1 wto and road transport –how it works –what it has achieved –what it may achieve in the...

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WTO and Road Transport

– How it works

– What it has achieved

– What it may achieve in the future

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I. How it works

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GATS commitments:- Guarantee the conditions of operation of foreign

services suppliers at a certain negotiated level of market access and national treatment

- Ensure that this level cannot be deteriorated- Make this level available as a minimum to all

WTO Members - Are subject to periodic negotiations with a view to

improve them

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“Scheduling” principles:

- Positive listing of sectors

- Negative listing of restrictions- M.A: * discriminatory and

non discriminatory measures * 6 exhaustive categories: number of

suppliers, value of transactions/assets, number of operations,number of persons, legal form,foreign capital

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Scheduling principles: (continued)

- NT: any discriminatory measure de facto or de jure

- The modes of delivery: cross-border, consumption abroad, commercial presence, temporary movement of natural persons

- The additional commitments

- The freedom to modulate

- The minimum MFN standard effect

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Sector or subsector Limitations onmarket access

Limitations onnational treatment

Additionalcommitments

11. TRANSPORTSERVICES

F. Road transportservices

b. Freighttransportation(CPC 7123)

(1)None

(2)None

(3)Maximum foreignparticipation: 40%

(4)Unbound

(1) None

(2) None

(3) None

(4) Unbound

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F. Road Transport Services a. Passenger transportationb. Freight transportationc. Rental of commercial vehicles with operatord. Maintenance and repair of road transport

equipmente. Supporting services for road transport services

7121+7122712371246112+8867

744

H. Services auxiliary to all modes of transport a. Cargo-handling servicesb. Storage and warehouse servicesc. Freight transport agency servicesd. Other

741742748749

742

11. Transport Services

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7121 Other scheduled passenger transportation(excluding railways)

7121171212712137121471219

Urban and suburban regular transportationUrban and suburban special transportationInterurban regular transportationInterurban special transportationOther scheduled passenger transportation n.e.c.

7122 Other non-scheduled passenger transportation

71221712227122371224

71229

Taxi servicesRental services of passenger cars with operatorRental services of buses and coaches withoperatorPassenger transportation by man – or animal –drawn vehiclesOther non-scheduled passenger transportationn.e.c.

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7123 Freight transportation

71231

7123271233712347123571236

71239

Transportation of frozen or refrigeratedgoodsTransportation of bulk liquids or gasesTransportation of containerized freightTransportation of furnitureMail transportationFreight transportation by man– oranimal– drawn vehiclesTransportation of other freight

7124 71240 Rental services of commercial freightvehicles with operator

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Division 74 Supporting and Auxiliary Transport Services 741 Cargo handling services

74117419

7411074190

Container handling servicesOther cargo handling services

742 Storage and warehousing services

7421

74227429

74210

7422074290

Storage services of frozen or refrigeratedgoodsBulk storage services of liquids or gasesOther storage or warehousing services

744 Supporting services for road transport

74417442

74437449

7441074420

7443074490

Bus station servicesHighway, bridge and tunnel operationservicesParking servicesOther supporting services for roadtransport

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The potential gains of GATS liberalization

(i.e. opening the sector to foreigners)

for the “offering” country:- More investment (secured through guaranteed conditions of access

for investors)

- State of the art technologies and management

- More competition

- Hence better services

- Lower prices for the consumer

- New opportunities in foreign markets

(Win-Win effect)

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– Competition for its national providers;– Disruption of the bilateral framework;– Risk of skimming off the traffic (urban

transport);– Public service considerations: network, level of

service, prices (urban transport);– Environmental considerations (road freight).

Policy choicesThe “dangers” for the offering country:

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WTO and Road transport

II. What it has achieved so far

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Countries 11.F.a. 11.F.b. 11.F.c. 11.F.d. 11.F.e. Total MFNExemption

Albania x x x x x 5 x

Australia x x 2

Austria x 1 x

Brazil x 1 x

Bulgaria x 1 x

Canada x x x x 4

Côte d'Ivoire x x x 3

Croatia x x x x 4 x

Czech Republic x 1 x

Ecuador x x x 3

Estonia x 1 x

EuropeanCommunity

x x x x 4 x

Finland x x x x 4 x

Gambia x x x x x 5 x

Georgia x x 2 x

Guinea x x x 3 x

Guyana x x x 3 x

Honduras x 1 x

Hungary x 1 x

Iceland x x x x x 5 x

Jamaica x 1 x

Japan x x 2 x

Key:

11.F.a. Passenger Transportation

11.F.b. Freight Transportation

11.F.c. Rental of Commercial

vehicles with Operator

11.F.d. Maintenance and Repair

of Road Transport Equipment

11.F.e. Supporting Services of Road

Transport Services

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Countries 11.F.a. 11.F.b. 11.F.c. 11.F.d. 11.F.e. Total MFNExemption

Kenya x x x x x 5

Korea RP x 1

Kyrgyz Republic x x x x x 5

Latvia x x x x 4 x

Lesotho x x x 3

Liechtenstein x x x 3

Mexico x x 2 x

Morocco x x 2 x

Myanmar x 1

New Zealand x x x 3

Niger x 1

Norway x x x 3 x

Philippines x x x 3

Romania x x 2 x

Slovak Republic x 1 x

Slovenia x 1 x

South Africa x x x 3 x

Sweden x x x 3 x

Switzerland x x x 3 x

Thailand x x 2 x

Turkey x x 2 x

USA x x x 3 x

Total 31 32 14 28 8 113 22

(Cont’d)

Key:

11.F.a. Passenger Transportation

11.F.b. Freight Transportation

11.F.c. Rental of Commercial

vehicles with Operator

11.F.d. Maintenance and Repair of

Road Transport Equipment

11.F.e. Supporting Services of Road

Transport Services

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– 38 MFN Exemptions

– Among which:• 22 Countries with commitments;• 16 Countries without commitments

(Bolivia, Chile, Colombia, Costa Rica, Cyprus, Egypt, Honduras, Hungary, Jordan, Peru, Poland, Sierra Leone, Switzerland, Tunisia, Turkey & Uruguay) .

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What does this mean for you?

• No guarantees on market access in 100 countries;

• 44 countries have guarantees on market access but still some restrictions are posed.

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Main types of restrictions for passenger transport:

Economic need test (taxis, limos and bus services); citizenship requirement, natural persons only or, to the contrary; incorporation required; establishment required; numerical quotas; exclusive licences by zones and routes; authorization required and not extended to foreign-registered vehicles; residency required; requirement of establishment in the country concerned to provide cabotage services; prior approval, obligation for entities established under mode 3 to use vehicles with national registration.

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Main types of restrictions for freight transport:Economic need test; foreign ownership restrictions; incorporation required; nationality of the board of directors; citizenship requirement; authorization required but not extended to foreign-registered vehicles; emergency safeguards on the number of services suppliers, of services operations and of services output, and limitations on the use of leased vehicles, requirement of establishment in the country concerned to provide cabotage services, prior approval; cargoes confined to containerized cargoes to be exported or imported; and requirement on established entities to use vehicles with national registration.

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What about Egypt?• Unlike 50 Members Egypt has no

commitments

• Egypt also has two MFN Exemptions (one general, one sectoral)

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Sector or Subsector

Description of measure indicating its inconsistency

with Article II

Countries to which the measure applies Intended duration

Conditions creating the need for the exemption

ALL SECTORS Full national treatment is extended to foreign personnel of the countries indicated in column 3

Greece

Iraq

Jordan

Libya

Qatar

Sudan

United Arab Emirates

Yemen and possibly: other countries

This measure shall be maintained as long as the agreements referred to in column 2 remain in force or are exhausted

To ensure opening of the markets in the countries referred to in column 3, as the major trading partners do not accord the Egyptian nationals satisfactory opportunities.

The supply of road transport services by foreign suppliers into and across the territory of Egypt is limited to vehicles registered in the countries indicated in column 3, with which Egypt is a party in bilateral or multilateral agreements

The Arab-League countries, and possibly: other countries

This measure shall be maintained as long as the agreements referred to in column 2 remain in force or are extended

To promote intra-Arab trade and facilitate movement of Arab citizens into Egypt as stipulated in the Arab-League Agreement

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WTO and Road transport

III. What it may achieve in the future

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• Negotiations started 1 January 2000

• 80 Negotiating proposals on the table

• 2 on Road Transportation(EU, Japan)

• 2 on Related Services (Hong Kong, Switzerland)

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The Japanese proposal is aiming at eliminating:– Restrictions on the participation of

foreign capital;

– Restrictions on the types of legal entity;

– Numerical restrictions;

– Measures that favour the providers of road transportation services of certain Members.

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The EU proposal is aimed at obtaining commitments in:– International passenger and freight transport, and rental

of commercial vehicles with operator: (Mode 2 & 3);

– Maintenance and repair of road transport equipment, supporting services for transport services:

(Mode 1, 2 & 3).

However it indicates that:– “Exemptions and/or restrictions my need to be taken

into account on a case by case basis in Mode 3 for transport of passengers and freight.”

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The Swiss proposal deals with:

– Cargo handling services (CPC 741);

– storage and warehousing services (CPC 742);

– freight transport agency services including other auxiliary transport services (CPC 748);

– other supporting and auxiliary transport services

(CPC 749).

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And has identified the following obstacles:

– Conditions for licenses;

– Discriminatory security deposit requirement;

– Preferential pricing.

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Finally, the Hong Kong, China proposal is aimed at obtaining commitments in:

(a) Freight transportation services;

(b) cargo-handling services;

(c ) storage and warehousing services;

(d) customs clearance services;

(e) transport agency services;

(f) container station and depot services;

(g) inventory management services;

(h) order processing services;

(i) production planning services;

(j) production control services.

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On 40 offers received so far...

Only four mention road transport

(three improvements, one new commitment)

No Egyptian Offer yet

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