International Trade in Services
Summary of requests co-sponsored by Australia
The plurilateral requests follow a broadly similar format, with a common preamble that emphasises the flexibilities available to Members under the GATS, and a common structure that defines the sectoral coverage of the request and the specific commitments Members sought and limitations to be removed from schedules (such as restrictions on foreign equity, limitations on form of establishment, nationality requirements, discriminatory regulatory policies). A number of requests also have attached model schedules, checklists or menus to help recipient Members make commercially meaningful commitments.
Importantly, co-sponsors of plurilateral requests were ‘deemed’ recipients of the request to the extent that their own schedules did not comply. As a deemed recipient, we are undertaking to consider and respond to a request in good faith, but not necessarily commit to every element of the request.
Air Transport Services
Air traffic rights and services directly related to air traffic rights are excluded from the GATS. The collective request is therefore limited to services listed in the GATS Air Annex: aircraft maintenance and repair; selling and marketing; and computer reservation services (CRS). It also includes ground handling and airport management (not listed in the Annex). Australia has existing commitments in these areas.
Australia’s key interest is to secure commitments on ground handling. Efficient ground handling is essential to proper functioning of air transport and competition between operators ensures that proper use is made of airport infrastructure. This helps to reduce operating costs and improves quality of service for airport users, including exporters.
Architectural, Engineering and Integrated Engineering Services
Australia has offensive interests in these sectors. Australian exports of engineering services exceeded $519 million in 2004-05. Australia has made full commitments in all three sub-sectors. The plurilateral request notes that liberalisation of trade in architectural, engineering and integrated engineering services may contribute to liberalisation of trade in related sectors such as constructions services, environmental services and energy services.
Computer-related Services
The CRS sector is experiencing enormous growth and is one of the driving forces behind a knowledge-based economy. Computer-related services are an important enabler for economic development. Australia has a competitive CRS industry with strong offensive interests. Australia’s offer on computer-related services is comprehensive, but excludes measures relating to content. Australian CRS exports exceeded $1 billion in 2004-05.
Construction Services
Australia’s interests in Construction Services are linked to those expressed in Architectural, Engineering and Integrated Engineering services. Australia’s commitments and offer are comprehensive. The plurilateral request seeks the reduction or elimination of foreign equity levels and the removal of restrictions on types and size of projects that can be undertaken by foreign services providers. In 2004-05, Australian construction exports totalled $83 million.
Educational Services
Education services are one of Australia’s major export industries (over $7 billion in 2004-05) and are a priority in WTO and FTA negotiations. Australia’s commitments are limited to private education services only. Education is currently one of the least-committed sectors in the GATS.
Energy-related Services
Australia has significant export capability in this sector. Exports of mining and energy-related services are expected to grow strongly over the next five years. Australia has made comprehensive commitments on energy-related services.
Environmental Services
Australia has strong offensive interests, particularly in providing environmental services to the East Asian region. A liberalised environmental services market benefits both exporters and importers of these services as well as the environment and development.
Liberalisation in these sectors will not impair the ability of governments to impose performance and quality controls on environmental services and to otherwise ensure that service providers are fully qualified and carry out their tasks in an environmentally sound manner. This plurilateral request does not address in any way water for human use (i.e. the collection, purification and distribution of natural water). Similarly, Australia's offer on environmental services excludes water for human use.
Financial Services
Australia has already scheduled much of its current level of liberalisation. This reflects Australia’s adoption of a risk-based approach to prudential supervision in line with international best practice. Our key target markets are in East Asia. Exports of Australian financial and insurance services in 2004-05 totalled $1.7 billion.
Freight Logistics Services
Australia does not have a large off-shore freight industry. Our interest in this sector lies in the fact that good freight logistics can unlock external markets and make exports more competitive. Australia is so far the only Member to have made comprehensive commitments based on the Freight Logistics Checklist. Australia is seeking this level of commitment from other Members.
Legal Services
Our legal profession actively supports Australian efforts to improve commitments in this sector. Australia chairs the sectoral group on legal services and is the coordinator of the current plurilateral request. The request identifies a minimum viable commitment in legal services and limitations to be removed from schedules. Australian exports of legal services were valued at $233 million in 2004-05.
Maritime Transport Services
Over 90 % of Australia’s trade is transported by sea. Access to a sufficient volume of competitively priced maritime transport services is vital to Australia’s economic well-being. Australia’s offer closely matches the Maritime Model Schedule, which forms the basis of the request. Of particular interest to Australia is securing commitments on multi-modal transport (swapping between road, rail and sea transport). Two-way trade in freight transportation services was valued at $8.3 billion in 2004-05.
MFN exemptions (other than audiovisual and financial)
Australia supports the removal of MFN exemptions, of which there are over 250 in the GATS. Australia has only two MFN exemptions, both in the audiovisual sector.
Telecommunications Services
Telecommunications is a vital infrastructure service and a key enabler of trade and development. Australia’s telecommunications sector is already very open. Apart from Telstra there are no foreign equity limits on investment in telecommunications in Australia. Australia allows an unlimited number of carrier licences. Australia’s key markets are in the East Asian region.