Bridges Weekly Trade News Digest • Volume 7 • Number 34 • 15th October 2003

GATS: Discussions Continue Without A Finish Line On The Horizon


Two special (negotiating) sessions of the WTO Council for Trade in Services (CTS) were held on 6 October and 9 October, prior to a Heads of Delegation (HOD) meeting called by General Council Chair Carlos Perez del Castillo on the general process forward after the collapse of trade talks at a ministerial meeting in Cancun in September. Since Cancun, all negotiating sessions apart from those of the CTS have been suspended. According to a trade diplomat, the current CTS meetings "lacked luster," and basically covered routine items — the 9 October meeting mainly focussed on a report by the OECD on the Assessment of Trade in Services. The major concern delegates expressed was related to a lack of clarity as to how negotiations should proceed. The HOD meeting reconfirmed that the regular CTS would meet as planned in December. No decision was taken on potential future negotiating sessions in the services area, as the HOD focussed on the most contentious issues in the trade round, such as agriculture.

Developments in the request-offer phase

In the services negotiations, Members are currently engaged in a request-offer phase for further market opening. While the original deadline for Members’ submissions of initial offers in the services area was set for 31 March 2003, few countries submitted their offers within that timeframe. The offers received were mainly from developed countries, and a few other offers trickled in after the deadline (see Bridges WEEKLY, 2 April 2003, http://www.ictsd.org/weekly/03-04- 02/story2.htm).

India, however, recently announced it was preparing to submit its initial offer. The Indian Commerce Ministry had finalised its internal consultations on an initial offers list, which was currently being vetted by India’s WTO office and is expected to be submitted soon. According to sources, India is submitting offers in most areas except accountancy, legal services, post and courier services, retail and wholesale trading and franchising activities. Areas where offers are being made include communication, environment, health, education, recreation, culture, sports, business and tourism. One observer felt that this move by India might be seen as strategic, aimed to fend off suggestions that India, with the Group of 20 developing countries, stalled the Doha Round by refusing to move in Cancun. Submitting the services offer could, in that case, indicate that India is committed to moving ahead in the overall negotiations.

The next meeting of the CTS is scheduled for 1-4 December.

ICTSD reporting; "India Readies Services List For WTO Talks," FINANCIAL EXPRESS, 12 October 2003.