NEGOTIATIONS ON SERVICES

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NEGOTIATIONS ON SERVICES

• Commercial Diplomacy Programme
• TrainForTrade

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General Features Trade in Services

• Importance of Services in the Global Economy
• Technological advances have served to change the
  provision of services as well as the perception
  of the services sector as a whole
• Growing importance of services for economic
  growth
• Chart 1 Services as percentage of GDP.

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Economic Importance of Services

• Mayor contributor to GDP and employment in all
  developing countries, approximating indicators of
  developed countries
• 50-70 per cent of GDP
• 60-80 per cent of employment
• Importance of assessing the structure and dynamic
  of services in developing countries
• - growth of traditional activities (retail,
  restaurants, repair shops, tourism, personal
  services)
• - growth of the informal economy
• - weight of government tends to
  overestimate economic significance. (Brazil 16
  GDP)

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Services as percentage of GDP.
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Growing importance of services for employment

• Key services industries
• The provision of services such as insurance,
  information technology, accountancy and research
  has an impact on economic competitiveness through
  interaction with industrial activities and other
  services.
• Increasing Importance of International Trade in
  Services

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Growing importance of services for employment
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Increasing Importance of International Trade in
Services
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Increasing Contribution of Services to World
Trade
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Leading Services Traders A Comparison of
Developed, Developing Transitional Economies
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Leading Service Exporters. A comparison of
various countries
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Leading Service Importers
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Structure of Service Exports

• Shift towards Telecommunications, Computing
  Services and Information

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Structure of Service Exports
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Role of Services in Trade and Development

• Basic economic infrastructure required for
  systemic competitiveness, and overall welfare.
  education, health, energy, sanitation,
  transport, telecom, financial services
• Producer services content in goods, and in
  other services increasingly generate a higher
  proportion of value added externalisation of
  supply as a source of sectoral dynamism and
  specialization, services efficiency a source of
  competitiveness
• Logistic chains as a source of overall trade
  competitiveness ports, airports, transport
  services, telecom, information services,
  distribution networks
• Trade of integrated packages of goods and
  services (high technology products) every day
  more important.
• Services are increasingly tradable in themselves
  

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Key Analytical Questions

• Are services performing adequately their role in
  trade and development?
• - national assessment of services and trade
  in services
• What strategies and policies should be
  implemented to enhance services contribution to
  trade and development?
• - definition of national and sectoral
  development policies
• What role could international agreements,
  multilateral, regional and bilateral, play in
  supporting national developmental policies in the
  services sector?
• - definition of negotiating strategies and
  positions on the basis of national developmental
  policies safeguarding required policy spaces.

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National Assessment of Services

• Statistical requirements National Accounts and
  Balance of Payments.
• Sectoral Analysis of domestic supply, market
  dynamism, trade, competitiveness, and regulatory
  framework
• Participation of stakeholders in assessment

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National Developmental Policies

• Policy options are within a continuum ranging
  from protection, through infant industry
  promotion (active public policies) to full
  liberalization (market reliance).
• There is no one size fits all policy. It has to
  be defined by sector in the light of
  developmental, social and cultural objectives
• National policies and objectives are expressed
  through the regulatory framework and by
  established limitations to market access and
  national treatment