Tab 1

Tab 2

TABLE OF CONTENTS

Key Policy Issues in Debate on the Structure of a
Services Agreement

Summary Table of the Three Major Negotiating Positions (U.S., E.C., Developing Countries) on the Key Policy Issues

Tab 3

Tab 3a

Tab 4

Tab 5

Tab 6

U. S. Position (supported only by Australia, New
Zealand)

Major Objections to U.S. Position

Evolving EC Position (supported by most developed
countries and a few developing countries)

Developing Country Position (supported by most
developing countries)

Conclusions

KEY POLICY ISSUES IN DEBATE ON
STRUCTURE OF A SERVICES AGREEMENT

Tab 1

1)

2)

3)

4)

5)

6)

7)

What should be the rule regarding existing measures
affecting trade in services?

Should countries agree to a "freeze" with respect
to such measures (Le, agree not to impose in the
future any measures that are more restrictive than
those currently in place)?

Would agreeing to a "freeze" put the U.S. at a
strategic disadvantage in future negotiations
since the U.S. currently has a more liberal
services regime than virtually every other
country?

What should be the initial level of market
liberalization commitments resulting from a general
services agreement (ie, to what extent should
countries remove existing restrictions on foreign
services providers)?

What obligations of a general services agreement should be immediately applicable to all covered services?

Should countries be allowed to exclude specific service sectors entirely from a services agreement?

Should legally separate agreements for specific service sectors be allowed?

Should retaliation in goods trade be allowed for
violations of a services agreement and vice versa?

Should there be specific provisions in a services
agreement for developing countries?

Tab 2

SURSARY TABLE: MAJOR NEGOTIATING POSITIONS ON KEY POLICY ISSUES FOR SERVICES.

Tab 3

U. S. POSITION IN SERVICES NEGOTIATIONS

General U.S. Objectives_

Obtain meaningful new commercial opportunities in
foreign markets for U.S. service providers.

Ensure continuation of existing commercial

opportunities in foreign markets for U.S. service
providers.

Ease ability of U.S. service providers to do business in foreign markets where such providers have been or will be given an opportunity to compete.

Retain flexibility to maintain restrictions in United States against foreign service providers where there is solid justification for such restrictions.

Achieve a balance of rights and obligations among all parties in the final agreement so as to maintain future U.S. negotiating leverage.

U.S. Approach

A comprehensive, ambitious and enforceable set of international rules governing what governments can and cannot do vis-a-vis foreign services and foreign service providers.

Contained in U.S. proposal tabled in October 1989.

Under U.S. proposal, all obligations would apply automatically to all covered services, although specific reservations could be taken on market access, national treatment, and subsidies provisions.

Principal Features of U.S. Proposal

Market access

· Right of establishment on a national treatment
basis.

· Right to sell a service across borders.

· Right of temporary entry for service providers.