Cross analysis of the Doha Development Agenda (services)

CROSS-ANALYSISDoha Development Agenda

of the

services

Services represent the fastest growing sector of the global economy

66%of global output

33%of global employment

20%of global trade

General Agreement on Trade in Services (GATS)

The main text containing general obligations

and disciplines

Annexes dealing with rules

for specific sectors

Individual countries’ specific commitments

to provide access to their markets

The coverage of GATSThe agreement covers all internationally-traded services (banking, telecommunications, tourism, professional services)

Cross-border supply1

2

3

4

Consumption abroad

Commercial presence

Presence of natural persons

It defines 4 modes of trading services:

General Obligations and Disciplinesof GATS

Most-favoured-nation (MFN) treatment

Commitments on market access and national treatment

Recognition

Transparency

Regulations

International payments and transfers

Progressive liberalization

The annexes:services are not all the same

Movement of natural persons

Financial services Telecommunications Air transport services

Summarizing the basic principles• All services are covered by GATS

• Most-favoured-nation treatment applies to all services, except the

one-off temporary exemptions

• National treatment applies in the areas where commitments are made

• Transparency in regulations, inquiry points

• Regulations have to be objective and reasonable

• International payments: normally unrestricted

• Individual countries’ commitments: negotiated and bound

• Progressive liberalization: through further negotiations

Doha’s round of negotiations• To open, improve and clarify the rules on regulations

• A la carte system

The Main concernDoes the GATS force governments to privatize and deregulate all services to allow foreign competition from transnational corporations?

No legal obligation Right to set limits, qualification requirements,

standards and introduce new regulations

Key issues in the negotiation

New export opportunities

Opportunities for individual service providers under mode 4

Similar opportunities Clear disciplines on domestic regulations

Signalling Conference• At ministerial level on 26 July 2008

• Opportunity to exchange indications on their commitments

as well as the contributions expected from others

The Negotiating method

Request-offer procedure The final offers then become legally-binding commitments

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