Top 5 things to build a success software outsourcing firm out from Vietnam
One law firm around the world One law firm around the world Scheduling GATS Commitments & Sectors of...
-
Upload
elaine-wilkins -
Category
Documents
-
view
222 -
download
0
Transcript of One law firm around the world One law firm around the world Scheduling GATS Commitments & Sectors of...
One law firm around the world One law firm around the world One law firm around the world One law firm around the world
Scheduling GATS Commitments
& Sectors of Interest to Vietnam
David Hartridge
Hanoi, Vietnam
August 5-6, 2003
Schedule of Specific Commitments
The GATS requires each Member to submit a Schedule of Specific Commitments that lists the sectors in which it grants Market Access and National Treatment.
There is huge variation in the coverage of Members’ schedules. New Members usually have very wide coverage (more liberal than many current Members).
Market Access Commitments
Article XVI forbids the following types of market-access limitations unless scheduled (no other limitations are possible under this Article):
Number of suppliers Value of service transactions Number of operations or quantity of output Number of natural persons Type of legal entity Foreign equity participation
National Treatment and Additional Commitments
Article XVII - Obligation to treat foreign services and service suppliers no less favourably than your own like services and suppliers in scheduled sectors.
Any kind of limitation in favour of nationals can be maintained if it is listed in the schedule.
Article XVIII - Additional commitments go beyond market access and national treatment – e.g. the reference paper on telecommunications services.
Meaning of “limitations”
Scheduling a service does not mean it must be fully liberalized in all modes. Commitments can be made in one, two, three or four modes.
And commitments can be limited:
“unbound” = no commitment in that mode “none” = no limitation (full commitment) Specific limitations can be scheduled.
How to prepare a schedule: Step 1
Select sectors and sub-sectors for inclusion
Relevant considerations [underlying objectives]:
Attract foreign investment [employment], foster
competition [efficiency], broaden product choice
[consumer welfare], etc.
How to prepare a schedule: Step 2
Consider need for limitations or modal exclusions
Relevant considerations [type of limitation]:
Prevent market congestion [quantitative access
restrictions], promote technology transfer [joint venture requirements], prevent market disruption [phase-in commitments], etc.
Scheduling Recommendations
No general references to domestic laws
No unspecified economic needs tests
Use CPC (UN Central Product classification) numbers whenever possible
Clear definition of sub-sectors if coverage is limited
Examples from Schedules of Commitments: India
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector
Limitations on market access
Limitations on national treatment
Additional commitments
8. HEALTH RELATED AND SOCIAL SERVICES A. Hospital Services (CPC 9311)
1) Unbound 2) Unbound 3) Only through
incorporation with a foreign equity ceiling of 51 per cent
4) Unbound except as
indicated in the horizontal section
1) Unbound 2) Unbound 3) None 4) Unbound except as
indicated in the horizontal section
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector
Limitations on market access
Limitations on national treatment
Additional commitments
Services provided by midwives, nurses in private establishments (CPC 93191, excluding services provided within the public sector)
1) Unbound 2) Public insurance programmes do not cover the cost of foreign medical services supplied abroad. 3) None 4) Unbound, except as
indicated in the horizontal section. […] Economic needs determined by the total number of nurses and midwives in the given region, authorized by local health authorities.
1) Unbound 2) None 3) None 4) None
Latvia
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector
Limitations on market access
Limitations on national treatment
Additional commitments
Medical Services
1) Unbound* 2) None 3) None, other than the
number of new foreign doctors registered each year may be limited depending on the total supply of doctors
4) Unbound except as
indicated in the horizontal section
1) None 2) None 3) None 4) Unbound
*Unbound due to lack of technical feasibility
Singapore
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access
Limitations on national treatment
Additional commitments
5. EDUCATIONAL SERVICES (excluding special education services e.g. military, police, political and party school education)
A. Primary Education Services (CPC 921, excluding national compulsory education in CPC 92190))
[Similar commitments for all other Education Services]
1) Unbound 2) None 3) Joint schools will be
established, with foreign majority ownership permitted
4) Unbound, except as indicated in Horizontal Commitments and the following: foreign education services suppliers may enter into China to provide education services when invited or employed by Chinese schools and other education institutions.
1) Unbound 2) None 3) Unbound 4) Qualifications are
as follows: possession of
Bachelor's degree or above and an appropriate professional title or certificate, with two years' professional experiences.
China
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector
Limitations on market access
Limitations on national treatment
Additional commitments
5. EDUCATIONAL SERVICES D. Adult Education
(except flying instruction)
E. Other Education Services
1) None 2) None 3) The number of licences
for cosmetology schools in Kentucky is limited to 48 total licences , with a total of 8 licences allowed for operation of such schools per congressional district
4) Unbound, except as indicated in the horizontal section
1) None 2) None 3) None 4) Unbound, except as
indicated in the horizontal section
1),2),3),4) Scholarships and grants
may be limited to US citizens and/or residents of particular states and may, in some cases, only be used at certain states institutions or within certain US jurisdictions
1),2),3),4) Scholarships and grants
may be limited to US citizens and/or residents of particular states and may, in some cases, only be used at certain states institutions or within certain US jurisdictions
United States
Financial Services
Covers insurance and related industries, and banking and other financial services
Strategically vital sector – hence the Annex and primacy of prudential concerns
Also vital infrastructure on which efficiency of whole economy depends
110 WTO Members have commitments on financial services – second only to tourism
Financial Services: Why Commit?
Ensure longer-term capital flows
Ensure longer-term capital flows
Encourage creation of stable, transparent legal environment for investors
Encourage creation of stable, transparent legal environment for investors
Attract foreign direct investmentAttract foreign direct investment
Create efficient and sophisticated capital markets through introduction of new technologies and financial expertise
Create efficient and sophisticated capital markets through introduction of new technologies and financial expertise
Preconditions for Successful Liberalization
Establish regulatory regimes – Liberalization must be underpinned by effective supervisory and regulatory regimes.
Set correct priorities – Premature liberalization of capital flows can cause instability in a financial system. Better to allow commercial presence of foreign suppliers and liberalize a border range of financial instruments.
No effect on capital flows – The GATS is concerned only with liberalization of financial services and not of capital flows.
Negotiations on Financial Services
Relative failure of negotiations in 1993 and 1995, success in 1997; role of the USA
Still a high priority in the Doha Round
Request-offer negotiations; input from industry essential, but beware of protection of vested interests. The wider public interest should come first.
Telecommunications
Another infrastructure service whose efficiency is critical for the entire economy
Also a major target for liberalization in both accession and Doha Round negotiations
Prime interest of Vietnam’s partners will be in commercial presence – the possibility of direct investment in the telecoms sector
Telecoms Reference Paper I
Safeguards against anti-competitive behaviour by dominant suppliers – e.g. cross-subsidization
Guarantees non-discriminatory interconnection to existing networks
Requires transparent licencing procedures
Requires independent regulator
Telecoms Reference Paper II
Reference paper adopted by each Member as « additional commitments » under Article XVIII.
Over 80 Members have accepted it, some with slight reservations.
Accession without accepting the reference paper is almost certainly impossible; it has been a key element in Chinese and Russian accessions.
Maritime Transport I
Failure of EU and US to make commitments in Uruguay Round - only 29 schedules. Extended to 1996.
Negotiations covered three “pillars”of maritime transport - international transport, auxiliary services and access to and use of port services. Multimodal services also discussed.
Extended negotiations failed; suspended to new round. Two schedules improved. MFN principle suspended.
Major political problem for US - Jones Act and Section 19 of Merchant Marine Shipping Act, 1920.
Maritime Transport II
US unlikely to move despite 37 countries calling for maritime liberalization
But potential for many commitments (70-75 countries?) given major diplomatic effort, even without US
But also danger of unravelling – withdrawal of commitments and more MFN exemptions
Good offers in new Round by EU, Japan, Australia and New Zealand
One law firm around the world One law firm around the world One law firm around the world One law firm around the world
Scheduling GATS Commitments & Sectors of Interest to Vietnam
David Hartridge
Hanoi, VietnamAugust 5-6, 2003