Research and Analytical Priorities post-Hong Kong: Trade in Services By: Abdoulaye Ndiaye ResearcherILEAP-JEICP Hong Kong Trade and Development Symposium 16 December 2005

Presentation Layout GATS negotiations: African issues and concerns GATS negotiations: African issues and concerns Research areas Research areas

Importance of services for West Africa In most West African countries, services contribute between 25 and 60% of GDP and occupy on average 30% of the working population – –Contribution of the services sector in the Nigerian economy: 25-30% ( ) – –In Senegal services account for 60% of GDP. Telecoms represent only 6% of GDP in 2004.

African concerns in services negotiations In the near-totality of services sectors, export capacities remain limited; opportunities for expansion exist but are not exploited Limited access to updated and targeted information Limited access to updated and targeted information Large number of services sub-sectors Large number of services sub-sectors Difficulties in measuring the contribution of services sectors to development Difficulties in measuring the contribution of services sectors to development Need to evaluate the impact of services liberalisation => need for countries to become more proactive (in request and offer process) Need to evaluate the impact of services liberalisation => need for countries to become more proactive (in request and offer process)

Issues and Concerns… Need to reorganise statistics on services to make them more relevant for GATS negotiations Need to reorganise statistics on services to make them more relevant for GATS negotiations E-commerce: Outsourcing => countries who have engaged have no predictability (key principle at the WTO) => developed countries tend to raise barriers to outsourcing or ‘de- localisation’ of services jobs to maintain employment in the sector => political or economic justifications? E-commerce: Outsourcing => countries who have engaged have no predictability (key principle at the WTO) => developed countries tend to raise barriers to outsourcing or ‘de- localisation’ of services jobs to maintain employment in the sector => political or economic justifications? Difficulties in following negotiations in an efficient and continuous manner (weakness of negotiating teams in Geneva due to high costs compared with countries’ economic capacities) Difficulties in following negotiations in an efficient and continuous manner (weakness of negotiating teams in Geneva due to high costs compared with countries’ economic capacities)

Research topics: 1. Define a common position on Mode 4 2. Identify market access constraints for African countries 3. Gather GATS-related statistics (information system) 4. Remove barriers to E-commerce services 5. Develop capacities to formulate requests 6. Country support at the national and Geneva levels 7. Support to sub-regional integration bodies 8. Respond to the growing need for regulation of the services sector

Topic 1: Define a common position on Mode 4 Bring more transparency and predicability to the visa process for African professionals working in OECD countries Bring more transparency and predicability to the visa process for African professionals working in OECD countries Further develop the concept of a GATS visa and link it to immigration and security issues Further develop the concept of a GATS visa and link it to immigration and security issues

Topic 2: Identify market access constraints for African countries These constraints can be of a regulatory nature or based on discriminatory practices These constraints can be of a regulatory nature or based on discriminatory practices Identification of these types of constraints often requires complex and costly benchmarking studies Identification of these types of constraints often requires complex and costly benchmarking studies

Topic 3: Establishment of GATS-related Statistics (information systems) Current statistics do not enable the classification of services data according to the 4 modes Current statistics do not enable the classification of services data according to the 4 modes Further, in many cases the data is old or simply does not exist Further, in many cases the data is old or simply does not exist

Topic 4: Remove barriers to E- Commerce Services E-commerce represents an opportunity for African countries who are able to respond to the global market E-commerce represents an opportunity for African countries who are able to respond to the global market However there are limiting factors on Mode 4 (see Topic 1) and issues around classification (currently on the 1991 CPC) that do not necessarily take into account new ICT services (Mode 1 vs. Mode 2) However there are limiting factors on Mode 4 (see Topic 1) and issues around classification (currently on the 1991 CPC) that do not necessarily take into account new ICT services (Mode 1 vs. Mode 2)

Topic 5: Develop capacities to formulate requests Formulation of requests requires identification of obstacles encountered by African services suppliers in target markets. This requires financial and human resources that are often not available to African countries Formulation of requests requires identification of obstacles encountered by African services suppliers in target markets. This requires financial and human resources that are often not available to African countries The results of such research serve to sensitise African companies regarding what their governments can seek or achieve on their behalf at the WTO The results of such research serve to sensitise African companies regarding what their governments can seek or achieve on their behalf at the WTO Such ‘learning-by-doing’ would aim to have African countries formulate requests through a methodology constraint-identification, leading to the development of real expertise in this area Such ‘learning-by-doing’ would aim to have African countries formulate requests through a methodology constraint-identification, leading to the development of real expertise in this area

Topic 6: Country support at the national and Geneva levels At national level: ILEAP should continue its work in this area by enabling researchers to provide support on areas identified (or proposed) by countries At national level: ILEAP should continue its work in this area by enabling researchers to provide support on areas identified (or proposed) by countries At Geneva level: ILEAP could recruit, in a timely and targeted way, researchers who could analyse WTO data and subsequently make their results available to Geneva and capital-based trade officials At Geneva level: ILEAP could recruit, in a timely and targeted way, researchers who could analyse WTO data and subsequently make their results available to Geneva and capital-based trade officials

Topic 7: Support to sub-regional integration bodies Undertake cross-cutting studies on services, enabling countries to outline common negotiating positions through regional integration bodies Undertake cross-cutting studies on services, enabling countries to outline common negotiating positions through regional integration bodies Support sub-regional integration bodies to set up and provide data for a services database Support sub-regional integration bodies to set up and provide data for a services database

Topic 8: Regulation of the services sector Progressive liberalisation of services will lead to more intense competition => need to regulate the market and protect the consumer and small enterprises from abuse of dominant players (i.e. in telecommunications sector) Progressive liberalisation of services will lead to more intense competition => need to regulate the market and protect the consumer and small enterprises from abuse of dominant players (i.e. in telecommunications sector) ILEAP should focus further on mechanisms / regulation for those services sectors that currently lack such structures ILEAP should focus further on mechanisms / regulation for those services sectors that currently lack such structures