6 July 2000 UIT Caribbean Seminar. José Monedero 1 J.Monedero Caribbean Seminar on Regulatory and Cost Issues Jamaica 6 July 2000 •The GATS and their impact on the Trade of International Telecommunications Services •Impact of the Reference Paper in the National Regulatory Authority Policies
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6 July 2000 UIT Caribbean Seminar. José Monedero
1
J.Monedero
Caribbean Seminar on Regulatory and Cost IssuesJamaica 6 July 2000
•The GATS and their impact on the Trade of International Telecommunications Services•Impact of the Reference Paper in the National Regulatory Authority Policies
6 July 2000 UIT Caribbean Seminar. José Monedero
2
1865. Bilateral model
1948. GATT system
1986. Uruguay Round
1997. Multilateral modelWTO Basic Telecom.
agreement
GATS impact on theTrade of International Telecommunication
Services
Change ofparadigme
6 July 2000 UIT Caribbean Seminar. José Monedero
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GATS background
The GATS
1997 WTO agreements
GATS impact on the Trade of International Telecommunication Services
6 July 2000 UIT Caribbean Seminar. José Monedero
4
GATS background
The GATS
1997 WTO agreements
GATS impact on the Trade of International Telecommunication Services
6 July 2000 UIT Caribbean Seminar. José Monedero
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1948-1995 GATT the onlymultilateral tool devoted to the international trade
1950, USA refuses ITO ratification
1948 "provisional" GATT23 ITO countries look for improving
taxes enviroment
International Trade Organization(ITO)( 50 countries)
Bretton Woods Institutions* World Bank* International Monetary Fund
United Nations: To create multilateralinstitutions so as to improve the economic cooperation
End of WW2
The trade multilateral system
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Bilateral agreementson market share
Subsidies
Decreasing GATT credibility
Governments to create newways to protect
sector in competition
GATT sucess onTaxes decreasing
70s- 80s Economic Recession
Decreasing GATT credibility
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Date Matters Countries
1947-Ginebra Taxes 23
1949 Annecy Taxes 13
1951 Torquay Taxes 38
1960/1 Ronda Dijon Taxes 26
1964/7 Ronda Kennedy Taxes Antidumping 62
1973/9 Ronda Tokio Taxes and others 102
11986/93 Ronda Uruguay Taxes, services … 123
GATT Rounds
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MARRAKESH AGREEMENT(15/4/94)
GATT 1994 WIPOWTO GATS
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WTO structure
Body forTrade Policies
Council forTrade goods
Group for BasicTelecommunications
Group for Maritime Transport
Group for Financial Services
Group for Professional Services
Group for GATS Standards
Specific Commitments Group
Council forTrade
of services
Intelectual Propierty Rrights Council
General CouncilDispute Settlement
Body
Ministerial Conference
6 July 2000 UIT Caribbean Seminar. José Monedero
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GATS background
The GATS
1997 WTO agreements
GATS impact on the Trade of International Telecommunication Services
6 July 2000 UIT Caribbean Seminar. José Monedero
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FrameArticles
Annexes 125 Schedulesof commitements
GATSStructure
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GATS Framework (1)
Part I
Scope andDefinitionPart II
General Obligations andDiciplines
Part III
SpecificsCommitments
Measures by MembersModes of supplyMeasures by MembersModes of supply
Negotiations of Specific CommitmentsShedules of Specific Commitements Modification of Schedulles
ConsultationDispute SettlementCTSTechnical CooperationRelationship with other Intern. Org.
Denial of BenefitsDefinitions Annexes
Denial of BenefitsDefinitions Annexes
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Articles.Part IScope and definition
This Agreement applies to measures by Members affectingtrade in servicies defined in four modes:This Agreement applies to measures by Members affectingtrade in servicies defined in four modes:
Cross borderCross border
Consumption abroad
Commercial presence
Presence of natural persons
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Mode of supply 1
country A
country B
Modo de suministro 1
país A
país B
Operador B
Operador A
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Mode of supply 2
country A
country B
OperatorB
OperatorA
Mode 2
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Presence ofserviceProvider (SP)
Modes Other criteria
The SP is not interritory of theMember
Mode 1Crossborder
Mode 2Consumptionabroad
Service provided in otherMember territory
Service consumed out theterritory of the Member
The SP is in theterritory of theMember
Mode 3Commercialpresence
Mode 4Presence ofnatural persons
Service provided in theterritory of the Member
Service provided in theterritory of the Member
Modes of supply
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•Two kind of obligations•Applying generally to all services, whether or notscheduled •Applicable only to services in schedues
•Excepciones•Economic integration, labour markets integration, restrictions to safeguard the balance of payments, general exceptions and secutity exceptions
Articles. Part IIGeneral obligations and disciplines
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•Obligations•Most-Favored-Nation Treatment (MFN)•Transparency•Domestic Regulation•Reconition•Monopolies•Business practics•Payments and transfers•Access to and use of public telecommunicationtransport networks and services(Annex on telecommunications )
Articles. Part IIGeneral obligations and disciplines
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Relations between the General Obligations& Schedulled Commitments
•Certain measures covered by the general obligations and disciplines of the GATS may belong in schedules and others do not
•The obligations covering measures that should not be listed in schedulles cannot be compromised or evaded by entries in the schedulles
Articles. Part IIGeneral obligations and disciplines
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•Market Access (art. XVI)
Articles. Part IIISpecific commitments
•National Treatment (art. XVII)
•Aditional Commitments (art. XVIII)
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AnnexAnnex on Telecommunications
•Elaborates on and clarifies provisions for telecommunications•Elaborates on and clarifies provisions for telecommunications
•Guarantees that any service supplier of any Member will have access to and use of public telecommunications transport networks and services on reasonable and non-discriminatory terms and conditions for the supply of any service inscribed in the Member´s schedule
•Guarantees that any service supplier of any Member will have access to and use of public telecommunications transport networks and services on reasonable and non-discriminatory terms and conditions for the supply of any service inscribed in the Member´s schedule
•TV , radio broadcast and cable distribution are out of thescope of the Annex
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Schedul of specific commitments
Horizontal applying to all sectorse.g. limitation onmovement of naturalpersons;limitations on foreigninvestment, etc.
Sector Specific applying only toscheduled sector orsub-sector
Horizontal vs. Sector specific commitments
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Schedul of specific commitments
Sector ofSubsector
Limitations onmarket access
Limitations onnational treatment
AdditionalCommitments
2. Communicationsservices
Telecommunications
- Electronic mail- Voice mail- On-line information and data base retrieval- Electronic data interchange- Code and protocol conversion
1) None2) None3) None4) Unbound except asindicated In thehorizontal section
1) None2) None3) None4) Unbound exceptas indicated in thehorizontal section
Modes of supply: 1) Cross border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
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Sector orsubsector
Limitations onmarket access
Limitations onnational treatment
Additionalcommitments
Modes of supply:1) Cross border supply 2) Consumption abroad3) Comercial presence 4) Presence of natural persons
Schedul of specific commitments
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Sector orsubsector
Limitationson marketaccess
Limitations onnational treatment Additional
commitments
Modes of supply:1) Cross border supply 2) Consumption abroad3) Comercial presence 4) Presence of natural persons
•Means of supply•on a resale basis•facilities-based
•Types of users•for public use, non public use
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Sector orsubsector
Limits on the number of suppliers
Limits on the participation offoreign capital
Limits of legal entities
Limits on the value of assetsLimits on tha total number of employees
Limit to the total nunmber of operations
...
Schedul of specific commitments
Modes of supply:1) Cross border supply 2) Consumption abroad3) Comercial presence 4) Presence of natural persons
Limitationson marketaccess
Limitations onnational treatment
Additionalcommitments
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Sector orsubsector
Schedul of specific commitments
Modes of supply:1) Cross border supply 2) Consumption abroad3) Comercial presence 4) Presence of natural persons
Limitationson marketaccess
Limitations onnational treatment
Additionalcommitments
Each Member shall accord to services and service providers of any other Member treatment no lessfavourable than that it accords to its own like services and services suppliers
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Limitations to Market AccessLimitations to Market Accessand to National Treatmentand to National Treatment
Measures inconsistent with both market accessand national treatment should be inscribed
in market access column
Schedul of specificcommitments
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Sector orsubsector
Schedul of specific commitments
Modes of supply:1) Cross border supply 2) Consumption abroad3) Comercial presence 4) Presence of natural persons
Limitationson marketaccess
Limitations onnational treatment
Additionalcommitments
Commitments not subject to scheduling under market access, national treatment, or subject to art. VI, such as those related to qualifications, standars, licencing
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GATS background
The GATS
1997 WTO agreements
GATS impact on the Trade of International Telecommunication Services
6 July 2000 UIT Caribbean Seminar. José Monedero
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What ?
Who ?
How ?
Why ?
WTObasic questions
on telecoms negotiations
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Key aspects ofcommitments
Foreign ownershiprestrictions
Subsector protection International
servicesRegulatory
commitments
Phased-inliberalization
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Annexart.II exemptions
liberaliz.basic.telecom.final report on 30 April 1996Extension of the negotiation
NGTB
Decisionon negotiationson Basic Telecom.
Decision of MinisterialConference (diciembre 1993)