WTO GATS: Challenges & Opportunities for Pakistan. Conference report

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1 WTO GATS: Challenges & Opportunities for Pakistan Conference report Lahore, November 2005

2 This publication has been produced with the assistance of the European Union (EU) as part of an EU-funded Trade Related Technical Assistance (TRTA) programme with the Government of Pakistan. The International Trade Centre (ITC) is implementing the programme. The content of this publication is the sole responsibility of the implementing agency. Facts and figures set forth in this publication are the responsibility of the implementing agency and should not be considered as reflecting the views or carrying the endorsement of the EC, ITC, UNCTAD, or WTO. The factual details and in-country resources in the publication have been researched and compiled by the implementing agency. ITC has not formally edited this report. Written by: DMPD/TSS International Trade Centre (UNCTAD/WTO) Palais des Nations, 1211 Geneva 10, Switzerland Distribution: UNRESTRICTED November 2005 ITC: Your Partner in Trade Development The International Trade Centre is the joint technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for business aspects of trade development. ITC s mission is to contribute to sustainable development through technical assistance in export promotion and international business development. ITC s strategic objectives are: Enterprises Strengthen the international competitiveness of enterprises. Trade support institutions Develop the capacity of trade service providers to support businesses. Policymakers Support policymakers in integrating the business sector into the global economy.

3 Table of contents Introduction 1 EC TRTA Programme 1 Conference report 3 Conference objectives 3 GATS conference 3 Services Capacity Report 4 Service Export Roadmap 4 Conference programme 5 List of participants 9 Conference brochure 21

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5 Introduction EC TRTA Programme The International Trade Centre UNCTAD/WTO (ITC) is executing an EC-funded Trade Related Technical Assistance (TRTA) programme for Pakistan. The objective of the programme is to enhance awareness among Government officials, the business sector and civil society about the implications of World Trade Organisation (WTO) Agreements on the economy of the country, and to assist Pakistan in building the necessary capacity to address issues resulting from its participation in the WTO. With the TRTA, a number of activities are focused on the development of Pakistan s services exports. These include advisory services and training, a survey of the export potential of the services sector, and development of a service export strategy. Special events, such as this, are also being organised targeting trade bodies on how to promote service exports and of the implications of the GATS. In addition, a number of series will be held focussing on various aspects of the WTO negotiating framework including Agriculture, NAMA and Trade Facilitation in addition to Services. The seminars involve both public and private sector stakeholders, and are designed to increase awareness of the negotiations and their progress, to look ahead to the challenges and opportunities that the negotiations may provide for both government policy and business practice. This enhanced knowledge will equip business leaders to play a more meaningful advocacy role with the government, with a view to contributing to the completion of the WTO negotiations. The seminars are intended to foster communication between business and government, leading to the formation of negotiating positions in line with national needs and inclusive of the real and concrete economic and commercial interests of the country. International Trade Centre Page 1

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7 Conference report Conference objectives The purpose of the conference was to introduce the components of the World Trade Organization (WTO) General Agreement on Trade in Services (GATS) to the private sector, to facilitate a discussion of public and private sector interests in the GATS, and to engage both parties in consideration of Pakistan's interests in light of the forthcoming December 2005 Hong Kong Ministerial meeting. The Service Export Roadmap was also introduced to those gathered. GATS conference Mr. Inaamul Haque, Advisor WTO, Planning & Development Department, Government of the Punjab, orchestrated the Lahore Conference on GATS in conjunction with ITC Project Coordinator, Mr. Arif Khan. Mr. Haque, had attended the project's 31 May 2005 Services seminar in Karachi, along with his compatriot Mr. Majid Ali Wajid. The Lahore conference was similar in structure and substance to the Karachi seminar, with a focus on private sector identification of trade constraints for services negotiations. On the evening of 13 November, the Government of the Punjab hosted a briefing for the facilitators of the sector specific working groups, which would consider and discuss GATS issues over the next two days. At the briefing, ITC discussed how to draw out services trade obstacles from the private sector through discussion of business operations. A review of the components of the GATS Agreement was also provided. This pre-conference briefing replicated the gathering that took place in Karachi before the 31 May Services Symposium. Such a pre-conference briefing for facilitators and key private sector participants is instrumental in moving participants up the learning curve of trade in services issues and enabling them to clearly identify trade in services obstacles at home and in export markets of interest in light of GATS negotiations. Facilitators for the private sector working groups scheduled to assemble at the seminar included academicians, business people from the tourism, telecom, information technology, and other service sectors, as well as public sector representatives. Attendance and participation of private sector representatives from the region at the conference on 14 & 15 November was outstanding, and approached 400 people. Service practitioners from the financial, legal, construction and engineering, information technology, tourism, health, transportation, and education sectors participated. The programme was ambitious and clearly conveyed the importance of services negotiations to service firms in Pakistan. The quality of the presentations and the vigor of debate within each sectoral breakout group also effectively distilled trade in services issues. At the conclusion of the conference, spokespersons for the working groups provided recommendations for their sector in light of the GATS negotiations and trade constraints at home. Mr. Khan synthesized the findings, linked them to ITC services trade related technical assistance, and formally concluded the conference. International Trade Centre Page 3

8 Services Capacity Report During the conference, findings were presented from the ITC draft Services Capacity Report 1 based on interviews with Pakistani service firms. Emphasis was placed on how firms use different modes of supply in service delivery as well as the different types of services trade impediments found in the domestic and export markets as a result interviews with Pakistani business people. Specific examples were used to emphasize, for example, establishment obstacles of Pakistani service firms abroad as well as commonly found barriers in the professional, medical, financial, and construction service sectors. Comments also addressed how service industry coalitions and trade associations can ameliorate obstacles to service export expansion. Service Export Roadmap The ITC draft Service Export Roadmap was also presented at the conference. The intent of the Roadmap is to expand Pakistan's exports in services by increasing institutional support, streamlining the regulatory environment, strengthening the service input infrastructure, and providing better services trade information. The Roadmap is in a nascent stage and broad input is sought from, inter alia, the Ministry of Commerce, the Export Promotion Bureau, Lahore University of Management Sciences, the Institute of Business Administration, the Government of the Sindh, the Government of the Punjab, and services associations and firms. Initially this will be conducted online with a Roundtable to be held in March 2006 to identify discrete interventions that can be conducted and concluded in ITC is sharing the draft Services Capacity Report with the Pakistani Government, including the Geneva Mission and the Ministry of Commerce, for comment and refinement before finalization. Page 4 International trade Centre

9 Conference programme Conference on GATS Trade in Services: Challenges and Opportunities for Pakistan 14 th -15 th November 2005 Pearl Continental Hotel, Lahore, Pakistan Day 1 Monday, 14 th November 2005 Timing Activity am Registration of Participants 9.30am 9.35am 9.40am 9.45am 9.50am 9.55am 10.05am 10.15am 10.30am 10.55am 11.20am 11.45am Recitation from Holy Quran Inaugural Ceremony Introductory Remarks by Mr. Inaamul Haque, Advisor on WTO, Planning & Development Department, Government of the Punjab Remarks by Mr. Peter Walters, Director DPMD, International Trade Centre, Geneva Remarks by the Representative UNDP Remarks by Mr. Tariq Ikram, Chairman EPB/Minister of State Address by the Chairman, Planning & Development Board, Government of the Punjab Address by Ch. Pervaiz Elahi, Chief Minister, Punjab Tea Break Presentation of Papers Session I Concepts & Overview Chair: Dr. Akram Sheikh, Deputy Chairman, Planning Commission/Chairman PEC Global Trade in Services and GATS: An Overview Mr. Majid Ali Wajid, Consultant WTO Addressing Services Trade Constraints through Coalitions Ms. Linda Schmid, Trade in Services Officer, ITC Trade in Services with reference to Pakistan Mr. Fasihuddin, Former Chief Economist, Government of Pakistan Q & A session noon Remarks by the Chair 12.05pm Session II Export of Services & Human Development Chair: Mr. Nasim Qureshi, Additional Secretary, Ministry of Commerce Services Export Strategy Roadmap Mr. Yusuf Hussain, Dual Matrix Corporation International Trade Centre Page 5

10 Day 1 Monday, 14 th November 2005 Timing 12.30pm 12.55pm 1.10pm 1.15pm 2.00pm 5.00pm Activity Trade in Services: Migration and Growth by Dr. Nadeem-ul-Haque, Advisor on Trade Policy, Ministry of Commerce Q & A session Remarks by the Chair Lunch Break Session III Working Group Deliberations (Facilitators to lead the group members to the respective work stations) Challenges and Opportunities for various service sector groups of Pakistan Working Group Discussions: 1. Banking Services 2. Accountancy & Auditing Services 3. Educational Services 4. Legal Services 5. Construction and related Engineering Services 6. Information Technology Services 7. Tourism Services 8. Transportation Services 9. Health/Medical Services End of group deliberations / Brief summation of work done Mr. Fasihuddin, Chief Facilitator Day 2 Tuesday, 15 th November 2005 Timing 9.30am 9.55am 10.20am 10.35am 10.40am 10.55am 11.55am 11.35am 11.45am Activity Session IV Perspectives on GATS Negotiations Chair: Mr. Akber Sheikh, Chairman WTO Committee APTMA/LCCI) GATS: A study in approaches for negotiations by Mr. M. A. Bajwa, WTO Expert Services Negotiations under DDA: Current State of Play and Pakistan by Mr. Gulrez Yazdani, International Trade Specialist Q & A session Remarks by the Chair Tea Break Inputs from Working Groups Session V: Banking & Accountancy Services Banking Services Accountancy & Auditing Services Q & A session Remarks by the Chair Page 6 International trade Centre

11 Day 2 Tuesday, 15 th November 2005 Timing 11.50am 12.10pm 12.30pm 12.40pm 12.45pm 1.05pm 1.25pm 1.35pm 1.40pm 2.15pm 2.35pm 2.55pm 3.15pm 3.25pm 3.30pm 3.55pm 4.15pm Activity Session VI: Educational & Legal Services Educational Services Legal Services Q & A session Remarks by the Chair Session VII: Engineering & IT Services Construction & Related Engineering Services Information Technology Services Q & A session Remarks by the Chair Lunch Break Session VIII: Engineering & IT Services Tourism Services Transportation Services Health/Medical Services Q & A session Remarks by the Chair Session IX: Concluding Session Chair: Dr. Salman Shah, Advisor to the Prime Minister Findings of the Conference & Next Steps Mr. Arif Ahmed Khan, National Coordinator, ITC Pakistan Remarks by the Chair Closing & Tea International Trade Centre Page 7

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13 List of participants No. Groups Total 1. Banking Services Accountancy & Audit Services Educational Services Legal Services Construction & Related Engineering Services Information Technology Services Tourism Services Transportation Services Health / Medical Services Miscellaneous 100 Total 383 Management team 14 International Trade Centre Page 9

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