1. « The voice of the European Service Industries for International Trade Negotiations in Services » Analysis of potential plurilateral negotiations in services:  Which countries for an International Services Agreement?  Which added value for European companies?

2. « The voice of the European Service Industries for International Trade Negotiations in Services » EU is by very far the biggest exporter of services: 24% of world export of services If we take intra and extra EU together, EU export of services represent 42% of global export of services AN INTERNATIONAL SERVICES AGREEMENT WITHOUT THE EU DOES NOT MAKE SENSE Services Exports in Millions $US - Source: World Bank & WTO

3. « The voice of the European Service Industries for International Trade Negotiations in Services » Scenario 1 : Real Goods Friends of Services” (RGFS) in Geneva (15 + 1(27) = 42): Critical Mass? Australia, Canada, Chile, Colombia, European Union (27), Hong Kong, Japan, Mexico, New Zealand, Norway, Pakistan, Singapore, South Korea, Switzerland, Taiwan, and United States  Services exports to the world represented 76% (US$ 2,841 billion) of global services exports. With intra-EU exports removed the percentage drops to 69% (US$ 1,957 billion). P LURILATERAL ON S ERVICES – W HICH C OUNTRIES ?

4. « The voice of the European Service Industries for International Trade Negotiations in Services » P LURILATERAL ON S ERVICES – W HICH C OUNTRIES ? Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States EU: 21 out of 27 EFTA countries = Close links with EU Single Market on Services NAFTA Countries OECD Members = 34 countries OECD Members = 34 countries, including 21 EU Members, + 3 EFTA countries, + 3 NAFTA – Others: Chile, Israel, Japan, Korea & Turkey Scenario 2 : OECD+ - GATS Article 5 = Non MFN

5. « The voice of the European Service Industries for International Trade Negotiations in Services » Canada TPP EU: (27)EFTA:(4) NAFTA: (3) TPP: NFTA + 9 = 12 OECD: 34(incl. 21 EU + 3 EFTA + NAFTA + 4 TPP + 3 (Israel, Korea & Turkey) – RGFS : + 4 P LURILATERAL ON S ERVICES – W HICH C OUNTRIES ? Singapore & Malaysia & Brunei Mexico Chile Peru Japan Vietnam Israel Canada? Japan? Mexico? HK & Taiwan

6. « The voice of the European Service Industries for International Trade Negotiations in Services » Canada Plurilateral Services Agreement: OECD (34) + EU (6 non OECD) + Bahrain, Brunei, Colombia, Jordan, Hong-Kong, Liechtenstein, Malaysia, Morocco, Oman, Peru, Singapore, Taiwan, UAE, Vietnam = Total= EU = 1 (27) + 28= 54 Countries P LURILATERAL ON S ERVICES – W HICH C OUNTRIES ? Singapore & Malaysia & Brunei Mexico Chile Peru Colombia Japan Vietnam Israel  Countries that are underlined represent the potential additional countries; In blue are countries that have signed an FTA with the EU or/and the US, and in mauve are those which are currently negotiating FTA with EU and/or US.

7. « The voice of the European Service Industries for International Trade Negotiations in Services » Plurilateral on Services – Coverage and Contents ?  Services exports of this Group to the world represented 81% (US$ 2,976 billion) of global services exports in 2010. When intra-EU exports are removed the percentage drops to 74% (US$ 2,092 billion): Critical Mass?  Content: Such an agreement might include: Scheduling using Negative List (?) Removal of all equity caps Binding of current practise Adoption of Reference paper on Telecoms Adoption of Understanding on Financial Services Adoption of disciplines on Accounting Adoption of disciplines on State Own Enterprises (SOEs) Adoption of Investment Protection principles Increased public procurement market access

8. « The voice of the European Service Industries for International Trade Negotiations in Services » Argentina Australia Bangladesh Brazil Canada Chile China EC EC Presidency (France) Egypt Hong Kong, China India Indonesia Japan Korea Lesotho Malaysia Mauritius Mexico Morocco New Zealand Norway Pakistan Philippines Singapore South Africa Switzerland Chinese Taipei Thailand Turkey United States Uruguay” Extract from WTO TNC Chair Report of 30 th July 2008: “On Saturday, 26 July, the Conference was held among the following Members: 31 Countries, including EC= 1 (i.e. 27 + 30 = 57 countries) S CENARIO 3 : P LURILATERAL ON MFN B ASIS – P ARTICIPATING COUNTRIES TO THE S IGNALLING C ONFERENCE ON SERVICES – J ULY 2008

9. « The voice of the European Service Industries for International Trade Negotiations in Services » Canada 31 countries, including EU = 1, i.e. 27 + 30 = 57 P ARTICIPATING COUNTRIES TO THE SIGNALLING C ONFERENCE ON SERVICES – J ULY 2008 Mexico Chile Peru Colombia Israel

10. « The voice of the European Service Industries for International Trade Negotiations in Services » P LURILATERAL ON S ERVICES – W HICH C OUNTRIES ? Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States OECD Members = 34 countries : Bulgaria, Cyprus, Latvia, Lithuania, Malta, Romania = 6 other EU countries All these 40 above listed countries have participated to the Signalling conference in July 2008 (except Israel) = 39 plus: Argentina; Bangladesh; Brazil; China; Egypt; Hong-Kong; India; Pakistan; Indonesia; Lesotho; Malaysia; Mauritius; Morocco; Philippines; Singapore; South Africa, Taiwan; Thailand; Uruguay = 58  NB: In red are the G20 emerging countries that are not OECD Members, and that might not be part of the Plurilateral in Services.

11. « The voice of the European Service Industries for International Trade Negotiations in Services » Plurilateral on Services – Coverage and Contents ?  Services exports of this Group to the world represented 91% (US$ 3,385 billion) of global services exports in 2010. When intra-EU exports are removed the percentage drops to 88% (US$ 2,477 billion). Critical Mass?  Content: Such an agreement might include: Consolidation of the Multilateral trading system; Binding under WTO Rules, MFN basis, Consolidation of liberalisation in OECD countries Increased market access in Emerging Countries (? – Although largely insufficient! – Argentina, Brazil, China, India, ASEAN, etc.) Regulatory disciplines (?) ….

12. « The voice of the European Service Industries for International Trade Negotiations in Services » KEY QUESTIONS:  How to measure the “free riders” effect? Share (%) of key emerging countries in the global services trade? (BRICS + Argentina + 6 ASEAN = +/- 16%/18%) Share of new market obtained by a new ISA Art. 5 that will not be open to non-signatories? Do we want to exclude Emerging countries from our markets? (FDI in EU) Can we exclude them through our regulation and already open markets?

13. « The voice of the European Service Industries for International Trade Negotiations in Services » Importance of keeping open the initiative to Key Emerging Countries (BRICS + ASEAN, etc.) How to make sure that the emerging countries will be able to join later? – Negative list approach? – Too high regulatory disciplines? – Disciplines on State Owned Enterprises ?

14. « The voice of the European Service Industries for International Trade Negotiations in Services » What are the legal instruments available? Continuation of the DDA (MFN) – Annex C Honk Kong Ministerial Declaration (2005) Article XIX GATS (MFN) – Build-in agenda – New services negotiations every 5 years Article V GATS (Non MFN) – FTA compatible with WTO – Must have “substantial sectoral coverage” in terms of number of sectors, volume of trade and modes of supply.