Doha Negotiations – perspectives from a negotiator

1. ITU-WTO Workshop on Telecom & ICT Regulation Doha Negotiations – perspectives from a negotiator Muhammad Hanafiah Bin Abdul Rashid Infocomm Development Authority of Singapore 7 Dec 2004 muhd_hanafiah@ida.gov.sg

2. Doha Negotiations • Nov 2001 – launched (with Jan 2005 as the proposed end date) • Approx 4 bilateral negotiating sessions per year • Sep 2003 - Cancun Ministerial • July 2004 – the ‘July Package’ • Dec 2005 - Hong Kong Ministerial • end date?

3. Current Situation Existing Commitments • Basic telecom services commitments – about 90 members • Telecom Reference Paper full adoption: 77 members • Computer services commitments – about 70 members • Electronic Commerce – customs duties moratorium needs to be renewed regularly • Information Technology Agreement (ITA) participants – 63 Doha Round New Offers • Services offers: about 46 new offers – most include telecom and computer services commitments

4. Issues of interest during negotiations • Classification of telecom services • Classification of computer services • Market Access Commitments • National Treatment • Additional Commitments eg Telecom Reference Paper • MFN • Electronic Commerce • Others

5. Classification issues - telecom services • W120 and CPC adequate? • Speed of technological innovation & Convergence • Services that did not exist during the creation of the W120 included? Eg 3G, Wi-max, VOIP, etc • Some parts seem outdated? Eg telegraph, telex • Some overlap with computer services • Basic vs value-added telecom services • What goes into basic? What goes into value added? • Some ideas being discussed informally: • Collapsing and simplifying W120 into fewer categories?

6. Classification issues - computer services • W120 and CPC adequate? • Speed of technological innovation & Convergence • Services that did not exist during the creation of the W120 included? Eg application hosting, data warehousing, web hosting, e-commerce hosting” • Some ideas being discussed informally: • Make commitments at 2-digit level (CPC 84)? • Clarifying the meaning of computer services at the 2-digit level?

7. Market Access Issues - Telecom • Basic Telecom Services • relatively more restrictions than Value-added Telecom Services • Value-Added Telecom Services and Resale Services • typically fewer restrictions, but fewer numbers of commitments than basic telecom commitments • Mode 1 – still many restrictions • Eg Exclusive rights, routing restrictions • Mode 3 – still many restrictions • Eg number of operators, FDI limits, type of legal entity, long phase-in periods

8. Market Access Issues – Computer Services • Given the relative openness of this sector, there are surprisingly few commitments (approx 70 commitments) • Developing countries demanding more commitments in this sector – eg India, Mercosur • Mode 1 and 4 – important to developing countries in particular • Fewer CPC 844 commitments (database services) – content concerns? • Fewer CPC 849 commitments (other) – uncertainty over its scope? • Given the speed of technological innovation in computer services, it is important to make commitments on the whole sector including CPC 849

9. National Treatment Issues • Telecom Services – limits on senior management and ownership of land • Access to land is important for facilities-based telecom operators (rights-of-way issue) • Computer Services – relatively few limitations

10. Additional Commitments Issues – Telecom Reference Paper • How to get more members to adopt the Reference Paper in full? • Only about half of WTO members have adopted it in full • Reference paper provides a guarantee to investors who need to take into account regulatory risk. • How to implement the Reference Paper? • Eg Initiatives by APEC TEL Working Group • Some ideas being discussed informally: • Clarify how to implement the Reference Paper through capacity building and info sharing efforts

11. MFN Issues • Satellite Services • MFN exemptions allow discrimination and prevent development of efficient cross-border telecommunications? • Accounting Rates • Prevent development of efficient cross-border telecommunications?

12. Electronic Commerce Issues • Customs duties on electronic transmissions • how to ensure barrier-free environment for electronic transmissions? • Treatment of products that can be digitized - eg e-music, e-books, software, digital video • How to prevent discrimination and other barriers for these products? • More liberal commitments on cross-border supply for on-line services • How to prevent barriers to Business Process Outsourcing?

13. Other issues • Information Technology Agreement (ITA) • makes computers, communication devices and other ICT equipment more affordable to users (reduce digital divide?) • Capacity Building • Multilateral – WTO, ITU BDT, ITU Regional Offices • Regional – eg APEC TEL, APT • Bilateral • NGOs

14. Developments alongside the WTO • Bilateral FTAs – supplementing the Telecom Annex and Reference Paper disciplines • Note the FTAs involving US, Singapore, Australia • Includes enhanced Telecom Annex obligations, transparency disciplines, technology-choice for operators, number portability, colocation, unbundling, resale, access to poles and ducts, leased circuits, etc • Bilateral FTAs – disciplines on electronic commerce negotiated • Permanent moratorium on customs duties on electronic transmissions • Non-discriminatory treatment of products that can be digitized • Mutual recognition arrangements (MRAs) on conformity assessment of telecom equipment – at APEC and bilaterally • Eliminates duplicative testing and certification • Faster-time-to-market and reduced testing fees

15. Questions?Thank you