| Allgeier Says U.S. Committed to Timetable For Giving Revised WTO Services Talks Offer
By Daniel Pruzin
International Trade Reporter
Volume 22 Number 8
February 24, 2005 GENEVA--The United States is committed to the timetable fixed by World Trade Organization members for the submission of revised market access offers on services and intends to have it ready by the end of May, Deputy U.S. Trade Representative Peter Allgeier declared Feb. 16. Speaking to reporters in Geneva, Allgeier also hinted that the United States is unlikely to propose any new, significant initiatives on "Mode 4" in its revised offer and urged countries pressing for concessions in this area to consider alternative means of services supply to improve opportunities for their firms. WTO members decided last August as part of their "framework" agreement for advancing the Doha negotiations to set an end-of-May 2005 target date for the submission of revised offers outlining how far they are prepared to go in liberalizing their services markets under four modes of delivery--cross-border movement of service products, movement of consumers to the country of importation, and establishment of a commercial presence in the country where the service is to be provided, and temporary cross-border movement of business and professional personnel (otherwise known as Mode 4). 45 Offers Still Outstanding Although the initial offers were originally due by the end of March 2003, some 45 countries that were expected to submit offers have yet to do so. The chairman of the services negotiations has warned that the continued absence of the initial offers continues to be a "serious, serious problem" for the negotiations. Noting that a large U.S. delegation is currently in Geneva for a three-week "cluster" of WTO services negotiations, Allgeier--who was named by President Bush to be acting U.S. trade representative on Feb. 18--said the main reason for the talks "is to refine our respective requests in services and to understand more clearly what others are seeking and to discuss that with them so that we are in a position to make improved, more focused offers in the time frame set in the framework." "We certainly are committed to meeting these mileposts," he added. Concerns Over Changes in USTR Some officials have privately expressed concerns that the recent changes in the Bush administration and the need to get a new U.S. trade representative in place could hamper U.S. efforts to produce a revised offer by the end of May. Those officials have suggested it would be better for the United States to miss the May target date and produce a better offer--including more substantive commitments on Mode 4--rather than rush out an offer to meet the deadline. Developing countries led by Brazil, China, India, and Mexico have complained that the Mode 4 offers put forward in the services negotiations to date are insufficient and must be improved. U.S. industry representatives have also warned that progress on Mode 4 commitments will be key to securing developing country support for a Doha Round deal on services and have encouraged the United States to show greater flexibility on the issue. The initial Mode 4 offer by the United States in the WTO talks would limit most temporary entry rights to executives and other employees of foreign companies that already have a physical presence in the United States. Allgeier admitted that Mode 4 was a difficult issue for the United States since it touched on issues such as rules for immigration, which have been tightened in the wake of the 9/11 terrorist attacks. "We're actually a very open country in terms of people coming to work in our economy," Allgeier insisted. "But there are sensitivities, and frankly the sensitivities have increased as a result of the security situation." "On the other hand, we do hear how important this is to many other countries," he added. "And so this is one of the areas we have a lot of work to do back in our capital to find the right response on this issue." "Not to diminish the importance of Mode 4, there are other ways to deliver services," Allgeier continued. "What Mode 4 means for a developing country is that some of the brightest people from their economy are leaving and going to make their fortune in another country. From the country's standpoint, they're losing an awful lot of talent." "More and more there are ways to deliver these a lot of these services in a cross-border way," he noted. "An architect for example can do a lot more across the Internet than what was possible 10 years ago. So I think it's important for countries to also look down the road 5, 10 years from now at what other modes of delivery could be important and effective for them."
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