Post on 14-Dec-2015
NEGOTIATIONS ON NEGOTIATIONS ON SERVICESSERVICES
Commercial Diplomacy Commercial Diplomacy Programme Programme
& & TrainForTradeTrainForTrade
General Features: General Features: Trade in ServicesTrade in Services
Importance of Services in the Global Importance of Services in the Global EconomyEconomy : :
Technological advances have served to Technological advances have served to change the provision of services as well as the change the provision of services as well as the perception of the services sector as a whole perception of the services sector as a whole
Growing importance of services for economic Growing importance of services for economic growth:growth:
Chart 1: Services as percentage of GDP. Chart 1: Services as percentage of GDP.
Economic Importance of Economic Importance of ServicesServices
Mayor contributor to GDP and employment in all Mayor contributor to GDP and employment in all developing countries, approximating indicators of developing countries, approximating indicators of developed countriesdeveloped countries
50-70 per cent of GDP 50-70 per cent of GDP 60-80 per cent of employment60-80 per cent of employment Importance of assessing the structure and dynamic of Importance of assessing the structure and dynamic of
services in developing countries:services in developing countries: - growth of traditional activities (retail, restaurants, repair - growth of traditional activities (retail, restaurants, repair
shops, tourism, personal services)shops, tourism, personal services) - growth of the “informal economy”- growth of the “informal economy” - weight of government tends to overestimate economic - weight of government tends to overestimate economic
significance. (Brazil 16% GDP)significance. (Brazil 16% GDP)
Services as percentage of GDP.Services as percentage of GDP.
services as percentage of GDP in 2000
67.6 70.2 71 6833.2
64.3 68 70.9 80
32.4 29.8 29 3266.8
35.7 32 29 20
020406080
100120
% o
f GD
P
services industry and agriculture
Growing importance of Growing importance of services for employmentservices for employment
Key services industriesKey services industries
The provision of services such as insurance, The provision of services such as insurance, information technology, accountancy and research information technology, accountancy and research has an impact on economic competitiveness has an impact on economic competitiveness through interaction with industrial activities and through interaction with industrial activities and other services.other services.
Increasing Importance of International Trade in Increasing Importance of International Trade in ServicesServices
Growing importance of Growing importance of services for employmentservices for employment
employment in services. 2000 estimates
64 74 74 5627
53 68 71 75
36 26 26 4473
47 32 29 25
020406080
100120
% o
f tot
al e
mpl
oym
ent
services industry and agriculture
Increasing Importance of Increasing Importance of International Trade in ServicesInternational Trade in Services
growth in international trade in services by region. 1990-2001
6% 6%
5% 5%
8%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
NorthAmerica
LatinAmerica
WesternEurope
Africa Asia
Increasing Contribution of Increasing Contribution of Services to World Trade Services to World Trade
services as a proportion of world trade in 1980
39
1625
3641
27
42
16
59
25
37
4
010203040506070
services manufactures industry agriculture
% o
f G
DP
low income middle income high income
Leading Services Traders: Leading Services Traders: A Comparison of Developed, A Comparison of Developed,
Developing & Transitional Developing & Transitional Economies Economies
leading service traders in 2001
72.10%
24.10%3.70%
market economy countries developing countries
Eastern Europe countries
Leading Service Exporters. A Leading Service Exporters. A comparison of various countries comparison of various countries
leading service exporters in 2001. in percentage of world export of services
18.1
7.45.5 5.5 4.4 3.9 2.9 2.3 2 1.8
02468
101214161820
USAUK
Franc
e
Germ
any
Japa
nIta
ly
Hong
Kong
China
China
Korea
Singa
pur
Leading Service Importers Leading Service Importers
leading service importers in 2001. in percentage of world imports of services
13
9.27.4
6.34.3 3.9
2.7 2.3 1.7 1.6
02468
101214
Structure of Service Exports Structure of Service Exports
Shift towards Telecommunications, Shift towards Telecommunications, Computing Services and Information Computing Services and Information
structure of service exports in 1980
3530 33
2
2936
30
5
34
24
39
30
10
20
30
40
50
transport travel communication,computer
information etc.
insurance andfinancialservices
% o
f to
tal
low income middle income high income
Structure of Service ExportsStructure of Service Exports
structure of service exports in 2000
18.8
32.6
46
2.6
23.8
44.5
29.8
2
23.229.7
41.6
5.5
0
10
20
30
40
50
transport travel communication,computer
information etc.
insurance andfinancialservices
% o
f tot
al
low income middle income high income
Role of Services in Trade and Role of Services in Trade and DevelopmentDevelopment
Basic economic infrastructure required for systemic Basic economic infrastructure required for systemic competitiveness, and overall welfare. [education, health, competitiveness, and overall welfare. [education, health, energy, sanitation, transport, telecom, financial services]energy, sanitation, transport, telecom, financial services]
““Producer services” content in goods, and in other services Producer services” content in goods, and in other services increasingly generate a higher proportion of value added: increasingly generate a higher proportion of value added: externalisation of supply as a source of sectoral dynamism externalisation of supply as a source of sectoral dynamism and specialization, services efficiency a source of and specialization, services efficiency a source of competitivenesscompetitiveness
Logistic chains as a source of overall trade Logistic chains as a source of overall trade competitiveness: [ports, airports, transport services, competitiveness: [ports, airports, transport services, telecom, information services, distribution networks] telecom, information services, distribution networks]
Trade of integrated packages of goods and services (high Trade of integrated packages of goods and services (high technology products) every day more important.technology products) every day more important.
Services are increasingly tradable in themselves: Services are increasingly tradable in themselves:
Key Analytical QuestionsKey Analytical Questions
Are services performing adequatelyAre services performing adequately their role in trade and their role in trade and development?development?
- - national assessment of services and trade in servicesnational assessment of services and trade in services What strategies and policies should be implemented to enhance What strategies and policies should be implemented to enhance
services contribution to trade and development?services contribution to trade and development? - definition of national and sectoral development policies- definition of national and sectoral development policies What role could international agreements, multilateral, regional What role could international agreements, multilateral, regional
and bilateral, play in supporting national developmental policies and bilateral, play in supporting national developmental policies in the services sector?in the services sector?
- definition of negotiating strategies and positions on the basis - definition of negotiating strategies and positions on the basis of national developmental policies safeguarding required policy of national developmental policies safeguarding required policy spaces.spaces.
National Assessment of ServicesNational Assessment of Services
Statistical requirements: National Accounts Statistical requirements: National Accounts and Balance of Payments.and Balance of Payments.
Sectoral Analysis of domestic supply, Sectoral Analysis of domestic supply, market dynamism, trade, competitiveness, market dynamism, trade, competitiveness, and regulatory frameworkand regulatory framework
Participation of stakeholders in assessmentParticipation of stakeholders in assessment
National Developmental PoliciesNational Developmental Policies
Policy options are within a continuum ranging Policy options are within a continuum ranging from protection, through “infant industry from protection, through “infant industry promotion” (active public policies) to full promotion” (active public policies) to full liberalization (market reliance).liberalization (market reliance).
There is no “one size fits all” policy. It has to be There is no “one size fits all” policy. It has to be defined by sector in the light of developmental, defined by sector in the light of developmental, social and cultural objectivessocial and cultural objectives
National policies and objectives are expressed National policies and objectives are expressed through the regulatory framework and by through the regulatory framework and by established limitations to market access and established limitations to market access and national treatmentnational treatment