Services Negotiations Remain Key to Unlocking Stalled Trade Talks

In an effort to revitalise stalled trade talks, the WTO chairs for agriculture and non-agriculture market access have released revised texts for their respective areas, but according to the Wellington Regional Chamber of Commerce, it is the services negotiations that are the key to unlocking the talks.

“We welcome the release of these revised texts on the agriculture and non-agricultural market access aspects of the Doha Development Agenda and commend the respective chairs for their good work, but we are concerned about lack of progress on services,” said Chamber CEO, Charles Finny.

“We agree fully with the US Trade Representative spokesperson, Gretchen Hamel, that a successful conclusion to this round is not going to be achievable without significant progress having been achieved on services.

“For key countries to agree to liberalisation of trade in difficult areas such as agriculture there will need to be some progress in areas where they seek changes, such as trade in services.

“To date there has been virtually no liberalisation offered in services. We call on New Zealand to redouble efforts to ensure progress is made in the WTO services negotiations.

“If a good deal is possible on services this will go some way to compensate US and EU disappointment over the quality of what is on offer in the agriculture and non-agricultural goods areas.

“Not only do services negotiations have the potential to break the current impasse, they are crucial in their own right. Services account for 70% of global economic activity in developed countries. Both developed and developing countries stand to gain enormously from the liberalisation of international trade in services.

“The Wellington region’s economy is one of the most dependent on the service activities of any region in New Zealand. 90% of our regional GDP is generated by services activity.

“It is vital for the WTO, the international trading system, and the global economy that the Doha Round is kept alive. We must not underestimate the importance of the services sector in this regard,” Mr Finny concluded.

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