140 likes | 264 Views
Analysis of potential plurilateral negotiations in services: Which countries for an International Services Agreement? Which added value for European companies?. An International Services agreement without the EU does not make sense.
E N D
Analysis of potential plurilateral negotiations in services:Which countries for an International Services Agreement?Which added value for European companies?
An International Services agreement without the EU does not make sense If we take intra and extra EU together, EU export of services represent 42% of global export of services EU is by very far the biggest exporter of services: 24% of world export of services Services Exports in Millions $US - Source: World Bank & WTO
Plurilateral on Services – Which Countries ? Scenario 1 :Real Goods Friends of Services” (RGFS) in Geneva (15 + 1(27) = 42): Critical Mass? Australia, Canada, Chile,Colombia, European Union (27), Hong Kong, Japan, Mexico, New Zealand, Norway, Pakistan, Singapore, South Korea, Switzerland, Taiwan, and United States Services exports to the world represented 76% (US$ 2,841 billion) of global services exports. With intra-EU exports removed the percentage drops to 69%(US$ 1,957 billion).
Plurilateral on Services – Which Countries ? Scenario 2: OECD+ - GATS Article 5 = Non MFN OECD Members = 34 countries OECD Members = 34 countries, including 21 EU Members, + 3 EFTA countries, + 3 NAFTA – Others: Chile, Israel, Japan, Korea & Turkey EFTA countries = Close links with EU Single Market on Services NAFTA Countries EU: 21 out of 27
Canada Plurilateral on Services – Which Countries ? Japan Israel HK & Taiwan Mexico Vietnam Singapore & Malaysia & Brunei Peru Chile EU: (27) EFTA: (4)NAFTA:(3) TPP: NFTA + 9 = 12 OECD: 34(incl. 21 EU + 3 EFTA + NAFTA + 4 TPP + 3 (Israel, Korea & Turkey) – RGFS : + 4 Canada? Japan? Mexico?
Canada Plurilateral on Services – Which Countries ? Japan Israel Mexico Vietnam Singapore & Malaysia & Brunei Colombia Peru Chile Plurilateral Services Agreement: OECD (34) + EU (6 non OECD) + Bahrain, Brunei, Colombia, Jordan, Hong-Kong, Liechtenstein, Malaysia, Morocco,Oman, Peru, Singapore, Taiwan,UAE, Vietnam = Total= EU = 1 (27) + 28= 54 Countries Countries that are underlined represent the potential additional countries; In blue are countries that have signed an FTA with the EU or/and the US, and in mauve are those which are currently negotiating FTA with EU and/or US.
Plurilateral on Services – Coverage and Contents ? Services exports of this Group to the world represented 81% (US$ 2,976 billion) of global services exports in 2010. When intra-EU exports are removed the percentage drops to 74%(US$ 2,092 billion): Critical Mass? Content: Such an agreement might include: • Scheduling using Negative List (?) • Removal of all equity caps • Binding of current practise • Adoption of Reference paper on Telecoms • Adoption of Understanding on Financial Services • Adoption of disciplines on Accounting • Adoption of disciplines on State Own Enterprises (SOEs) • Adoption of Investment Protection principles • Increased public procurement market access
Scenario 3 : Plurilateral on MFN Basis – Participating countries to the Signalling Conference on services – July 2008 • Extract from WTO TNC Chair Report of 30th July 2008: “On Saturday, 26 July, the Conference was held among the following Members: 31 Countries, including EC= 1 (i.e. 27 + 30 = 57 countries)
Canada Participating countries to the signalling Conference on services – July 2008 Israel Mexico Colombia Peru Chile 31 countries, including EU = 1, i.e. 27 + 30 = 57
Plurilateral on Services – Which Countries ? OECD Members = 34 countries : Bulgaria, Cyprus, Latvia, Lithuania, Malta, Romania = 6 other EU countries All these 40 above listed countries have participated to the Signalling conference in July 2008 (except Israel) = 39 plus: Argentina; Bangladesh; Brazil; China; Egypt; Hong-Kong; India; Pakistan; Indonesia; Lesotho; Malaysia; Mauritius; Morocco; Philippines; Singapore; South Africa, Taiwan; Thailand; Uruguay = 58 NB: In red are the G20 emerging countries that are not OECD Members, and that might not be part of the Plurilateral in Services.
Plurilateral on Services – Coverage and Contents ? Services exports of this Group to the world represented 91% (US$ 3,385 billion) of global services exports in 2010. When intra-EU exports are removed the percentage drops to 88%(US$ 2,477 billion). Critical Mass? Content: Such an agreement might include: • Consolidation of the Multilateral trading system; • Binding under WTO Rules, MFN basis, • Consolidation of liberalisation in OECD countries • Increased market access in Emerging Countries (? – Although largely insufficient! – Argentina, Brazil, China, India, ASEAN, etc.) • Regulatory disciplines (?) • ….
KEY QUESTIONS: How to measure the “free riders” effect? • Share (%) of key emerging countries in the global services trade? (BRICS + Argentina + 6 ASEAN = +/- 16%/18%) • Share of new market obtained by a new ISA Art. 5 that will not be open to non-signatories? • Do we want to exclude Emerging countries from our markets? (FDI in EU) • Can we exclude them through our regulation and already open markets?
Importance of keeping open the initiative to Key Emerging Countries (BRICS + ASEAN, etc.) • How to make sure that the emerging countries will be able to join later? • Negative list approach? • Too high regulatory disciplines? • Disciplines on State Owned Enterprises ?
What are the legal instruments available? • Continuation of the DDA (MFN) • Annex C Honk Kong Ministerial Declaration (2005) • Article XIX GATS (MFN) • Build-in agenda – New services negotiations every 5 years • Article V GATS (Non MFN) • FTA compatible with WTO • Must have “substantial sectoral coverage” in terms of number of sectors, volume of trade and modes of supply.