Experiences with Preparing for Negotiations

1. Experiences with Preparing for Negotiations A Perspective from the Philippine Mission in Geneva

2. Inter-Agency Committee on Services • National Economic Development Authority (NEDA) as coordinating agency • ADG, Director, staff of 4(?) • Process-orientated role • Consolidator • Attends negotiations in Geneva as ‘capital-based expert’ • Independent departments and agencies • Substantive role • Provide technical inputs • Conduct consultations with respective stakeholders

3. Bear in mind… • Primary role of NEDA as economic research and planning agency of the government • Main functions of ADG-in-charge of IAC • Responsibilities and priorities of bureaus, agencies and officers assigned to the IAC

4. The role of the Department of Trade and Industry (DTI) • Traditionally, lead substantive negotiator in international trade negotiations • Convenor of Technical Committee on WTO Matters • Bureau of International Trade Relations (BITR) as trade policy centre • Foreign Trade Service Corps (FTSC) as mother unit for commercial attaches, trade negotiators • Relationship with NEDA, IAC in services negotiations

5. The role of the Department of Foreign Affairs (DFA) • Protocol-wise, nominal lead negotiator in any international negotiations • Heads the Philippines’ mission in Geneva • One mission (Philippine Mission to the UN and other International Organizations), one ambassador until 2001 • One mission, two ambassadors (UN, WTO) 2001-2004 • Two missions, two ambassadors from 2004 • Sits in as member of IAC in Manila • Lead substantive negotiator until 1999

6. Multifunctional responsibilities in international trade negotiations • Same talent pool for all international negotiations and for a • APEC, ASEAN, FTAs, WTO • Proliferation of FTA negotiations • Japan, U.S., India, China, Australia, Korea, etc. • Strain on human resources • Competence and efficiency through experience? • Effect on WTO negotiations

7. What is supposed to happen in context of WTO negotiations • NEDA informs IAC of what is required for negotiations in Geneva • Agencies undertake studies, research, analyses, consult with constituencies • Agencies report results, provide position to NEDA • NEDA consolidates positions after discussions with agencies • TCWM for holistic perspective and consolidation of positions for WTO negotiations • In select instances, role for TRM approval • NEDA provides Philippine Mission in Geneva with inputs and positions

8. Reality check • Nature of multifunctional responsibilities of assigned officers, especially with direct regulatory roles • Priorities arising from proximity to constituents • Carousel • Internal dynamics • Negotiations are driven by personalities • Recent trend towards FTAs

9. Role of Private Stakeholders • What is their level of awareness? • What is the extent of consultations? • Limited involvement? • Increased engagement with appointment of private sector representative as ambassador in international trade negotiations • Old WTO-AFTA Commission model • Task Force on WTO Agriculture Round (WAR) model

10. From Geneva… • Assume increased responsibilities • Read, analyze, contextualize • Commercial, economic implications • Legal • Systemic • Develop positions and interventions • …”if we do not hear from you…” • Compare and contrast with developed, developing Members • …”awaiting instructions from capital” • Increased latitude, pressure, need for care • Experience in bilaterals

11. Rules (Geneva) Working Party on GATS Rules Working Party on Domestic Regulation Committee on Specific Commitments Market Access Negotiating proposals Mode 4 tourism Market Access (Manila) Request (+ Geneva) Offer Geneva response

12. Experience with Requests • Own requests prepared by IAC in time for 30 June 2002 deadline (but have had to be modified) • Based on perceived strengths, particularly relating to mode 4, in targeted markets • After all, estimated US$8 billion in remittances from 8 million Filipino overseas workers (admittedly, not all mode 4) • Leading sectors/activities • Professional services • Nurses • Care-givers • Household help • Ship crews • Computer-related services

13. Experience with Requests (con’t) • None on mode 1, notwithstanding growth of revenues from this services mode through- • Call centers • Data processing • Transcription • Medical • Legal • Accounting services • Could be subject to continuing modality for revised requests • Benefit from inputs from private stakeholders (note inputs from SPI Technologies at WTO symposium on cross-border trade)

14. Experience with Initial Offer • 31 March 2003 indicative deadline • Only Philippines (and South Africa?) required to form critical mass • Pressure in Special Sessions of the Council for Trade in Services • Philippine Mission in Geneva has recommended general outline of possible sectors for binding commitment sans details, e.g., • Computer-related services • Research and development • Health-related services (hospital services in mode 3) • Environment (waste management) • Per NEDA, ongoing consultations • What is the real state of play? • Breakdown in the process? • What has happened to requests from trading partners?

15. Lessons • Bear in mind – WTO negotiations are going to be even more intensive in the future • Need for direct engagement of capital-based technical experts, regulators • Canadian model • Intensive consultations with private stakeholders • TF WAR model • Direct involvement of private stakeholders in formulation of positions • Separate pool for FTAs, WTO? • Emphasize value of technical officers • But must maintain synergy between two pools • Role for DFA as coordinator? • Increased awareness on GATS for domestic agencies and private stakeholders • Educative mechanism • Online learning • Regional dialogues afford interaction and coalition-building among capital-based experts • Training seminars

16. Thank you!