Services
República Dominicana - Medidas que afectan a la importación y venta interna de cigarrillos
El 26 de noviembre de 2004 la OMC hizo público el informe del Grupo especial sobre el caso “República Dominicana - Medidas que afectan a la importación y venta interna de cigarrillos”.
Dominican Republic - Measures Affecting the Importation and Internal Sale of Cigarettes
On 8 October 2003 Honduras requested consultations with the Dominican Republic concerning certain measures affecting the importation and internal sale of cigarettes. This request is a new and expanded version of a complaint filed by Honduras on 28 August 2003 (WT/DS300/1).
China - Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products
On 10 April 2007 the United States requested consultations with China concerning: (1) certain measures that restrict trading rights with respect to imported films for theatrical release audiovisual home entertainment products (e.g. video cassettes and DVDs) sound recordings and publications (e.g. books magazines newspapers and electronic publications); and (2) certain measures that restrict market access for or discriminate against foreign suppliers of distribution services for publications and foreign suppliers of audiovisual services (including distribution services) for audiovisual home entertainment products.
Estados Unidos - Medidas que afectan al suministro transfronterizo de servicios de juegos de azar y apuestas
El 10 de noviembre de 2004 la OMC hizo público el informe del Grupo especial sobre el caso “Estados Unidos - Medidas que afectan al suministro transfronterizo de servicios de juegos de azar y apuestas”.
China - Certain Measures Affecting Electronic Payment Services
On 15 September 2010 the United States requested consultations with China with respect to “certain restrictions and requirements maintained by China pertaining to electronic payment services for payment card transactions and the suppliers of those services”.
Canada - Certaines mesures affectant l’industrie automobile
Le 11 février 2000 l’OMC a publié le rapport du Groupe spécial dans l’affaire “Canada - Certaines mesures affectant l’industrie automobile”.
México - Medidas que afectan a los servicios de telecomunicaciones
El 02 de abril de 2004 la OMC hizo público el informe del Grupo especial sobre el caso “México - Medidas que afectan a los servicios de telecomunicaciones”.
Chine - Mesures affectant les droits de commercialisation et les services de distribution pour certaines publications et certains produits de divertissement audiovisuels
Le 21 décembre 2009 l’Organe d’appel a publié son rapport concernant une plainte déposée par les Etats-Unis dans l’affaire “Chine — Mesures affectant les droits de commercialisation et les services de distribution pour certaines publications et certains produits de divertissement audiovisuels” (DS363).
Financial Services and the WTO
This paper analyses the results of the financial services negotiations under the General Agreement on Trade in Services (GATS) at the World Trade Organization (WTO). It shows that the negotiations have contributed to more stable and transparent policy regimes in many developing and transition countries. The wide range of market access and non-discrimination commitments should advance the process of progressive liberalization. The commitments do not compromise the ability of countries to pursue sound macroeconomic and regulatory policies. However other aspects of the outcome do raise some concerns. First there has been less emphasis on the introduction of competition through allowing new entry than on allowing (or maintaining) foreign equity participation and protecting the position of incumbents. Secondly even where immediate introduction of competition was not deemed feasible not much advantage has been taken of the GATS to lend credibility to liberalization programmes by precommitting to future market access.
The Contribution of Services Trade Policies to Connectivity in the Context of Aid for Trade
This paper examines how services trade and policies contribute to connectivity. It highlights the economic relevance of services and identifies some key channels through which trade in services contributes to physical and digital connectivity. The paper examines the impact of services trade policies on connectivity in view of recent research showing their impact on sectoral performance economic welfare and development. Finally it discusses the positive contribution that aid for trade can make in support of services policies.
Determining "Likeness" under the GATS
The concept of "like services and service suppliers" used in the General Agreement on Trade in Services (GATS) is still very much uncharted territory. The few dispute cases involving national treatment and most-favoured-nation treatment claims under the GATS are vague concerning the criteria which should be used to establish "likeness". Discussions among WTO Members on this subject have remained limited and inconclusive. Perhaps the only point on which everybody agrees is that a determination of "likeness" under the GATS gives rise to a wider range of questions – and uncertainties – than under the GATT. The intangibility of services the difficulty to draw a line between product and production the existence of four modes of supply the combined reference to like services and like service suppliers and the lack of a detailed nomenclature are some of the factors which complicate the task of establishing "likeness" in services trade. This contribution focuses on the concept of “likeness” in the context of the national treatment obligation (Article XVII of the GATS). It discusses the possible implications of the combined reference to “like services and service suppliers” as well as the relevance and role of the modes of supply in determining “likeness”. It also examines whether the criteria developed by GATT case-law (physical properties classification end-use and consumer tastes) can be mechanically transposed to services trade and how far they may contribute to establishing “likeness” under the GATS. It then discusses whether other parameters such as the regulatory context or an “aim and effect” type approach could be relevant.
Export Policies and the General Agreement on Trade in Services
Compared to its counterpart in merchandise trade the General Agreement on Tariffs and Trade (GATT) of 1947 the General Agreement on Trade in Services (GATS) contains a variety of conceptual innovations. In addition to cross-border supply the Agreement covers three additional types of transactions i.e. the supply of services via consumer movements abroad as well as the presence of foreign firms and foreign service professionals in the respective markets. At the same time the GATS accommodates a range of measures including the use of quantitative restrictions and discriminatory taxes or subsidies which are clearly constrained under the GATT. The Agreement offers particularly broad scope for various types of export-related interventions regardless of ensuing market distortions. The social and economic relevance of such measures is immediately evident. This paper seeks to provide an overview and assessment in the light of relevant GATS provisions and WTO dispute rulings.
The Impact of Mode 4 on Trade in Goods and Services
This paper estimates the impact of liberalization of temporary movements of individual service suppliers on trade in goods and services. In particular the paper looks at the impact of the so-called forth mode to provide a service on trade in services under the other three modes: cross-border service supply (Mode 1) consumption abroad (Mode 2) and commercial presence abroad (Mode 3). Estimates are obtained using a gravity model of trade augmented for a measure of temporary movements of service suppliers. Estimates of the size of a country’s Mode 4 trade in services are based on specific information regarding the number of temporary foreign workers occupied in the service sector and their estimated average earnings thus overcoming the limitations of traditional measures of Mode 4 based on remittances or compensation for employees. We find a positive and significant effect of temporary movements of service providers on merchandise trade and services trade under Mode 1 and 3. No significant relationship is found between services trade under Mode 2 and Mode 4.
Bilateralism in Services Trade
In most of the current literature the spread of regionalism in international trade relations is iscussed in terms of a rapidly rising number of preferential trade agreements (PTAs). Far less attention is given to the even more rapid proliferation of bilateral investment treaties (BITs) and their overlap with obligations assumed by WTO Members under the General Agreement on Trade in Services (GATS). About 60 per cent of world foreign investment stocks are in services and thus covered by mode 3 (commercial presence) of the GATS. A closer look reveals that BITs generally apply across a far wider range of sectors in particular in the case of LDCs and developing countries than those scheduled under the GATS. Furthermore a number of obligations enshrined in BITs go beyond their potential counterparts under the GATS. At the same time since most WTO Members have not listed relevant exemptions from the Most-Favoured-Nation (MFN) clause of the Agreement their BIT obligations are to be applied on an MFN basis. While this extension may not cause problems in many cases given generally liberal investment regimes and the focus of most treaties on protecting rather than liberalizing access inconsistencies remain between the two frameworks. Based on an assessment of relevant provisions this article discusses options on how WTO Members could proceed.
SMEs in Services Trade
Issues related to small- and medium-sized enterprises (SMEs) supplying services have been raised at earlier stages of the Doha Round in various negotiating contexts and more recently at meetings of the Council for Trade in Services. It is difficult however to find a common denominator as to whether SME-related concerns might merit attention from a trade policy perspective under the General Agreement on Trade in Services (GATS). Without proposing any priorities this paper seeks to provide an overview of issues that Members might want to address in the WTO from promoting compliance with transparency disciplines under existing provisions to advancing the liberalization and rule-making mandates of the GATS with an SME focus.
National Treatment in the GATS
This paper is concerned with three problems in the interpretation of the national treatment obligation in the General Agreement on Trade in Services (GATS). First the precise domain of Article XVII on national treatment has not been clearly delineated particularly in relation to Article XVI dealing with market access. Secondly there is a difference between the text of Article XVII and the structure of the schedules of commitments which makes it difficult to interpret the scope of the national treatment obligation even for identical services supplied through different modes. The final and most complex problem arises in establishing the definition of "like" services and "like" service suppliers. Uncertainty about the precise meaning of the national treatment obligation may undermine the key GATS objective of creating a secure predictable trading environment. Moreover the extent of liberalization implied by the commitments under GATS depends on the precise choice of interpretation.
Expect the Unexpected? LDC GATS Commitments as Internationally Credible Policy Indicators? The Example of Mali
There is a stark contrast between the ambitious investment promotion efforts of many least developed countries (LDCs) and their often minimal commitments under the General Agreement on Trade in Service (GATS). At a time of urgent need to address domestic infrastructure and investment gaps this situation cannot be a positive signal for investors (either domestic or foreign) and may be a missed opportunity to address services aspects of the Millennium Development Goals (MDGs). LDCs often lack internationally credible mechanisms for making commitments which contributes to their evident difficulty in attracting the more employment-generating types of investment that could bring greater opportunities for poverty alleviation. Considering that most LDCs under domestic laws have already opened a wide range of services sectors to foreign direct investment (FDI) there may be an opportunity to enhance the international consistency and credibility of LDC investment promotion efforts by making GATS commitments while preserving substantial "policy space" with regard to the actual status quo. While reforms to domestic regulations are undoubtedly of greater importance to attracting FDI GATS commitments including partial commitments can be used to publicize LDC investment priorities in services (such as attracting new businesses encouraging joint ventures and technology transfer etc.) and make them legally binding internationally. Offers to make new GATS commitments can further be used as "bargaining chips" in the current Doha Development Agenda (DDA) negotiations. Mali has been selected as a case study due to the fact that trade and investment policies are clearly and consistently documented.
Whether and When to Liberalize Capital Account and Financial Services
Discussions about international capital movements raise extremely important and controversial questions. Why should countries open up their capital accounts especially considering that unrestricted international capital movement is a relatively new phenomenon? For example many OECD countries have not eliminated their foreign exchange restrictions only until the 1980's. If the answer is unequivocally affirmative does it matter how fast should countries do so? Should they wait until "all essential pieces" of the policy package are in place before they eliminate all restrictions? How are international capital movements related to domestic financial sectors? Is there a difference between opening to competition an industry such as car manufacturing as compared to the banking sector? Should the opening of the banking sector be governed by different rules? Rules about foreign exchange restrictions are already in place in the IMF Articles. Until recently the IMF Articles only called for the elimination of foreign exchange restrictions on the current account. The ongoing discussion and the controversy about globalization that calls for the capital account liberalization introduces therefore a relatively new element into the whole discussion. These questions have also implications for the World Trade Organization. It is well known that the Uruguay Round Agreements have already provided a coverage for a number of aspects that are directly related to foreign investment. Rules established elsewhere such as in the context of changes to the IMF Articles will obviously have an important bearing for the implementation of rules agreed in the Uruguay Round. This raises a variety of other questions in the mind of some observers. Who should decide about the rules on capital account liberalization? What rules? IMF? What is the role of the WTO? How does one link the two? All of the questions raised above are clearly extremely important and most of them are discussed in the following paper by John Williamson. Mr. Williamson's presentation is based on his lecture and discussion which was delivered on 17 June 1999 at the WTO. The actual text that follows is a transcript of that lecture.
Is There Reciprocity in Preferential Trade Agreements on Services?
Are market access commitments on services in Preferential Trade Agreements (PTAs) reciprocal or simply unilateral? If reciprocal do concessions granted in services depend on concessions received from the trading partner in other services or in non-services areas as well? In this paper we investigate the presence of reciprocity in bilateral services agreements by sub-sector mode of supply and type of agreement (North-North South-North South-South). To do so we use a database of concessions given and received by 36 WTO Members in 40 services PTAs. Results reveal the presence of reciprocity at the product (sub-sector) level and across economic sectors (i.e. preferences in services trade in exchange for preferences received in goods trade). Reciprocity is stronger in agreements between developed countries. The findings provide insights into motivations for services PTAs but also the multilateral negotiations. Indeed the negotiation of services PTAs provides an incentive to withhold services offers in the Doha Round in order to extract more - reciprocal- concessions at a bilateral level. The existence of reciprocity on a sectoral basis may also hold lessons on optimal ways to improve the multilateral negotiating process.
Services Rules in Regional Trade Agreements
The study tries first to assess the extent of similarities and divergences among services rules in regional trade agreements as compared to the GATS. To do so it uses a typology identifying variations in 48 key provisions structured under seven themes commonly found in RTAs and using the GATS as a benchmark. The analysis identifies two main “families” of agreements GATSinspired and NAFTA-inspired) and a residual category. The paper briefly explores the historical development that led to these families as well as their geographical spread both on an agreement by agreement basis and a country by country basis. The paper then analyses by theme the variations found in the RTAs among services rules including their novelty as compared to the GATS. Given the lack of available information on the implementation of the agreements the paper tries to assess whenever possible the magnitude of the discrepancies and their practical impacts. While subject to some qualifications the results of the study are relatively straight forward: there is no "spaghetti bowl" in services rules but just two "families" and one residual category. The details reveal that the degree of divergence between those two families does not overall seem insurmountable. This assessment concords with other studies (e.g. Marchetti Roy) that have equated them in terms of national treatment and market access and have compared directly commitments undertaken under the three families of agreements. One may even note a certain tendency to a convergence towards the GATS model (e.g. the addition of market access clause in the second generation of NAFTA-like agreements or the use of GATS-type architecture by EU for agreements else than pre-adhesion ones). In terms of "novelty" the results prove somewhat disappointing except in certain areas like mode 4 and transparency. Other issues in which in view of the intensity of WTO DDA debates one would have expected a lot of bilateral creativity such as domestic regulation safeguards and recognition provisions show themselves to be surprisingly embryonic. Finally anecdotal evidence gathered for instance during the drafting by the WTO Secretariat of Trade Policies Reviews and factual presentations on RTAs suggest that in numerous instances provisions relating to future negotiations or even regular meetings are not implemented thereby casting doubt on the effective impact of RTA provisions (including diverging ones) on trade realities.