The Service Industry’s Stake in Trade Liberalization:

1. The Service Industry’s Stake in Trade Liberalization: How the Coalition of Service Industries Achieves Its Trade Liberalization Objectives

2. What is CSI? • Private sector organization • Founded 1982 • Entirely funded by its members • To bring services trade into global legal framework • To educate about role of services in US economy • To LOBBY for services trade liberalization • Legislative and Executive Branches • Foreign Governments • International organizations

3. CSI Goals • Liberalize cross-border trade • Obtain rights to establish (mode 3) and national treatment • Promote best practices in domestic regulation • Improve freedom of movement of key business personnel • Improve understanding of importance of services economy • Including better statistic • Premise: liberalization is good for industry but its better good for the liberalizing country

4. CSI Negotiation Goals for Andean FTA • Seek liberalization of cross border trade and investment • Not able to commit to temporary entry or other immigration related matters • Seek substantially GATS-plus commitments • Seek cross-cutting transparency commitments

5. CSI Advisory Role to Government • Principal private sector advisor on services trade objectives • Government calls on CSI • But CSI more frequently initiates contacts • Mainly agree, but freely disagree with government • Informal • Developed over time • Based on mutual respect

6. Statutory U.S. Advisory Committees • Parallel structure of advisory committees established by law • Unique aspect of U.S. system • Services Industry Advisory Committee • Required by law to review all US trade agreements • Report to Congress • Completely independent of US government viewpoint • Separate structure from CSI • Some duplication of membership

7. CSI “Member Driven” • Any successful privately funded organization must represent its members’ interests • Policy objectives developed by working groups of members • Actions decided by same working groups • Saudi accession • Negotiating objectives for FTAs • Comprehensive CSI “Guidebook” for negotiators

8. CSI’s Global Networks • Coalition of Global Services Associations • European Services Forum, Japan Services Network, Hong Kong Coalition of Service Industries, Australia Services Roundtable, Colombia Coalition of Services, etc. • Organized mission to the WTO in March • See handouts • Global Services Network • www.globalservicesnetwork.com • Friends of Services • Financial Leaders Group • For information go to www.uscsi.org

9. Benefits of Private Stakeholder Engagement • Private sector participation has direct benefits for governments • Recognize the US has unique political culture • Many governments resist private sector role • Sets commercially valuable goals • Helps build public, political support for liberalization • It is useful to the negotiators • Provides intelligence on other negotiators’ goals • Makes negotiators accountable • For meeting their goals

10. More Players Needed [With Services Uniforms] • In most economies services dominate • Or will do so • But the voice of services is weaker • Than agriculture, or goods • Can hurt high growth services sector • All countries can benefit from services industry associations • CSI working with WTO/UNCTAD’s International Trade Center • To provide technical assistance