FICs launch negotiation of trade in services as extension to PICTA
PRESS STATEMENT (26/08)
30 March 2008
FORUM ISLAND COUNTRY TRADE MINISTERS LAUNCH
NEGOTIATIONS FOR LIBERALISATION OF TRADE IN SERVICES
The Forum Island Country (FIC) Trade Ministers have officially launched the negotiation of a trade in services Agreement as an extension to the Pacific Island Countries Trade Agreement (PICTA).
The first round of negotiations will be held from 31 March to 02 April, 2008 in Nadi, Fiji Islands.
PICTA, a Free Trade Agreement (FTA) among the FICs that excludes Australia and New Zealand, currently covers trade in goods only. Following an initial assessment on the cost and benefit of extending the FTA among FICs to include trade in services, the Forum Trade Ministers in 2001 endorsed in principle the integration of services into the PICTA, based on a gradual, flexible approach, with sufficient transition periods where appropriate.
A modality for the liberalization of trade in services among the FICs was developed in 2004. National consultations workshops were held in all fourteen (14) FICs from 2004 to 2007 discussing the provisions in the proposed modality for liberalizing services, and related opportunities and challenges to be faced by the FICs.
“In the next months, Senior trade officials from the FICs will engage in national consultations and regional negotiations with a view to concluding a trade in services Agreement as an extension to PICTA, by October 2008,” the Chair of Pacific ACP Trade Ministers Meeting (PACPTMM), Honorable Hans Joachim Keil said.
“Given the comprehensive nature of the services sector and the complex issues relating to the scheduling of liberalization commitments, the modes of supply and the regulatory disciplines, the Ministers have urged the FIC trade officials to engage in wider consultations, with all stakeholders including the private sector and civil society, at national level as negotiations progress,” Honorable Keil added.
The negotiation of a trade in services Agreement among the FICs will cover temporary movement of natural persons, investments and other related disciplines.
In May 2007, the FIC Trade Ministers while noting the country reactions to the proposed modalities, endorsed that the draft modalities be the basis for the development of the legal text and negotiations among the FICs. A draft legal text for the proposed trade in services Agreement among the FICs was developed and circulated to the FICs in 2007. A regional pre-negotiation workshop to discuss the draft legal text was held in February 2008 with the participation of FIC Trade and Legal Officials.
The negotiation of the PICTA trade in services Agreement will commence with the first round of negotiations on liberalizing trade in services among the FICs taking place from 31 March-02 April, 2008, in Nadi, Fiji followed by the second round of negotiations in June and the final round in September 2008.
The first round of negotiations will focus on the draft legal text, and arrangements to facilitate temporary movement of natural persons within the FICs. In preparation for the second round of negotiations, the FICs will also discuss approaches to the identification of specific sectors that they wish to liberalize in the context of PICTA trade in services.
“Trade in services among the FICs is already taking place and the approach taken to formalize the existing dynamics through a PICTA trade in services Agreement is a logical step, with the expectation that more investments will flow into the FICs,” PACPTMM Chair said.
“The key objectives of the PICTA trade in services Agreement are to improve transparency and certainty of the existing regulations, and remove discrimination for FICs suppliers in selected services sectors.”
“This could prove a powerful tool to channel reforms in critical services areas where processes of deregulation and liberalization are being undertaken. The binding of these domestic reforms in a regional agreement ensures that they are not discretionarily reversed. This would send positive signal to investors, encouraging them to see the Pacific Islands as a regional market rather than a series of individual markets, thus more attractive for undertaking investment decisions on a larger scale,” Honorable Keil said.
The FICs will also negotiate the facilitation of temporary movement of natural persons within the FICs. Individuals from FICs who possess one of the qualifications listed in the Agreement would be given automatic right to unrestricted entry to the territory of other Parties to the Agreement for a defined period. The Agreement will contain a list of qualifications for skilled and semi-skilled professions that would be subject to freer movement within the FICs.
The FIC Trade Ministers recognize that real benefits might accrue from the liberalisation of certain service sectors. “As part of the liberlisation efforts, there will also be efforts made by the FICs to deal with inherent institutional and capacity constraints”, Honorable Keil added.
Following the capacity building exercises over the few years, the FICs have developed a relatively good level of preparedness in terms of engagement in negotiations among the FICs to liberalise trade in services.
The FIC Trade Ministers have tasked the Trade Officials to keep the interests of individual FICs in mind as they take a regional approach in engaging in negotiations of a PICTA trade in services Agreement.
ENDS.
For more information, contact Mr Peter Forau, Deputy Secretary General (Economic Governance and Security), on phone ( 679) 3312600, or fax ( 679) 3301102, or e-mail peterf@forumsec.org.fj
30 March 2008
FORUM ISLAND COUNTRY TRADE MINISTERS LAUNCH
NEGOTIATIONS FOR LIBERALISATION OF TRADE IN SERVICES
The Forum Island Country (FIC) Trade Ministers have officially launched the negotiation of a trade in services Agreement as an extension to the Pacific Island Countries Trade Agreement (PICTA).
The first round of negotiations will be held from 31 March to 02 April, 2008 in Nadi, Fiji Islands.
PICTA, a Free Trade Agreement (FTA) among the FICs that excludes Australia and New Zealand, currently covers trade in goods only. Following an initial assessment on the cost and benefit of extending the FTA among FICs to include trade in services, the Forum Trade Ministers in 2001 endorsed in principle the integration of services into the PICTA, based on a gradual, flexible approach, with sufficient transition periods where appropriate.
A modality for the liberalization of trade in services among the FICs was developed in 2004. National consultations workshops were held in all fourteen (14) FICs from 2004 to 2007 discussing the provisions in the proposed modality for liberalizing services, and related opportunities and challenges to be faced by the FICs.
“In the next months, Senior trade officials from the FICs will engage in national consultations and regional negotiations with a view to concluding a trade in services Agreement as an extension to PICTA, by October 2008,” the Chair of Pacific ACP Trade Ministers Meeting (PACPTMM), Honorable Hans Joachim Keil said.
“Given the comprehensive nature of the services sector and the complex issues relating to the scheduling of liberalization commitments, the modes of supply and the regulatory disciplines, the Ministers have urged the FIC trade officials to engage in wider consultations, with all stakeholders including the private sector and civil society, at national level as negotiations progress,” Honorable Keil added.
The negotiation of a trade in services Agreement among the FICs will cover temporary movement of natural persons, investments and other related disciplines.
In May 2007, the FIC Trade Ministers while noting the country reactions to the proposed modalities, endorsed that the draft modalities be the basis for the development of the legal text and negotiations among the FICs. A draft legal text for the proposed trade in services Agreement among the FICs was developed and circulated to the FICs in 2007. A regional pre-negotiation workshop to discuss the draft legal text was held in February 2008 with the participation of FIC Trade and Legal Officials.
The negotiation of the PICTA trade in services Agreement will commence with the first round of negotiations on liberalizing trade in services among the FICs taking place from 31 March-02 April, 2008, in Nadi, Fiji followed by the second round of negotiations in June and the final round in September 2008.
The first round of negotiations will focus on the draft legal text, and arrangements to facilitate temporary movement of natural persons within the FICs. In preparation for the second round of negotiations, the FICs will also discuss approaches to the identification of specific sectors that they wish to liberalize in the context of PICTA trade in services.
“Trade in services among the FICs is already taking place and the approach taken to formalize the existing dynamics through a PICTA trade in services Agreement is a logical step, with the expectation that more investments will flow into the FICs,” PACPTMM Chair said.
“The key objectives of the PICTA trade in services Agreement are to improve transparency and certainty of the existing regulations, and remove discrimination for FICs suppliers in selected services sectors.”
“This could prove a powerful tool to channel reforms in critical services areas where processes of deregulation and liberalization are being undertaken. The binding of these domestic reforms in a regional agreement ensures that they are not discretionarily reversed. This would send positive signal to investors, encouraging them to see the Pacific Islands as a regional market rather than a series of individual markets, thus more attractive for undertaking investment decisions on a larger scale,” Honorable Keil said.
The FICs will also negotiate the facilitation of temporary movement of natural persons within the FICs. Individuals from FICs who possess one of the qualifications listed in the Agreement would be given automatic right to unrestricted entry to the territory of other Parties to the Agreement for a defined period. The Agreement will contain a list of qualifications for skilled and semi-skilled professions that would be subject to freer movement within the FICs.
The FIC Trade Ministers recognize that real benefits might accrue from the liberalisation of certain service sectors. “As part of the liberlisation efforts, there will also be efforts made by the FICs to deal with inherent institutional and capacity constraints”, Honorable Keil added.
Following the capacity building exercises over the few years, the FICs have developed a relatively good level of preparedness in terms of engagement in negotiations among the FICs to liberalise trade in services.
The FIC Trade Ministers have tasked the Trade Officials to keep the interests of individual FICs in mind as they take a regional approach in engaging in negotiations of a PICTA trade in services Agreement.
ENDS.
For more information, contact Mr Peter Forau, Deputy Secretary General (Economic Governance and Security), on phone ( 679) 3312600, or fax ( 679) 3301102, or e-mail peterf@forumsec.org.fj
