Doha Negotiations – perspectives from a negotiator

Muhammad Hanafiah Bin Abdul Rashid

Infocomm Development Authority of Singapore

7 Dec 2004

muhd_hanafiah@ida.gov.sg

ITU-WTO Workshop on Telecom & ICT Regulation

Doha Negotiations

Nov 2001 – launched (with Jan 2005 as the proposed end date)

Approx 4 bilateral negotiating sessions per year

Sep 2003 - Cancun Ministerial

July 2004 – the ‘July Package’

Dec 2005 - Hong Kong Ministerial

end date?

Current Situation

Existing Commitments

Basic telecom services commitments – about 90 members

Telecom Reference Paper full adoption: 77 members

Computer services commitments – about 70 members

Electronic Commerce – customs duties moratorium needs to be renewed regularly

Information Technology Agreement (ITA) participants – 63

Doha Round New Offers

Services offers: about 46 new offers – most include telecom and computer services commitments

Issues of interest during negotiations

Classification of telecom services

Classification of computer services

Market Access Commitments

National Treatment

Additional Commitments eg Telecom Reference Paper

MFN

Electronic Commerce

Others

Classification issues - telecom services

W120 and CPC adequate?

Speed of technological innovation & Convergence

Services that did not exist during the creation of the W120 included? Eg 3G, Wi-max, VOIP, etc

Some parts seem outdated? Eg telegraph, telex

Some overlap with computer services

Basic vs value-added telecom services

What goes into basic? What goes into value added?

Some ideas being discussed informally:

Collapsing and simplifying W120 into fewer categories?

Classification issues - computer services

W120 and CPC adequate?

Speed of technological innovation & Convergence

Services that did not exist during the creation of the W120 included? Eg application hosting, data warehousing, web hosting, e-commerce hosting”

Some ideas being discussed informally:

Make commitments at 2-digit level (CPC 84)?

Clarifying the meaning of computer services at the 2-digit level?

Market Access Issues - Telecom

Basic Telecom Services

relatively more restrictions than Value-added Telecom Services

Value-Added Telecom Services and Resale Services

typically fewer restrictions, but fewer numbers of commitments than basic telecom commitments

Mode 1 – still many restrictions

Eg Exclusive rights, routing restrictions

Mode 3 – still many restrictions

Eg number of operators, FDI limits, type of legal entity, long phase-in periods

Market Access Issues – Computer Services

Given the relative openness of this sector, there are surprisingly few commitments (approx 70 commitments)

Developing countries demanding more commitments in this sector – eg India, Mercosur

Mode 1 and 4 – important to developing countries in particular

Fewer CPC 844 commitments (database services) – content concerns?

Fewer CPC 849 commitments (other) – uncertainty over its scope?

Given the speed of technological innovation in computer services, it is important to make commitments on the whole sector including CPC 849

National Treatment Issues

Telecom Services – limits on senior management and ownership of land

Access to land is important for facilities-based telecom operators (rights-of-way issue)

Computer Services – relatively few limitations

Additional Commitments Issues – Telecom Reference Paper

How to get more members to adopt the Reference Paper in full?

Only about half of WTO members have adopted it in full

Reference paper provides a guarantee to investors who need to take into account regulatory risk.

How to implement the Reference Paper?

Eg Initiatives by APEC TEL Working Group

Some ideas being discussed informally:

Clarify how to implement the Reference Paper through capacity building and info sharing efforts

MFN Issues

Satellite Services

MFN exemptions allow discrimination and prevent development of efficient cross-border telecommunications?

Accounting Rates

Prevent development of efficient cross-border telecommunications?

Electronic Commerce Issues

Customs duties on electronic transmissions

how to ensure barrier-free environment for electronic transmissions?

Treatment of products that can be digitized - eg e-music, e-books, software, digital video

How to prevent discrimination and other barriers for these products?

More liberal commitments on cross-border supply for on-line services

How to prevent barriers to Business Process Outsourcing?

Other issues

Information Technology Agreement (ITA)

makes computers, communication devices and other ICT equipment more affordable to users (reduce digital divide?)

Capacity Building

Multilateral – WTO, ITU BDT, ITU Regional Offices

Regional – eg APEC TEL, APT

Bilateral

NGOs

Developments alongside the WTO

Bilateral FTAs – supplementing the Telecom Annex and Reference Paper disciplines

Note the FTAs involving US, Singapore, Australia

Includes enhanced Telecom Annex obligations, transparency disciplines, technology-choice for operators, number portability, colocation, unbundling, resale, access to poles and ducts, leased circuits, etc

Bilateral FTAs – disciplines on electronic commerce negotiated

Permanent moratorium on customs duties on electronic transmissions

Non-discriminatory treatment of products that can be digitized

Mutual recognition arrangements (MRAs) on conformity assessment of telecom equipment – at APEC and bilaterally

Eliminates duplicative testing and certification

Faster-time-to-market and reduced testing fees

Questions?

Thank you