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TRANSPORT SERVICES

UNDER GATS

WTOTrade in Services Division

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AIR TRANSPORT

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• The Annex excludes from the scope of the GATS :- traffic rights, however granted and- services directly related to the exercise oftraffic rights except

- aircraft repair and maintenance services- selling and marketing of air transport services - computer reservation system services

Annex on Air Transport

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• “Services directly related to the exercise of traffic rights” are not further defined, except for the three services explicitly covered by GATS:"Aircraft repair and maintenance services mean such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance.”

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"Selling and marketing of air transport services mean opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services nor the applicable conditions.”"Computer reservation system (CRS) services mean services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued.”

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Maintenance: 34 commitments, 2 MFN exemptions

Marketing: 23 commitments,17 MFN exemptions

CRS: 28 commitments16 MFN exemptions

Rental services with operator:4 commitments

Supporting services for Air Transport:7 commitments

Uruguay Round Results

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Between 1995 and 2002, 13 acceding countries undertook air transport commitments:

Albania, Bulgaria, China, Chinese Taipei, Croatia, Ecuador, Estonia, Georgia, Jordan, Kyrgyz Republic, Latvia, Oman, Panama.

Accessions since 1995

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The Annex stipulates that ”The Council for Trade in Services shall review periodically, and at least every five years, developments in the air transport sector and the operation of this Annex with a view to considering the possible further application of the Agreement in this sector.”

Air Transport Review

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The review covers 14 subsectors:1. Aircraft repair and maintenance2. Selling and marketing, including e-commerce3. Computer reservation services4. Franchising5. Services auxiliary to all modes of transport6. Rental and leasing7. Catering8. Refuelling9. Ground handling10. Airport management services11. Air traffic control services12. General aviation services13. Other auxiliary services14. Commercial aviation

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Operation of the Annex:- Conflicting viewsContent and coverage:- No consensus on extension- No consensus to clarify the AnnexMeetings:

Sept. & Dec. 2000, Oct. 2001 & March 2002, envisaged: early 2003

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Five negotiating proposals: Chile, Colombia, EU, New Zealand and Norway.Similarities:

Inclusion of ancillary services (ground handling, leasing, catering, airport management, services auxiliary to all modes of transport).

Differences:Norway: Overflight and transit;New Zealand: General aviation, air traffic control

services, domestic air services;Australia (oral presentation): Non-scheduled air services, dedicated freight, ownership.

Negotiating Proposals

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MARITIME TRANSPORT

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I. Uruguay Round

• Market access negotiations

• Finally: No sectoral Annex

• But work on a “Maritime Model Schedule” (MMS)

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Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector orsubsector

Limitations onmarket access

Limitations onnational treatment

Additional commitments

TRANSPORTSERVICES

MARITIMETRANSPORTSERVICES

International Transport(freight andpassengers) CPC7211 and 7212 less cabotage transport

[Option 2A wouldreplace the above by:

InternationalTransport (freightand passengers)less cabotage (as defined below)]

The following services at theport are made available tointernational maritime transportsuppliers on reasonable andnon discriminatory terms andconditions1. Pilotage2. Towing and the tug

assistance3. Provisioning, fuelling and

watering4. Garbage collecting and

ballast waste disposal5. Port Captain's services6. Navigation aids7. Shore-based operational

services essential to shipoperations includingcommunications, water andelectrical supplies

8. Emergency repair facilities

MARITIME MODEL SCHEDULE (MMS)

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Extended Negotiations …

• No “critical mass” according to some main players

• Negotiations extended– In a package with telecom and financial services,

but with different dates (May 94 - June 96)– MFN suspended, except for commitments

undertaken– Standstill– Creation of plurilateral negotiating group:

Negotiating Group on Maritime Transport Services (NGMTS)

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… a qualified “success”

• 29 Members maintained their commitments which immediately entered into force, including MFN

• Of these Members, 8 followed the Maritime Model Schedule.

• Many MFN exemptions remained “on the books” while not needed.

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• Only 2 new offers (Norway, Iceland) submitted and 2 offers modified (Canada, Malaysia), all using the “Maritime Model Schedule” format.

• CTS decision (S/L/24) dated 28 June 1996:– suspends the negotiations– decides to “resume them with the commencement

of comprehensive negotiations on services in accordance with Article XIX …”

– and “to conclude them no later than at the end of this first round of progressive liberalization”.

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Further elements: • MFN obligation suspended except for commitments

undertaken. • Negotiations to start on the basis of existing offers.• Review by the CTS, “during the course of the

negotiations [of] the effects of the continued suspension of Article II.”

• Members may “improve, modify or withdraw” their specific commitments and reconsider MFN exemptions at the end of the round.

• Standstill (not subject to dispute settlement).

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II. Recent Accessions• 14 acceding Members have taken

commitments in maritime transport (Albania, China*, Croatia, Estonia, Georgia, Jordan*, Kyrgyz Republic, Latvia, Lithuania, Moldova, Oman*, Papua New Guinea, Saint Kitts and Nevis, Slovenia).*Maritime Model Schedule format

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III. The New Services Round

• No special case made for maritime transport in terms of calendar, procedure or group

• 8 relevant negotiating proposals (Australia; Colombia; Chile; EU; Hong Kong, China; Japan; Korea; Norway)

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• Strong similarities in the proposals:– Model Schedule as a basis;– Logistics, multimodal aspects;– Restrictions to abolish: cargo reservation,

equity ceilings, on-shore establishment.

• Different views on: offshore; feedering; MFN exemptions.

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• Recent developments:Joint Statement by 50-odd Members calling for “the active participation of all Members in the ongoing negotiations with a view to achieving meaningful liberalization of the maritime transport service sector” in the GATS framework.

TN/S/W/11, 3 March 2003

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THE END