1. Reading and drafting a services schedule National Seminar on Trade in Services Negotiations under SADC 31 July – 1 August 2012 Lilongwe, Malawi

2. 2 Structure of a schedule

3. 3 First Column: How to describe service sectors? ▪ There is no compulsory system However, according to Scheduling Guidelines (S/L/92), (a) schedules “require the greatest possible degree of clarity” (b) “in general, the classification... should be based on the Secretariat’s Services Sectoral Classification List” ▪ Reference instruments: - Services Sectoral Classification List (W/120) - UN Central Product Classification List (CPC)

4. 4 Scheduling Problems: Sector column  No clear specification of sector coverage  Mismatch between sector name and CPC number  Inconsistencies between sectoral and horizontal entries  Non-exclusion of public sector segments, where  necessary (e.g. health and education)

5. 5 An example from Botswana.

6. 6 An example from Lesotho

7. 7 An example from Malawi.

8. 8 Basic Obligation (1): Where commitments are undertaken, each schedule shall specify: limitations on market access and national treatment“ (para 21 NG) Note: Focus is on measures limiting market access rather than on implementation mechanisms (e.g. licensing requirements) or relevant laws and regulations.

9. How policy intentions translate into specific commitments Current restriction in Sector A: Foreign equity ceiling of 49%

10. 10 Structure of a schedule

11. 11 Horizontal commitments Apply to trade in services in all scheduled sectors unless otherwise specified; Aims at avoiding repetition Takes the form of a limitation (M1-3) or of a positive undertaking (M4)

12. 12 Role of Horizontal Limitations (Example)

13. 13 Horizontal Section Malawi

14. 14 SCHEDULING PROBLEMS (II) Inscription of o Laws and regulations rather than measures o Minimum requirements rather than ceilings (MA) o Unspecified licensing and authorization requirements

15. 15 SCHEDULING PROBLEMS (III) Inscription of  Measures falling under Article VI (DOMESTIC REG)  Departures from general obligations (Part II), including o MFN-inconsistent measures (reciprocity etc.) o Foreign exchange restrictions  Measures covered by GENERAL EXEMPTIONS

16. 16 Case A.

17. 17 Case E.

18. 18 Some examples from country x

19. 19 Some examples from country x

20. 20 Measures/policies not affected by Specific Commitments Non-discriminatory domestic regulation (standards, licensing requirements, etc.) Government procurement (exempt from MFN, MA & NT) Non-discriminatory subsidies Non-discriminatory measures promoting or restricting exports Requirement of a visa etc. Barriers not associated with Government measures (e.g. private decisions or natural resource limitations (non-availability of space, etc.))

21. 21 Commitments by Malawi’s Trading Partners

22. SADC Member States

23. Distribution of by services sectors *Red bars denote SADC priority sectors