The General Agreement on Trade in Services (GATS) - An overview: Preliminary Assessment of Services Performance in Developing Countries UNCTAD Commercial Diplomacy Programme May 2002

Objective The Guidelines for Negotiations invite WTO members to carry out an assessment of trade-in-services before negotiating; To do so both in overall terms and on a sectoral basis. This presentation will draw attention to key issues for such an assessment, with special emphasis on the challenges and concerns of developing countries and LDCs

Insights for This Assessment Were Gained From the Following UNCTAD Expert Meetings: Construction services Energy services Environmental services Health services Tourism services Air transport services

What May Developing Countries Seek from this Assessment? Draw on lessons learned in the past Establish what is relevant for the new negotiations Identify conditions to maximize benefits Formulate development objectives in the expected outcome of the negotiations Address existing development asymmetries

Some Common Issues That Emerged From Service Sectors Analysis 1.Access to technology 2.SMEs 3.Licensing 4.Anti-competitive practices 5.Movement of persons 6.Regional integration

Access to Technology Environmental, construction, energy services Government regulations Joint ventures Training of manpower Tourism Distribution Channels / Information networks Support infrastructure

Small and Medium Enterprises (SMEs) Present in all sectors Privatisation as a contributing factor Construction: size handicap Governmental support

Licensing Requirements Construction, environmental, energy Transparency in qualification requirements Multiple regulations and standards

Anti-Competitive Practices Construction Permit system Tourism CRS/GDS networks

Movement of Persons All sectors Economic needs test Accreditation and recognition of qualifications Nationality, residency requirements

Importance of Regional Integration Among Developing Countries Building global competitive strengths Better market access opportunities Harmonization of laws Regional policy on services Mutual recognition of qualifications Facilitated movement of persons

Some Sector-Specific Issues – Developing Countries Perspectives Health Tourism

Health Services Universal health care principles Forces influencing the market Emerging trade concerns

Tourism services The importance of tourism Sustainability challenges Key trade concerns

Conclusion The purpose of this presentation was to present a situation analysis of the GATS services sectors. Six cross-cutting issue were highlighted Two sectors were presented This analysis should serve as input for your pre- negotiation assessment. The next step will focus on how these topics can be reflected in the Post-Doha Work Programme.