22/4/2005
EU revises offer on services for Doha Development Round

This week the European Commission presented to Member States its proposal for the EU’s revised services offer in the DDA negotiations. The revised services offer builds on the ambitious initial offer the EU-15 submitted in 2003 and is made on behalf of an EU of 25 Member States representing a market of 455 million consumers. In line with the framework agreement reached last July, WTO members are requested to table revised services offers by the end of May 2005.

EU Commissioner for Trade Peter Mandelson said: “This balanced offer is an important step whose scope must now be matched by the EU’s WTO partners if the Doha negotiations are to be a success. The EU has shown leadership, already offering wide access to its own markets without compromising important public services and pursuing a final agreement that delivers for developing countries.”

When adopting the ‘July framework’ in 2004, WTO Members agreed to submit revised offers in services by May 2005. The ‘July framework’ also required that those members that had not yet submitted initial offers should do so as soon as possible.

The Commission will now consult Member States on its proposal with a view to its submission to WTO Members in May. The Commission will consult with the European Parliament and make the offer available to the public in parallel to its transmission to the WTO.

The main features of the proposed revised EU offer can be summarized as follows:

While the initial EU offer of 2003 was made for an EU of 15 Members States, the revised offer will extend our commitments to an EU comprising 25 Member States. Foreign services suppliers will thus be able to rely on the commitments offered by the EU to access a market that has increased from 375 million to 455 million consumers.

The market access opportunities provided by the already extensive EU commitments are further improved in some areas.

The proposed revised offer is conditional on other WTO members making substantive offers.

The proposed revised offer ensures that public services within the EU are fully safeguarded. It ensures our continued ability to exempt from international competition sensitive sectors that provide public services or that guarantee consumer or civilian safety. For example, the proposed offer does not contain commitments in sensitive areas such as education, health, or audiovisual services.

Background

In the EU, services account for at least two thirds of the GDP and employment. The EU is the biggest world exporter and importer of services, with 24% of world trade in services (the equivalent figure for goods is 19%). The EC is home to some of the world’s leading companies in many services sectors, such as the telecommunications, financial, business, and environmental services sectors, and there is an obvious interest for the EC to improve their access to foreign markets.

In this context, in 2002 the EC has submitted requests for improved commitments to most WTO members and recently revised them. In 2003, the EC-15 tabled a substantial offer and this revision is a response to requests both from developed economies and developing countries.