The Service Industry’s Stake in Trade Liberalization: How the Coalition of Service Industries Achieves Its Trade Liberalization Objectives

What is CSI? Private sector organization –Founded 1982 –Entirely funded by its members –To bring services trade into global legal framework –To educate about role of services in US economy –To LOBBY for services trade liberalization Legislative and Executive Branches Foreign Governments International organizations

CSI Goals Liberalize cross-border trade Obtain rights to establish (mode 3) and national treatment Promote best practices in domestic regulation Improve freedom of movement of key business personnel Improve understanding of importance of services economy –Including better statistic Premise: liberalization is good for industry but its better good for the liberalizing country

CSI Negotiation Goals for Andean FTA Seek liberalization of cross border trade and investment –Not able to commit to temporary entry or other immigration related matters Seek substantially GATS-plus commitments Seek cross-cutting transparency commitments

CSI Advisory Role to Government Principal private sector advisor on services trade objectives Government calls on CSI But CSI more frequently initiates contacts Mainly agree, but freely disagree with government Informal –Developed over time –Based on mutual respect

Statutory U.S. Advisory Committees Parallel structure of advisory committees established by law –Unique aspect of U.S. system Services Industry Advisory Committee –Required by law to review all US trade agreements –Report to Congress Completely independent of US government viewpoint Separate structure from CSI –Some duplication of membership

CSI “Member Driven” Any successful privately funded organization must represent its members’ interests Policy objectives developed by working groups of members Actions decided by same working groups –Saudi accession –Negotiating objectives for FTAs Comprehensive CSI “Guidebook” for negotiators

CSI’s Global Networks Coalition of Global Services Associations –European Services Forum, Japan Services Network, Hong Kong Coalition of Service Industries, Australia Services Roundtable, Colombia Coalition of Services, etc. –Organized mission to the WTO in March See handouts Global Services Network – Friends of Services Financial Leaders Group For information go to

Benefits of Private Stakeholder Engagement Private sector participation has direct benefits for governments –Recognize the US has unique political culture –Many governments resist private sector role Sets commercially valuable goals Helps build public, political support for liberalization It is useful to the negotiators –Provides intelligence on other negotiators’ goals Makes negotiators accountable –For meeting their goals

More Players Needed [With Services Uniforms] In most economies services dominate –Or will do so But the voice of services is weaker –Than agriculture, or goods –Can hurt high growth services sector All countries can benefit from services industry associations CSI working with WTO/UNCTAD’s International Trade Center –To provide technical assistance