All over the world, service associations have focused on
domestic issues and broader WTO-related issues, if covered at all,
are lower on the agenda.
Here Doreen Conrad, Head of the Trade in Services Unit at ITC,
answers some commonly asked questions about the role of the
services sector in the WTO GATS negotiations:
Given the limited involvement of service sectors in
services trade negotiations, what type of mechanisms or
organizations can play a catalytic role to change
this?
ITC is promoting the notion of establish-ing services 'umbrella'
organizations within developing countries, like the Uganda Services
Exporters Association. They attend major WTO meetings on behalf of
all service sectors.
How can the public and private sectors in the
developing world interact to ensure the best service sector
representation?
There is a heightened awareness of the GATS and its importance
within governments in developing countries but they need assistance
to understand how to solicit input from businesses, especially if
the associations are not aware of the importance of the GATS
process. The ITC GATS Consultation Kit is an excellent place to
start for someone seeking ways to promote more effective
interaction between service organizations and their domestic
governments.
What role do TSIs play in representing the services
case, particularly for small and medium-sized (SME) service
businesses in developing and transition
economies?
SMEs generally belong to their own sector-specific association,
for example, accounting and architecture associations, and often do
not have the time or resources also to belong to a general business
association, such as a chamber of commerce. Chambers, generally
speaking, do not have huge service representation in developing
countries. There are designated WTO-related staff in some chambers
where membership is mandatory for all businesses, like in
Croatia.
Which sectors have the greatest export
potential?
ITC believes that one of the areas with the greatest potential
to increase exports of services is in the business and professional
services sector, and it works closely with them. Tourism is another
area of increasing opportunity.
The GATS timetable-still time to
contribute
The Doha negotiations confirmed the GATS timetable.
Key landmarks and deadlines are as follows:
1 January 2005: Deadline to conclude
GATS negotiations as part of a single undertaking.
When advocacy works
During the Uruguay Round nego-tiations for a trade in services
agreement, there were several examples of services-related business
advocacy successes, based on a targeted approach by well-resourced
lobby groups.
Essentially, two strong groups influenced the final shape of the
GATS to suit their needs. First, multinational service companies
were successful in their efforts to smooth rules governing the
establishment of offices abroad and the associated transfer of
staff between markets and, second, there was a significant impact
by the lobby group representing individuals who work abroad
temporarily, for a year or two, such as nurses and teachers.
At the same time, the needs of large numbers of small service
firms without a well-organized lobby were overlooked. This group,
which is representative of the service sector in many developing
countries, does not want to set up an office abroad, but does need
to travel temporarily into foreign markets for business purposes -
usually for less than ten days. There are lessons here for
developing country service sector organizations preparing for the
on-going GATS negotiations.
A clear focus, dedicated resources and a strong message are key
ingredients for successful business advocacy, although early action
based on sound planning is the critical foundation of such an
effort. There are a number of approaches that a developing country
TSI or an umbrella group of services exporters might take to
influence the GATS negotiations in a positive way for their
members.
Applying lessons from successes
If, for example, a developing country business lobby wished to
address the issue of entry visas for its service exporters, how
could it approach the matter in the context of GATS?
The problem of entry visas for small service exporters is well
documented. All too often, service exporters from developing
countries are required to go through lengthy procedures in order to
obtain an entry visa into a country where new business may be
emerging.
These procedures are not only costly in time and money, but they
also prevent service exporters from taking advantage of last-minute
opportunities. A group of developing country TSIs or more general
business associations may wish to raise this with their governments
ahead of a GATS meeting where the issue is to be considered.
The business lobby, ideally working collectively across a group
of countries in the same region, should aim at highlighting the
cost implications, negative general business impacts and
bureaucratic inefficiency that a slow entry visa process can
create. The business representatives should seek to identify where
the entry visa issue is in conflict with the over-arching goals of
the GATS process.
A strong case, a clear message and an effective delivery
mechanism to ensure domestic government trade officials are aware
of their business communities' concerns can be highly effective.
The reality is that, all too often, service exporters in developing
countries approach the advocacy process too late and in a
disjointed manner. This must change if the service sectors are to
become more effective at representing their interests within the
GATS process.
Using the GATS Consultation Kit
ITC's GATS Consultation Kit assists trade support institutions
to advocate on behalf of their service sectors. The kit enables
TSIs to give meaningful input to their government's trade officials
and helps them to identify the concessions service exporters want.
It also highlights the domestic impact of GATS since 1995 and
details national schedules related to service liberalization.
The GATS Consultation Kit can be found online at
http://www.intracen.org/worldtradenet/docs
/information/referencemat/gats_consultation_kit.htm
Alison Clements-Hunt contributed this article based on
interviews with senior ITC staff and drawing on information
available on the WTO and several international trade-related web
sites. For more information about preparing for GATS negotiations,
contact Doreen Conrad, Head, ITC Trade in Services Unit, at conrad@intracen.org