Transcript EPA Workshop for Member States' National Experts

External Trade
National Conference on
Harnessing Services for Sustainable Development
Economic Integration
in the EUROMED
context
Amman, 22 September 2010
Christophe RAMES
European Commission
DG TRADE
External Trade
Overview
1. Services and investment as main
vehicles for deeper integration
2. Economic opportunities
3. Liberalizing trade in services
between EU and Jordan: key features
4. Negotiating a Services Agreement
between EU and Jordan: State of play
and way forward
External Trade
1. The Need for Deeper Integration
• 15 years after Barcelona, need to shift Euromed
integration into a higher gear
- Euromed Association Agreements will lead to a
‘shallow’ free-trade area if limited to goods
- Services account for 2/3 of GDP in Jordan and ¾ of
GDP in EU
• To maintain a privileged partnership, deeper
integration is needed.
External Trade
1. What is at stake?
• Barriers to trade in goods = tariffs and quotas
• Barriers to trade in services = rules and
regulations
• Liberalizing trade in services requires ‘behind-theborder’ policy reforms
• Services trade is strongly associated with FDI and
knowledge-spill overs.
Trade liberalization in services should be used as
anchor for domestic reforms and as vehicle for
deeper regional integration
External Trade
2. Economic opportunities of services &
investment
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Attracting FDI
Improve competitiveness
Better functioning markets
Support to regulatory environment
Predictable rules and legal certainty for business
Benefits for consumers (e.g. telecom)
Liberalizing trade in Services and Investment is the most
powerful vehicle for economic growth and integration
External Trade
2. Key sectors for growth &
development
Infrastructure services:
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Telecoms, Postal and Courier
Transports
Energy distribution network
Financial services
but also
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Tourism
Logistics & distribution
Business services
Construction
Environmental services
External Trade
3. Trade liberalization in services in a
bilateral context: The EU approach
• Building on GATS
- Compatibility with WTO rules
- GATS schedules as starting point for offers
• Deepening GATS Commitments (WTO +)
• Ensuring flexibility to take account of level of
development and sensitivities
External Trade
3. Liberalizing trade in services between EU
and Jordan: What does it mean?
Three keys aspects:
Progressivity
Reciprocity
Asymmetry
External Trade
3. Liberalizing trade in services between EU
and Jordan: What would be covered?
Scope:
-
Services and Establishment
Services as defined by GATS art. I
4 modes of supply
Establishment in services and non-services sectors
• GATS approach:
- Positive listing
- MA and NT commitments
• Regulatory provisions in key Sectors
External Trade
3. Liberalizing trade in services between EU and
Jordan: What would not be covered?
• All sectors are likely to be covered with a few
exceptions . All modes of supply as defined in GATS.
• Mode 4 = temporary movement of natural persons
supplying services, i.e. professionals highly qualified
•
Non-qualified workers, persons seeking access to
employment market fall outside the scope of Mode 4
commitments
• The FTA applies to trade matters only. Non-trade
matters are not covered (e.g.,citizenship, immigration,
visas …)
External Trade
3. Liberalizing trade in services between EU
and Jordan: Others key elements
• Framework for mutual recognition of qualification
and professional experience
• Domestic Regulation: Framework for transparent
and non-discriminatory rules
• Investment: MA and NT in Mode 3 in services and
non-services sectors. NB: measures other than those
deriving from MA and NT not covered
External Trade
4. Negotiating a Services Agreement
between EU and Jordan: State of play
and way forward
• Regional phase (2007): discussion of a regional
common protocol
- to ensure coherence
- to enhance regional integration
• Bilateral phase (2008 – today):
launch of bilateral
negotiations with Egypt, Morocco, Tunisia, Israel
• With Jordan: Scoping exercise to define contours of agreement
External Trade
4. Opening negotiations on services
between EU and Jordan: What is needed?
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Support from industry
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Legal capacity
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Technical expertise
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Political will
External Trade
Thank you for your attention
More info: http://ec.europa.eu/trade