Transcript The voice of the European Service Sectors for International trade

« The voice of the European Service Industries for
International Trade Negotiations in Services »
Séminaire sur les commerce des services
Organisé par IsDB
Casablanca, 15 – 18 juin 2009
"The trend of International Services
Trade & Investment"
Pascal Kerneis
Managing Director
ESF (European Services Forum)
« The voice of the European Service Industries for
International Trade Negotiations in Services »
1. Presentation of the European Services
Forum
2. What are we talking about, what kind of
services?
3. Place of services in the world economy
and world trade
4. What does international trade in
services includes?
5. Where the majority of FDI goes?
« The voice of the European Service Sectors
for International trade Negotiations in Services »
WHO ESF DOES REPRESENT?
• 30 European services companies, most of them
major multinational companies
(represented at CEO or Chairman level in the
European Services Leaders Group – ESLG)
• 37 European trade federations of various
services sectors (e.g. banking, insurance,
telecommunications, express, architects,
engineers, accountants, shipping, tourism, etc.)
« The voice of the European Service Industries
for International Trade Negotiations in Services»
ESF covers most services
sectors, including:
• Insurance
• Banking
• Business services: IT &
Computer; consulting,
advertising, after-sales services
• Professional services: legal
services, accountants, architects,
engineers
• Construction services
• Distribution services
• Publishing services (incl.
• Postal & Express Delivery
services
• Audio-visual services
• Energy related services
• Environmental services
• Telecommunication services
• Tourism
• Air Transport
• Maritime Transport
But no members in Education
or Health services
Music)
For more information, see www.esf.be
« The voice of the European Service Industries
for International Trade Negotiations in Services»
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ESF MEMBERS INCLUDE:
BARCLAYS BANK
• PRICEWATERHOUSEBT (British Telecom)
COOPERS
CLIFFORD CHANCE
• ROYAL AHOLD NV
COMMERZBANK
• SIEMENS AG
DEUTSCHE BANK
• STANDARD CHARTERED
BANK
DHL
• TELEFONICA
FRANCE TELECOM
• TNT
GOLDMAN SACHS
• TUI
IBM EUROPE
• VEOLIA ENVIRONMENT
LLOYD’S
For more information, see www.esf.be
« The voice of the European Service Industries
for International Trade Negotiations in Services»
ESF MEMBERS INCLUDE:
For more information, see www.esf.be
« The voice of the European Service Sectors
for International trade Negotiations in Services »
WHAT DOES ESF DO?
1. It represents the interests of European services
companies that export (or wish to export) their
services and that do (or wish to do) business outside
the EU.
2. As an important and well recognised Forum in its
scope of activity, ESF is an appropriate interlocutor
for the briefings done by services negotiators from
Brussels (DG Trade) and from Geneva (WTO),
reaching a large panel of the interested sectors in one
place.
3. It informs its members on the GATS negotiations and
regional and bilateral trade negotiations, on the
offensives and/or defensives positions of the other
trading parties.
« The voice of the European Service Industries
for International Trade Negotiations in Services»
Agriculture
Industry
Services
The Services sector generates 90% of new jobs in the EU15
World Economy:
Percentage of GDP by Sector, 2006
« The voice of the European Service Industries for
International Trade Negotiations in Services»
*
Source: WTO International Trade Statistics – 2008
* : Includes significant re-exports or imports for re-export.
« The voice of the European Service industries in international trade in services negotiations »
International Trade in Services: what does it include?
• Services exports in the balance of payment include
commercial transactions that involve the crossing of borders.
• It comprise the cross-border services (mode 1) like
electronic commerce transactions, architectural plans sent by
fax, legal consultancy provided by e-mail,
• Payment of a tourism package (all inclusive trip), payment
of yearly university fees (mode 2), payment of licence or
franchise fees (royalties), payment of transport fees
(shipping, air cargo & express), etc.
• The repatriation of profits of affiliates (mode 3);
• The payment of the contract between the companies who
agreed to get an accountant (natural person) moving to the
customer to make an audit for six weeks (mode 4), etc.
Trends in World Trade in Services
450
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SA
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27
EU
2003
2004
2005
2006
International Trade in Services
28.9%
42.2%
« The voice of the European Service industries for the International
trade in services negotiations »
EU-27 International Trade in Services with non-EU Countries 2007, EUR bn
Rank
Country
Trade
Volume
Exports
Imports
Balance
1 USA
266 852
139 135
127 717
11 417
2 Switzerland
105 490
61 503
43 987
17 516
3 Japan
6 China
33 183
31 535
19 378
13 805
5 573
17 766
13 769
3 996
4 Russia
31 268
19 238
12 030
7 208
5 Norway
30 920
19 008
11 912
7 096
7 Canada
21 343
11 695
9 648
2 047
8 Singapore
18 530
11 397
7 133
4 264
9 Turkey
18 517
6 617
11 900
-5 282
10 Australia
17 031
10 747
6 284
4 463
EU-27 International Trade in Services with non-EU Countries in 2006 (EUR bn)
Rank
Country
Trade Volume
Exports
Imports
Balance
11
Hong Kong
13.584
6.896
6.688
0.207
12
India
12.526
6.978
5.548
1.430
13
Korea
10.367
6.339
4.028
2.341
14
Brazil
9.777
5.162
4.615
0.548
15
South Africa
9.662
5.305
4.357
0.948
16
Egypt
7.320
2.294
5.026
-2.732
17
Croatia
7.045
2.283
4.762
-2.478
18
Mexico
6.778
4.091
2.687
1.403
19
Thailand
6.517
1.999
4.518
-2.519
20
Israel
5.501
33.112
2.389
0.723
21
Morocco
5.172
1.672
3.500
-1.828
22
Taiwan
5.116
3.066
2.050
1.016
23
Argentina
4.049
2.395
1.654
0.741
24
Malaysia
3.888
2.078
1.810
0.268
25
New Zealand
3.138
1.809
1.329
0.480
26
Indonesia
2,483
1.412
1.071
0.341
Trends of the EU International Trade in Services
EU International trade in Services
(Trends in volume – Bio €)
« The voice of the European Service
Industries for the GATS negotiations »
Trade between Member States exceeds Extra-EU trade
€ 679.6bn
€ 498.5bn
Source: Eurostat
TOTAL EXPORT (intra + extra: 1178.1 Bio €)
« The voice of the European Service
Industries for the GATS negotiations »
What ITS does not include?
• The activities of the foreign affiliates within the country in
which they are established are not taken into consideration
(= part of local GDP), nor the self financed investments
through benefits (reinvested earnings/income) (also local).
• The flow of capital involved in mode 3 operations, i.e. the
financing of the establishment of a new commercial
presence in a foreign country; This is included in the
Foreign Direct Investment (FDI) accounts, not in the
balance of payment, hence not considered as services
exports.
• More than 65% of global FDI flows are invested in services
sectors (see hereafter).
What does FDI include?
• FDI Capital Flows
• FDI income
• FDI stocks in a
country at the end
of the year
2500
2000
Total Extra EU
outward flows
Total Extra EU
FDI Income
Total Extra EU
Assets
1500
1000
500
0
2003
2004
2005
Services contribute to the largest share of FDI (1)
444,1 Bn € were invested in Services sectors by the EU in 4 years
(63,6 % of total 697,5 Bn €) (extra EU)
Services contribute to the largest share of FDI (2)
« The voice of the European Service
Industries for the GATS negotiations »
86% of the investment coming to the EU are
done in the Services sectors;
« The voice of the European Service
Industries for the GATS negotiations »
THANK YOU FOR YOUR
ATTENTION!
Pascal KERNEIS
Managing Director
European Services Forum – ESF
168, Avenue de Cortenbergh
B – 1000 – BRUSSELS
Tel: + 32 2 230 75 14
Fax: + 32 2 320 61 68
Email: [email protected]
Website:
www.esf.be