Islamic Development Bank

Multilateral Negotiations on Trade in Services

Introduction to the GATSDaniel C. Crosby - Casablanca, 15 June 2009

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OUTLINE

• Evolution du commerce des services

• Les fondamentaux du commerce des services

• AGCS

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Services Evolution

• The beginning – simple « self-service »

• Services as « public goods »• Vertical integration• Fee for private services• Services competition

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Uruguay Round

• Package of tradable interests• Goods (+ beyond the border)• Services • IPRs

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GATS

• Scope

• General Obligations

• Specific Commitments

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Scope

• Applies generally to all measures affecting trade in services

• Qualified exclusion of « public services »

• Air transportation « hard rights »• Definitions

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Modes of Supply

• Mode 1: sold across borders

• Mode 2: consumed abroad

• Mode 3: through foreign investment

• Mode 4: people move to supply service

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General Obligations

• Most-Favored Nation

• Transparency

• Development

• FTAs

• Domestic Regulation

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Most-Favored Nation

• « General obligation » applies generally

• Immediate and « unconditional » application

• Subject to conditions - Annex on MFN Exemptions

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Transparency

• Publication of all measures

• Notify to WTO Council for Trade in Services

• Enquiry point

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GATS & Development

(a) the strengthening of their domestic services capacity and its efficiency and competitiveness, inter alia through access to technology on a commercial basis;

(b) the improvement of their access to distribution channels and information networks; and

  (c) the liberalization of market access in sectors and modes of supply of export interest to them.

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Economic Integration

• Part of comprehensive economic integration

• Stand-alone / services-only PTA

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Domestic Regulation

• General obligation « where specific commitments are undertaken »

• « reasonable, objective and impartial manner »

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Domestic Regulation

• Domestic review tribunals

• Information requirements

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Domestic Regulation

• Development of additional disciplines

• Domestic regulatory requirements: (a) based on objective and transparent criteria, such as

competence and the ability to supply the service;

  (b) not more burdensome than necessary to ensure the quality of the service;

  (c) in the case of licensing procedures, not in themselves a restriction on the supply of the service.

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Additional DR Rules

• Monopolies• Emergency safeguards• Payments & transfers• BoP• Government procurement• Subsides

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Specific Commitments

• Market access

• National treatment

• Schedules of commitments• Modification

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Specific Commitments

• Market access schedules

• Limitations• Horizontal• Sector-specific• « Additional commitments »

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GATS Schedules

1. Business; 2. Communication; 3. Construction and Engineering; 4. Distribution; 5. Education; 6. Environment; 7. Financial; 8. Health; 9. Tourism and Travel; 10. Recreation, Cultural, and Sporting; 11. Transport;

12. “Other”

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GATS Annexes

• Annex on Article II Exemptions• Annex on Movement of Natural Persons Supplying Services

under the Agreement• Annex on Air Transport Services• Annex on Financial Services• Second Annex on Financial Services• Annex on Negotiations on Maritime Transport Services• Annex on Telecommunications• Annex on Negotiations on Basic Telecommunications

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News rules / Interpretations

• Dispute settlement

• Negotiations• Built-in agenda• Doha Development Round

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IsDB & Morocco

MERCI

THANK YOUdaniel.crosby@budin.ch

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