1. 1 GATS and Maritime Transport Pierre Latrille WTO Trade in Services Division

2. 2 Maritime transport and governments Early days Colonies and monopolies Recent developments

3. 3 GATS: Advantages of binding More investment (secured through guaranteed conditions of access for investors) State of the art technologies and management More competition Better services Lower prices for the consumer Win-Win effect on foreign markets

4. 4 GATS commitments -Guarantee the conditions of operation of foreign services suppliers at a certain negotiated level of market access and national treatment - Ensure that this level cannot be deteriorated -Make this level available as a minimum to all WTO Members -Are subject to periodic negotiations with a view to improve them

5. 5 GATS “Scheduling” principles (1) Positive listing of sectors Negative listing of restrictions Modes of delivery 1.cross-border 2.consumption abroad 3.commercial presence 4.temporary movement of natural persons

6. 6 GATS “Scheduling” principles (2) Market Access (MA): 6 exhaustive categories of discriminatory and non-discriminatory measures –number of suppliers –value of transactions/assets –number of operations –number of persons –legal form –foreign capital

7. 7 GATS “Scheduling” principles (3) National treatment (NT): any discriminatory measure de facto or de jure Additional commitments Freedom to modulate Minimum MFN standard effect

8. 8 -Access to/use of ports services -Container depot station -[Multimodal transport] -[Access to/use of multimodal transport] -Custom clearance -Maritime agency services (?) Two overlapping classifications -Rental and Leasing with crew - Maintenance and repair -Pushing and towing -Supporting services for water transport by sea- going vessels* -International maritime transport (freight and passenger) -Cargo handling -Storage and warehousing -Freight forwarding -Freight brokerage bill auditing… (749) CPC MMS A H *port and waterway operation, pilotage, navigation, aid, salvage, cleaning...

9. 9 CPC: Relevant sub-sectors 11. TRANSPORT SERVICE A. Maritime Transport Services a. Passenger transportation 7211 b. Freight transportation 7212 c. Rental of vessels with crew 7213 d. Maintenance and repair of vessels 8868** e. Pushing and towing services 7214 f. Supporting services for maritime transport 745** H. Services auxiliary to all modes of transport a. Cargo-handling services 741 b. Storage and warehouse services 742 c. Freight transport agency services 748 d. Other 749 ** CPC code covers other services as well

10. 10 CPC: Passenger transportation 11. TRANSPORT SERVICE A. Maritime Transport Services a. Passenger transportation 7211 – 72111Passenger transportation by ferries Passenger transportation by ocean ‑ going or coastal water ferries, including hydrofoils and hovercraft, on a scheduled or non ‑ scheduled basis – 72119Other passenger transportation Passenger transportation on the high seas and on coastal waters by seagoing vessels, on a scheduled or non ‑ scheduled basis, regardless of the class of service, and including passenger accompanying baggage transportation

11. 11 CPC: Freight transportation b. Freight transportation 7212 – 72121 Transportation of frozen or refrigerated goods Transportation by seagoing vessels of frozen or refrigerated goods in specially refrigerated compartments – 72122Transportation of bulk liquids or gases Transportation by seagoing vessels of bulk liquids or gases in special tankers. These vessels may also be refrigerated – 72123Transportation of containerized freight Transportation by seagoing vessels of individual articles and packages assembled and shipped in specially constructed shipping containers designed for ease of handling in transport – 72129Transportation of other freight Transportation by seagoing vessels of freight not elsewhere classified

12. 12 CPC: Rental of vessels with crew c. Rental of vessels with crew 7213 – 72130Rental services of seagoing vessels with operator Rental and leasing services of all types of self ‑ propelled, seagoing vessels with operator, such as passenger vessels (except pleasure boats) tankers, bulk dry cargo vessels, cargo and freight vessels, tugboats and fishing vessels Exclusions: Leasing or rental services of vessels without operator are classified in subclass 83103 Leasing or rental services of seagoing pleasure boats are classified in subclass 96499 (Other recreational services n.e.c.)

13. 13 CPC: Maintenance and towing services d. Maintenance and repair of vessels 8868** e. Pushing and towing services 7214 -72140Towing and pushing services Towing and pushing services on the high seas and on coastal waters. These services are generally provided by vessels which do not themselves carry freight or passengers. Included here are towing services of oil rigs, floating cranes, dredging vessels, buoys, and of hulls and incomplete vessels, on a fee or contract basis. Towing services for distressed seagoing vessels are also included

14. 14 CPC: Supporting services (1) f. Supporting services for maritime transport 745** – 7451 74510 Port and waterway operation services (excl. cargo handling) Port operation services such as wharves, docks, piers, quays and other marine terminal facilities related services, including passenger terminal services in connection with marine transportation, on a fee or contract basis, and operating and maintenance services of boat, barge and ship canals, of canalized rivers and of other artificial inland waterways. Also included here are services of locks, boat lifts, weirs, sluices and towing services on canals other than by tugboat, e.g. by tractors or locomotives on the towpath

15. 15 CPC: Supporting services (2) f. Supporting services for maritime transport 745** – 7451 74510 Port and waterway operation services (excl. cargo handling) Exclusions: Stevedoring services are classified in subclass 74110 (Container handling services), if for containerized freight, and in 74190 (Other cargo handling services), if for non ‑ containerized freight Port storage and warehousing services are classified in group 742 (Storage and warehousing services) Tugboat ‑ assisted docking and towing services are classified in subclass 74520 (Pilotage and berthing services)

16. 16 CPC: Supporting services (3) f. Supporting services for maritime transport 745** – 745274520Pilotage and berthing services Tugboat services in connection with the docking and undocking of vessels of all types, and pilotage services, including the services of pilot vessels, whether supplied to conduct a vessel in or out of harbours or around navigational danger – 745374530Navigation aid services Services provided by lighthouses, lightships and light vessels, buoys, channel markers, and similar aids to navigation

17. 17 CPC: Supporting services (4) f. Supporting services for maritime transport 745** – 7454 74540 Vessel salvage and refloating services Vessel salvage services, whether provided on ocean and coastal waters or on inland waters. Such services consist of recovering distressed and sunk vessels and their cargoes, including the raising of sunken vessels, the righting of capsized vessels and the refloating of stranded vessels Exclusions: – Towing services supplied to distressed vessels are classified in subclass 72140, if for seagoing vessels, and in 72240, if for non ‑ seagoing vessels – Lifeboat services, marine fireboat services and other marine search and rescue services are classified in subclass 91260 (Police and fire protection services) and 91290 (Other public order and safety affairs related services)

18. 18 CPC: Supporting services (5) f. Supporting services for maritime transport 745** – 7459 74590Other supporting services for water transport Cleaning, disinfecting, fumigating, vermin control and similar services, on board docked or anchored vessels, on a fee or contract basis, water transport supporting services directly connected with vessel operations not elsewhere classified, and not directly connected with vessel operations, such as icebreaking, vessel registration, vessel laying ‑ up and storage services, etc. Exclusions: – Lifeboat services, marine fireboat services and other marine search and rescue services are classified in subclass 91260 (Police and fire protection services) and 91290 (Other public order and safety affairs related services)

19. 19 CPC: Cargo-handling services (1) H. Services auxiliary to all modes of transport a. Cargo-handling services741 – 7411 74110 Container handling services Cargo handling services provided for freight in special containers. Included are services of freight terminal facilities, on a fee or contract basis, for all modes of transport, including stevedoring services (i.e. the loading, unloading and discharging of vessels' containerized freight, at ports)

20. 20 CPC: Cargo-handling services (2) H. Services auxiliary to all modes of transport a. Cargo-handling services741 – 7419 74190Other cargo handling services Cargo handling services provided for non ‑ containerized freight or for passenger baggage. Included are services of freight terminal facilities, on a fee or contract basis, for all modes of transport, including stevedoring services (i.e. the loading, unloading and discharging of vessels' non ‑ containerized freight, at ports), and cargo handling services incidental to freight transport, not elsewhere classified. Also included are baggage handling services at airports, and at bus, rail or highway vehicle terminals Exclusions: Other supporting and auxiliary transport services linked to a specific mode of transport are classified in subclass 74300 for railway transport, subclass 74490 for road transport, subclass 74590 for water transport and subclass 74690 for air transport

21. 21 CPC: Storage and warehouse services b. Storage and warehouse services742 742174210Storage services of frozen or refrigerated goods Storage and warehousing services of frozen or refrigerated goods, including perishable food products 742274220Bulk storage services of liquids or gases Bulk storage and warehousing services of liquids and gases 742974290Other storage or warehousing services Storage and warehousing services of other goods, including: cotton, grain, wool, tobacco, other farm products, and other household goods

22. 22 CPC: Other auxiliary services c. Freight transport agency services748 Freight brokerage services, freight forwarding services (primarily transport organization or arrangement services on behalf of the shipper or consignee), ship and aircraft space brokerage services, and freight consolidation and break ‑ bulk services d. Other749 Freight brokerage services; bill auditing and freight rate information services; transportation document preparation services; packing and crating and unpacking and de ‑ crating services; freight inspection, weighing and sampling services; and freight receiving and acceptance services (including local pick ‑ up and delivery)

23. 23 Classification issues Inadequacies of classical classification have led to the elaboration of the model schedule, based on four “pillars” -international maritime transport -maritime auxiliary services -access to /use of port services -multimodal transport

24. 24 -Access to/use of ports services -Container depot station -[Multimodal transport] -[Access to/use of multimodal transport] -Custom clearance -Maritime agency services (?) Two overlapping classifications... -Rental and Leasing with crew -Maintenance and repair -Pushing and towing -Supporting services for water transport by sea- going vessels* -International maritime transport (freight and passenger) -Cargo handling -Storage and warehousing -Freight forwarding Freight brokerage, bill auditing… (749) CPC MMS A H *port and waterway operation, pilotage, navigation, aid, salvage, cleaning...

25. 25 MMS Pillar 1: Definitions (1) (i)Definition of Maritime International Freight Transport WITHOUT multimodal transport services: "Transportation of international freight by seagoing vessel from the port of loading in one country to the port of discharge in another country"

26. 26 MMS Pillar 1: Definitions (2) [1.Without prejudice to the scope of activities which may be considered as "cabotage" under the relevant national legislation, this schedule does not include "maritime cabotage services", which are assumed to cover transportation of passengers or goods between a port located in... (name of country or, for the EEC, "a Member State") and another port located in... (name of the country or, for the EEC, "the same Member State") and traffic originating and terminating in... the same port located in (name of country, or for the EEC, "a Member State") provided that this traffic remains within... (name of country or " this Member State")'s territorial waters]

27. 27 Schedules: Model for Pillar 1 (Mode 1 & 2)

28. 28 Schedules: Model for Pillar 1 (Mode 3)

29. 29 2."Other forms of commercial presence for the supply of international maritime transport services" means the ability for international maritime transport service suppliers of other Members to undertake locally all activities which are necessary for the supply to their customers of a partially or fully integrated transport service, within which the maritime transport constitutes a substantial element. (This commitment shall however not be construed as limiting in any manner the commitments undertaken under the cross- border mode of delivery) Schedules: Footnote for Mode 3 (b)

30. 30 Schedules: Model for Pillar 1 (Mode 4)

31. 31 MMS Classification: Summary for Pillar 1 International transport suggested to be defined … without cabotage without multimodal according to CPC or ad hoc definitions distinguishing liner from bulk in mode 1 distinguishing the establishment of registered company operating the national flag from other forms of commercial presence (mode 3) distinguishing the situation of the ship’s crew from the one of on shore key personnel (mode 4)

32. 32 MMS Classification: Pillar 2 Maritime auxiliary services: 6 services with proper definitions – cargo handling (excluding dockers) – storage and warehousing – custom clearance services – container station and depot services – maritime agency – freight forwarding services

33. 33 4."Maritime cargo handling services" means activities exercised by stevedore companies, including terminal operators, but not including the direct activities of dockers, when this workforce is organised independently of the stevedoring or terminal operator companies. The activities covered include the organisation and supervision of -the loading/discharging of cargo to/from a ship -the lashing/unlashing of cargo -the reception/delivery and safekeeping of cargoes before shipment or after discharge Cargo handling services

34. 34 Storage and warehouse services (based on CPC) 742174210Storage services of frozen or refrigerated goods Storage and warehousing services of frozen or refrigerated goods, including perishable food products 742274220Bulk storage services of liquids or gases Bulk storage and warehousing services of liquids and gases 742974290Other storage or warehousing services Storage and warehousing services of other goods, including: cotton, grain, wool, tobacco, other farm products, and other household goods Storage and warehousing services

35. 35 5."Customs clearance services" (alternatively "customs house brokers' services") means activities consisting in carrying out on behalf of another party customs formalities concerning import, export or through transport of cargoes, whether this service is the main activity of the service provider or a usual complement of its main activity Customs clearance services

36. 36 6."Container station and depot services" means activities consisting in storing containers, whether in port areas or inland, with a view to their stuffing/stripping, repairing and making them available for shipments Container station and depot services

37. 37 7."Maritime agency services" means activities consisting in representing, within a given geographic area, as an agent the business interests of one or more shipping lines or shipping companies, for the following purposes -marketing and sales of maritime transport and related services, from quotation to invoicing, and issuance of bills of lading on behalf of the companies, acquisition and resale of the necessary related services, preparation of documentation, and provision of business information -acting on behalf of the companies organising the call of the ship or taking over cargoes when required Maritime agency services

38. 38 8."Freight forwarding services" means [the activity consisting of organising and monitoring shipment operations on behalf of shippers, through the acquisition of transport and related services, preparation of documentation and provision of business information] Freight forwarding services

39. 39 MMS Classification: Pillar 3 Access/use of port services - Shipowners seen as users of port services -The aim is not to liberalize the port services concerned… -but to ensure that they are available on reasonable and non discriminatory terms and conditions -hence the additional commitments tool

40. 40 Access/use of port services 9 services covered –Pilotage –Towing and the tug assistance –Provisioning fuelling and watering –Garbage collecting and ballast waste disposal –Port captain services* –Navigation aids –Shore based operational services essential to ship operations including communications, water and electrical supplies –Emergencies repair facilities –[Anchorage berth and berthing services] * In fact “harbour master services”

41. 41 Schedules: Example for Pillar 3

42. 42 MMS Classification: Pillar 4 Multimodal transport Maximal option: liberalize the activity itself Minimal option: liberalize the access to and use of multimodal transport

43. 43 Schedules: Example for pillar 4

44. 44 Section II What it has achieved so far

45. 45 GATS Commitments: 1993 29 Members maintained their commitments which immediately entered into force, including MFN aspects Of these 29 Members, 8 have followed the maritime model schedule Many MFN exemptions remained “on the books” while not needed

46. 46 GATS Commitments: 1995-1996 Negotiating Group on Maritime Transport Services (NGMTS) –Only 2 new commitments (Norway and Iceland) –2 modified ones (Canada and Malaysia) –all 4 in a “Maritime Model Schedule” format Decision of the Council for Trade in Services (CTS), dated 28 June 1996 (S/L/24)

47. 47 CTS Decision S/L/24 (1) Suspends the negotiations “Resumes with the commencement of comprehensive negotiations on services in accordance with Article XIX...” “It is agreed that negotiation will be resumed on the basis of existing or improved offers” “To conclude no later than at the end of this first round of progressive liberalization”

48. 48 CTS Decision S/L/24 (2) Suspends Article II (MFN treatment) and Annex on Article II until the conclusion of the negotiations except for the commitments maintained Foresees the review by the CTS, “during the course of the negotiations [of] the effects of the continued suspension of Article II” Allows Members to “improve, modify or withdraw all or part of [their] specific commitments during a period of sixty days [preceding] the end of the negotiations” and to “finalize their positions relative to MFN exemptions during the same period” Foresees a standstill

49. 49 GATS Commitments: Accessions 15 acceding Members out of 22 (1995-2004) have taken commitments in maritime transport: Albania, Cambodia*, China*, Croatia, Estonia, Georgia, Jordan*, Kyrgyz Republic, Latvia, Lithuania, Moldova, Oman*, Papua New Guinea, Saint Kitts and Nevis, Slovenia * Maritime Model Schedule format

50. 50 Section III What it may achieve in the future

51. 51 Current negotiations: proposals (1) Negotiations started 1 January 2000 80 Negotiating proposals on the table 8 proposals on maritime transport services (EU; Japan; Hong-Kong, China; Korea; Chile; Australia; Norway; and, Colombia)

52. 52 Current negotiations: proposals (2) Strong similarities in the proposals –Maritime Model Schedule as a base –Stress on logistics and multimodal –Restrictions to be lifted Cargo reservation Equity ceiling On shore establishment

53. 53 Current negotiations: proposals (3) Different accent on –Offshore –Feedering –Movement of empty containers –MFN exemptions

54. 54 Current negotiations: the process Two discussions already Submission of initial requests by 30 June 2002 Submission of initial offers by 31 March 2003 Submission of revised offers by May 2005 Ministerial Conference in Hong Kong, China, December 2005

55. 55 19 offers out of 48 contain maritime elements All Members that had a better NGMTS offer and made offers have reinstated NGMTS offer except... –1 Member that simply maintained its existing commitments –2 Members that put maritime offers in between existing commitments and NGMTS offers –2 Members that did not reinstate any maritime offer Current negotiations: offers (1)

56. 56 2 recently acceded (post NGMTS) and major maritime players put down maritime offers 38 signatories representing 53 Members to a declaration (TN/S/W/11) in favour of maritime liberalization including: China; Chinese Taipei; Hong Kong, China; India; Malaysia; Pakistan and Singapore Current negotiations: offers (2)

57. 57 Current negotiations: looking forward An important liberalization de facto, that still needs to be bound and improved New frontiers: harbours concessions, multimodal Besides pure maritime interests, an efficient maritime sector is vital for the export supply chain