[ Document: Trade: GATS @ WTO (Document Archive) ]
liberated: 22nd Oct 2005. From Internet
Issues
Paper for Services Group Meeting
12th
October, 2005
-
Given that equivalent level of specificity is required in the
mandate for services at Hong Kong and this is the last opportunity
for this, it is essential to work out the parameters for defining
such specificity for a balance in the market access negotiations.
There is also a recognition that two rounds of offers have not
delivered desired results. Hence, we need clear objectives as well
as certain complementary approaches to supplement the request offer
process while maintaining the GATS architecture with a view to
improving quality and coverage of offers and achieving a balance of
interests across the membership especially in the sectors and modes
of export interest to developing countries.
-
It would be useful to settle certain guiding principles which would
add to the comfort levels of the entire membership. It appears that
there is already broad consensus on some of these principles and we
could move on based on our collective understanding on them :
-
Any complementary approach must supplement and not replace the
existing request offer approach which in fact needs to be
intensified simultaneously.
-
Such approaches must preserve the basic architecture of GATS and the
flexibility it provides particularly for developing country members
including the levels of development of individual members.
-
While all members should participate, any targets that may be agreed
would not be applicable to LDC’s.
-
The focus of any such approach should be improvements from the
existing commitments. The special situation of newly acceded
countries who have taken extensive commitments at the time of their
accession to the WTO would be taken into account.
-
There is need to provide certain broad political objectives for the
negotiations. These would address the issue of quality and
coverage. Improvements in quality could be addressed through modal
qualitative parameters which need to be worked out in detail,
reduction in MFN exemptions and scheduling clarity. The extent of
prescription of such parameters would need to be determined while
balancing the issues of specificity and flexibility. Coming to
certain possible parameters, there would need to be direction on
commitments in cross border supply to cover the increasing business
opportunities and dynamic technological developments across a broad
range of sectors. Similarly, direction would be needed for Mode 3
improvements relating to enhanced foreign equity levels, removal of
economic needs tests etc. Improvements in Mode 4 commitments in
categories de-linked from commercial presence through enhanced
coverage, removal of economic needs tests, prescribing length of
stay etc needs to be specially highlighted since this would provide
incentive for the broader membership to participate more actively in
these negotiations. The issue of enhanced coverage could be met
either through suitable inclusion in such political objectives or
through the possibility of numerical targets.
-
On modal parameters, all four modes will need specific indicators to
provide right balance of interest across all members while being
mindful of the importance of Mode 4 to a large number of members for
whom this may be a good incentive to participate more actively in
the services negotiations.
-
Quantitative targets could be determined either through individual
targets for members in which case lower differential targets for
developing countries compared to developed countries would need to
be considered. Such quantitative targets could relate to
improvements in a certain number of sectors/sub-sectors from
existing commitments either through new commitments or improvements
in existing sectors/sub-sectors. The issue of maintaining the
appropriate flexibility provided under GATS and the NGP would have
to be considered while developing such numerical targets.
Alternatively, there could be some collective targets for the
membership to achieve progressively higher levels of liberalization.
In this case, the question of how to provide incentive for
individual members to contribute and how to measure and remedy any
short fall from the collective target would have to be met.
Combinations of these two could also be considered.
-
Plurilateral approaches may also be considered for allowing for
higher levels of ambition in specific sectors and modes of interest
to members which could be articulated through Model Schedules,
Checklists etc. The issue of participation of members and how to
operationalize such an approach including through possible
plurilateral requests, plurilateral meetings to address such
requests etc would have to be determined.
-
The market access that may be obtained needs to be complemented
through clear disciplines on domestic regulations to ensure it is
meaningful and effective. We would need clear direction from Hong
Kong to enable development of legal disciplines post Hong Kong for
the elements contained in Article VI:4 .This could be best achieved
through developing a list of elements without prejudice to their
final applicability horizontally or otherwise. In many areas
particularly in Mode 4, meaningful market access would require such
disciplines.
-
We would also need to consider a realistic package on the three
rules areas involving a clear direction on the continuation of work
post Hong Kong.
-
There would also need to be a suitable package on LDC modalities and
the Special and Differential treatment proposals.