Bridges Weekly Trade News Digest • Volume 9 • Number 3 • 2nd February 2005
EU Presents Revised Services Requests To WTO Members
In an effort to give impetus to the ongoing WTO services negotiations, the EU has moved forward in the General Agreement on Trade in Services (GATS) request and offer process by presenting a revised compilation of requests for market-opening bilaterally to 103 WTO Members. The revised requests, presented on 25 January, contain a list of the new sectors in which the EU seeks the removal of barriers to the entry and operation of its service providers.
The EU aims to raise the level of ambition Members have shown so far in the services negotiations to match that for the talks on agriculture and industrial goods. EU Trade Commissioner Peter Mandelson had indicated that the wide differences between requests for market access and actual offers are unsustainable, saying that the overall quality of offers must be improved if the negotiations are to be successfully completed.
Wide sectoral coverage, repeated commitments to sustainable development
The revised EU requests cover various GATS sectors and sub-sectors including professional services, telecommunications, postal and courier services, distribution, construction and related engineering services, financial services, environmental services, tourism, news agency services, and energy services. EU officials describe most of the sectors covered as important for the improvement of the essential infrastructure needed to generate economic development. The EU explicitly indicates that its requests "do not seek commitments that would dismantle public services," nor do they aim to "privatise state owned enterprises." The EU has said that its inclusion of environmental services reflected its desire for liberalisation to be supportive of sustainable development. The EU emphasised that it did not make requests in sectors sensitive to the public interest such as health and audiovisuals; the US was the only country to receive a request on education (for privately-funded higher education services).
In its compilation of requests, the EU reaffirmed the right to regulate as well as the need for countries to develop transparent regulatory regimes in a manner that does not hinder trade.
The EU emphasised that it had consulted with civil society actors while preparing its new requests, was committed to continuing these consultations, and welcomed any input to define its negotiating positions.
Liberalisation in poor countries
The EU said that its requests took into account the national policy objectives and developmental levels of poor countries, and thus would help facilitate the increased participation of developing countries in global services trade. The EU contends that GATS liberalisation is relevant to development, arguing that it provides an opportunity for all countries to attract stable long-term investment to improve their development-related infrastructure.
A developing country delegate reacted cautiously to the EU requests, saying "we want to see… the components in their revised offer, as well as in other fields such as agriculture, to see how deep [the EU's] level of engagement [is]."
Some special treatment for LDCs
The EU has requested least-developed countries (LDCs) to only make offers in two of five pre-selected services sectors, including: telecommunications, financial, transport, construction or environmental services. While LDCs are not obliged to make offers, the EU believes that the sectors in which it has requested market access are vital for improving LDCs’ trading capacities. Some WTO Members see in the optional approach presented by the EU a degree of flexibility in line with the modalities for LDCs approved in 2003 (see BRIDGES Weekly, 10 July 2003, http://www.ictsd.org/weekly/03-07-10/story3.htm).
Deadlines
Only about 50 countries have presented offers thus far. In December 2004, a senior WTO official said that a "huge number" of offers were still missing from the negotiations (see BRIDGES Weekly, 8 December 2004). Some of the developing countries central to the success of the round are among those that are yet to make initial offers.
The current services negotiations were originally supposed to end by 1 January 2005 as part of the Doha Round single undertaking. The July Package specifies that Members should table revised offers by May 2005.
ICTSD reporting; "Services: EU submits revised Services Offer in WTO negotiations; Mandelson calls progress slow", WTO REPORTER, 27 January 2005; "Summary if the EC’s Revised request to third countries in the services negotiations under the DDA", TRADEINFO EC, 27 January 2005; "EU puts forward revised WTO requests on services", EU BUSINESS 25 January 2005; "EU tables revised request in services negotiations under the Doha Development Agenda of the WTO", TRADE ISSUES EC, 25 January 2005.