The Request-Offer process in SADC SADC Workshop on Trade in Services The Hyatt, June 2012 Markus Jelitto

Basic Options For Negotiating Liberalization in Services ► Bilateral (Request & Offer) ► Plurilateral (Reference Papers, Understandings, Model Schedules) ► Multilateral (  Formula approaches (?)) ► SADC Guidelines foresee only request-offer process

Main principles ► Request exchanged before offers ► Requests to one or more trading partner ► To be circulated through the SADC Secretariat ► Full Transparency: all requests shared with all trading partners

The Request/Offer Process: Mechanics The Request/Offer Process: Mechanics Step 1: Formulate requests Step 1: Formulate requests Useful Groundwork: 1. Set up domestic consultative process ► Include all stakeholders – suppliers and consumers Public: All relevant government ministries & agencies, including investment and export promotion agencies Public: All relevant government ministries & agencies, including investment and export promotion agencies Private sector companies - including SME’s and reps of major user companies or industries, Chambers of commerce, trade associations, consumer groups Private sector companies - including SME’s and reps of major user companies or industries, Chambers of commerce, trade associations, consumer groups Maintain throughout the negotiations... and beyond!

The Request/Offer Process: Mechanics The Request/Offer Process: Mechanics Step 1: Formulate requests Step 1: Formulate requests 2.Evaluate trading opportunities in the relevant sectors Potential to expand services trade in: Potential to expand services trade in:  what sectors? what modes? What markets? Identify barriers to your trade in these markets? Identify barriers to your trade in these markets? Do the barriers fall under relevant scheduling provisions? Do the barriers fall under relevant scheduling provisions?

The Request/Offer Process: Mechanics The Request/Offer Process: Mechanics Step 1: Formulate requests Step 1: Formulate requests 3.Examine current market situation  Are sectors of interest listed in commitments?  What is the Level of Commitments? Have relevant Modes been bound? Have relevant Modes been bound? Are they subject to quotas or equity restrictions? Etc Are they subject to quotas or equity restrictions? Etc Are there d epartures from National Treatment? Are there d epartures from National Treatment?  Are certain regulatory measures of concern?  Are there MFN exemptions that affect your interests?

The Request/Offer Process: Mechanics The Request/Offer Process: Mechanics Step 1: Formulate requests Step 1: Formulate requests 4.Strategic Considerations  Evaluate requests according to their economic, and strategic importance  Requests also to non-key markets?  Horizontal requests? ->covering all sectors, MS, equally  Compare the value of your requests with the value of your offers – are they roughly commensurate?

The Request/Offer Process: Mechanics The Request/Offer Process: Mechanics Step 2: Formulate offers Step 2: Formulate offers 1 Assess the REQUESTS received 2 Evaluate trade & development interests  Promotion of FDI?  Improvements in business and/or social infrastructures?  Promotion of technology transfer?  Reduction/elimination of domestic supply gaps?  Other social/economic/regional policy objectives?

3. Use a consultative process 3. Use a consultative process Include all stakeholders – suppliers and consumers Public: All relevant government ministries & agencies, including investment and export promotion agencies Public: All relevant government ministries & agencies, including investment and export promotion agencies Private sector companies - including SME’s and reps of major user companies or industries, Chambers of commerce, trade associations, consumer groups Private sector companies - including SME’s and reps of major user companies or industries, Chambers of commerce, trade associations, consumer groups Maintain throughout the negotiations... and beyond

3 Draft proposed offer Consult with relevant ministries & stakeholders  Use existing schedule/or list of MFN exemptions as a basis, then clearly mark changes (use agreed editorial conventions)  Consider technical corrections and clarifications  Consult SADC Secretariat for advice if needed

4 Circulate the OFFERS  Offers are made to all SADC MS (through SADC Secretariat)  Submit further revisions as often as necessary or desirable, throughout the negotiations  No offer is “final” until the end of the negotiations