« The voice of the European Service Industries for

International Trade Negotiations in Services »

« The voice of the European Service Industries for International Trade Negotiations in Services »

Programme EGA Stakeholders Event

THE ENVIRONMENTAL GOODS AGREEMENT -

PROMOTING EU ENVIRONMENTAL OBJECTIVES THROUGH TRADE

Wednesday 3 June 2015, Brussels

EC, Charlemagne building, Room Lord Roy Jenkins, 170 rue de la Loi, 1040 Brussels

16:30 – 18:15 Panel discussion: Environmental Goods Agreement

– opportunities and challenges

“What about an EGSA ? -

Environmental Goods and Services Agreement"

Pascal Kerneis – Managing Director

European Services Forum - Brussels

« The voice of the European Service Industries for

International Trade Negotiations in Services »

• Insurance

• Banking

• Business services: IT & Computer; consulting, advertising, after-sales services, News Agencies

• Professional services:

Legal services,

Accountants,

Architects,

Engineers, etc.

• Construction services

• Distribution services

• Postal & Express Delivery

• Audio-visual services

• Telecommunication services

• Tourism

• Air Transport

• Maritime Transport

For more information, see www.esf.be

ESF Membership covers a large range of services sectors and Horizontal federations:

• BUSINESSEUROPE

• Confederation of Danish Industries (DI)

• Confederation of Finnish Industries (EK)

• Confederation of Swedish Enterprises (SN)

• Irish Business and Employers

Confederation (IBEC

• Confederation of French Enterprises

(MEDEF)

&

« The voice of the European Service Industries for

International Trade Negotiations in Services »

If we use the trade in value-added (TiVA) indicators, the share

of services is 45% of the total world trade ! (more than 50% in

the EU countries)

Source: OECD-WTO TiVA database - 2012

« The voice of the European Service Industries for

International Trade Negotiations in Services »

4

EU services inputs in EU manufacturing

4

« The voice of the European Service Industries for

International Trade Negotiations in Services »

EU Services Exports and Imports per sectors (2010 - € 1 000 million)

40% Including

Environmental services

« The voice of the European Service Industries for

International Trade Negotiations in Services »

1) Environmental Services

in the

Global Value Chain

« The voice of the European Service Industries for

International Trade Negotiations in Services »

Embodied services Essential components of the supply chain of trade in

environmental goods

Source: Study of Swedish National Board of Trade: “Servicification - Everyone is in services” June 2012

« The voice of the European Service Industries for

International Trade Negotiations in Services »

Embedded Services in the products Essential elements of

creation of value added and benefits for the environmental

goods !

Many environmental goods that will be

listed in EGA need Services and

cross-border data flows to be well

performed.

« The voice of the European Service Industries for

International Trade Negotiations in Services »

(After sales services,

Maintenance & Repair, etc.)

(Advertising)

(Distribution services)

(Transport services: sea, air, road, etc.)

(Engineering)

(Certification & Testing)

(Outsourcing)

The GVC Smiley is of course

also valid for the

Environmental Goods!

« The voice of the European Service Industries for

International Trade Negotiations in Services »

2) Consequence on Trade Policy:

TISA or/an EGA?

« The voice of the European Service Industries for

International Trade Negotiations in Services »

EGA = Group of 17 (16 + 1(28) = 44: Australia; Canada;

China; Costa Rica; European Union; Hong Kong; Iceland;

Israel; Japan; New Zealand; Norway; South Korea;

Singapore; Switzerland; Taiwan; Turkey; and USA.

TISA = 25 “Real Goods Friends of Services” (RGFS) in

Geneva - (24 + 1(28) = 52): Australia, Canada, Chile,

Colombia, Costa Rica, European Union (27), Hong Kong,

Iceland, Israel, Japan, Liechtenstein,Mauritius, Mexico,

New Zealand, Norway, Panama, Pakistan, Paraguay, Peru,

South Korea, Switzerland, Taiwan, Turkey, USA, Uruguay.

== 15 Countries participate to both negotiations!

THE PARTICIPANTS TO EGA & TISA

« The voice of the European Service Industries for

International Trade Negotiations in Services »

How to tackle the services components in EGA?

• Most of the environmental goods that will be covered by

EGA involve services that are embedded in the products

(services around the products)

• However, some of these services are not systematically open

Need for joint venture to open distribution network, logistic services,

maintenance & repair, after-sales services:

Special Mode 3/FDI market access commitments for services related goods

listed in EGA?

Difficulties for getting experts and engineers moving along with the

product

Special Mode 4 commitments for EGA – movement of high skilled personnel ?

Possible difficulties of transfers of data across borders

Special disciplines for data flows for Environmental goods?

« The voice of the European Service Industries for

International Trade Negotiations in Services »

Conclusion

The Consequences of barriers in services around the products can

be much more detrimental (in terms of revenues) than the tariffs!

So it is imperative to be efficient for these product to also tackle the

services components.

Three options:

1) To integrate in TiSA negotiations on environmental services that

would cover the goods listed in EGA,

2) To integrate in EGA negotiations on environmental services?, or

3) To reconcile the two set of talks:

What about negotiating the services components in a

second phase of the EGA and transform it into the

Environmental Goods and Services Agreement (EGSA)?

« The voice of the European Service Industries for

International Trade Negotiations in Services »

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: esf@esf.be

Website: www.esf.be

Thank you for ATTENTION !