Another ‘Enchilada’ on Services

Geneva - A second Doha Development Agenda services "Enchilada" session was held yesterday - where Malaysia and South Korea spelled out what they intend to present in their revised services offers and stated "must-haves" in the final package, trade diplomats said (WTD, 3/19/07).

Malaysia - which has been hostile towards services from the beginning of the negotiations - indicated that it is willing to provide an improved revised offer on recreation, tourism, environment, maritime, construction and higher education services. Ambassador Muhamad Noor also listed his country's "must-haves" from others - such as enhanced access in computer services, education, tourism, restaurant services professional services and telecommunications. Agreement on an emergency safeguard mechanism also is necessary.

South Korea is ready to improve access to its business, financial - including insurance - and computer services in its revised offer. "Must-haves" for Korea include telecommunications, financial services, distribution and construction. It also is pushing for the elimination of most-favored-nation exemptions.
Korean Ambassador Choi Hyuck outlined "red lines" in areas like news agency services, health and education and cabotage in maritime services.

Brazil's Silence

Brazil, however, was silent on how it will improve its revised services offers, suggesting that it will depend on the final outcome in Doha agriculture and market-opening for industrials negotiations.

According to its ambassador, Peter Allgeier, the United States listed "must-haves" from others to include access in telecommunications, financial, computer, audiovisual, distribution, environmental and energy services. Mr. Allgeier did not spell out any "red-lines" at the gathering.

"Red lines" for the European Union include audiovisual, education and health services. Deputy Ambassador John Clarke indicated Brussels will continue to insist on increased access in telecommunications, financial, distribution, environment, energy, legal and maritime services.

India made a strong pitch for "Mode 4" transit of professionals across borders, direct export of services under "Mode 1", professional services - including architectural - and domestic regulation. New Delhi also refused to spell out any "red-lines."

South Africa suggested it would engage in the services negotiations if Brussels made more concessions in agriculture.

Another "Enchilada" will be held next month.