DDA:GATS Where do we stand?

INTRODUCTION Growing importance of services sector in the economies of developing countries. Growing importance of services sector in the economies of developing countries. Technological innovation making services increasingly tradable. Technological innovation making services increasingly tradable. Technical complexity of GATS scheduling commitments. Technical complexity of GATS scheduling commitments. Binding or irrevocable nature of GATS commitments. Binding or irrevocable nature of GATS commitments. Need for careful assessment of the losses and gains. Assessment of trade in services is mandated under Article XIX of GATS. Need for careful assessment of the losses and gains. Assessment of trade in services is mandated under Article XIX of GATS. Dangers of premature liberalisation. Dangers of premature liberalisation. Incorporation of the principle of Special and Differential Treatment. Incorporation of the principle of Special and Differential Treatment.

CHARACTERISTICS OF DEVELOPING COUNTRIES SERVICES SECTOR Lack of reliable and up-to-date statistics on trade in services. Lack of reliable and up-to-date statistics on trade in services. Absence or weak regulatory framework. Absence or weak regulatory framework. Services industry generally at infancy stage. Services industry generally at infancy stage. Proper study/evaluation of the services sector yet to be undertaken. Proper study/evaluation of the services sector yet to be undertaken. Services trade as one of the instruments for achieving public policy objectives e.g. economic empowerment. Services trade as one of the instruments for achieving public policy objectives e.g. economic empowerment. Dilemma that Governments are providers and regulators of services trade. Dilemma that Governments are providers and regulators of services trade.

SECTORS IDENTIFIED BY UNCTAD AS HAVING POTENTIAL FOR GROWTH Tourism Tourism Construction Services Construction Services Environmental Services Environmental Services Health Services Health Services

PROBLEMS FACED BY DEVELOPING COUNTRIES IN GATS NEGOTIATIONS Weak negotiating capacity. Weak negotiating capacity. Lack of expertise in preparing scheduling commitments. Lack of expertise in preparing scheduling commitments. Supply side constraints. Supply side constraints. Failure by major trading partners to grant requests on modes and sectors of export interest to developing countries e.g. Mode 4. Failure by major trading partners to grant requests on modes and sectors of export interest to developing countries e.g. Mode 4. Lack of clarity on whether there is much to gain from further liberalisation. Lack of clarity on whether there is much to gain from further liberalisation. Pressure to liberalise. Pressure to liberalise.

CONCLUSION AND WAY FORWARD Ensure the negotiations take into account the special needs, priorities and circumstances of each country. Ensure the negotiations take into account the special needs, priorities and circumstances of each country. Assess the costs and benefits of GATS liberalisation and ensure disciplines on Special and Differential Treatment, and disciplines on Emergency Safeguard Mechanisms (ESM), Domestic Regulation and Subsidies. Assess the costs and benefits of GATS liberalisation and ensure disciplines on Special and Differential Treatment, and disciplines on Emergency Safeguard Mechanisms (ESM), Domestic Regulation and Subsidies.

CONCLUSION AND WAY FORWARD (cont) Open fewer sectors, liberalise fewer types of transactions, progressively extend market access and attach conditions and limitations to market access commitments. Open fewer sectors, liberalise fewer types of transactions, progressively extend market access and attach conditions and limitations to market access commitments. Push for substantive offers (with commercial value) from the major trading partners, particularly with respect to Mode 4. Push for substantive offers (with commercial value) from the major trading partners, particularly with respect to Mode 4.

CONCLUSION AND WAY FORWARD (cont) Avoid compromising autonomous liberalisation over GATS liberalisation. Avoid compromising autonomous liberalisation over GATS liberalisation. Take measures to build domestic capacity and to ensure that GATS is pro-development. Take measures to build domestic capacity and to ensure that GATS is pro-development. Take full advantage of existing regional trade arrangements; with particular reference to mechanisms for facilitating Mode 4 liberalisation Take full advantage of existing regional trade arrangements; with particular reference to mechanisms for facilitating Mode 4 liberalisation

CONCLUSION AND WAY FORWARD (cont) Aim to achieve GATS Article IV on increasing participation of developing countries, including provision of technical and capacity building with respect to negotiation and analysis. Aim to achieve GATS Article IV on increasing participation of developing countries, including provision of technical and capacity building with respect to negotiation and analysis. Involve non-state actors in the national debate or preparation for negotiations. Involve non-state actors in the national debate or preparation for negotiations. Finally, it should be noted that nothing in GATS or the Doha Development Agenda compels or binds Members to make an offer. Finally, it should be noted that nothing in GATS or the Doha Development Agenda compels or binds Members to make an offer.