Trade in Services
WTO - Trade in Services
Market Access Phase of Negotiations
EU Enlargement Process
September 2006
Canada recently completed negotiations with the European Commission
(EC) regarding the EC’s modification of its WTO services obligations
resulting from the accession of thirteen new members to the European
Union (EU).
The Uruguay Round of GATS negotiations were completed in 1995. Because
Austria, Finland and Sweden acceded to the EU later that year, and
Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta,
Poland, Slovak Republic and Slovenia acceded in 2004, each of these
countries negotiated Uruguay Round GATS commitments individually,
rather than collectively, as part of the EU. Following their accession
to the EU, some of the commitments contained in the GATS schedules
of these WTO members were not in accord with EU law. Accordingly,
the EC initiated a modification of commitments to bring the commitments
of countries that has acceded to the EU after the Uruguay Round,
in line with the EU's Uruguay Round commitments. In some cases,
this resulted in an increase in the level of liberalization for
some of these countries, in other cases it resulted in a diminishment.
As a result, the EC, along with 18 WTO members (who thought their
trade interests may have been affected), entered into negotiations
to ensure that the balance of service liberalization reflected in
the EU's and its acceding members' Uruguay Round commitments was
maintained.
Canada participated in the process to ensure that the interests
of Canadian service providers active in the EU market were protected
and that new commitments were provided where the modifications to
the EU's GATS schedule resulted in a lower level of commitment for
the newly acceded countries.
In determining our interests in this process, Canada undertook
a series of consultations, including the 2004 Canada Gazette publication
seeking feedback from Canadians, to assess the degree to which EC
modifications could affect Canada’s market access interests
in the sectors where modifications have been made.
The negotiations resulted in the EC offering new and improved commitments
in its GATS schedule in sectors such as engineering and computer
services. Canada is satisfied that such compensation rebalances
the EU's GATS commitments.
Following a certification procedure at the WTO, a revised schedule
of commitments will come into force for the EU.
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