1. External Trade Economic Integration in the EUROMED context National Conference on Harnessing Services for Sustainable Development Amman, 22 September 2010Christophe RAMES European Commission DG TRADE

2. External Trade Overview 1.Services and investment as main vehicles for deeper integration 2.Economic opportunities 3.Liberalizing trade in services between EU and Jordan: key features 4.Negotiating a Services Agreement between EU and Jordan: State of play and way forward

3. External Trade 1. The Need for Deeper Integration 15 years after Barcelona, need to shift Euromed integration into a higher gear - Euromed Association Agreements will lead to a ‘shallow’ free-trade area if limited to goods - Services account for 2/3 of GDP in Jordan and ¾ of GDP in EU To maintain a privileged partnership, deeper integration is needed.

4. External Trade 1. What is at stake? Barriers to trade in goods = tariffs and quotas Barriers to trade in services = rules and regulations Liberalizing trade in services requires ‘behind-the- border’ policy reforms Services trade is strongly associated with FDI and knowledge-spill overs. Trade liberalization in services should be used as anchor for domestic reforms and as vehicle for deeper regional integration

5. External Trade 2. Economic opportunities of services & investment Attracting FDI Improve competitiveness Better functioning markets Support to regulatory environment Predictable rules and legal certainty for business Benefits for consumers (e.g. telecom) Liberalizing trade in Services and Investment is the most powerful vehicle for economic growth and integration

6. External Trade 2. Key sectors for growth & development Infrastructure services: Telecoms, Postal and Courier Transports Energy distribution network Financial services but also Tourism Logistics & distribution Business services Construction Environmental services

7. External Trade 3. Trade liberalization in services in a bilateral context: The EU approach Building on GATS - Compatibility with WTO rules - GATS schedules as starting point for offers Deepening GATS Commitments (WTO +) Ensuring flexibility to take account of level of development and sensitivities

8. External Trade 3. Liberalizing trade in services between EU and Jordan: What does it mean? Three keys aspects: Progressivity Reciprocity Asymmetry

9. External Trade 3. Liberalizing trade in services between EU and Jordan: What would be covered? Scope: - Services and Establishment - Services as defined by GATS art. I - 4 modes of supply - Establishment in services and non-services sectors GATS approach: - Positive listing - MA and NT commitments Regulatory provisions in key Sectors

10. External Trade 3. Liberalizing trade in services between EU and Jordan: What would not be covered? All sectors are likely to be covered with a few exceptions. All modes of supply as defined in GATS. Mode 4 = temporary movement of natural persons supplying services, i.e. professionals highly qualified Non-qualified workers, persons seeking access to employment market fall outside the scope of Mode 4 commitments The FTA applies to trade matters only. Non-trade matters are not covered (e.g.,citizenship, immigration, visas …)

11. External Trade 3. Liberalizing trade in services between EU and Jordan: Others key elements Framework for mutual recognition of qualification and professional experience Domestic Regulation: Framework for transparent and non-discriminatory rules Investment: MA and NT in Mode 3 in services and non-services sectors. NB: measures other than those deriving from MA and NT not covered

12. External Trade 4. Negotiating a Services Agreement between EU and Jordan: State of play and way forward Regional phase (2007): discussion of a regional common protocol - to ensure coherence - to enhance regional integration Bilateral phase (2008 – today): launch of bilateral negotiations with Egypt, Morocco, Tunisia, Israel With Jordan: S coping exercise to define contours of agreement

13. External Trade 4. Opening negotiations on services between EU and Jordan: What is needed? Support from industry Legal capacity Technical expertise Political will

14. External Trade Thank you for your attention More info: http://ec.europa.eu/trade