ThevoiceoftheEuropeanServiceIndustriesfor

InternationalTradeNegotiationsinServices

WTO
Publi
c
Foru
m
2010

Role of NonState Actors in the WTO

(Session 3)
Organized by: CUTS International
Subtheme I - The WTO and the players that influence the multilateral trading system

Wednesday, 15 September, 14:00 16:00

Meeting Room: D

Role of business in shaping the WTO and

whether WTO serves their interests
Pascal Kerneis Managing Director

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

ESF covers most

services sectors,
including:
Insurance
Banking
Business services: IT &

Computer; consulting,
advertising, after-sales services

Professional services:
legal services, accountants,
architects, engineers

Construction services
Distribution services
Postal & Express
Delivery services

Audio-visual
services
Energy related
services
Environmental
services
Telecommunication
services
Tourism
Maritime Transport

But no members in
Formoreinformation,seewww.esf.be
Education or

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices
ESF MEMBERS INCLUDE:

Formoreinformation,seewww.esf.be

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Role of Business in shaping the

1st : A provocativeWTO
reflection:
The GATT and then the WTO have been
created to facilitate Trade
(reduce/remove custom tariffs at
borders, reduce discriminatory
treatment towards foreign companies,
improve market access to non domestic
actors...)
Trade actors on the world economy are
the companies,
Hence WTO is there for the business

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Role of Business in shaping the

But in fact, WTO is first and foremost a member
WTO

driven organisation, i.e. a governmental

organisation.
Despite NGOs belief that business are strong towards
their government, they are not very good at
shaping them, and even less at shaping the WTO.
The successes of the 8 first GATT rounds (Dillon,
Kennedy, Tokyo, etc.) have most of them been done
without strong intervention from the Businesses. It is
only during the Uruguay Round that Business started
to be active towards their own government not
the WTO.

Manufacturing companies to reduce tariffs, NTBs,

Services companies in the GATS Financial services and Telecoms in

1997.

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Role of Business in shaping the

Mobilisation of NGOs WTO
and Trade Unions before and

in Seattle WTO Ministerial Conference in 1999 has

initiated a stronger mobilisation of business
Major business organisations joined forces
But havent not bee very successful
No round launched in Seattle, DDA launched in
Doha in 2001 (political circumstances), failure at
Cancun, timid progress in Hong Kong with many
issues against business priorities, successive
failures since in Geneva, incl. in July 2008. Since
then, nothing
despite business mobilisation

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Role of Business in shaping the

Can Business expect better
from the WTO?
WTO

Yes, in recent years the WTO Secretariat has made

efforts to better reach out to Non State Actors (including
Business) while preserving its fundamental nature as an
inter-governmental organisation.
The WTO Public Forum is open to all participants,
Most WTO documents become public upon submission,
and
Regular WTO briefings are held for non governmental
organisations (NGOs) and parliamentarians.
Hearings in some dispute settlement proceedings have
also been opened to the public upon agreement among
the parties.
But that for all NSAs. Is that sufficient? Does the WTO
serve the business interests?

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Does the WTO serve the business

What does a companyinterests?
need to do international
business?

=> It will look at many different criteria to get good conditions:

Tariffs applied to import goods, rules of origin to be implemented,
Business Environment in targeted country (incl. availability and price of
human capital, level of education)
Potential market (size, income per capita, follow the demand, i.e.
corporate customers)
Existing competition, special treatment for local players
Standards/certifications/testing to be respected by exporters, etc.
Benefits prospects at short, medium and long terms
Good governance (level of corruption, transparency of the legislation, etc.)
State of the regulation (existing barriers at all levels, independent
regulatory authority, implementation of the regulations, i.e. Regulatory
Certainty)
FDI incentives (special zones, tax incentives, corporate tax, etc.)
Country Risk Assessment, i.e political stability, security for long term
relations
WTO negotiations can only deliver a part of these conditions.

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Does the WTO serve the

What does business
expect
from WTO?
business
interests?

Provide a multilateral system that fix global rules

on the world market so that there are no
discrimination among companies (where ever they
come from)
Lower tariffs, Lower non-tariffs barriers, Lower
unfair subsidies,
Allow market entry to products and services to non
domestic economic actors
A world wide international treaty that provides
legal security to trade and investment.
If one country does not respect its obligations, the
WTO can apply sanctions (DSU).

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

Companies need international

agreements to provide legal security to
their trade and=>What
investments
is happening
What EU companies
want:
in the reality:
1. WTO DDA
1. Autonomous No Legal
2. Regional Trade
Liberalisation Security !
Lack of
Agreements (with
2. BITs, FTAs convergen
Integrated Markets)
3. Multilateral or
Plurilateral agreements
on investments
4. Bilateral Agreements
(FTAs &/or BITs)
5. Autonomous
Liberalisation BUT

3.

ce in a
WTO ?? DDA started
global9
years ago! Last world
round

concluded 16 years
ago !!

Conclusion: Business
interests are not yet properly
served by WTO

ThevoiceoftheEuropeanServiceIndustriesfor
InternationalTradeNegotiationsinServices

THANK YOU FOR YOUR ATTENTION !

Pascal KERNEIS
Managing Director
European Services Forum ESF
168, Avenue de Cortenbergh
B 1000 BRUSSELS
Tel: + 32 2 230 75 14
Fax: + 32 2 320 61 68
Email: esf@esf.be

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