UNCTAD Negotiating Trade in Services in the Post-Doha Work Programme UNCTAD Commercial Diplomacy Programme May 2002 1 UNCTAD THE BUILT-IN AGENDA ON SERVICES •The mandate of article XIX of the GATS •The GATS rules – Safeguards – Subsidies – Government Procurement 2 UNCTAD GATS 2000 - THE BEGINNING • The first stage (February 2000-March 2001) – Results of the « stocktaking » • More than 80 proposals • The second stage (April 2001-March 2002) – “Guidelines and procedures for the negotiations on trade in services” 3 UNCTAD GUIDELINES AND PROCEDURES • Within the framework of Article IV • All sectors of services are included • Request and offer approach 4 UNCTAD MAIN CHALLENGES FOR DCs • Identify interests and objectives • Preserve the «positive list» approach • Implement the SDT 5 UNCTAD SDT Provisions (Article IV) • Strengthen domestic service capacity and efficiency • Improve access to distribution channels and information networks • Liberalize market access in sectors of interest • However, Article IV does not specify the actions required to achieve these goals 6 UNCTAD IMPLEMENTING THE SDT • Identify and formulate sector-specific development needs in line with SDT • Identify key issues to include in the negotiations. • Link market access commitments to capacity-building programmes 7 UNCTAD THE REQUEST / OFFER PROCESS Timeframe (Doha Ministerial Declaration) Submission of initial requests by 30 June 2002 Submission of initial offers by 31 March 2003 Conclusion: by 1 January 2005 8 UNCTAD I. FORMULATING INITIAL REQUESTS Evaluation of Trading Opportunities to establish: • Export market value • Current barriers to trade in services 9 UNCTAD FORMULATING INITIAL REQUESTS II. Assessment of the current GATS situation: • Inclusion of sectors of export interest • Market Access and National Treatment Commitments • MFN exemptions 10 UNCTAD FORMULATING INITIAL REQUESTS III. Defining Negotiating Objectives • Including addtional sectors/subsectors • Improving Market Access and National Treatment commitments • Scheduling of addtional commitments • Removing MFN exemptions 11 UNCTAD FORMULATING INITIAL REQUESTS IV. Circulation of REQUESTS • No specified format, a simple letter will do. • Circulated bilaterally, only to relevant trading partners • Without further procedural obligations 12 UNCTAD FORMULATING INITIAL OFFERS Initial Offers are the “real start” of advanced bilateral negotiations. I. • • • • • Should reflect Trade and Developmental Interests: Promotion of FDI Infrastructural improvements Transfer of technology Reduction/elimination of domestic supply gaps Other social/economic/ national policy objectives 13 UNCTAD FORMULATING INITIAL OFFERS II. Base offers on an assessment of the totality of received requests • Offers need not address each and every specific request Offers should address the four main request areas • 14 UNCTAD FORMULATING INITIAL OFFERS III. Preparation and Circulation of initial OFFERS • Circulated multilaterally to all WTO members • Presented in the form of a draft schedule of commitments • Require considerable technical cooperation 15