NEW US APPROACH TO INJECT MOMENTUM INTO SERVICES TALKS?

On 17 May, US Deputy Trade Representative Peter Allgeier suggested that the ''request-offer'' approach within the WTO services negotiations has not led to significant results, and said a more proactive approach may be necessary to get other Members to reach the US standard for market opening in the services sector. Speaking at a hearing at the US House Ways and Means Trade Subcommittee, Allgeier said the US had floated some initial ideas informally with some other WTO Members, after the Chair of the services negotiations, Alejandro Jara, had called for informal ideas for how to get the discussions back on track. According to Allgeier, the request-offer approach could be supplemented with further market opening in ''core critical areas,'' which would have to be identified.

US services industry representatives expressed their support for further services liberalisation. According to Norman Sorensen, Chair of the Coalition of Services Industries, the services negotiations are in crisis because ''too few offers have been tabled, and those offers that have been tabled provide for too little liberalisation,'' and would benefit from a fresh approach. In this regard, WTO Members should agree to initial market openings in all services sectors, and build on that.

''U.S. Wants New Approach to Spur Global Talks on Services Trade,'' BLOOMBERG, 17 May 2005; ''U.S. Floats New Initiative to Supplement Existing Approach to WTO Services Talks,'' WTO REPORTER, 18 May 2005.