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Why negotiate Trade in Services in SADC?

Why negotiate Trade in Services in SADC?. SADC TRADE IN SERVICES WORKSHOP 25 – 26 th JULY 2012, GABORONE. Why negotiate trade in services in SADC?. Political motivations: Recognition of importance of services as an increasingly important aspect of the economy and trade (?)

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Why negotiate Trade in Services in SADC?

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  1. Why negotiate Trade in Services in SADC? SADC TRADE IN SERVICES WORKSHOP 25 – 26th JULY 2012, GABORONE

  2. Why negotiate trade in services in SADC? • Political motivations: • Recognition of importance of services as an increasingly important aspect of the economy and trade (?) • Expression of commitment to SADC integration agenda (?) • …everyone is negotiating services regionally…(?)

  3. Why negotiate trade in services in SADC? • Economic & Strategic motivations: • Recognition that integration of services markets leads to economies of scale in the region(?) • Deeper liberalization through reciprocal liberalization at home and in the region(?) • Credibility - lock in existing openness as stability-signal to investors (?) • Achieve market opening of trading partners (?) • Enhance regulatory cooperation/comparability of regulation beyond SADC sector protocols (?) • Create more binding commitments than SADC Sector protocols typically afford(?) • Greater bargaining efficiency (with fewer participants)(?) • Learning by doing benefits (?)

  4. Can SADC Tis Protocol deliver? • Infrastructure services probably better liberalized multilaterally (“no preferences for the second-best”) • Regulatory agenda either excluded (no additional commitments) or back-loaded (mutual recognition, domestic regulation) • Questionable if reliance on request-offer process can generate enough momentum for deep liberalization

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