1. « The voice of the European Service Industries for International Trade Negotiations in Services » GLOBAL SERVICES FORUM 19 APRIL 2012 – AUDITORIUM 2, QATAR NATIONAL CONVENTION CENTRE, SERVICES TRADE AND INCLUSIVE AND SUSTAINABLE DEVELOPMENT Services Liberalisation: Multilateral or Regional? Liberalisation, global integration, development Pascal Kerneis, ESF Managing Director

2. « The voice of the European Service Industries for International Trade Negotiations in Services » Services Liberalisation and Development Direct inputs into economic activities – Determinants of productivity (services: financial, transport, construction, engineering, architectural, energy, environmental, distribution & logistics etc...) Improve profitability of key national exports – Contribute to generating differentiated goods – Contribute to generating scale economies Liberalisation a channel for technology diffusion and competitive pressure

3. « The voice of the European Service Industries for International Trade Negotiations in Services » IMPORTANCE OF SERVICES IN A SUSTAINABLE DEVELOPMENT  Attract FDI in Infrastructure services: Logistics (transports, distribution, Construction, architecture, engineering, etc.), Telecoms, Express Courier Energy distribution network, Water and Waste management, Financial services System, etc. Professional services (lawyers, accountants, etc.)  Experience shows that foreign service suppliers that invest in a country do it for a long period.  Attract transfers of expertise and of know- how of foreign service suppliers, which in turn initiate: Local jobs creations staff vocational training, etc. Better quality of the services, Cheaper services, More choice for the consumers

4. « The voice of the European Service Industries for International Trade Negotiations in Services » WTO UR (1995 1997) DDA Offers (July 2008) WTO Accession since 2001 US FTA + New EU FTAs China Taiwan Saudi-Arabia Vietnam Ukraine Cambodia Russia Kazakhstan (?) CariForum (15) Korea Columbia Peru Central America (6) Mercosur (4)(?) MultilateralBilateral Canada India Singapore Malaysia Japan (?) Indonesia (?) Thailand(?) Vietnam (?) Philippines (?) Taiwan (?) Market Acc + Public Proc.+ IPR + BIT + SOE + Reg. Coop. + US Parity Market Acc + Public Proc + Mode 4 + DDA+ Old EU FTA Mexico Chile Only 30 Countries, not 153 WTO Members! Market access level 1) EU Trade Policy : Geographic coverage. Ukraine. Morocco. Egypt. Georgia. Jordan. Moldova. Tunisia (EU “Acquis”)

5. « The voice of the European Service Industries for International Trade Negotiations in Services » Canada EU: (27) Implemented FTA: (18)Concluded FTA: (9) EPAs with ACP: (64) FTA under negotiations : (19) “Scoping Exercise”: (5) EU Bilateral Trade Agreements Mercosur (4) India Ukraine Singapore & Malaysia Korea Mexico Chile Peru Colombia Central America (6) Cariforum (15) Japan Indonesia Vietnam Philippines EPAs +/-50: WAEMU CEMAC COMESA EAC SADC EPA Pacific (14) Georgia, Moldova Thailand GCC suspended

6. « 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 INTEGRATION BOOSTS SERVICES TRADE Services Exports in Millions $US - Source: World Bank & WTO

7. « The voice of the European Service Industries for International Trade Negotiations in Services » Integration facilitates investment

8. « The voice of the European Service Industries for International Trade Negotiations in Services » Approaches to liberalisation 1.Autonomous liberalisation 2. Binding liberalisation a)Multilateral – Blocked b)Bilateral – Deep but narrow c)Plurilateral – MFN or not?

9. « 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  Countries of the willing - Non MFN Basis  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). SCENARIO 1: PLURILATERAL ON SERVICES – COVERAGE?

10. « The voice of the European Service Industries for International Trade Negotiations in Services » SCENARIO 1: PLURILATERAL ON SERVICES – CONTENTS ?  Few new market access commitments Fusion of all concessions negotiated in FTAs signed by the respective signatories  High level of Regulatory disciplines : 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

11. « 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” 31 Countries, including EC= 1 (i.e. 27 + 30 = 57 countries) S CENARIO 2 : P LURILATERAL ON MFN B ASIS – P ARTICIPATING COUNTRIES TO THE S IGNALLING C ONFERENCE ON SERVICES – J ULY 2008

12. « The voice of the European Service Industries for International Trade Negotiations in Services » S CENARIO 2 : P LURILATERAL ON S ERVICES – OECD + K EY E MERGING 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.

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 manage the “Free Riders” effect? 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.

15. « The voice of the European Service Industries for International Trade Negotiations in Services » Pascal KERNEIS Managing Director European Services Forum – ESF 168, Avenue de Cortenbergh B – 1000 – BRUSSELS Tel: + 32 2 230 75 14 Fax: + 32 2 320 61 68 Email: esf@esf.be Website : www.esf.be Thank you for ATTENTION !