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SADC negotiations on trade in tourism services

SADC negotiations on trade in tourism services. Workshop for 22 nd TNF Services Johannesburg 5 August 2014. Outline. State of play in negotiations Classification issues Summary of requests and offers Issues related to Tourism Protocol Issues arising from sector study

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SADC negotiations on trade in tourism services

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  1. SADC negotiations on trade in tourism services Workshop for 22nd TNF Services Johannesburg 5 August 2014

  2. Outline • State of play in negotiations • Classification issues • Summary of requests and offers • Issues related to Tourism Protocol • Issues arising from sector study • How will the negotiations make a difference to regional trade • Decisions required • Key questions for breakout groups

  3. State of negotiations • Some negotiating experience • SADC Protocol on Tourism Development • MS have negotiate Tourism as one of six priority sectors • 7 requests and 9/10 offers so far • All except 2 MS have GATS commitment in Tourism • Negotiated at COMESA and EAC (very likely under EPA)

  4. Classification • 3 main categories (W/120) • Hotel and restaurant services • Hotel and lodging services • Food serving services • Beverage services for consumption on premises • Travel Agencies and Tour Operators • Tour Guide services • Challenges: • limited in scope e.g. entertainment services, computer reservation, car rentals are place elsewhere in W/120 • Tourism and travel related Vs Recreation, Cultural and Sporting services • Complicates the negotiations and limit measuring trade in tourism services

  5. Classification: CPC Prov. 2

  6. Requests and Offers: Summary • Requests • 7 MS made requests and all MS received at least a request • Most of the requests are not in tourism services (e.g. Vehicle insurance, transport standards, visa and permits) • specific requests in mode 4 tourism personnel • Offers • 9 offers so far all covering hotel and restaurant services and travel agencies and tour operators and 7/9 cover tour guide services and 2 incl. other services • Mode 3 limitation: • Foreign Vs total number of employees • ENT and prioritization of type of investment • % of foreign capital • Training plans

  7. Offers in Tourism and Travel related Services

  8. Issues related to Tourism Development Protocol • Provides for: • harmonisation of policies and regulatory frameworks in area such as immigration, training and education, • Tourism services standards (incl. transport, communication and tourism facilities) • Uses endeavour language & much dependent on implementation of other sectoral protocols • Does not provide for: • transparent regulation, • prevention of anti-competitive practices and • mutual recognition Considered in the Proposed GATS Annex on Tourism Services

  9. Issues from Sector Study • Liberal regimes in most MS confirming the liberal GATS commitments • A few MS regimes are inconsistent with GATS in Tourism • Barriers identified are cross-cutting • bureaucracy and delays in visa issuance; • delays and red-tape in work and residency permits; • restrictions on capital movement and real estate acquisition; • Residency & nationality of management team/board of directors; • Discretionary powers in licensing and local empowerment policies • Thus room for improvement in GATS commitment

  10. How will the negotiations make a difference to regional trade? • PTD :involvement of the local community and prioritise investment in the sustainable development • natural and cultural resources transcending territorial boundaries. • Trade in Services Protocol: liberalisation commitments • attracting intra-regional investments and legal certainties to the existing liberal tourism and investment regimes of MS • Easier said than done

  11. Decisions Required: Group work • How to approach negotiations and achieve meaningful commitments in tourism services ? • Which classification CPC Prov. 1 or CPC Prov. 2? • How will MS capture tourism trade barrier in MS cross-cutting measures? • Does the Proposed Annex on tourism services make sense for SADC trade liberalization in tourism services? • To what extend does the offers so far address the MS requests?

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