World services trade talks in bad shape:US industry
WASHINGTON, April 16: Trade talks to make it easier for banks, telecommunication companies and other service providers to do business around the world are hamstrung by US political concerns and the unwillingness of many countries to make serious offers, a US industry official said on Friday. The services negotiations are proceeding very poorly, said Bob Vastine, president of the Coalition of Service Industries. “The problem is that while there are 50 offers, they’re not very good. In most cases, they’re laughable. And there are 42 countries that have not made offers.”
The United States and many other World Trade Organization members hope to reach a deal lowering trade barriers for services, agricultural goods and industrial and consumer products by the end of next year.
Countries are supposed to make revised offers in the services portion of those talks by end of May. However, many WTO members do not see much benefit from opening their markets to foreign services companies or want to see more progress in the agricultural talks first.
The United States will meet the May 31 deadline and is encouraging other countries to come forward with substantial new offers to open their services markets, Christine Bliss, acting assistant US trade representative for services and investment, said during a panel discussion.
But congressional immigration concerns are expected to block the United States from offering to allow the “temporary entry” of more service industry workers, an important area for many developing countries, such as India.
I think we can see that as a longer-term process, Bliss said. I don’t think that constrains us from looking at other areas, where trading partners have expressed interest in seeing improvements in our schedule.
House of Representatives Judiciary Committee Chairman James Sensenbrenner, a Wisconsin Republican, has warned the Bush administration against including “immigration provisions” in trade pacts. He and many other members of Congress reacted angrily to US free trade agreements with Chile and Singapore in 2003 that provided increased temporary entry.
Services industries are trying to fashion a solution acceptable to the House and Senate Judiciary Committees by making it “virtually impossible” for any worker that enters the United States under a WTO-negotiated temporary visa program to stay more than 3 years, Vastine said. —Reuters
