Bridges Weekly Trade News Digest • Volume 6 • Number 26 • 10th July 2002

EU, Others Request Trading Partners To Open Up Services Markets

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On 4 July, the EU submitted its initial requests to 109 fellow WTO Members for improved market access in some 12 services sectors, including professional services, telecoms, postal and courier services, construction, engineering, banking, environmental services, tourism and energy. Other WTO Members, including the US (see BRIDGES Weekly, 3 July 2002), Canada, Australia, Japan, South Korea, China and India confirmed that they had also sent out their services requests. Trade delegations in Geneva further reported that they had received requests from New Zealand, Poland, Norway, Switzerland and Taiwan.

The requests mark the beginning of the market access phase of negotiations under the WTO General Agreement on Trade in Services (GATS). Members are required to submit their initial offers of improved access to their own markets for foreign service providers by 31 March 2003.

EU stresses Members’ right to regulate

According to an EU press release (see http://europa.eu.int/comm/trade/services/pr040702.htm), the European trading bloc did not make any requests to accession countries nor to members of the European Economic Area (EEA), i.e. Iceland, Liechtenstein and Norway. Acknowledging that "opening services to international competition poses a number of challenges" for developing countries, the EU stated in an executive summary of the initial requests (at http://europa.eu.int/comm/trade/services/gats_sum.htm) that its requests to developing countries were limited to fewer sectors, and focussed on "backbone" or "enabling" sectors" in the case of least-developed countries (LDCs).

Responding to several charges put forward by civil society groups regarding to the EU’s negotiating strategy (see BRIDGES Weekly, 3 July 2002, at above link), the EU further explained that its requests "do not seek to dismantle public services, nor to privatise state-owned companies." No requests were made on health or audiovisual services, with a request on "privately-funded higher education services" only made to the US, the EU said. On water services, the European bloc assured that its requests on environmental services would "not touch the issue of access to water resources" and would "in no way undermine the host governments’ ability to regulate pricing, availability and affordability of water supply".

Above all, the EU summary stressed Members’ right to regulate to achieve public policy objectives, but further demanded that governments should administer their regulations "in a reasonable, transparent and objective manner." This, said the EU, could be achieved through disciplines on domestic regulation built on Article VI of GATS or "where appropriate" through "more pro-competitive disciplines".

Other Members’ requests

According to Indian Commerce Minister Murasoli Maran, India in its services requests asked several developed countries to provide for greater market access for the movement of natural persons (mode 4).

A summary of Canada’s initial requests to over 40 Members in 12 services sectors can be found at http://strategis.ic.gc.ca/SSG/sk00139e.html. In a press release, the Canadian government said it would not make market access offers in its domestic sectors of health, public education, social services and culture.

Australia also posted a summary of its requests to 33 Members in some 17 sectors at http://www.trademinister.gov.au/releases/2002/MVT064_02.html.

"EU Tables Market Access Requests To Inject Momentum Into WTO Services Negotiations, EU PRESS RELEASE, 4 July 2002; "Services: WTO Requests For Services Liberalisation Begin; US Targets 127 Members Countries, WTO REPORTER, 5 July 2002; "EU Seeks Improved Access To Markets, FT, 5 July 2002; "Services: EU Submits Bid To WTO For More Access On Services; Denies NGO’s Secrecy Charge," INTERNATIONAL TRADE DAILY, 8 July 2002; " Deregulation Of Labour In Developed Mkts Crucial To India," DOW JONES, 2 July 2002.