1
November 2006
ESF PRELIMINARY ASSESSMENTS OF
GATS OFFERS IN COMPUTER AND RELATED SERVICES
- Argentina: initial offer; good
Modes 1-3 are committed for consultancy services related to the installation of computer hardware (CPC 841), software implementation services (CPC 842), data-processing services (CPC 843), database services (CPC 844), and other computer related services (CPC 845 & 849).
II.Australia:revised offer; acceptable
We welcome the fact that Australia committed the sub sector “Computer and related services” at two digits level “CPC 84” in its initial offer. Australia excluded measures relating to content in database services (CPC 844) and other computer services (CPC 849) from its initial offer to preserve Australia’s cultural interests. The revised offer does not introduce any major change.
III.Brazil: revised offer; new
Brazil has added Mode 3 commitments at two-digit level (CPC 84) in computer & related services. However, data processing (CPC 843) and other services (CPC 849) are not covered and Modes 1 and 2 remain unbound, which is highly disappointing.
IV.Canada:revised offer; very little
Computer services remain committed at a three-digit level (rather than a more open 2-digit level).
V.Chile: revised offer; not enough
In line with EU requests, Chile has scheduled full Mode 1-3 commitments for software implementation services (CPC 842) and time sharing services (CPC 8433) while remaining unbound for data processing services (CPC 843) - except time sharing services (CPC 8433) - and for database services (CPC 844). Chile should at least take full commitments in CPC 8431-8432-8439 and CPC 844 i.e. schedule “None” instead of “Unbound” in Mode 1. ESF would ultimately like commitments to be taken at two-digit level i.e. CPC 84.
- China:revised offer;weak
China has made commitments in Modes 1-3 in its initial offer, though we would like to see commitments at two-digit level (CPC 84). Currently, China has scheduled commitments in consultancy services related to the installation of computer hardware (CPC 841), software implementation services (CPC 842), and data processing services (CPC 843). The revised offer also includes input preparation services (CPC 8431), data processing and tabulation services (CPC 8432) and time sharing services (CPC 8433). For software implementation services (CPC 842), Mode 3 MA restrictions have been lifted as wholly foreign-owned enterprises will be allowed. Chinahas also scheduled a Mode 4 limitation requiring natural persons from abroad to be certified engineers or a hold bachelor’s degree and have 3 years of experience.
VII.columbia: revised offer; nothing new, not enough
Colombia has not offered anything new in computer and related services. Its existing offer includes Modes 2 and 3 commitments on consultancy services related to computer hardware (CPC 841), software implementation services (CPC 842), data processing services (CPC 843) & database services (CPC 844).
VIII.Egypt: revised offer; new offer, not enough
Egypt has made a new commitment in its revised offer with a full opening in mode 1, 2 & 3 in all the sub sectors of the computer and related services (CPC 841, 842, 843, 844, 845 & 849). ESF very much welcomes this new offer, though we are concerned XXX(CPC 84). The commitments cover the CPC classification at 3 digit level, but do not provide legal security for new services, which is unfortunate given Egypt’s wish to become an IT and BPO centre in the region. It is also regrettable that further mode 4 commitments are not specifically taken for that sector.
IX.Hong-Kong: revised offer; nothing new, not enough
We are disappointed that Hong Kong has made no new commitment in courier services. Hong Kong has not increased sectoral coverage in the initial or revised offers, having committed only to “provision of services on a fee or contract basis for the delivery of documents and parcels, but excluding services reserved to the Post Office under the Post Office Ordinance”, which refers only to “part of CPC 7512. Modes 1 and 4 for market access (MA) and Mode 1, 2 & 4 for national treatment (NT) remain unbound. ESF would like to see further progress in this sector, covering the totality of the courier services.
X.India: revised offer; good
India’s decision to commit at two-digit level (CPC 84) and remove foreign equity ceilings is very welcome in this important sector. It shows very impressive leadership and ambition on India’s part. However, we would prefer that India remove MA limitations that only permit establishment through incorporation.
XI.Indonesia: initial offer; nothing new, weak commitments
Indonesia has made no new offer and its commitments cover only the first two sub-sectors and are extremely limited. It appears that modes 1 and 2 are unbound for the government funded project for MA, and entirely unbound for NT. Mode 3 is only by making a joint operation through a representative office in Indonesia. ESF would like to see Indonesia make real progress in its final offer towards full commitments at the two digit level.
XII.Israel: initial offer; good
Israel had opened modes 1-3 for Consultancy related to the installation of computer hardware (CPC 841), software implementation services (CPC 842) & Data processing and database services (CPC 8440, 843, excl. 84330) in its previous schedule of commitments. In its Initial Offer, Israel also included Maintenance and repair of office machinery and equipment including computers (CPC 845) modes 1-3. Although this is very welcome, we would like to see further commitments in Israel’s revised offers.
XIII.Japan:initial offer (revised offer not analysed); not enough
Japan has ignored the EC request to schedule commitments at the two-digit level (CPC 84). This is regrettable, given that this is a sector where Japan should have showed example. Air transport computer reservation systems are excluded, too. Japan has removed mode 3 limitations on NT.
XIV.Korea:revised offer; disappointing
There is nothing new here, despite the EC’s request that Korea commit at the two-digit level (CPC 84). This is especially disappointing given Korea’s strong position in this sector.
XV.Malaysia: revised offer; acceptable
This represents perhaps the most encouraging area of Malaysia’s offer, which would extend its existing unlimited commitments in modes 1 and 2 to commercial presence, removing current joint venture requirements. Commitments are offered for the first time in data processing services. Unfortunately, the offer falls short of ESF’s call for commitments at the two digit level, however.
- Mexico: revised offer; good
Mexico made the most positive moves in computer services in its initial offer. It opened up a few specific sectors in Computer and related services: consultancy services related to the installation of computer hardware (CPC 841), software implementation services (CPC 842), database services (CPC 844), and “other” (CPC 845, 849) though it did not take commitments at the two-digit level. Mode 3 restrictions on import duty exemptions, which had been limited to domestic producers, were also removed. ESF is satisfied with the offer, though would have liked to see commitments at the two digit level.
- Morocco: initial offer; nothing new
Morocco has not improved its limited Uruguay Round commitments that opened mode 3 for CPC 841 “consultancy services related to the installation of computer hardware.” We would like to see Morocco commit modes 1-3 at two-digit level (CPC 84), and hence give the possibility to the country to embrace investment in the new IT economy.
XVIII.NewZealand:initial offer; decent
On computer and computer-related services, as per the EC request, New Zealand has added full modes 1, 2 and 3 commitments on Maintenance and repair of office machinery and equipment including computers (CPC 845) and other computer services (CPC 849) in its initial offer. There is no new commitment in the revised offer. ESF would like NZ to schedule commitments at the two-digit (CPC 84) level.
XIX.Norway: revised offer; good
Full commitments modes 1-3 on Consultancy services related to the installation of computer hard ware (CPC 841), Software implementation services (CPC 842), Data processing services (CPC 843), Database services (CPC 844), Maintenance and repair services for office equipment including computers and other computer services (CPC 845, 849). We would however appreciate to see the commitment under double digit - i.e. CPC 84 -, which would clarify the scope of the commitment, including for possible new services under that chapter.
- Panama:initial offer; limited
Panama has tabled a limited offer on Computer and related services. We would like to see Panama commit at two–digit level (CPC 84) in its revised offer.
- Paraguay:initial offer; decent
Panama has tabled a limited offer on Computer and related services. We would like to see Panama commit at two–digit level (CPC 84) in its revised offer.
- Singapore: revised offer; weak
No change. This is a very weak offer covering only a limited group of sub-sectors (software development, systems integration services, data processing, and database services). Even worse, this section still does not use CPC classification. We shall therefore consider that CPC 842, 843 and 844 are at least fully committed unless otherwise specified in the final offer. We strongly invite Singapore in using CPC classification for that sector and commit it at two digit level.
XXIII.South Africa: initial offer;nothing new
South Africa has not made any new commitment in its initial offer, though we would like commitment at two-digit level (CPC 84) to be taken. The UR commitments cover the CPC classification at 3 digit level, which is appreciated, but do not allow sufficient flexibility for future technological advances that may permit different combinations of existing services.
XXIV.Switzerland: revised offer; little new
The revised offer remains the same as the initial offer in this sector except new commitments on Training services for staff of clients. It is regrettable that Switzerland has ignored the EC’s request to commit at 2-digit level (CPC 84).
XXV.taiwan: revised offer; excellent
Taiwan has two-digit commitments for CPC 84 since accession and in its offer has signed up to the understanding on its scope which is very welcome. Taiwan is a model for others to follow.
XXVI.Thailand: revised offer; not enough
Thailand’s UR commitments were relatively comprehensive in terms of sectoral coverage and the initial offer expanded this to all areas except hardware maintenance, database services over public telecommunications networks and the bulk of ‘other C&RS’. Given this, ESF feels Thailand could have taken the final step in its revised offer and made commitments at the two digit level. Instead the revised offer contained nothing new on C&RS. The removal of mode 3 restrictions across the board in the initial offer is certainly welcome. Given that the numerical ceilings introduced in mode 4 are not specified it is difficult to tell whether the offer constitutes advancement or backtracking.
XXVII.The Philippines: initial offer; not enough
This is one of the very few areas where the Philippines has made genuine offers. The commitment of installation, implementation and ‘other’ is very welcome. While ESF views the $200,000 minimum paid-up capital requirement as unnecessary, companies will be able to operate in these markets. The opening of mode 4 is also particularly welcome. In future offers, the Philippines should commit the remaining – and vital – areas of data processing and data base services and take commitments at the two-digit level.
XXVIII.Turkey: revised offer; acceptable
Consultancy, software implementation & data processing services (CPC 841, 842, 843) are all opened. Turkey has also added Training services for staff of clients (part of CPC 8499) in its initial offer. This is a good offer, but ESF regrets that Turkey has not opened up more sub-sectors in its revised offer.
- United States:revised offer; weak
The computer and related services commitments at two-digit level (CPC 84), which we strongly support, are perhaps the most important new US commitment in other business services.
- Uruguay: initial offer; decent
Uruguay has only partially committed on Computer and Related Services. We would like to see Uruguay commit on a two-digit level (CPC 84) and include services falling under CPC 845.
- Other:no offers; very disappointing
No offers on postal and courier services have been made byAustralia, Chile, Columbiaor. ESF is concerned that this sends a very negative signal on these countries’ openness to the global economy.
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