivery: cross-border, consumption abroad, commercial presence, temporary movement of natural persons
- The additional commitments
- The freedom to modulate
- The minimum MFN standard effect
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WTO and Road Transport
Sector or subsector Limitations onmarket access
Limitations onnational treatment
Additionalcommitments
11. TRANSPORTSERVICES
F. Road transportservices
b. Freighttransportation(CPC 7123)
(1)None
(2)None
(3)Maximum foreignparticipation: 40%
(4)Unbound
(1) None
(2) None
(3) None
(4) Unbound
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WTO and Road Transport
F. Road Transport Services a. Passenger transportationb. Freight transportationc. Rental of commercial vehicles with operatord. Maintenance and repair of road transport
equipmente. Supporting services for road transport services
7121+7122712371246112+8867
744
H. Services auxiliary to all modes of transport a. Cargo-handling servicesb. Storage and warehouse servicesc. Freight transport agency servicesd. Other
741742748749
742
11. Transport Services
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WTO and Road Transport
7121 Other scheduled passenger transportation(excluding railways)
7121171212712137121471219
Urban and suburban regular transportationUrban and suburban special transportationInterurban regular transportationInterurban special transportationOther scheduled passenger transportation n.e.c.
7122 Other non-scheduled passenger transportation
71221712227122371224
71229
Taxi servicesRental services of passenger cars with operatorRental services of buses and coaches withoperatorPassenger transportation by man – or animal –drawn vehiclesOther non-scheduled passenger transportationn.e.c.
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WTO and Road Transport
7123 Freight transportation
71231
7123271233712347123571236
71239
Transportation of frozen or refrigeratedgoodsTransportation of bulk liquids or gasesTransportation of containerized freightTransportation of furnitureMail transportationFreight transportation by man– oranimal– drawn vehiclesTransportation of other freight
7124 71240 Rental services of commercial freightvehicles with operator
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WTO and Road Transport
Division 74 Supporting and Auxiliary Transport Services 741 Cargo handling services
74117419
7411074190
Container handling servicesOther cargo handling services
742 Storage and warehousing services
7421
74227429
74210
7422074290
Storage services of frozen or refrigeratedgoodsBulk storage services of liquids or gasesOther storage or warehousing services
744 Supporting services for road transport
74417442
74437449
7441074420
7443074490
Bus station servicesHighway, bridge and tunnel operationservicesParking servicesOther supporting services for roadtransport
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WTO and Road Transport
The potential gains of GATS liberalization
(i.e. opening the sector to foreigners)
for the “offering” country:- More investment (secured through guaranteed conditions of access
for investors)
- State of the art technologies and management
- More competition
- Hence better services
- Lower prices for the consumer
- New opportunities in foreign markets
(Win-Win effect)
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WTO and Road Transport
– Competition for its national providers;– Disruption of the bilateral framework;– Risk of skimming off the traffic (urban
transport);– Public service considerations: network, level of
service, prices (urban transport);– Environmental considerations (road freight).
Policy choicesThe “dangers” for the offering country:
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WTO and Road Transport
Countries 11.F.a. 11.F.b. 11.F.c. 11.F.d. 11.F.e. Total MFNExemption
Albania x x x x x 5 x
Australia x x 2
Austria x 1 x
Brazil x 1 x
Bulgaria x 1 x
Canada x x x x 4
Côte d'Ivoire x x x 3
Croatia x x x x 4 x
Czech Republic x 1 x
Ecuador x x x 3
Estonia x 1 x
EuropeanCommunity
x x x x 4 x
Finland x x x x 4 x
Gambia x x x x x 5 x
Georgia x x 2 x
Guinea x x x 3 x
Guyana x x x 3 x
Honduras x 1 x
Hungary x 1 x
Iceland x x x x x 5 x
Jamaica x 1 x
Japan x x 2 x
Key:
11.F.a. Passenger Transportation
11.F.b. Freight Transportation
11.F.c. Rental of Commercial
vehicles with Operator
11.F.d. Maintenance and Repair
of Road Transport Equipment
11.F.e. Supporting Services of Road
Transport Services
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WTO and Road Transport
Countries 11.F.a. 11.F.b. 11.F.c. 11.F.d. 11.F.e. Total MFNExemption
Kenya x x x x x 5
Korea RP x 1
Kyrgyz Republic x x x x x 5
Latvia x x x x 4 x
Lesotho x x x 3
Liechtenstein x x x 3
Mexico x x 2 x
Morocco x x 2 x
Myanmar x 1
New Zealand x x x 3
Niger x 1
Norway x x x 3 x
Philippines x x x 3
Romania x x 2 x
Slovak Republic x 1 x
Slovenia x 1 x
South Africa x x x 3 x
Sweden x x x 3 x
Switzerland x x x 3 x
Thailand x x 2 x
Turkey x x 2 x
USA x x x 3 x
Total 31 32 14 28 8 113 22
(Cont’d)
Key:
11.F.a. Passenger Transportation
11.F.b. Freight Transportation
11.F.c. Rental of Commercial
vehicles with Operator
11.F.d. Maintenance and Repair of
Road Transport Equipment
11.F.e. Supporting Services of Road
Transport Services
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WTO and Road Transport
– 38 MFN Exemptions
– Among which:• 22 Countries with commitments;• 16 Countries without commitments
(Bolivia, Chile, Colombia, Costa Rica, Cyprus, Egypt, Honduras, Hungary, Jordan, Peru, Poland, Sierra Leone, Switzerland, Tunisia, Turkey & Uruguay) .
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WTO and Road Transport
What does this mean for you?
• No guarantees on market access in 100 countries;
• 44 countries have guarantees on market access but still some restrictions are posed.
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WTO and Road Transport
Main types of restrictions for passenger transport:
Economic need test (taxis, limos and bus services); citizenship requirement, natural persons only or, to the contrary; incorporation required; establishment required; numerical quotas; exclusive licences by zones and routes; authorization required and not extended to foreign-registered vehicles; residency required; requirement of establishment in the country concerned to provide cabotage services; prior approval, obligation for entities established under mode 3 to use vehicles with national registration.
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WTO and Road Transport
Main types of restrictions for freight transport:Economic need test; foreign ownership restrictions; incorporation required; nationality of the board of directors; citizenship requirement; authorization required but not extended to foreign-registered vehicles; emergency safeguards on the number of services suppliers, of services operations and of services output, and limitations on the use of leased vehicles, requirement of establishment in the country concerned to provide cabotage services, prior approval; cargoes confined to containerized cargoes to be exported or imported; and requirement on established entities to use vehicles with national registration.
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WTO and Road Transport
What about Egypt?• Unlike 50 Members Egypt has no
commitments
• Egypt also has two MFN Exemptions (one general, one sectoral)
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WTO and Road Transport
Sector or Subsector
Description of measure indicating its inconsistency
with Article II
Countries to which the measure applies Intended duration
Conditions creating the need for the exemption
ALL SECTORS Full national treatment is extended to foreign personnel of the countries indicated in column 3
Greece
Iraq
Jordan
Libya
Qatar
Sudan
United Arab Emirates
Yemen and possibly: other countries
This measure shall be maintained as long as the agreements referred to in column 2 remain in force or are exhausted
To ensure opening of the markets in the countries referred to in column 3, as the major trading partners do not accord the Egyptian nationals satisfactory opportunities.
The supply of road transport services by foreign suppliers into and across the territory of Egypt is limited to vehicles registered in the countries indicated in column 3, with which Egypt is a party in bilateral or multilateral agreements
The Arab-League countries, and possibly: other countries
This measure shall be maintained as long as the agreements referred to in column 2 remain in force or are extended
To promote intra-Arab trade and facilitate movement of Arab citizens into Egypt as stipulated in the Arab-League Agreement
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WTO and Road Transport
• Negotiations started 1 January 2000
• 80 Negotiating proposals on the table
• 2 on Road Transportation(EU, Japan)
• 2 on Related Services (Hong Kong, Switzerland)
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WTO and Road Transport
The Japanese proposal is aiming at eliminating:– Restrictions on the participation of
foreign capital;
– Restrictions on the types of legal entity;
– Numerical restrictions;
– Measures that favour the providers of road transportation services of certain Members.
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WTO and Road Transport
The EU proposal is aimed at obtaining commitments in:– International passenger and freight transport, and rental
of commercial vehicles with operator: (Mode 2 & 3);
– Maintenance and repair of road transport equipment, supporting services for transport services:
(Mode 1, 2 & 3).
However it indicates that:– “Exemptions and/or restrictions my need to be taken
into account on a case by case basis in Mode 3 for transport of passengers and freight.”
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WTO and Road Transport
The Swiss proposal deals with:
– Cargo handling services (CPC 741);
– storage and warehousing services (CPC 742);
– freight transport agency services including other auxiliary transport services (CPC 748);
– other supporting and auxiliary transport services
(CPC 749).
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WTO and Road Transport
And has identified the following obstacles:
– Conditions for licenses;
– Discriminatory security deposit requirement;
– Preferential pricing.
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WTO and Road Transport
Finally, the Hong Kong, China proposal is aimed at obtaining commitments in:
(a) Freight transportation services;
(b) cargo-handling services;
(c ) storage and warehousing services;
(d) customs clearance services;
(e) transport agency services;
(f) container station and depot services;
(g) inventory management services;
(h) order processing services;
(i) production planning services;
(j) production control services.