WHO ESF DOES REPRESENT? 30 European services companies, most of them major multinational companies

1. «  The voice of the European Service Industries for International Trade Negotiations in Services » International Seminar on 'Integration processes between the European Union and Latin America: Chronicles of a death foretold?' Brussels, 18 June 2009 Roundtable Debate on the “Crisis of the bi-regional negotiation between the EU and the Latin American sub-regions: Andean countries, Mercosur, Central America, Caribbean community” “The impact on the business advocacy"  Pascal Kerneis - Managing Director ESF (European Services Forum)

2. WHO ESF DOES REPRESENT? • 30 European services companies, most of them major multinational companies • (represented at CEO or Chairman level in the European Services Leaders Group – ESLG) • 37 European trade federations of various services sectors (e.g. banking, insurance, telecommunications, express, architects, engineers, accountants, shipping, tourism, etc.)

3. Insurance Banking Business services: IT & Computer; consulting, advertising, after-sales services, News Agencies Professional services: Legal services, Accountants, Architects, Engineers, etc. Construction services Distribution services ESF Membership covers a large range of services sectors: • Postal & Express Delivery services • Audio-visual services • Energy related services • Environmental services • Telecommunication services • Tourism • Air Transport • Maritime Transport • But no members in Education or Health services For more information, see www.esf.be

4. BARCLAYS BANK BT (British Telecom) CLIFFORD CHANCE COMMERZBANK DEUTSCHE BANK DHL FRANCE TELECOM GOLDMAN SACHS IBM EUROPE LLOYD’S PRICEWATERHOUSE- COOPERS ROYAL AHOLD NV SIEMENS AG STANDARD CHARTERED BANK TELEFONICA THOMSON REUTERS TNT TUI VEOLIA ENVIRONMENT ESF MEMBERS INCLUDE: For more information, see www.esf.be

5. « The voice of the European Service Industries for International Trade Negotiations in Services» ESF MEMBERS INCLUDE: For more information, see www.esf.be

6. Hierarchy of European Business Interestsin Trade Negotiations: • What EU companies want: • WTO DDA • Regional Trade Agreements (with Integrated Markets) • Bilateral Agreements • Autonomous Liberalisation… BUT • =>What is happening in the reality: • Autonomous Liberalisation • FTAs • RTAs • WTO ?? !!!

7. Pro’s & Con’s of Regional Trade Agreement: + Stronger Regional Integration : To improve the efficiency of services and of investments & to create economies of scale in the Region…A larger market is a more attractive market. (remember the figures of the EU internal trade! 57%) + Investment in Infrastructure services for the benefit of the whole region: Construction of roads, rails, harbours, etc.; Telecommunication network, Financial Services, Express courier, maritime transport, IT, Environmental Services, etc. +In some services sectors, Companies can operate a Hub in one country to provide services in the whole region. - Risk of slowing down the ambitions to the lowest level standard of the region - Risk of slowing down the process at the speed of the least interested country in the region

8. ESF does not consider that there is a “crisis” between the various country settings of the Latin America and the EU. • We are in fact more and more inclined to support the bilateral approach instead of the Regional approach. • We recognise the value of the Regional Trade negotiations, when the interlocutor of the EU Region is an effective integrated region. • The CARIFORUM is the only proper region in the world that can be compared to the EU, although it is only at the beginning. Cariforum is not only a Custom Union, but the protocol on services is now entering into force and there is a strong commitments from the governments of the region to work towards further integration of the services markets that represent +70% of the Region GDP.

9. MERCOSUR is not a proper region, as far as services are concerned, since the protocol on services has not yet been ratified by all countries. • Andean Community: We know the crisis in which they are, with Venezuela wanting to join the Mercosur, and Bolivia blocking any integration progress in the region. • The Central American Community is only a Custom Region. There is nothing yet on services.  In any case, for the services negotiations, even with Cariforum, even within the EU Schedule of Commitments, when it is incorporated in one single document, the negotiations are made on a bilateral basis, country by country.

10. We therefore welcome the fact that the EU has decided to go on a bilateral basis with the Andean Countries that are willing to negotiate with the EU (Bolivia, Ecuador and Peru). • EU-MERCOSUR negotiations are blocked because of the necessary decision on the fate of agriculture in the DDA. • ESF has welcomed the Full European Partnership Agreement that the EU has signed with the CARIFORUM. The Chapter on Services and Investment is the first of the new generation and the first agreement signed on services since EU-Chile in 2003. • Central American countries should engage further in the services negotiations with the EU to make the Association Agreement a success. Panama should join the negotiations as soon as possible. • BUT, ESF must remind the Commission and World negotiators that the priority remains a rapid conclusion of the DDA WTO Round

11. Latin and Central American Countries that tabled a GATS DDA Offer: • Central America • Costa-Rica (init.) • El Salvador (init.) • Guatemala (init.) • Honduras (Init & Rev) • Nicaragua (init.) • Panama (init.) • Mercosur • Argentina (Initial & Revised) • Brazil (Init. & Rev.) • Paraguay (Init.) • Uruguay (Init.) • Andean Community • Bolivia (init. & Rev, but withdrawn) • Columbia (init. & Rev.) • Peru (init. & Rev) • Other Latin Countries • Chile (init. & Rev.) • Surinam (Init. & Rev.) • Cuba (init.) • Cariforum (10 initial offers) - Dominican Republic • Barbados - Guyana - St. Lucia • Dominica; - Jamaica - St Vincent & Grenadine • Grenada; - St. Chris & Nevis - Trinidad & Tobago

12. Latin and Central American Countries that tabled a GATS DDA Offer: • We have therefore a rather strong interest from the whole region in the Services negotiations, with 26 initial offers (out of a total of 31 countries). • All Mercosur and Central American countries have done so. • The 5 countries that have not tabled any offer so far are: • Bolivia, Venezuela (Andean Community) • Antigua & Bermuda; Bahamas; Belize; Haiti (Cariforum) • i.e. only a small reminding share of the services market

13. ESF INTERESTS IN THE CURRENT ON-GOING FTA NEGOTIATIONS IN THE REGION • EU-Columbia: we must reached parity with the US-Columbia FTA in the various services sectors, plus some adds, like maritime transports, public procurement. • EU-Peru, Idem • EU-Ecuador: we encourage them to join the level of their neighbours. But is seems to be more difficult • EU-Central American countries: Idem, i.e. to reach parity with US-CAFTA-DR. Progress in the overall FTA seems to go well, but there are not yet really engaged in the services negotiations. ESF will resist any early deal without substantial package on services.

14. THANK YOU FOR YOUR ATTENTION! Pascal KERNEIS Managing Director European Services Forum – ESF 168, Avenue de Cortenbergh B – 1000 – BRUSSELS Tel: + 32 2 230 75 14 Fax: + 32 2 320 61 68 Email: esf@esf.be • Website: www.esf.be