DDA:GATSDDA:GATS

Where do we stand?Where do we stand?

INTRODUCTIONINTRODUCTION Growing importance of services sector in the Growing importance of services sector in the

economies of developing countries.economies of developing countries. Technological innovation making services Technological innovation making services

increasingly tradable.increasingly tradable. Technical complexity of GATS scheduling Technical complexity of GATS scheduling

commitments.commitments. Binding or irrevocable nature of GATS commitments.Binding or irrevocable nature of GATS commitments. Need for careful assessment of the losses and gains. Need for careful assessment of the losses and gains.

Assessment of trade in services is mandated under Assessment of trade in services is mandated under Article XIX of GATS.Article XIX of GATS.

Dangers of premature liberalisation.Dangers of premature liberalisation. Incorporation of the principle of Special and Incorporation of the principle of Special and

Differential Treatment.Differential Treatment.

CHARACTERISTICS OF CHARACTERISTICS OF DEVELOPING DEVELOPING

COUNTRIES SERVICES COUNTRIES SERVICES SECTORSECTOR Lack of reliable and up-to-date statistics on Lack of reliable and up-to-date statistics on

trade in services.trade in services. Absence or weak regulatory framework.Absence or weak regulatory framework. Services industry generally at infancy stage.Services industry generally at infancy stage. Proper study/evaluation of the services Proper study/evaluation of the services

sector yet to be undertaken.sector yet to be undertaken. Services trade as one of the instruments for Services trade as one of the instruments for

achieving public policy objectives e.g. achieving public policy objectives e.g. economic empowerment.economic empowerment.

Dilemma that Governments are providers Dilemma that Governments are providers and regulators of services trade.and regulators of services trade.

SECTORS IDENTIFIED BY SECTORS IDENTIFIED BY UNCTAD AS HAVING UNCTAD AS HAVING

POTENTIAL FOR POTENTIAL FOR GROWTHGROWTH

TourismTourism Construction ServicesConstruction Services Environmental ServicesEnvironmental Services Health ServicesHealth Services

PROBLEMS FACED BY PROBLEMS FACED BY DEVELOPING DEVELOPING

COUNTRIES IN GATS COUNTRIES IN GATS NEGOTIATIONSNEGOTIATIONS Weak negotiating capacity.Weak negotiating capacity.

Lack of expertise in preparing scheduling Lack of expertise in preparing scheduling commitments.commitments.

Supply side constraints.Supply side constraints. Failure by major trading partners to grant Failure by major trading partners to grant

requests on modes and sectors of export requests on modes and sectors of export interest to developing countries e.g. Mode interest to developing countries e.g. Mode 4.4.

Lack of clarity on whether there is much to Lack of clarity on whether there is much to gain from further liberalisation.gain from further liberalisation.

Pressure to liberalise.Pressure to liberalise.

CONCLUSION AND WAY CONCLUSION AND WAY FORWARDFORWARD

Ensure the negotiations take into Ensure the negotiations take into account the special needs, priorities account the special needs, priorities and circumstances of each country.and circumstances of each country.

Assess the costs and benefits of GATS Assess the costs and benefits of GATS liberalisation and ensure disciplines liberalisation and ensure disciplines on Special and Differential Treatment, on Special and Differential Treatment, and disciplines on Emergency and disciplines on Emergency Safeguard Mechanisms (ESM), Safeguard Mechanisms (ESM), Domestic Regulation and Subsidies. Domestic Regulation and Subsidies.

CONCLUSION AND WAY CONCLUSION AND WAY FORWARD FORWARD (cont)(cont)

Open fewer sectors, liberalise fewer Open fewer sectors, liberalise fewer types of transactions, progressively types of transactions, progressively extend market access and attach extend market access and attach conditions and limitations to market conditions and limitations to market access commitments.access commitments.

Push for substantive offers (with Push for substantive offers (with commercial value) from the major commercial value) from the major trading partners, particularly with trading partners, particularly with respect to Mode 4.respect to Mode 4.

CONCLUSION AND WAY CONCLUSION AND WAY FORWARD FORWARD (cont)(cont)

Avoid compromising autonomous Avoid compromising autonomous liberalisation over GATS liberalisation.liberalisation over GATS liberalisation.

Take measures to build domestic Take measures to build domestic capacity and to ensure that GATS is capacity and to ensure that GATS is pro-development.pro-development.

Take full advantage of existing Take full advantage of existing regional trade arrangements; with regional trade arrangements; with particular reference to mechanisms particular reference to mechanisms for facilitating Mode 4 liberalisationfor facilitating Mode 4 liberalisation

CONCLUSION AND WAY CONCLUSION AND WAY FORWARD FORWARD (cont)(cont)

Aim to achieve GATS Article IV on Aim to achieve GATS Article IV on increasing participation of developing increasing participation of developing countries, including provision of technical countries, including provision of technical and capacity building with respect to and capacity building with respect to negotiation and analysis.negotiation and analysis.

Involve non-state actors in the national Involve non-state actors in the national debate or preparation for negotiations.debate or preparation for negotiations.

Finally, it should be noted that nothing in Finally, it should be noted that nothing in GATS or the Doha Development Agenda GATS or the Doha Development Agenda compels or binds Members to make an compels or binds Members to make an offer.offer.