Global Services Network Launched in London

In a press conference today, the Global Services Network was launched by the Coalitions of Service Industries (CSIs) following a conference of the CSIs in Oxford over the weekend.

Speaking from the press conference in London, Hong Kong Coalition of Service Industries Secretary General, Dr W K Chan explained, “The Global Services Network is the main private sector voice in pushing for greater liberalisation of trade in services in the next big round of negotiations in the World Trade Organisation, which will begin in the year 2000”.

Also unveiled at the press conference was a list of the issues which the CSIs identified as the key areas for consideration for the “Services 2000” negotiations.

The press conference was presided by Lord Douglas Hurd, Chairman of British Invisibles and former British Foreign Minister. Other presenters at the press conference included Dr Jaime Serra, former Trade Minister of Mexico and Ambassador Jeff Lang, former Deputy US Trade Representative.

The announcement of the formation of the Global Services Network and the list of issues for “Services 2000” negotiations are detailed in the press statement that follows.

The HKCSI is a highly autonomous body within the Hong Kong General Chamber of Commerce. Representing more than 50 service industries, the Coalition is actively involved in the campaign to promote the service sector of Hong Kong.

Enquiries: Dr W K Chan, Secretary General, Tel: (852) 2823 1293, Fax: (852) 25279843 or E-mail wkchan@hkgcc.org.hk

GLOBAL SERVICES NETWORK FORMED: SERVICES 2000

ISSUES AGREED

Private sector participants in a conference to debate the future of services trade liberalisation, agreed yesterday to form the Global Services Network, which will take the lead in building support for liberalisation of world services trade in the next big round for services negotiations to begin in 2000.

The conference, held at Ditchley Park, was chaired by Dr Jaime Serra, former Minister of Trade and Minister of Finance for Mexico.

Participants from Argentina, Australia, Canada, Costa Rica, the European Commission, France, Hong Kong China, Ireland, Japan, Mexico, the UK, and the US included representatives of the private sector, academia, and public officials acting in their personal capacity. Advisers from the OECD, UNCTAD, and the WTO also participated.

In the last two decades, expansion of world trade in services has been a powerful engine of economic growth. Cross border trade in services now represents more than 20% of world cross border trade, or more than $2 trillion; services account for 60%, or $210 billion, of annual flows of direct foreign investment. Services industries are a major source of innovation especially in electronic commerce, and provide essential infrastructure for trade in goods. They are also essential to improving the economies of both industralised and developing countries.

Services trade will expand much further. For example, last year’s agreements on telecommunications and financial services captured liberalisation covering over 90% of world trade in these services, but much of the business covered affected a far smaller percent of the world’s population – an indication of the potential further expansion of services trade and of the scope for further liberalisation efforts.

Private sector conferees agreed that:

• In the future, issues related to international trade in services will present challenges to the multilateral trading system that equal in importance and difficulty traditional issues stemming from trade in goods.

• While bilateral and regional agreements and initiatives can play a useful supportive role, the WTO remains the primary focus for services trade negotiations.

• The Services 2000 negotiations must achieve much broader coverage of services sectors in national schedules of commitments, and move well beyond the standstill agreements which characterise the Uruguay Round commitments. They should ensure the application of GATS principles to public procurement of services.

• Close monitoring of countries’ ratification and implementation will be necessary for both the sectoral agreements already signed and the new agreements which will be negotiated in the Services 2000 agreement, and for regional agreements as well.

• No new restrictions, in the form of duties or otherwise, should be imposed on electronic transmissions.

• Countries newly acceding to the WTO must make strong commitments to services liberalization as part of their accession process.

• Domestic regulatory regimes should develop a greater pro-competitive approach to their rule-making, and so help to further services trade liberalization. In addition, regulations establishing appropriate pre-conditions for commerce, such as safety and soundness supervision and regulation of financial institutions, should be preserved. Both of these points imply that greater attention must be given to the importance of enlisting regulators in furthering liberalization.

• Political and public support for trade liberalization will require greater understanding of the benefits of trade liberalization, and the negotiating processes by which liberalization is achieved.

• Private sector advice and involvement in multilateral trade negotiations – an acknowledged fact and recognised benefit in last year’s services negotiations – must be continued and enhanced.

The Global Services Network (GSN) is initiated by an organizing and exploratory committee including members drawn from the Argentine Coalition of Service Industries (UDES), the Association of British Insurers, British Invisibles, the Business Council on National Issues (Canada), the Canadian Bankers Association, the French Federation of Insurance Companies, the Hong Kong Coalition of Service Industries, the Irish Coalition of Service Industries, the London Investment Bankers Association, the Services World Forum, and the US Coalition of Service Industries. The GSN is open to participation by all organisations representing services industries and interests, including academic institutions, and individual companies.

Sponsors of the Conference included the American International Group, Association of British Insurers, The Chubb Corporation, EDS, the London Investment Bankers Association, and the Royal & Sun Alliance Insurance Group.

Among the topics discussed were:

• Assessing the record of efforts to date to liberalize trade in services.

• The negotiating framework including an assessment of the GATS architecture and its capacity to embrace a new Services 2000 agenda.

• Sector snapshots capturing the progress of liberalization and framing the future agenda in key sectors, including financial services, telecommunications, professional services, freight transportation, and information technology services.

• Parallel paths to liberalization including regional agreements, investment disciplines, competition policy, dispute settlement, and public procurement.

• Data privacy, the New Transatlantic Marketplace, and China’s accession to the WTO.

• The need to improve information about the activities, trade and investment of the services sector.

FOR INFORMATION CONTACT:

ROBERT VASTINE, USCSI, AT (202) 289-7460

SIR