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2016 | OriginalPaper | Chapter

The Trade in Services Agreement (TiSA): Assessing the State of Play and Potential Pitfalls

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Abstract

This article aims to provide an overview of the state of play regarding the Trade in Services Agreement (TiSA). It pinpoints some of the potentially novel aspects and limitations of the agreement and addresses some of the more problematic legal questions that surround its negotiation, particularly the issue of its potential multilateralisation and incorporation within the WTO framework. Section 2 provides a brief description of the history and rationale behind the negotiation of the TiSA. Sections 3 and 4 describe the current GATS framework in relation to liberalization commitments and non-discriminatory regulatory principles, and the extent to which TiSA can go beyond this. Section 5 examines the compatibility of the TiSA with WTO law by focusing on the issue of whether the TiSA can comply with conditions set out under Article V GATS for the establishment of a preferential trade agreements (PTAs) covering services. Finally, Sect. 6 addressees the manner and the conditions under which the TiSA may be multilateralised in the future.

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Footnotes
1
The coalition of Really Good Friends currently includes the following members: Australia, Canada, Chile, Chinese Taipei, Colombia, European Union, Hong Kong, Iceland, Israel, Japan, South Korea, Liechtenstein, Mauritius, Mexico, New Zealand, Norway, Pakistan, Panama, Peru, Switzerland, Turkey, the US and Uruguay, Costa Rica, Israel, Panama, Peru and Turkey.
 
2
Sauve, “Dr. Jekyll or Mr. Hyde? Reflections on the Trade in Services Agreement (TISA)”, Directorate-General for External Policies Workshop the plurilateral agreement on services, 1 July 2013, http://​www.​europarl.​europa.​eu/​RegData/​etudes/​workshop/​join/​2013/​433722/​EXPO-INTA_​AT(2013)433722_​EN.​pdf (last accessed 7 October 2015), p. 14.
 
3
See European Parliament, Working Document on Recommendations to the European Commission on the negotiations for the Trade in Services Agreement (TiSA), Committee on International Trade, DT/1071748EN.Doc, 4 September 2015.
 
4
Hoekman B, Mattoo A, Liberalizing Trade in Services: Lessons from Regional and WTO Negotiations, 13 December 2012, http://​globalgovernance​programme.​eui.​eu/​wp-content/​uploads/​2012/​11/​Hoekman-Mattoo-Services-Cooperation_​International_​Negotiation_​final.​pdf (last accessed 7 October 2015), p. 4.
 
5
Marchetti and Roy (2008), p. 63.
 
6
OECD (2004) Trade and Migration Building Bridges for Global Labour Mobility, p. 135.
 
7
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8
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9
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11
Sauve, “Dr. Jekyll or Mr. Hyde? Reflections on the Trade in Services Agreement (TISA)”, Directorate-General for External Policies Workshop the plurilateral agreement on services, 1 July 2013, http://​www.​europarl.​europa.​eu/​RegData/​etudes/​workshop/​join/​2013/​433722/​EXPO-INTA_​AT(2013)433722_​EN.​pdf (last accessed 7 October 2015), p. 26.
 
12
Sauve, “Dr. Jekyll or Mr. Hyde? Reflections on the Trade in Services Agreement (TISA)”, Directorate-General for External Policies Workshop the plurilateral agreement on services, 1 July 2013, http://​www.​europarl.​europa.​eu/​RegData/​etudes/​workshop/​join/​2013/​433722/​EXPO-INTA_​AT(2013)433722_​EN.​pdf (last accessed 7 October 2015), p. 26.
 
13
Article II.2 GATS.
 
14
See the Summary and Overview in Marchetti and Roy (2009), p. 5.
 
15
See the Introduction and Overview in Sauve and Shingal (2014), p. 3.
 
16
Marchetti J, Roy M (2013) “The TISA Initiative: An Overview of Market Access Issues”, WTO Working Paper Economic Research and Statistics Division, 27 November 2013, https://​www.​wto.​org/​english/​res_​e/​reser_​e/​ersd201311_​e.​pdf (last accessed 7 October 2015), p. 5.
 
17
Hoekman B, Mattoo A, Liberalizing Trade in Services: Lessons from Regional and WTO Negotiations, 13 December 2012, http://​globalgovernance​programme.​eui.​eu/​wp-content/​uploads/​2012/​11/​Hoekman-Mattoo-Services-Cooperation_​International_​Negotiation_​final.​pdf (last accessed 7 October 2015), p. 12.
 
18
Panizzon (2010); Hoekman B, Mattoo A (2013) Liberalizing trade in services: lessons from regional and WTO negotiations. International Negotiation 18.1, p 135.
 
19
European Commission, Negotiations for a Plurilateral Agreement on Trade in services, 5 February 2013 http://​europa.​eu/​rapid/​press-release_​MEMO-13-107_​en.​htm (last accessed 7 October 2015).
 
20
European Commission, Negotiations for a Plurilateral Agreement on Trade in services, 5 February 2013 http://​europa.​eu/​rapid/​press-release_​MEMO-13-107_​en.​htm (last accessed 7 October 2015).
 
21
Sauve (2014), p. 9.
 
22
European Commission Plurilateral Services Agreement, EU Proposal March 2013. Available at: http://​trade.​ec.​europa.​eu/​doclib/​docs/​2014/​july/​tradoc_​152687.​pdf.
 
23
Article I-1 EU Core Text.
 
24
Article I-3 EU Core Text.
 
25
Article I-9 EU Core Text.
 
26
European Commission, How to read a Trade in Services Agreement Schedule, November 2013. http://​trade.​ec.​europa.​eu/​doclib/​press/​index.​cfm?​id=​1133 (last accessed 7 October 2015); See also Godsoe (2014), p. 4.
 
27
European Commission, How to read a Trade in Services Agreement Schedule, November 2013. http://​trade.​ec.​europa.​eu/​doclib/​press/​index.​cfm?​id=​1133 (last accessed 7 October 2015); See also Godsoe (2014), p. 4.
 
28
Article II-1.2 EU Core Text.
 
29
Article II-1.4 EU Core Text.
 
30
Article II-1.4 EU Core Text.
 
31
Bosworth M (2014) The Proposed Non-MFN Trade in Services Agreement: Bad for Unilateralism, the WTO and the Multilateral Trading System, NCCR Trade Working Paper No. 2014/05, p. 20.
 
32
Bosworth M (2014) The Proposed Non-MFN Trade in Services Agreement: Bad for Unilateralism, the WTO and the Multilateral Trading System, NCCR Trade Working Paper No. 2014/05, p. 20.
 
33
Messerlin P (2015) The Transatlantic Trade and Investment Partnership: The Services Dimension. CEPS Special Report (No. 106/May 2015), p. 10.
 
34
Sauve (2014), p. 10.
 
35
Kanth R (2015), Sharp “asymmetries” in levels of ambition emerge in TiSA talks, 16 April 2015, http://​www.​twn.​my/​title2/​wto.​info/​2015/​ti150404.​htm (last accessed 8 October 2015).
 
36
Jackson (1988).
 
37
Kox H, Nordas H (2011) Services Trade and Domestic Regulation. OECD Trade Policy Working Papers (No. 49).
 
38
Sykes (1999), pp. 53–57; Kox H, Lejour A (2007) Regulatory heterogeneity as an obstacle for international services trade. CPB Discussion Paper (No 49).
 
39
Marchetti and Mavroidis (2004), pp. 511–562.
 
40
WTO (2011) Working Party on Domestic Regulation, Disciplines on Domestic Regulation pursuant to GATS. Chairman’s Progress Report Article VI:4, S/WPDR/W/45, 14 April 2011.
 
41
Understanding on Commitments in Financial Services (1994), Uruguay Round Final Act, GATT Trade Negotiations Committee Document MTN/FA II-AIB, General Agreement on Trade in Services, 15 April 1994.
 
42
WTO (1996) Negotiating Group on Basic Telecommunications (NGBT). Reference Paper (vol. 3) 36 I.L.M 367, 24 April 1996.
 
43
Krajewski (2006), pp. 175–202.
 
44
Melo Araujo (2014), p. 402.
 
45
Melo Araujo (2014), pp. 402–403.
 
46
Council of the European Union (2015), Draft Directives for the negotiation of a plurilateral agreement on trade in services, 10 March 2015. http://​trade.​ec.​europa.​eu/​doclib/​press/​index.​cfm?​id=​1273 (last accessed 8 October 2015).
 
47
WTO (2011) Working Party on Domestic Regulation, Disciplines on Domestic Regulation pursuant to GATS. Chairman’s Progress Report Article VI:4, S/WPDR/W/45, 14 April 2011, p. 405.
 
48
WTO (2011) Working Party on Domestic Regulation, Disciplines on Domestic Regulation pursuant to GATS. Chairman’s Progress Report Article VI:4, S/WPDR/W/45, 14 April 2011.
 
49
WTO (2011) Working Party on Domestic Regulation, Disciplines on Domestic Regulation pursuant to GATS. Chairman’s Progress Report Article VI:4, S/WPDR/W/45, 14 April 2011, pp. 412–413.
 
50
The negotiations for the EU-Singapore PTA and the CETA have been concluded but the agreements are yet to be ratified. See European Union, Overview of PTA and Other Trade Negotiations. http://​trade.​ec.​europa.​eu/​doclib/​html/​118238.​html (last accessed 8 October 2015).
 
51
European Commission (2015) Revised EU proposal on Regulatory Cooperation in Transatlantic Trade and Investment Partnership (TTIP), 6 May 2015,http://​trade.​ec.​europa.​eu/​doclib/​docs/​2015/​may/​tradoc_​153432.​1.​1%20​Explanatory%20​note%20​-%20​revised%20​Regulatory%20​cooperation%20​EU%20​legal%20​text.​pdf (last accessed 8 October 2015).
 
52
European Commission (2013) EU–US Transatlantic Trade and Investment Partnership, Trade Cross-Cutting Disciplines and Institutional Provisions, Initial EU Position Paper 2013.
 
53
Lester and Barbee (2013), pp. 847–867.
 
54
European Commission (2013) EU–US Transatlantic Trade and Investment Partnership, Trade Cross-Cutting Disciplines and Institutional Provisions, Initial EU Position Paper 2013.
 
55
EU-CARIFORUM Economic Partnership Agreement, signed 15 October 2008, OJ L289/1/3, 30 October 2008.
 
56
Article 127 (1), EU-CARIFORUM EPA.
 
57
See e.g. European Commission (2015) Negotiations for a Plurilateral Agreement on Trade in services, 15 February 2013; Canada Department of Foreign Affairs (2013) Trade and Development Canada, Consultations on a Plurilateral International Services Agreement, Canada Gazette Notice 16 March 2013.
 
58
Sauvé P (2013) A Plurilateral Agenda for Services? Assessing the case for a Trade in Services Agreement (NCCR Trade regulation, Working Paper (No 2013/29, May 2013).
 
59
European Commission (2014) The EU publishes TiSA position papers, 22 July 2014, http://​trade.​ec.​europa.​eu/​doclib/​press/​index.​cfm?​id=​1133 (last accessed 8 October 2015).
 
60
Adlung (2015), p. 2.
 
61
Questions for the Record for Committee on Ways and Means Full Committee Hearing on President Obama’s Trade Policy Agenda with U.S. Trade Representative Michael Froman, 3 April 2014. www.​waysandmeans.​house.​gov/​UploadedFiles/​QFR_​040314TR.​pdf (last accessed 8 October 2015).
 
62
Report of the Sub-group Committee on the European Economic Community, L/778, adopted on 29 November 1957, 6S/70, para 30.
 
63
Negotiating Group on Rules, Submission on Regional Trade Agreements by Australia, TN/RL/W/173/Rev1, 3 March 2005.
 
64
Lockhart N, Mitchell AD (2005) Regional trade agreements under GATT 1994: an exception and its limits. In: Lockhart N, Mitchell AD (eds) Challenges and prospects for the WTO. Cameron May Ltd., p. 28.
 
65
Appellate Body Report, Turkey—Restrictions on Imports of Textile and Clothing Products, para. 48.
 
66
Appellate Body Report, Turkey—Restrictions on Imports of Textile and Clothing Products, para. 49.
 
67
R. Adlung, The Trade in Services Agreement (TISA) and Its Compatibility with GATS: An Assessment Based on Current Evidence, World Trade Review 2015, pp. 19–22.
 
68
R. Adlung, The Trade in Services Agreement (TISA) and Its Compatibility with GATS: An Assessment Based on Current Evidence, World Trade Review 2015, pp. 19–22.
 
69
Stephenson S, Robert M (2011) Innovations of Regionalism in Services in the Americas. Swiss National Centre of Competence in Research (2011) NCCR Working Paper 2011/34 (June), www.​nccr-trade.​org (last accessed 8 October 2015), p. 8.
 
70
European Commission (2013), EU Initial Offer—TiSA, November 2013.
 
71
European Commission (2013), EU Initial Offer—TiSA, November 2013.
 
72
Understanding on Commitments in Financial Services (1994), Uruguay Round Final Act, GATT Trade Negotiations Committee Document MTN/FA II-AIB, General Agreement on Trade in Services, (15 April 1994), p. 7.
 
73
Tietje C, Finke J, Dietrich D (2010) Liberalization and Rules on Regulation in the Field of Financial Services in Bilateral Trade and Regional Integration Agreements, GTZ scientific study.
 
74
European Commission, Proposal for a TiSA Annex on Financial Services, Article 13. http://​trade.​ec.​europa.​eu/​doclib/​docs/​2014/​july/​tradoc_​152688.​pdf (last accessed 8 October 2015).
 
75
European Commission (2012) A modular approach to the architecture of a plurilateral agreement on services September 2012, http://​trade.​ec.​europa.​eu/​doclib/​docs/​2014/​july/​tradoc_​152686.​pdf (last accessed 8 October 2015).
 
76
Hoekman and Mavroidis (2015), pp. 101–116.
 
77
Peng (2013), p. 627.
 
78
European Commission, Memo, Negotiations for a Plurilateral Agreement on Trade in services, 15 February 2013, http://​europa.​eu/​rapid/​press-release_​MEMO-13-107_​en.​htm (last accessed 21.10.2015), p. 4.
 
79
European Commission (2013) The Trade in Services Agreement, http://​trade.​ec.​europa.​eu/​doclib/​docs/​2013/​June/​tradoc_​151374.​pdf (last accessed 8 October 2015).
 
80
Jones (2015), p. 105.
 
81
Bosworth M (2014) The Proposed Non-MFN Trade in Services Agreement: Bad for Unilateralism, the WTO and the Multilateral Trading System, NCCR Trade Working Paper No. 2014/05, p. 27.
 
82
See European Parliament, Working Document on Recommendations to the European Commission on the negotiations for the Trade in Services Agreement (TiSA), Committee on International Trade, DT/1071748EN.Doc, 4 September 2015.
 
83
Bosworth M (2014) The Proposed Non-MFN Trade in Services Agreement: Bad for Unilateralism, the WTO and the Multilateral Trading System, NCCR Trade Working Paper No. 2014/05, p. 27.
 
84
Bridges Weekly, Services Talks Advance as TISA Members Prepare to Exchange Offers (26 September 2013) http://​www.​ictsd.​org/​bridges-news/​bridges/​news/​services-talks-advance-as-tisa-members-prepare-to-exchange-offers (last accessed 8 October 2015).
 
85
Bosworth M (2014) The Proposed Non-MFN Trade in Services Agreement: Bad for Unilateralism, the WTO and the Multilateral Trading System, NCCR Trade Working Paper No. 2014/05, p. 16; Raman (2014), p. 125.
 
86
Hoekman and Mavroidis (2015), p. 108.
 
87
Whalley (2004), pp. 1223, 1231.
 
88
Hay (2007), pp. 25, 39.
 
89
Stiglitz (2000), pp. 443–445.
 
90
Stiglitz (2000), p. 444.
 
91
Krajewski (2006), p. 176.
 
92
Krajewski (2006), p. 171.
 
93
Cowhey and Klimenko (2002), p. 275.
 
94
Hoekman B and Mattoo A (2011) Services Trade Liberalization and Regulatory Reform: Re-invigorating International Cooperation, World Bank, Policy Research Working Paper 5517, p. 10.
 
95
Hoekman B, Messerlin PA (1999) Liberalising Trade in Services: Reciprocal Negotiations and Regulatory Reform. World Bank and CEPR, 5 July 1999; Hoekman, et al (2007), p. 367; Hoekman B and Mattoo A (2011) Services Trade Liberalization and Regulatory Reform: Re-invigorating International Cooperation, World Bank, Policy Research Working Paper 5517, p. 10.
 
96
Hufbauer G, Jung E, Miner S, Moran T, Schott J (2015) From Drift to Deals: Advancing the WTO Agenda. Peterson Institute for International Economics Report, June 2015, p. 31.
 
97
Hufbauer G, Jung E, Miner S, Moran T, Schott J (2015) From Drift to Deals: Advancing the WTO Agenda. Peterson Institute for International Economics Report, June 2015, p. 31.
 
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Metadata
Title
The Trade in Services Agreement (TiSA): Assessing the State of Play and Potential Pitfalls
Author
Billy A. Melo Araujo
Copyright Year
2016
DOI
https://doi.org/10.1007/978-3-319-29215-1_29