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Europe Daily Bulletin No. 11249
EXTERNAL ACTION / (ae) trade

First WTO step on preferential treatment for LDC services

Brussels, 09/02/2015 (Agence Europe) - During a high level committee meeting on trade in services on Thursday 5 February, over 20 WTO member countries - both developing and developed - addressed their offer on preferential treatment for services exports from less developed countries (LDCs). This is the first stage in implementing the decision adopted at the ministerial conference in Bali at the end of 2013 on the LDCs' services waiver.

The chairperson for the services committee, South Korea's ambassador Choi Seokyoung, spoke of a “very high level of engagement” from developed and developing countries on handling services exports from LDCs more favourably than those from other WTO member countries. The LDC services waiver enables member countries to deviate from their most favoured nation obligation under the services agreement (GATS).

Around 20 countries with developed and developing economies stated what the services, and ways of providing services, were from the LDCs for which they were ready to grant preferential treatment. In their indications, these 20 or so countries addressed most of the 74 service sectors in which LDCs have requested preferences.

As well as increased market access, this unilateral offer of positive discrimination includes expanding access for the temporary movement of workers (mode 4) from LDCs for a range of services and professions and occupations; waiving fees for business and employment visas for people from LDCs; recognising qualifications; and providing technical assistance.

These preferences will be implemented once these members have completed their domestic processes and have notified the WTO of their preference (by 31 July at the latest).

On the EU side, the offer will enable services companies from LDCs to transfer management trainees to their affiliated companies in the EU in around 30 sectors or subsectors of LDC services, the European Commission states. LDC companies with a contract to provide services will be able to send skilled professionals to the EU to provide these services for up to six months. Similarly, independent professionals from LDC countries will be able to provide services in the EU for up to six months at a time in a wide range of services sectors, including architecture, engineering, research and development and management consulting, and computer services. (Emmanuel Hagry)

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