WTO group issues surprise services draft
WTO has issued a surprise report on services draft that has upset amny developing countries
By Sheila Mathrani, ET Bureau |
GENEVA: As the WTO mini-ministerial approaches, the news upsetting many developing countries is that the chairperson of the services negotiations, ambassador Fernando de Mateo of Mexico, has issued a report in the form of a draft services text, on July 17.
Apparently, delegations were not informed nor were all members consulted, and some even accuse the Chair of lack of transparency.
Some member countries such as Bolivia, Cuba and Venezuela, which have been opposing a services text on the ground that it inappropriate and unnecessary since the 2005 Hong Kong ministerial had already concluded the modalities, have been surprised.
Interestingly, it is reported that the new draft had been agreed on July 15 to by ambassadors of the Enchilada Group (India, China, Pakistan, Philippines, Japan, the EU, the US, Canada, Brazil, South Africa, Indonesia, Malaysia, Thailand, and some others) without informing others. Coming at this late stage, this could give rise to more tensions at the mini-ministerial.
Paragraph 4 of the draft is the most contentious and could go against the wishes of a large number of developing countries who have been resisting the developed countries demands for a text where there is a comparable level of ambition in services as in agriculture and Nama; that developing countries should agree to bind their current actual level of liberalisation as well as offer more market access and national treatment commitments. India is pushing for a services text and therefore is unlikely to oppose the said paragraph.
The South North Development Monitor opines that paragraph 4 of the report is against the interests of many developing countries since it states that members shall to the maximum extent possible respond to requests by offering deeper or wider commitments and such responses, shall where possible, substantially reflect current levels of market access and national treatment and provide new market access and national treatment in areas here significant impediments exist.
The draft text quotes a developing country diplomat as saying, ���It may seem like there are some safeguards in the caveats and conditions, but this is also part of a slippery slope that erodes the development flexibilities in GATS and the various services guidelines.���
Apparently, delegations were not informed nor were all members consulted, and some even accuse the Chair of lack of transparency.
Some member countries such as Bolivia, Cuba and Venezuela, which have been opposing a services text on the ground that it inappropriate and unnecessary since the 2005 Hong Kong ministerial had already concluded the modalities, have been surprised.
Interestingly, it is reported that the new draft had been agreed on July 15 to by ambassadors of the Enchilada Group (India, China, Pakistan, Philippines, Japan, the EU, the US, Canada, Brazil, South Africa, Indonesia, Malaysia, Thailand, and some others) without informing others. Coming at this late stage, this could give rise to more tensions at the mini-ministerial.
Paragraph 4 of the draft is the most contentious and could go against the wishes of a large number of developing countries who have been resisting the developed countries demands for a text where there is a comparable level of ambition in services as in agriculture and Nama; that developing countries should agree to bind their current actual level of liberalisation as well as offer more market access and national treatment commitments. India is pushing for a services text and therefore is unlikely to oppose the said paragraph.
The South North Development Monitor opines that paragraph 4 of the report is against the interests of many developing countries since it states that members shall to the maximum extent possible respond to requests by offering deeper or wider commitments and such responses, shall where possible, substantially reflect current levels of market access and national treatment and provide new market access and national treatment in areas here significant impediments exist.
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The draft text quotes a developing country diplomat as saying, ���It may seem like there are some safeguards in the caveats and conditions, but this is also part of a slippery slope that erodes the development flexibilities in GATS and the various services guidelines.���
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