WTO seeks resumption of talks on services<\/p>\n
JAKARTA (JP): The inaugural ministerial conference of the
\nWorld Trade Organization (WTO) in Singapore in December is
\nexpected to pave the way for earlier resumption of negotiations
\non financial services, basic telecommunications and maritime
\ntransports.<\/p>\n
Adrianus Mooy, executive secretary of the Economic and Social
\nCommission for Asia and Pacific (ESCAP) -- a United Nations body
\n-- noted that the post-Uruguay Round negotiations on trade in
\nservices had failed to provide positive results in terms of
\nincreased market access.<\/p>\n
\"However, ESCAP members have expressed the hope that
\nsignificant progress will be made according to the new
\ndeadlines,\" Mooy said at the closing of the three-day ESCAP
\nsenior officials meeting here over the weekend.<\/p>\n
The meeting was held to prepare the way for the upcoming WTO
\nministerial meeting in Singapore.<\/p>\n
WTO deputy director general Anwarul Hoda revealed at the
\nmeeting that the failure of negotiations on some sectors, notably
\nfinancial services and basic telecommunications, had been
\ntriggered by the United States, which was dissatisfied with the
\nliberalization commitments made by its trading partners.<\/p>\n
The negotiations on financial services resulted in only an
\ninterim agreement formulated at the initiative of the European
\nUnion, which averted a collapse of the negotiations. The United
\nStates, however, did not join the agreement, which will last
\nuntil November 1997.<\/p>\n
\"There wqs much disappointment at the U.S. decision not to
\nmake a full commitment. The reason for this decision was its
\ndissatisfaction with the offers made by others, some of whom had
\nnot even offered to bind the existing level of liberalization,\"
\nHoda said.<\/p>\n
He explained that the interim agreement on financial services
\npreserves substantial liberalization commitments by 29 members,
\nboth developing and developed countries. Among the 29 members, 20
\nhave made improved commitments in insurance, 24 in banking, 17 in
\nsecurities and 25 in other financial services.<\/p>\n
It seems so far that improvement in the commitments in
\nfinancial services will be mainly sought from the members of the
\nAssociation of Southeast Asian Nations -- Brunei, Indonesia,
\nMalaysia, the Philippines, Singapore, Thailand and Vietnam.<\/p>\n
The United Nations Commission on Trade and Development
\n(UNCTAD) said in its report that developing countries, in
\ndeciding to liberalize their financial services sector, need to
\nexamine the benefits and problems of liberalization.<\/p>\n
Financial liberalization will expand the range of financial
\nservices available to domestic firms, but at the same time it may
\npose risks to monetary and financial stability, especially if it
\nis accompanied by abrupt and massive capital movements.<\/p>\n
Liberalization could also bring about greater prudential
\nrisks, concentration of ownership and moral hazard, deprive the
\ngovernment of a major source of fiscal revenue and thereby
\nadversely affect the fiscal balance.<\/p>\n
\"To reduce this risk, liberalization should be sequenced and
\naccompanied with overall macroeconomic policies and a rigorous
\nsystem of banking supervision,\" the report said.<\/p>\n
Like in financial services, the negotiations on basic
\ntelecommunications could not be concluded on the planned date, 30
\nApril 1996. The United States believed that the \"critical mass\"
\nof offers had not been achieved -- the market opening offers were
\nconsidered insufficient.<\/p>\n
The final outcome of the basic telecommunications negotiations
\nwas similar to that in financial services, in that the United
\nStates refused a deal at the last minute. Apparently, the United
\nStates, under the pressure from the industry led by Motorola,
\nwished to protect its market from competition from potential
\nrivals.<\/p>\n
During the negotiations, 34 offers of market access were made,
\n32 of which contained market access commitments in voice
\ntelephony. Offers had been made on opening markets by 28
\nparticipants for local telephone services, by 27 for domestic
\nlong distance and by 25 for international services.<\/p>\n
\"It has been decided to continue the negotiating process and
\nafford an opportunity to the members to reexamine their positions
\nand supplement or modify their offers over a 30-day period
\nbeginning Jan. 15, 1997,\" Hoda said.<\/p>\n
The negotiations on maritime transport also failed to secure
\nany agreements. The negotiations did not succeed because, again,
\nthe United States did not put forward any offer at all.<\/p>\n
Negotiations on maritime transports aim at commitments in
\ninternational shipping, auxiliary services and access to and use
\nof port facilities, leading to the elimination of restrictions
\nwithin a fixed timeframe.<\/p>\n
At the time of suspension, on June 28, 1996, 24 conditional
\noffers had been submitted. Meanwhile, there is an understanding
\nthat countries will respect a \"peace clause\", that is, they will
\nnot take any measure to improve their negotiating positions
\nexcept in response to measures taken by others.<\/p>\n
\"This will help prevent the introduction of new restrictions
\non trade in this sector,\" Hoda said, adding that negotiations
\nwill resume in the next major round of comprehensive negotiations
\non the services.<\/p>\n
According to Article XIX of the General Agreement on Trade in
\nServices (GATS), a general round of multilateral negotiations on
\ntrade in services must be held before 2000.<\/p>\n
The solutions reached in financial services, basic
\ntelecommunications and maritime transport sector negotiations
\nwhich provide for the possibility of withdrawal of offers create
\nan element of instability affecting the credibility of the WTO as
\na whole.<\/p>\n
\"The best solution might be to simply advance the date for the
\nnext multilateral round of negotiations on trade and services as
\nprovided in Article XIX of the GATS from 2000 to 1998,\" UNCTAD
\nsuggested in its report. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wto-seeks-resumption-of-talks-on-services-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}