Trade in Services
WTO - Trade in Services
Canada working with other WTO Members to develop plurilateral
services market access requests (April 2006)
Towards a Plurilateral Request-Offer Process
Ministers from WTO Member countries met in Hong Kong, China, December
13 - 18, 2005 for the Sixth WTO Ministerial Conference. One of the
key outcomes of the Hong Kong Ministerial meeting was an agreement
among Ministers to commence a plurilateral request-offer negotiating
process as a means of advancing the services negotiations. The purpose
of this plurilateral process is to complement, not replace, the
bilateral request and offer process that has been employed since
the launch of the market access phase of negotiations on services
in 2002.
The plurilateral request-offer process will lead to enhanced efficiency
in the services negotiations. A plurilateral request-offer process
will enable WTO Members to identify areas of common interest in
the negotiations and to pursue progress in these areas collectively.
This will greatly enhance the manageability of the request-offer
negotiating process for all WTO members.
As with the bilateral request-offer process, any market access commitments
secured through a plurilateral negotiating approach will be extended
to all members on a most-favoured nation (MFN) basis. This will
ensure that the benefits of liberalization are extended to all WTO
members.
As WTO Members embark upon plurilateral request-offer negotiations,
all of the current flexibilities of the GATS will continue to apply.
WTO Members will still maintain the flexibility to decide for themselves
in which sectors they will undertake commitments and whether to
maintain or remove barriers which may exist in these sectors.
The GATS provides additional flexibility to individual developing
country Members, such as the ability to open fewer sectors, liberalize
fewer types of transactions, and progressively extend market access
in line with their development situation. Developing countries will
continue to benefit from this additional flexibility in the plurilateral
request-offer negotiations. Plurilateral requests will not be made
to Least-Developed Countries (LDCs) in the negotiations.
Canada's Participation in the Submission of Plurilateral Requests
Canada is participating as a co-sponsor in a total of nine plurilateral
requests in a number of sectors of key export interest to Canada.
- financial services;
- telecommunications services;
- computer and related services;
- environmental services;
- energy services;
- construction services;
- architectural, engineering and integrated engineering services;
- legal services, and;
- maritime transport services.
In 2002, Canada submitted initial
bilateral requests for improved market access to over 60 key
WTO trading partners. Canada's participation in plurilateral requests
in the above mentioned sectors will enable Canada to pursue many
of our previous bilateral requests on a collective basis as well.
A summary of the plurilateral requests Canada is co-sponsoring
is provided below.
Financial Services
-
Financial services liberalisation is important to strengthening
the global financial system and economy, and a vital structural
component to the development and growth of emerging economies.
-
The financial services plurilateral request seeks improved
offers in priority markets and sub-sectors, in terms of cross-border
trade and forms of establishment, as a means of making further
progress in the current Doha Development Round financial services
negotiations.
- Canada has one of the most open financial sectors in the world.
The financial services plurilateral request will contribute to
Canada's objectives and priorities of expanding and strengthening
market access and national treatment commitments, achieving further
reductions in barriers to trade in financial services and seeking
greater transparency disciplines for financial sector regulation.
Telecommunications Services
-
Telecommunications services are important economic drivers,
both in their own right, as well as by enabling further trade
and development. Canada recognizes telecommunications as a vital
infrastructure service and is requesting strong and effective
commitments for all telecommunications services.
-
In particular, Canada is seeking coverage of commercially meaningful
subsectors including voice and data transmission services, leased
circuit services and value added services.
- Priority regional markets include South America and Asia.
Computer and Related Services
Environmental Services
-
Through the plurilateral request for environmental services,
Canada will be seeking improved market access for Canadian environmental
service providers in areas such as sewage services, refuse disposal
services, sanitation and similar services, cleaning services
of exhaust gases, noise abatement services, nature and landscape
protection services and other environmental protection services
such as acid rain monitoring, controlling and damage assessment
services. No commitments are being sought for water collection,
purification or distribution services.
-
Canada is placing special emphasis on the improvement of commitments
for commercial presence (Mode 3) and cross-border supply (Mode
1) for the full range of environmental services within the sector.
Finally, Canada is also seeking improved access with respect
to entry and stay (Mode 4) for certain kinds of professionals
who often play an important role in the environmental services
sector.
- Priority markets for Canada include Central and South America,
Asia, Southeast Asia and Africa.
Energy services
-
Through the collective request process, Canada is seeking
improved market access for service providers in areas such as
engineering services, management consulting services, services
rendered on oil and gas field, exploration services and technical
testing and analysis.
- In the context of this request, Canada is placing special emphasis
on substantial reduction of market access limitations for cross-border
delivery of energy related services, as well as removal or elimination
of economics needs tests, the elimination of discriminatory licensing
procedures as well as requesting commitments for temporary entry
of professionals, specialists and intra-corporate transferees.
Construction Services
-
Through the plurilateral request for construction services,
Canada is seeking improved market access for Canadian construction
companies seeking to do business abroad through the setting
up of a commercial presence (Mode 3) or when consuming services
while abroad (Mode 2). Through the plurilateral process, Canada
is also seeking improved market access for engineering, architectural
and integrated engineering services, as these services are vital
to construction companies wishing to do business abroad.
- Priority regional markets include the Middle East, South America,
Asia, Southeast Asia, and Africa.
Architectural, Engineering and Integrated
Engineering Services
-
As one of Canada's most export-oriented services industries,
Canada is seeking a high level of liberalization for architectural,
engineering and integrated engineering services. Canada is the
coordinator for a plurilateral request in this sector.
-
Canada is seeking comprehensive commitments for architectural,
engineering and integrated engineering services, which include
removal of restrictions such as commercial presence requirements,
nationality/citizenship requirements, restrictions limiting
types of legal entity with a particular emphasis on discriminatory
restrictions, and restrictions which limit participation of
foreign capital. Canada is also seeking commitments which facilitate
the temporary entry and stay of architects and engineers.
- Key markets of interest include the Middle East, Central and
South America, Asia and Southeast Asia which include several key
new and emerging markets.
Legal Services
-
Canada's participation in the plurilateral request for legal
services is aimed at creating new opportunities for Canadian
legal services providers in a variety of foreign markets, particularly
in the practice of foreign and international law.
-
Canada is seeking elimination or reduction of barriers such
as commercial presence and nationality requirements; foreign
investment restrictions; and prohibitions or limitations on
the establishment of foreign law firms, including limitations
on establishing direct branches and discriminatory limitations
on the types of legal entity allowed for the commercial presence
of foreign law firms. Canada is also seeking commitments which
facilitate the temporary entry and stay of foreign legal consultants.
- Key markets of interest include South America, Asia and Southeast
Asia which include several key new and emerging markets.
Maritime Transport Services
-
Through the plurilateral request for maritime transport services,
Canada will be looking to secure market access for Canadian
service providers in international maritime transport (freight
and passenger), and maritime auxiliary services (e.g. cargo-handling,
storage and warehousing, etc.), as well as non-discriminatory
access to and use of port and onward services.
- The request will be asking for new or improved commitments
with a specific emphasis on the elimination of the following restrictions:
cargo reservation, foreign equity participation limitations, restrictions
on right to establish a commercial presence, nationality requirements
of board members and the elimination of any other preferential
treatment. No commitments are being sought on domestic maritime
transport (cabotage).
Canada as a “Deemed Recipient”
A WTO Member that participates as a co-sponsor in a plurilateral
request that contains elements which go beyond its current GATS
commitments is considered to be a “deemed recipient”
of the request. This means that they will need to give due consideration
to the request and to further liberalization of their own domestic
services regime.
Canada is co-sponsoring several requests which go beyond our current
level of liberalization, which include, for example: energy services,
construction & related engineering services, telecommunications,
legal services, and architectural, engineering & integrated
engineering services.
While we do not currently meet all aspects of these requests, our
participation as a co-sponsor enables Canada to pursue its offensive
interests in the context of plurilateral negotiations. The “deemed
recipient” approach is considered to be an important part
of ensuring the legitimacy and overall level of ambition for the
plurilateral request process, and ensures that the process does
not result in the “lowest common denominator” given
the varying domestic objectives of the co-sponsors.
Our participation in such requests, however, is without prejudice
to any negotiating outcome, and will be understood to be within
the context of the availability of all existing GATS negotiating
flexibilities.
Requests that Canada has Received
Canada has also been the recipient of some plurilateral requests.
As has been the case with the requests Canada has received on a
bilateral basis, Canada will give due consideration to any plurilateral
requests it receives. Regardless of any plurilateral requests Canada
may receive, however, we will still maintain the flexibility to
decide for ourselves whether, when and how to best liberalize our
services markets.
Canada’s position on key domestic objectives has not and
will not change. We will not take commitments for health, public
education, or social services. Canada will also not take any commitments
that restrict its ability to achieve cultural policy objectives.
Requests have been received in the following sectors:
- agricultural services
- air transport services
- audiovisual services
- services provided through commercial presence
- cross-border supply of services
- distribution services
- logistics services
- most-favoured nation exemptions
- postal/courier services
- temporary movement of natural persons
Other Plurilateral Requests
The following are plurilateral requests currently being negotiated
at the WTO of which Canada is neither a co-sponsor, nor a recipient:
|