Services Market Access Commitments in the WTO and Recent PTAs
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1 Services Market Access Commitments in the WTO and Recent PTAs Juan A. Marchetti & Martin Roy (WTO) Services Trade and Policy: What does the Data Show? World Bank Seminar Geneva, 25 June 2009
2 Purpose Assess liberalization commitments in recent PTAs, and compare them with achievements under GATS Presentation based on Marchetti & Roy (2008), Services Liberalization in the WTO and in PTAs, in Marchetti & Roy (eds.) Opening Markets for Trade in Services Countries and Sectors in Bilateral and WTO Negotiations (Cambridge University Press, 2008)
3 Assessing Commitments in Services PTAs: Methodology (1) Analysis of MA and NT commitments by 37 WTO Members (EC as 1) in 40 PTAs. Includes all those signed/entered into force since 2000, + others signed only. As in previous research: Only modes 1 and 3 examined Looking at what goes beyond GATS commitments/offers Starting point: Hoekman methodology... Score of 1 for full commitments Score of 0.5 for partial commitments Score of 0 for no commitment
4 Assessing Commitments in Services PTAs: Methodology (2)...But the scoring was further modified to take account of improvements from one agreement to the other. Example: Sector GATS PTA with Country A Legal Services No Better commitment commitment than in GATS, but limitations remain (partial) Accountancy Services No commitment PTA with Country B Even better commitment than in the PTA with A, but limitations remain (partial) PTA with Country C Even better commitment than in the PTA with B, but limitations remain (partial) Full commitment No commitment Partial commitment Advertising Services Partial commitment No better commitment than in the GATS. Better commitment than in the GATS, although limitations remain (partial) Full commitment
5 Overall Results (average for all Members reviewed) GATS GATS OFFER PTAS Total Score Mode Mode Developed Country Members M1: 43 M3: 53 M1: 51 M3: 59 M1: 59 M3: 67 - Developing Country Members M1: 18 M3: 23 M1: 23 M3: 32 M1: 60 M3: 67
6 ARG AUS BHR BRA CHL CHN COL CR DR EC ELS GUA HND ICE IDN IND JAP JOR KOR LIE MAL MEX MOR NIC NOR NZ OMN PAN PER PHI PRY SING SWI CHT THA URY US Scores by Member (sample) Note: PTA score is for best PTA PTA GATS
7 Sectoral liberalization in PTAs SECTORS GATS GATS PTAs OFFERS Professional Computer Postal-Courier Telecom Audiovisual Construction Distribution Education Environmental Financial Health Tourism Maritime Rail Road Auxiliary Transport Note: Scores for modes 1 and 3 combined. Scale of 1 to 100. On the basis of best PTAs.
8 Determinants of PTA Advances Analysis of each Members commitments for each PTA suggests that the following factors are key: Reciprocity Economic importance of trading partners Negotiating modalities
9 Are commitments in PTAs reciprocal? The example of Singapore Singapore's Commitments Commitments by Singapore's PTA Partners United States (05/2003) (+15.1) Rep. of Korea (08/2005) (+21.7) Australia (02/2003) (+32.5) Panama (03/2006) (+39) EFTA (06/2002) (+10.3) Japan (01/2002) (+13.8) India (05/2005) (+21.6) New Zealand (11/2000) (+21.5) Jordan (05/2004) (+1.7) ASEAN (12/2006) (+10.6) Note: Date represents the date of signature of the PTA. Numbers in parentheses represent the difference between the score for the PTA and the score for that partner's GATS commitments.
10 Some Key Implications Negative Political Economy Implications: PTA providing an incentive to hold back in multilateral negotiations? Tough issues do not get solved in PTAs Losing leverage to deal with key issues in Doha?...and economic consequences But the upside is: potential for significant for Doha Round outcome
11 Thank you!
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