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Brussels, 10thMarch2011
Informal Meeting between ESF and members of the
Trade Policy Committee on Services of the Council of the European Union
- Brussels, Tuesday, 16thNovember2010 -
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DRAFT MINUTES
- WELCOME AND INTRODUCTION
The ESF Policy Committee Chairman thanked the Belgian Presidency for accepting the ESF invitation and welcomed all the participants from the EU Member States (see list of participants attached at the end of this document).
Mr. Pascal Buffin, Chair of the TPC on Services and Investments welcomed the possibility to interact with the services industry through these regular informal meetings.
- REPORT ON ESF ACTIONS SINCE THE LAST MEETING, FOLLOWED BY EXCHANGE OF VIEWS
The ESF Policy Chairman reported on the various actions undertaken by ESF since the last meeting in June 2010. He mentioned in particular the activities taken to ensure that awareness regarding the importance of mode 4 in trade negotiations washeightened. He also referred to the participation of ESF in the Global Services Summit and the mission to Geneva in October. The group were able to meet a large number of ambassadors and promote the importance of the G20 in advancing the Doha round and also emphasize the economic development benefits of services trade and investment. The ESF position on the EU-Canada FTA negotiations was set out (enclosure 2) and the activities that have been takento promote services in the talks. Reference was made to the welcome negative list approach for mode 3 and the pushes made to have mode 1 also negotiated with this approach. Support for the EU to initiate ambitious trade agreement negotiations with Malaysia and Indonesia, whichare serious on services and investment, was also reported on.
- IMPORTANCE OF SERVICES TRADE TO MANUFACURING COMPANIES
The discussion of that item was finally postponed at a next meeting, due to a last minute urgent action that prevented Mr Gunther Petrasch, Vice President of Government Affairs at Siemens AG, to give a presentation on the importance of services trade to manufacturing companies in the global economy.
- DDA & FTA NEGOTIATIONS
The Commission gave a report on the multilateral, bilateral and regional negotiations that the EU is engaging in, with particular reference to services.
a)DDA:
A quick report was given on the DDA negotiations with comments on the US and Obama’s position, who was forced to focus on international trade so as to deliver on his political agenda of jobs and growth. This has triggered his support towards the conclusion of the DDA in the G20 leader’s declaration, urging to use 2011 as a last “window opportunity”.
On services, one can expect clear progress on the LDC modalities and on the GATS Rules and domestic regulation disciplines. The proposed new “cluster approach” by the US and Australia has not led to significant breakthrough in Geneva. The “Friends of services” group of countries will now try to find a formula that will prevent any back-sliding and push for a horizontal binding of all existing autonomous liberalisation. It was clear that this was not the panacea, but it was also noted that this was what the EU was also ready to bind.
b)SINGAPORE + ASEAN
On the Singapore negotiations, it was reported that talks were going well and that requests had been exchanged. The Commission and the Member States were examining the flexibilities that the EU wanted to keep. A next round was to take place the following week on 22 November. It was agreed that the parties will exchange offers before the end of 2010. There was optimism of a summer 2011 conclusion. Singapore expressed an interest to negotiate a bilateral investment protection treaty with the EU, but this would depend on the internal debate within the EU on this issue. In the Q&A session, banking sector representatives reiterated their strong request on the necessity for Singapore to provide at the very least with the same treatment offered to the US banks, in terms of unlimited number of branches.
The EU member states approved the launch of negotiations for an FTA with Malaysia on 10 September 2010, and ESF members were invited to provide the Commission and the member states with their priorities in that emerging country.
It was reported that Vietnam was still reflecting on the step forward but that noting would move before the congress of the Communist Party on January 2011. It will however likely not present a high interest to the European service sectors, since it will be difficult to obtain much more that what Vietnam committed under WTO accession in 2007. Efforts should be put on the implementation of the existing WTO commitments. Philippines might be the next candidate to approach the Commission for an FTA, following the “me too” principle. Thailand is still tangled up in the political crisis and it would be surprising that it would be able to move any soon towards any further FTA, even if the trade ministry officials are claiming the reverse.
c)MERCOSUR
The EU-Mercosur negotiations have got a new momentum with EU Trade Commissioner Karel De Gucht key visit to Brazil, which currently holds the presidency of Mercosur, and Argentina on 13-16 September. The Commissioner explored with his counterparts how to advance the ongoing EU-Mercosur trade negotiations and how to seize the potential export opportunities in these markets. A round of talks was to take place in Brazil end of November, and a next one was scheduled in March in Brussels. The discussion on the horizontal text as well as on the sector specific text was going well. The parties should exchange offers before the spring round in Europe. ESF Members with offensive interests were invited to provide the negotiators with information at their earliest convenience. Members of the TPC Services and Investments were informed that ESF was currently developing a position paper on this important FTA, which will confirm sector specific priorities and will be used as a tool to pressure the government of Brazil in particular to move on services. The level of ambition on services by the Mercosur trading partners is not clear. The levels of opening in the WTO Commitments by Argentina and Uruguay, as well as their current offers in the DDA are acceptable, contrary to those of Brazil and Paraguay.
d)CANADA
On the EU-Canada talks things were said to be progressing very well (see PC Minutes). ESF members welcomed the move by the EU Member States to accept negotiating establishment commitments (mode 3) under the negative list approach and urged the government representative to allow the Commission to do the same for the commitments on cross-border and on consumers abroad. Commitments under a negative list were clearer and easier for the business to understand. It was highlighted that further liberalization on financial services by Canada was needed, including on insurances. The Commission felt that Canada will move on this at the end.
- EU NEW INVESTMENT POLICY AND EU “FUTURE TRADE POLICY”
Mr. Pascal Buffin, Chair of the TPC on Services and Investments, opened discussion on the publication of the EU draft regulation and communication on investment. ESF Policy Committee Chairman summarised the ESF position, underlining the absolute necessity for the business to ensure legal certainty to existing bilateral investment treaties (BITs), but also welcoming the possibility for the EU to negotiate protection of the investments in the markets in which they were opened through the FTA negotiations. It was a natural extension of the EU competences to provide post establishment protection in the market where pre-establishment were obtained in trade concessions. ESF encouraged therefore government representatives to extend the negotiating mandate of the on-going FTA with Canada, Singapore and India to allow the Commission to negotiate post establishment protection.
The discussion tackled the scope of the regulation that was under the “ordinary legislative procedure” i.e. on co-decision between the European Council and the European Parliament. The regulation should cover the same field/scope that the existing BITs so as to provide undisputable legal certainty. ESF informed of its intention to follow closely the debate in the INTA Committee, expressing concerns about the report by MEP Schlyter (Green – SW) who was suggesting a dangerous “sun-set clause” of the possible BITs that might include some provisions that could be considered in conflict with some EU Law.
On the Commission’s Communication on “Trade, growth and world affairs”, ESF informed the Member States representatives of its contribution to the Commission consultation and of its intention to feed the debate in the European Parliament on this issue.
- ANY OTHER BUSINESS and NEXT MEETING
The Chairman thanked the Belgian Presidency for its active role in the past months and expressed the wish to pursue these informal discussions with the forthcoming Hungarian Presidency and invited all participants to the cocktail.
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EUROPEAN SERVICES FORUM
INFORMAL MEETING
BETWEEN ESF AND MEMBERS OF THE TRADE POLICY COMMITTEE ON SERVICES & INVESTMENTS OF THE COUNCIL OF THE EUROPEAN UNION
- Brussels, 16th November 2010 -
ESF List of Participants
ESF Policy Committee Chairman:Richard O’Toole
Secretariat:Pascal Kerneis
INSURANCE______
Lindsey DonnithorneLloyds of London
Gabriella AlmbergBIPAR
Hannah GrantCEA – Insurers for Europe
FINANCIAL SERVICES______
Edward BowlesStandard Chartered Bank
Uta WassmuthEBF-FBE
John CookeTheCityUK
TELECOMMUNICATIONS______
Till KupferBT
David Frautschy HerediaTelefónica
Lotte AbildgaardTelenor
Alessandro GropelliVodafone
Aarti HollaESOA
POSTAL & EXPRESS DELIVERY SERVICES______
Annette MeyerDeutsche Post DHL
DISTRIBUTION / RETAIL______
Andreas BergerEurocommerce
Ralph KamphoenerEuroCommerce
PROFESSIONAL SERVICES – ARCHITECTS______
Adrian JoyceACE-CAE
PROFESSIONAL SERVICES - ACCOUNTANTS______
Henri OlivierFEE
PROFESSIONAL SERVICES - NOTARIES ______
Clarisse MartinCNUE
CONSTRUCTION SERVICES______
Ulrich PaetzoldFIEC
COMPUTER AND RELATED SERVICES ______
Angélique BrouxIBM
Tourism and related services______
Wolf Dieter ZumpfortTUI
GENERAL______
Carsten DannöhlBUSINESSEUROPE
Saila SaastamoinenConfederation of Finnish Industry – EK
Pat IvoryIBEC
Lys VitralMEDEF
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List of Member States and Commission Participants
AUSTRIA______
Wolfgang IGLER
BELGIUM______
Pascal BUFFIN (Chair)
Florence BURTON
Sophie LIBIOUL
Valere Vangeel
CZECH REPUBLIC______
Lucie VONDRACKOVA
ESTONIA______
Christman ROOS
FINLAND______
Niina BLOMBERG
FRANCE______
Florence Bouyala-Imbert
Pierre Chabrol
GERMANY______
Anke RALOFF
Nils WEITH
HUNGARY______
Istvan POKORADI
Mirtill MATYAS
IRELAND______
Sabha GREENE
ITALY______
Tiziana Zugliano
LUXEMBOURG______
Marc Salentiny
NETHERELANDS (THE)______
W. JOOSTEN
POLAND______
Katarzyna STECZ
Yoanna BEK
PORTUGAL______
Ana Luisa Coelho
ROMANIA______
Raluca CONSTANTINESCU
SLOVAK REPUBLIC______
Matej BOBOVNIK
Tomas JUCHA
SPAIN______
Cristina SERANO LEAL
UNITED KINGDOM______
Andrew DEY
EUROPEAN COMMISSION______
Sandra Callagan - “Services & Investment” Unit- DG Trade
Marta BUSZ - “Services & Investment” Unit- DG Trade
Christophe RAMES - “Services & Investment” Unit- DG Trade
Saara KALINN - “Services & Investment” Unit- DG Trade
Jonathan VAN BLAADEREN - “Services & Investment” Unit- DG Trade