2004Mar ServicesWorkshop Session3Tuerk

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Information about 2004Mar ServicesWorkshop Session3Tuerk

Published on January 24, 2008

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Rebalance and Recourse: Establishing a Rules Framework in GATS :  Rebalance and Recourse: Establishing a Rules Framework in GATS Elisabeth.Tuerk@unctad.org, UNCTAD, Trade Negotiations & Commercial Diplomacy South Center Services Workshop 20-27 March 2006 Overview of Presentation:  Overview of Presentation Market Access & Rules Subsidies, Government Procurement, Emergency Safeguards Mechanism trade in goods, negotiating mandate in services, state of play, Hong Kong language, LDC issues; Special Focus on ESM Market Access & Rules:  Market Access & Rules Three areas of “Rules Negotiations”: their main rationale; their main demandeurs; their relationship amongst each other & to market access (e.g. systemically, time-wise & as regards focus of negotiations); Hong Kong: “Members must intensify their efforts to conclude the negotiations on rule-making under GATS Articles X, XIII, and XV in accordance with their respective mandates and timelines”; What does all this mean for LDCs? Subsidies: GATS Art. XV:  Subsidies: GATS Art. XV Goods: Ag. Subsidies & Countervailing M. Services: GATS & the two prong approach: discriminatory subsidies: Art. XVII; subsidies w. dist. effect on s. trade: Art. XV; Art. XV, a mandate for negotiations: “Members shall enter into negotiations with a view to developing the necessary disciplines to avoid… trade distortive effects…”; such negotiations shall recognize: role of subsidies re development programs & DCs’ need for flexibility. Subsidies :  Subsidies Art. XV information exchange for negotiations; meanwhile: special consultation procedure. Current state of play: information exchange & definition of subsidies; Issues for consideration: help for LDCs to compete on equal playing field? impact for centrally planned economies? carve out: subsidies for building competitiveness & social & dev objectives. Subsidies:  Subsidies Hong Kong Language: “On subsidies, Members should intensify their efforts to expedite and fulfil the information exchange required for the purpose of such negotiations, and should engage in more focused discussions on proposals by Members, including the development of a possible working definition of subsidies in services.” Government Procurement: GATS Art. XIII :  Government Procurement: GATS Art. XIII WTO: Plurilateral Ag., goods & some services; GATS: Art. XIII: MFN, NAT, MAAC shall not apply to GP related laws; GP: purchase for governmental purpose & not with a view to commercial resale or to use in supply of s. for commercial sale; Negotiating Mandate: “There shall be multilateral negotiations on GP in services under this Agreement… “; question on mandate. Government Procurement:  Government Procurement Current state of play: EC proposal for scheduling MA commitments in GP; narrower focus on procedural disciplines (to ensure effective operation of market); Issues for consideration: importance of GP policies / flexibilities for development; market access character & linkages to broader GP agenda; flexibilities for LDCs. Government Procurement :  Government Procurement Hong Kong: On government procurement, Members should engage in more focused discussions and in this context put greater emphasis on proposals by Members, in accordance with Article XIII of the GATS. « Emergency Safeguard Measures: GATS Art. X :  Emergency Safeguard Measures: GATS Art. X Goods: Agreement on Safeguards; Services: GATS: Art X Negotiating Mandate: “There shall be multilateral negations on the question of EMS measures, based on principle of non-discrimination…” Disagreement: over mandate; over questions of feasibility (technical, e.g. Modes) & desirability; many missed time-lines. ESM, Reasons: Economic & Political Ones :  ESM, Reasons: Economic & Political Ones ESM could serve as a “safety belt”; Real world is not like classical economic theory: adjustment costs need to be addressed; those who lose out need to be brought on board; need for a breathing space to build capacities; DCs frequently lack the regulatory / institutional framework (e.g. competition law etc.) to address these issues in a GATS consistent manner. ESM, Reasons: Economic & Political Ones:  ESM, Reasons: Economic & Political Ones Safety belt is even more valid in “services”, where liberalization: is a novel phenomenon; involves complex regulatory issues; makes it difficult to foresee the economic, social & developmental results of changes; & directly touches upon the regulatory prerogatives of governments. ESM, State of Play :  ESM, State of Play ASEAN proposal using the goods model: increase in supply of a particular service by foreign suppliers; injury: suffered by the domestic industry & result of the increase in supply; emergency element & unforeseen developments. Key consideration for LDCs: safety net for liberalization commitments; particularly, given state of regulatory frameworks in LDCs. ESM, Hong Kong :  ESM, Hong Kong “Members should engage in more focused discussions in connection with the technical and procedural questions relating to the operation and application of any possible emergency safeguard measures in services.” Thank you for your attention!:  Thank you for your attention! Elisabeth.Tuerk@unctad.org

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