Participants
in Domestic Regulation Talks Conclude Text Negotiations, on Track for MC12 Deal
at WTO
<Joint
Initiative on Services Domestic Regulation>
Participants in the negotiations on services domestic
regulation concluded text-based discussions at their 27 September meeting,
paving the way for conclusion of the negotiations by the 12th Ministerial
Conference (MC12) at the end of November. This agreement represents a
breakthrough for the negotiations, the coordinator, Jaime Coghi Arias of Costa
Rica, noted. The only element pending is the finalization of members’ schedules
of commitments, with participants aiming to complete this process by MC12.
The
disciplines seek to ensure that domestic regulation procedures for trade in
services are clear, predictable and transparent and do not unnecessarily
restrain trade. Flexibilities are envisaged to help governments apply the
measures and regulate based on their national policy objectives and levels of
development.
In
the negotiated text, participants agreed to include a provision on
non-discrimination between men and women in the context of authorization
procedures for service suppliers. This will be the first provision of its kind
in a WTO negotiated outcome. Participants further agreed to an optional section
with a set of disciplines on financial services, and to a maximum transitional
period of seven years for developing countries that need more time to implement
individual disciplines for specific services sectors.
The
coordinator invited participants to submit updated draft schedules of
commitments by 29 October to help finalize the negotiations by MC12,
which is to be held from 30 November to 3 December. These schedules will
reflect how each government aims to incorporate the disciplines into its WTO
services schedules of specific commitments. A total of 34 indicative schedules
of commitments have been submitted to the WTO so far, covering 60 WTO members.
Mr
Coghi said he will consult with participants on a ministerial document noting
the conclusion of the negotiations, the agreed text and participants' final
schedules of commitments.
Singapore
announced its participation in the negotiations and presented its draft
schedule. This brings the total of participating WTO members to 65(1),
representing over 90 per cent of world services trade.
A
session entitled “WTO Joint Initiative on Services Domestic Regulation: a
deliverable at MC12 to strengthen the Multilateral Trading System” — organized
by the European Services
Forum and the Australian Services Roundtable —
will be held during the 2021 WTO Public Forum, on 29 September.
A “Simply Services
Seminar”, held virtually on 21 September, spelt out the
increasingly prevalent use of regulatory disciplines in services in economic
integration initiatives, and their role in improving economic performance and
lowering trade costs. The underlying research was presented by the Organisation for
Economic Co-operation and Development, the United States
Support for Economic Growth in Asia (US-SEGA) and the WTO Secretariat.
Ministers
from 59 WTO members launched negotiations at the 11th Ministerial
Conference held in December 2017 in Buenos Aires. In May 2019,
ministers meeting on the side lines of the Organisation for Economic
Cooperation and Development meetings confirmed their
commitment to delivering a meaningful outcome by MC12.
The
GATS covers all services, with few exceptions.
Services sectoral
classification list
·
Business
services and professional services
o
Architectural and
engineering services
o
Computer and related
services
·
Communication
services
o
Postal and courier, express mail services
·
Construction
and related services
·
Transport services