The benefits of the FTA for the European Services Sectors Mr. Pascal KERNEIS, Managing Director European Services Forum - ESF
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1 The benefits of the FTA for the European Services Sectors Mr. Pascal KERNEIS, Managing Director European Services Forum - ESF
2 ESF covers most services sectors, including: Insurance & insurance intermediation Banking Business services: IT & Computer; consulting, advertising, after-sales services Professional services: legal services, accountants, architects, engineers Construction services Distribution services Postal & Express Delivery services Audio-visual services Energy related services Environmental services Telecommunication services Tourism Maritime Transport For more information, see
3 SOME OF ESF MEMBERS INCLUDE: For more information, see
4 Importance of the services sector and its international activities Agriculture Services Industry Services share of total employment in the EU % The Services sector generates 90% of new jobs in the EU15
5 ««The The voice voice of of the the European European Service Service Industries Industries for for International International Trade Trade Negotiations Negotiations in Services in Services»» EU 27 KOREA TRADE IN SERVICES EXPORT ( - BILLIONS) A strong increase of export of services to Korea
6 EU 27- Korea Trade in Services Net Surplus A very strong increase of net benefit of trade in services with Korea
7 EU 27 TRADE IN SERVICES WITH KOREA NET SURPLUS FUTURE SCENARIOS ( BILLIONS) (1) +10% = Current trend; Source: Eurostat +15% = Estimation of impact of FTA implementation NB: Implementation starts in 2011
8 EU Stocks in Korea $ Bil «The voice of the European Service Industries for EU FDI FLOWS IN KOREA EU FDI outward Flows in Korea is rather low compared its economic development. This is due to high protection against establishment (mode 3), that will be considerably reduced by the FTA. The FTA will considerably improve EU Investments in services sectors in Korea 6,7 (26%) (74%) 19 Services Non (1) Services In 2009, the total FDI Stocks by EU companies in Korea = only 25.7 $ Bil. (1,18%) (16 th ) Total FDI by EU into Korea in 5y= 12.1 Bil.; includ. 74% in Services = 8 Bil. (1) FDI in Non services sectors include: agriculture, mining, manufacturing, others
9 EUROPEAN SERVICE INDUSTRY STRONGLY SUPPORTS THE RATIFICATION OF THE EU-KOREA FTA (1) ESF understands the concerns of some manufacturing sectors and we support the Safeguard Regulation that the Parliament is now examining so as to ensure a level playing field, The Parliament needs to make a proper assessment of the overall balance of benefits from the agreement, including the enormous potential that it offers to the various services sectors that constitute the backbone of the EU economy (see charts),
10 EUROPEAN SERVICE INDUSTRY STRONGLY SUPPORTS THE RATIFICATION OF THE EU-KOREA FTA (2) The FTA will establish an important precedent for similar FTA agreements seeking the same liberalising concessions from other trading partners ( Global Europe Strategy ), The FTA will provide the benefit of first movers in Korea Market, provided that the FTA is provisionally implemented by end 2010,
11 SECTOR-BY-SECTOR ASSESSMENT OF THE BENEFITS TO EUROPE S SERVICES INDUSTRY 1) The FTA ensures full market access and national treatment to our companies, with legal security to their investments, in a large number of services sectors (engineering, Computer related services, many business services, construction services, Tourism, many transport services, etc.) 2) The FTA provides WTO+ and KorUS+ in most services sectors: Legal services Postal and express courier services Telecommunication services Distribution services Environmental services Financial services Maritime transport services
12 THANK YOU FOR YOUR ATTENTION! Pascal KERNEIS Managing Director European Services Forum ESF 168, Avenue de Cortenbergh B 1000 BRUSSELS Tel: Fax: esf@esf.be Website:
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