Global Services Network Alert
July 23, 2004

Global Services Coalition Urges Equal Treatment for Services in Oshima Text. A global coalition of services organizations wrote to WTO Director-General Supachai Panitchpakdi on July 20, urging that services be given treatment equal to that of agriculture and goods in the text. The draft statement, released last week, addressed services in a section along with other issues such as TRIPS, Dispute Settlement, Rules, and other issues. (see GSN update of July 16, 2004). The joint coalition letter is copied below.

WTO Informal Heads of Delegation Meeting, July 19-20. WTO members broadly welcomed the first draft of a package of “framework” agreements when they met on 19–20 July, although they had reservations - sometimes serious - about some parts of the text, according to a summary of the meeting distributed by the WTO. General Council chairman Shotaro Oshima warned that agreement would have to be reached by the “drop-dead” deadline of Friday, July 30. For a summary of the meeting, click here: http://www.wto.org/english/news_e/news04_e/dda_package_sum _19_20july04_e.htm.

July 20, 2004

Dr. Supachai Panitchpakdi
Director-General
World Trade Organization
154 rue de Lausanne
Geneva, Switzerland

Dear Dr. Supachai:

We are writing to express our hope that, in any text resulting from the General Council meeting at the end of the month, services be given treatment equal to agriculture and goods.

As you know, such treatment is consistent with the treatment of services in the draft Seattle declaration, the Doha Declaration, and in the Derbez text.

What this means in practice is that the second paragraph in Section 1e of the draft General Council Decision would become a new Section 1d.

We believe it is important to maintain this equality of treatment in order to underscore that a successful negotiation in services could be one of the hallmark achievements of the DDA, to keep a sharp focus on the need to get more and better offers, and then to work hard in bilateral negotiations to improve offers. This will be a long and difficult process and it should begin, with energy, as soon as possible early this fall.

We hope you will do all you can to raise the level of attention given to services. Obtaining equal treatment with agriculture and goods in the new General Council text would help do so.

Sincerely,

Australian Services Roundtable
Brazil Services Forum
Canadian Services Coalition
Coalition of Service Industries (U.S.)
European Services Forum
Japan Services Network
Hong Kong Coalition of Service Industries
NASSCOM (National Association of Software & Services Companies of India)

OTHER ITEMS:

"Significance of Efficient Financial Services for the Future of Japan's Economy." Speech given by Toshihiko Fukui, Governor of the Bank of Japan, to the Japan Center for Economic Research in Tokyo on July 22, 2004. Click here: http://www.boj.or .jp/en/press/04/ko0407c_f.htm

Recent Trends in US Services Trade. Annual report on US trade in services, prepared by the US International Trade Commission (USITC). The report analyzes significant trends in services trade as a whole, assesses trade and trade-related issues in selected service industries, and identifies major US trading partners. Data are presented for cross-border transactions, sales through affiliates, and direct investment. The report is available at: ftp://ftp.us itc.gov/pub/reports/studies/PUB3703.PDF.

Studies on Welfare Gains in US Free Trade Agreements. A series of computational analyses prepared by Drusilla Brown, Kiyota Kozo, and Robert M. Stern at the University of Michigan between May and July of this year. The studies cover US free trade agreements with the Southern African Customs Union (SACU), Central America, Australia, and Morocco, as well as in the Free Trade Area of the Americas (FTAA). To download the studies, click the links below. SACU: http://www.FordSchool.umich.edu/rsie/workingpapers/Papers501- 525/r509.pdf.
Central America, Australia, and Morocco: http://www.FordSchool.umich.edu/rsie/workingpapers/Papers501- 525/r507.pdf.
FTAA: http://www.FordSchool.umich.edu/rsie/workingpapers/Papers501- 525/r508.pdf.