Transcript DDA:GATS

DDA:GATS
Where do we stand?
INTRODUCTION
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Growing importance of services sector in the economies of
developing countries.
Technological innovation making services increasingly tradable.
Technical complexity of GATS scheduling commitments.
Binding or irrevocable nature of GATS commitments.
Need for careful assessment of the losses and gains. Assessment
of trade in services is mandated under Article XIX of GATS.
Dangers of premature liberalisation.
Incorporation of the principle of Special and Differential
Treatment.
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CHARACTERISTICS OF
DEVELOPING COUNTRIES
SERVICES SECTOR
Lack of reliable and up-to-date statistics on trade in
services.
Absence or weak regulatory framework.
Services industry generally at infancy stage.
Proper study/evaluation of the services sector yet to be
undertaken.
Services trade as one of the instruments for achieving
public policy objectives e.g. economic empowerment.
Dilemma that Governments are providers and
regulators of services trade.
SECTORS IDENTIFIED BY
UNCTAD AS HAVING
POTENTIAL FOR GROWTH
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Tourism
Construction Services
Environmental Services
Health Services
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PROBLEMS FACED BY
DEVELOPING COUNTRIES
IN GATS NEGOTIATIONS
Weak negotiating capacity.
Lack of expertise in preparing scheduling
commitments.
Supply side constraints.
Failure by major trading partners to grant requests on
modes and sectors of export interest to developing
countries e.g. Mode 4.
Lack of clarity on whether there is much to gain from
further liberalisation.
Pressure to liberalise.
CONCLUSION AND WAY
FORWARD
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Ensure the negotiations take into account the
special needs, priorities and circumstances of
each country.
Assess the costs and benefits of GATS
liberalisation and ensure disciplines on Special
and Differential Treatment, and disciplines on
Emergency Safeguard Mechanisms (ESM),
Domestic Regulation and Subsidies.
CONCLUSION AND WAY
FORWARD (cont)
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Open fewer sectors, liberalise fewer types of
transactions, progressively extend market access
and attach conditions and limitations to market
access commitments.
Push for substantive offers (with commercial
value) from the major trading partners,
particularly with respect to Mode 4.
CONCLUSION AND WAY
FORWARD (cont)
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Avoid compromising autonomous liberalisation
over GATS liberalisation.
Take measures to build domestic capacity and to
ensure that GATS is pro-development.
Take full advantage of existing regional trade
arrangements; with particular reference to
mechanisms for facilitating Mode 4 liberalisation
CONCLUSION AND WAY
FORWARD (cont)
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Aim to achieve GATS Article IV on increasing
participation of developing countries, including
provision of technical and capacity building with
respect to negotiation and analysis.
Involve non-state actors in the national debate
or preparation for negotiations.
Finally, it should be noted that nothing in GATS
or the Doha Development Agenda compels or
binds Members to make an offer.