SADC Postal & Courier Services Sector Forum

1. SADC Postal & Courier Services Sector Forum “Recalled” - The SADC Trade in Services Protocol and the Negotiations on the Liberalization of Services in the Region Presentation by Markus Jelitto, SADC Trade in Services Advisor Swakopmund, 19 April 2013

2. Work on Trade in Services Liberalization in SADC • Work started in 2000 • Protocol Adopted by Ministers of Trade in July 2009 • Signed by Summit in August 2012, Mozambique • Negotiations on liberalization of priority sectors ongoing (2012 -2015)

3. Main objectives of the Protocol • To progressively liberalize intra-regional trade in services (eliminate substantially all discrimination between Member States) with a view to create a single market for services trade • To promote sustainable economic growth and development, to raise living standards & alleviate poverty • To enhance the capacity and competitiveness of the services sectors of State Parties • To enhance economic development, diversification, local, regional and foreign investment in the services economies of the Region.

4. Protocol on Transport, Communications and Meteorology • Provides a legal and broad policy framework for co-operation and defines the strategic goals for the Transport, Communications and Meteorology Sectors. • General Objective: Establish TCM systems which provide efficient, cost-effective and fully integrated infrastructure and operations, which best meet the needs of customers and promote economic and social development while being environmentally and economically sustainable.

5. Objectives of TCM Postal Chapter 11 (new version) • Member States shall provide efficient market related universal postal services responding to business and consumer needs that are affordable, of a good quality and meet public service requirements. Member States shall also maintain complementary and supportive relationships between their respective designated postal operators to support economic growth in the region.

6. Objectives of the two Protocols are complementary • Both Protocols promote growth and development, • Services Protocol focuses on economic openness as a tool to reach growth and development through enhanced competition • TCM Protocol deals with regulatory aspects of the sectors, quality of services provided, and technical aspects of delivery

7. The Trade in Services Protocol: …wide scope of application Includes Excludes Measures affecting air transport traffic rights Services supplied in the exercise of government authority Government Procurement • All services and suppliers in any service sector • All measures by state parties, at all government levels, affecting trade in services

8. Covers all Services Sectors:Six priority sectors during the negotiations • Business Services • Communication • Construction • Distribution • Education • Environmental Services • Health Related Services • Financial Services • Tourism • Recreation, Culture, Sports • Transport • Other Services Priority Sectors under SADC include energy-related services which are comprised of elements of business, distribution and transport services.

9. Trade in Services are defined through four modes of supply

10. Negotiations on liberalization • The Protocol calls for liberalization through schedules of commitments:

11. Classification of Communication Services SADC agreed on use of WTO classification instruments: see S/L/92, W/120, Central Product Classification (provisional) Categories of communication services • Postal Services • Courier Services • Telecommunication Services • Audiovisual • Other 11

12. Second Column: Limitations on Market Access In sectors listed in the schedule, Member States must either abolish or list the following types of measures in their schedule Numerical restrictions (quotas) on number of suppliers, value of assets or transactions, number of operations Numerical restrictions on the number of persons to be employed by an operator Joint venture requirements Legal form requirements/prohibitions Limitations on the maximum investment of foreign capital in a company 12

13. Third Column: Limitations National Treatment Member States must in principle not maintain any measures that “modify the conditions of competition in favour of own like services or service suppliers. “ (foreign services and suppliers not to be accorded less favourable treatment than local services or suppliers) Any inconsistent measures have to be listed in the schedule, such as discriminatory subsidies and other fiscal measures, Preferences given to domestic suppliers or restrictions imposed on foreign suppliers in the allotment of frequencies. Limitations on the nationality or residency of directors or board members 13

14. What the TiS Protocol does not deal with • Focus on liberalization, as set out above • Issues of harmonization, convergence, best regulatory practices are NOT the priority of the TiS Protocol • Protocol differs from other SADC Protocols (except Trade Protocol) by establishing binding rights and obligations…rather than focusing on incremental cooperation.

15. Starting Point: current GATS commitments Plus liberalization commitments offers in other configurations..

16. First Round of negotiations 1. Objective for first round of negotiations: • Each Member State will provide better treatment to SADC MS in each priority sector than is provided in their GATS schedule • No new restrictions to be introduced during the negotiations (“standstill”) 2. Negotiations started in April 2012, and are to be completed by March 2015

17. Initial Requests on Courier Services

18. Negotiations under SADC –main principles • Conducted through request - offer method • Requests exchanged before offers • Requests to one or more trading partner • To be circulated through the SADC Secretariat • Full transparency: requests to any trading partner shared with all trading partners