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Reading and drafting a services schedule . National Seminar on Trade in Services Negotiations under SADC 31 July – 1 August 2012 Lilongwe, Malawi. Structure of a schedule. 2. First Column: How to describe service sectors?. ▪ There is no compulsory system
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Reading and drafting a services schedule National Seminar on Trade in Services Negotiations under SADC 31 July – 1 August 2012 Lilongwe, Malawi
First Column: How to describe service sectors? ▪ There is no compulsory system However, according to Scheduling Guidelines (S/L/92), (a) schedules “require the greatest possible degree of clarity” (b) “in general, the classification ... should be based on the Secretariat’s Services Sectoral Classification List” ▪ Reference instruments: - Services Sectoral Classification List (W/120) - UN Central Product Classification List (CPC) 3
SchedulingProblems: Sectorcolumn • No clearspecification of sectorcoverage • Mismatchbetweensectorname and CPC number • Inconsistenciesbetweensectoral and horizontal entries • Non-exclusion of public sector segments, where • necessary (e.g. health and education) 4
Basic Obligation (1): Where commitments are undertaken, each schedule shall specify: limitations on market access and national treatment“ (para 21 NG) Note: Focus is on measures limiting market access rather than on implementation mechanisms (e.g. licensing requirements) or relevant laws and regulations. 8
How policy intentions translate into specific commitments Current restriction in Sector A: Foreign equity ceiling of 49%
Horizontal commitments Apply to trade in services in all scheduled sectors unless otherwise specified; Aims at avoiding repetition Takes the form of a limitation (M1-3) or of a positive undertaking (M4) 11
SCHEDULING PROBLEMS (II) Inscription of • Laws and regulationsratherthanmeasures • Minimum requirementsratherthanceilings (MA) • Unspecifiedlicensing and authorizationrequirements 14
SCHEDULING PROBLEMS (III) Inscription of • Measures falling under Article VI (DOMESTIC REG) • Departures from general obligations (Part II), including • MFN-inconsistent measures (reciprocity etc.) • Foreign exchange restrictions • Measures covered by GENERAL EXEMPTIONS 15
Case A. 16
Case E. 17
Measures/policies not affected by Specific Commitments Non-discriminatorydomestic regulation (standards, licensing requirements, etc.) Government procurement (exempt from MFN, MA & NT) Non-discriminatorysubsidies Non-discriminatory measures promoting or restricting exports Requirement of a visa etc. Barriers not associated with Government measures (e.g. private decisions or natural resource limitations (non-availability of space, etc.)) 20
Distribution of by services sectors *Red bars denote SADC priority sectors