1. NEGOTIATIONS ON SERVICES NEGOTIATIONS ON SERVICES Commercial Diplomacy Programme &TrainForTrade

2. General Features: Trade in Services Importance of Services in the Global Economy : Technological advances have served to change the provision of services as well as the perception of the services sector as a whole Technological advances have served to change the provision of services as well as the perception of the services sector as a whole Growing importance of services for economic growth: Growing importance of services for economic growth: Chart 1: Services as percentage of GDP.

3. Economic Importance of Services Mayor contributor to GDP and employment in all developing countries, approximating indicators of developed countries Mayor contributor to GDP and employment in all developing countries, approximating indicators of developed countries 50-70 per cent of GDP 50-70 per cent of GDP 60-80 per cent of employment 60-80 per cent of employment  Importance of assessing the structure and dynamic of services in developing countries: - growth of traditional activities (retail, restaurants, repair shops, tourism, personal services) - growth of traditional activities (retail, restaurants, repair shops, tourism, personal services) - growth of the “informal economy” - growth of the “informal economy” - weight of government tends to overestimate economic significance. (Brazil 16% GDP) - weight of government tends to overestimate economic significance. (Brazil 16% GDP)

4. Services as percentage of GDP.

5. Growing importance of services for employment Key services industries Key services industries The provision of services such as insurance, information technology, accountancy and research has an impact on economic competitiveness through interaction with industrial activities and other services. The provision of services such as insurance, information technology, accountancy and research has an impact on economic competitiveness through interaction with industrial activities and other services. Increasing Importance of International Trade in Services Increasing Importance of International Trade in Services

6. Growing importance of services for employment

7. Increasing Importance of International Trade in Services

8. Increasing Contribution of Services to World Trade

9. Leading Services Traders: A Comparison of Developed, Developing & Transitional Economies

10. Leading Service Exporters. A comparison of various countries

11. Leading Service Importers

12. Structure of Service Exports Shift towards Telecommunications, Computing Services and Information

13. Structure of Service Exports

14. Role of Services in Trade and Development  Basic economic infrastructure required for systemic competitiveness, and overall welfare. [education, health, energy, sanitation, transport, telecom, financial services]  “Producer services” content in goods, and in other services increasingly generate a higher proportion of value added: externalisation of supply as a source of sectoral dynamism and specialization, services efficiency a source of competitiveness  Logistic chains as a source of overall trade competitiveness: [ports, airports, transport services, telecom, information services, distribution networks]  Trade of integrated packages of goods and services (high technology products) every day more important.  Services are increasingly tradable in themselves:

15. Key Analytical Questions Are services performing adequately their role in trade and development? Are services performing adequately their role in trade and development? - national assessment of services and trade in services - national assessment of services and trade in services What strategies and policies should be implemented to enhance services contribution to trade and development? What strategies and policies should be implemented to enhance services contribution to trade and development? - definition of national and sectoral development policies - definition of national and sectoral development policies  What role could international agreements, multilateral, regional and bilateral, play in supporting national developmental policies in the services sector? - definition of negotiating strategies and positions on the basis of national developmental policies safeguarding required policy spaces. - definition of negotiating strategies and positions on the basis of national developmental policies safeguarding required policy spaces.

16. National Assessment of Services Statistical requirements: National Accounts and Balance of Payments. Statistical requirements: National Accounts and Balance of Payments. Sectoral Analysis of domestic supply, market dynamism, trade, competitiveness, and regulatory framework Sectoral Analysis of domestic supply, market dynamism, trade, competitiveness, and regulatory framework Participation of stakeholders in assessment Participation of stakeholders in assessment

17. National Developmental Policies  Policy options are within a continuum ranging from protection, through “infant industry promotion” (active public policies) to full liberalization (market reliance).  There is no “one size fits all” policy. It has to be defined by sector in the light of developmental, social and cultural objectives  National policies and objectives are expressed through the regulatory framework and by established limitations to market access and national treatment