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Developing Countries Growth To Be Boosted By Opened Trade In Services
added: 2008-09-05

Pursuing both progressive and reciprocal opening of access to the service market in trade negotiations is stressed by MEPs in a report adopted by the House. This would give access to entrepreneurs of developing countries to a wider range of service. The own-initiative report to be endorsed by the House reiterates that liberalisation of services is important for both developed and developing countries.

The efficiency gains that could be obtained thanks to opening markets to services competition could allow less developed countries to provide a greater range of services for their citizens. The importance of universal, accessible and sustainable services with affordable prices and high-quality standards is underlined in the report drafted by Syed Kamall (EPP-ED, UK) and adopted with 525 votes in favour and 77 against.

The House stresses the need to allow developing countries political space regarding the level of reciprocity in the opening up of trade by enabling them to decide for themselves the depth and the speed at which liberalisation may be pursued.

Services make up an ever increasing percentage of GDP of nearly every economy, 75% for EU, 78% for North America, 52% for Africa and 60% for Asia.

MEPs underline the need for rules and standards to govern liberalisation. MEPs of the Trade Committee encourage compliance with environmental and quality standards, "without constituting unnecessary barriers to trade". Trade regulations must comply with ILO social standards.

The House recognises the existing distinction among the different nature of services, especially the need to distinguish between commercial and non- commercial services; stresses the need for a differentiated approach in opening the markets in services of general interest.

ACP and ASEAN regional agreements

MEPs support the achievement of full Economic Partnership Agreements with the ACP countries that cover not only goods but also services and investment, thus enabling those countries' integration in the global economy. They also support the agreement on Mode 4 in the EU-CARIFORUM Economic Partnership Agreement. Mode 4 is the possibility for citizens from the Caribbean to work temporarily in the EU.

They also call for universal, accessible, sustainable and affordable public services with high-quality standards to be ensured for all.

On the EU-ASEAN Free Trade Agreement (FTA), MEPs say that the aspects of the agreement affecting public procurement, investments and services should "recognise the varying level of development of ASEAN members".

The European Commission is asked to pursue a balanced package with an ambitious offer in services, especially in financial services, where the European industry has competitive expertise and has a strong potential for growth, says the report.


Source: European Parliament

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