Session 7: International Trade In Services WTO Commitments And Gats Rules In The Context Of The Current Financial And Economic Crisis

Moderated by Ambassador Sergio Marchi

27th September 2009 • Co-organised with European Services Forum (ESF) and Foreign Trade Association (FTA)

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          Services account for more than 50% of GDP in over 85% of WTO member countries, and account for more than 20% of global exports. The liberalization of trade in services encourages development, generates export opportunities and attracts foreign investment. Under the current financial and economic crisis, and the resulting tension over protectionism, the commitment of WTO members to trade liberalization must be assured. This session will cover the following aspects:

          The role WTO plays in the current financial crisis: boosting trade liberalization is certainly part of the solution. Fighting protectionism, implementing the scheduled commitments and reducing trade barriers in services, should be the priorities for WTO members. The heightened value of the Doha Round in the current economic downturn needs to be further stressed. Service companies need negotiations to progress as fast as possible.

          Ensuring the implementation of the scheduled commitments by WTO members; maintaining the WTO Dispute Settlement Body as the point of reference in the settlement of disputes about the correct interpretation and application of the GATS obligations and of related service commitments; and providing trade-related technical assistance in developing countries on matters of trade in services: these are just a few of the many challenges that the multilateral trading system will have to face.

          We would also like to discuss and highlight the opportunities for service companies to use WTO commitments as a tool to secure investments and strengthen competitiveness.

         Service companies attach great importance to WTO commitments and GATS rules in the current economic crisis. The WTO rules provide companies with the legal security for their investments, which is a key factor for the sustainability of their businesses.

         Service companies prefer the WTO global schedule of commitments to liberalization through regional or bilateral free trade agreements, and favour multilateral WTO GATS rules that are applied worldwide to all competitors, instead of discriminatory domestic rules or bilateral regimes that give unfair preferential market access to competitors in a global economy.

         Service companies support a multilateral WTO dispute settlement system that gives them legal security through fair and transparent interpretation and application of the agreements.