SERVICES TALKS CONTINUE; QUAD-LED GROUP CALLS FOR BETTER OFFERS

The second week a two-week 'cluster' of services talks, lasting from 24 November to 3 December is under way at the WTO. The 29 November meeting of the special session of the Council on Trade in Services (CTS) saw presentations including one by UNCTAD on their new World Investment Report, which has a special focus on foreign direct investment in services. Canada, Switzerland and some other developed countries seized the opportunity to underline the importance of GATS mode 3 liberalisation, through which Members allow foreign services providers to establish 'commercial presence' in their territory. Brazil, on the other hand, drew attention to the flexibilities provided for in the General Agreement on Trade in Services (GATS), specifically the conditionalities that Members can attach to their commitments. The audience did, however, agree that the report is a useful document.

Members unhappy with offers

Members continue to hold the bilateral meetings in which services negotiations actually happen through specific offers and requests. However, Members are disappointed with the depth and range of the market-opening offers that have been made so far. In the run-up to the current services session, the Quad Group -- comprising the EU, the US, Canada, and Japan -- and a dozen other Members including India, Chile, and Mexico issued a joint call for countries "to engage substantively in the request-offer process," calling for revised offers to be put forward by May 2005.

Bilaterals likely to be discussed on 3 December

Members will likely talk about recent bilateral talks during the upcoming CTS special session on 3 December. ICTSD will cover this meeting in the next issue of BRIDGES Weekly.

Several informal 'friends' groups are also meeting around specific issues this week; such groupings of countries have come together around most of the major areas of the services negotiations, including mode 4 liberalisation and telecommunications services.

The World Investment Report 2004 is available here.

ICTSD reporting; "Quad Group, Others Release Joint Call For Market Access Offers in Services Talks," WTO REPORTER, 1 December 2004.