NegotiatingServicesAgreements

1、Negotiating Services AgreementsGeza Feketekuty1Negotiations on ServicesRegulation of International ServicesBilateral Agreements (Civil Aviation)International Agreements(ITU, IPU)Solving Bilateral Trade & Investment ProblemsEnterprise to Host Government NegotiationsBilateral Negotiations Between Home

2、 and Host GovernmentNegotiating Trade AgreementsFree Trade Agreements (NAFTA, Mercosur)WTO/GATSDispute SettlementBilateral Consultations Preceding Dispute Settlement ProcessConsultations on Implementation of Dispute Settlement Outcomes2Negotiations on Regulatory IssuesEstablishment of Regulatory Fra

3、mework for International Services was Traditional Venue and Objective of Negotiations on ServicesTrade-Oriented Negotiations on Services are Aimed at Facilitating and Liberalizing TradeNegotiations in a Regulatory Framework and in a Trade Framework can overlap, so require coordination between regula

4、tory and trade agencies3Rationale and Venue for Problem Solving NegotiationsTrade Problems can arise as result ofInadequate InformationMisunderstanding of regulation by a firm or of proposed activity by regulatorRegulation/Law is more Trade Restrictive than Necessary to accomplish ObjectiveMutual ef

5、forts to address issues in a problem-solving context can benefit both sidesPeriodic bilateral meetings between trade officials provide opportunity to address bilateral issues4Examples of ProblemsRegulation of International Transactions by Central American owned banks Visas for Training Assignments a

6、ssociated with outsourcingScreen quotas and discriminatory tax treatment of foreign advertising copyRegulations related to ground handling of aircraft operated by foreign airlinesUse of leased lines to transmit data originating from a distributed network5Problem Solving Interests of Developing Count

7、riesProblems solving negotiations by Developing Countries in the past have usually involved trade-offs between goods and services, this may changeGrowth of outsourcing is likely to increase importance of solving problems related to exports of services by Developing Countries6Steps in Addressing Issu

8、es in Problem Solving NegotiationsConsultations between Enterprise and Host GovernmentConsultations Between Home Government and Host Government at Increasingly Higher LevelsConsultations in Multilateral Forum (If one exists for issue and issue is generic)Use of Formal Negotiating Mechanisms or Dispu

9、te Settlement Procedures (Choice Depends on Nature of Issue, Options)7Observations on the ProcessMost Problems that arise in trade are resolved through a Mutual Problem Solving ApproachOnly Problems that cannot be resolved between Enterprises and Foreign Governments Should go to Government to Govern

10、ment LevelMultilateral Forum Provides Basis for testing Scope of Issue, Potential AlliesInvolving Trade Officials Can Facilitate Resolution, but also Increase Resistance of Regulatory Officials8Making the CaseClarify InformationCorrect any MisunderstandingsClarifying objective of Regulation Pinpoint

11、 Unintended Consequences of RegulationSet out any Violations of International Rules, Commitments, or Generally Accepted PracticesExplain how Regulatory Reform could promote economic growth, preserve desired Social GoalIdentify Reciprocal Help, Consequence of Failure to Solve Problem9Negotiations Und

12、er GATSDoha RoundRequest & Offer ProcessNegotiation of RulesOther Negotiating Approaches Used in PastSectoral AgreementModel ScheduleRules for SectorFunctional AgreementOther Possible ApproachesSectoral and Other TargetsNegotiating GuidelinesAgreement Organized Around Customer Needs10Request-Offer N

13、egotiationsInvolve requests and offers for specific changes in national regulations/lawsBased on bilateral negotiations, multilateral assessment, MFN treatmentDialogue surrounding negotiations is likely to revolve around commercial impact and regulatory purpose of measures viewed as trade barriers 1

14、1Negotiation of RulesUsually initiated by national papers outlining need for rule and substance of ruleNational papers often supplemented by Secretariat paper summarizing negotiating proposalsNegotiations revolve around common needs of member countries, best regulatory practices, and fairness of rul

15、e12Steps in any NegotiationAnalysis of the Issues Consultation with StakeholdersFraming the Issue for NegotiationsBuilding Public SupportBargainingSelling the Results to Home Constituencies13Analysis of the IssueImpact on Commercial InterestsDomestic Policy Issues Stakeholder Politics National and I

16、nternational Legal ProvisionsMacroeconomic EffectInstitutional ConsiderationsPublic Opinion and the Media 14Who Are the Stakeholders Who Should be Consulted?Affected Central Government Ministries and sub-central authoritiesAffected Enterprises and Industry AssociationsLabor UnionsNon-Governmental Or

17、ganizations with a Policy Stake Academic Experts15Stakeholders May be Affected in terms ofThe Commercial ImpactThe Policy OutcomeBureaucratic TurfPolitical ConsequencesLegal PrecedentsMacroeconomic Consequences16Consultation with Domestic Stakeholders Can yield critical information on commercial, po

18、licy and legal issues at home and abroadServes to identify their interests and to manage their involvement in the domestic political process related to trade negotiating decisionsOffers insights into the interests and views of their counterparts abroad, and informal communication channels with their

19、 counterparts abroad17Why Consult Foreign StakeholdersProvides insight into foreign decision-making processProvides opportunities to help shape the views and strengthen role of foreign stakeholders with compatible interestsProvides broader insights into possible win-win solutions18Elements of a Nego

20、tiating StrategyFraming the Issue for NegotiationIdentification of win/win solutionsIdentification of Potential Supporters among Domestic and Foreign StakeholdersMessage to Potential SupportersWritten and Oral Communications to Build Support (White Paper, Press Release, Speeches)Identification of Op

21、posing Stakeholders Means for Reducing or Deflecting OppositionMethods for demonstrating utility, legitimacy and fairness of proposed outcome19Framing the IssueCareful framing of the issue at both the national and international level is critical to NegotiationsAt National Level Statement of Issue Sh

22、ouldHighlight the key commercial and policy issues Provide a basis for domestic coalition buildingAt International Level Statement of Issue ShouldIdentify Common Policy Objective and Economic RationaleProvide basis for international coalition building Allow for win/win solutions 20Framing the Issues

23、 - ExamplesFraming Typical Regulatory IssueATM Machines and US/Israeli FTAFraming Issue for GATS Telecom AnnexFraming Negotiation Between US and India on services21Building SupportCoalition building is the key to NegotiationsOut of Minorities Majorities are BuiltCoalitions have to be built around co

24、mmon interestsFor Rule-Making Negotiations support of Epistemic Community is importantInternational coalitions of private stakeholders can be an important assetFor regulatory issues, support also has to be built among regulators, who have their independent channels of communications with each other2

25、2Building Support - ExamplesBuilding Support for GATS Among Services Stakeholders Across CountriesBuilding Support for Telecom Reform and Liberalization Among StakeholdersThe Aborted Tourism AgreementBuilding Support for GATS by Epistemic Community23Strategies for Request/Offer NegotiationsMercantil

26、ist StrategyAimed at Maximizing ImportsAimed at Minimizing ImportsRegulatory Reform StrategyAimed at Reducing Cost of Achieving Regulatory ObjectivesAimed at Increasing Domestic CompetitionAimed at Increasing International CompetitionPolitical StrategyDeflect Pressure on Politically Sensitive Polici

27、esTake Advantage of Foreign Pressure on Politically difficult but desirable policy reforms24Strategies for Formulation of RequestsOffensive Maximize Export OpportunitiesIdentify list of foreign regulatory changes that would increase exportsIdentify which of these requests other countries will pursue

28、 (free rider opportunity)Defensive Minimize Import OpportunitiesMake few requests, to signal limited interestRequest changes difficult for other countries to implement to deflect foreign pressure25Strategies for Formulation of OffersDomestic Reform StrategyWhat regulatory reforms/removal of import b

29、arriers can we offer that serves domestic regulatory reform objectives?Mercantilist-Reciprocity Strategy: How much do we have to offer now so the other country will take our requests seriously?What is our opportunity for being a free rider?What will we have to offer to obtain commitments on issues w

30、here we are a principal demandeur?26Interest-Based VsCompetitive NegotiationsPositions Vs. InterestsPersonalities Vs Group InterestsZero-Sum Vs Positive Sum ApproachesHiding Vs Sharing InformationJudgmental Vs Pragmatic Advocacy 27How To Build Negotiating MomentumBuild success by establishing areas of commo