For Immediate Release April 1, 2004 Contact: Bob Vastine (202) 289-7460 CSI Joins Other Global Service Industry Leaders in Calling for WTO Members to Re-Engage in Services Negotiations (Washington, DC) The Coalition of Service Industries (CSI) has joined forces with other leading global service industry organizations in calling for a prompt re-engagement by governments in World Trade Organization (WTO) negotiations on the liberalization of trade and investment in services. In a March 31, 2004 joint letter to WTO Ambassadors from about 50 countries that have not yet tabled services offers, the industry groups urged them to do so as soon as possible. In their joint letter, the groups emphasized the benefits that accrue from the liberalization of trade and investment in services, pointing out that even in low-income countries, services account for an average of nearly 50% of GDP. The letter noted that world trade in services is less than 25% of the value of goods trade, a signal of the tremendous potential for growth in services trade if barriers are removed. Both developing as well as developed countries stand to gain from progress in the talks. In addition to CSI, the other groups signing the letter included the Australian Services Roundtable, the European Services Forum, the Hong Kong Coalition of Service Industries, the Japan Services Network, and the International Financial Services, London. The groups sent the letters following a series of meetings in Geneva on March 22-23 with numerous Ambassadors and senior officials at the WTO, during which the groups explained the importance of the services sector in the global economy and the urgent need to resume the request and offer process. ³Only a handful of WTO members met the March 31, 2003 deadline to submit initial offers, and a year later, we still have only 41 offers on the table, far short of the number needed to achieve critical mass in these talks,² said Robert Vastine, President of CSI. ³All WTO members have much to gain from the liberalization of trade in services, but a strong new commitment will be necessary for this negotiation to achieve its promise of substantial liberalization,² Vastine said. Below is the text of the letter: 31st March 2004 Subject: Services Industry Leaders Call for All WTO Members to engage in Services negotiations Your Excellency, As you may know, early last week leaders of service industry associations worldwide visited the World Trade Organization in Geneva. The delegation urged decision-makers to make progress on services negotiations in the context of the Doha Round. They appealed to negotiators to resolve agricultural issues that stand in the way of agreements on services. Our delegation consisted of 45 major global services companies and associations from a wide range of service industries and countries. We made our case during two days of meetings with WTO leaders, ambassadors and senior officials from key developing and developed countries (see programme and list attached for your information ­ enclosures 1 & 2). A press release was also issued and discussed at a widely attended press conference (enclosure 3). We emphasised the tremendously important role of the services sector in developed and developing economies alike. Even in low-income countries, services account for nearly 50% of GDP on average, while agriculture represents only 23% of GDP in developing countries. More than half of all global flows of foreign direct investment (FDI) are now in the services sector. FDI normally means investment in local companies, often with local partners. We noted that world trade is services is less than 25% of goods trade, a signal of the tremendous potential for growth in services trade if barriers are progressively removed. Access to modern services (financial, professional and infrastructure, etc.) is essential to growth and development in any country. WTO commitments are undeniably effective in attracting FDI, sending a clear signal to global capital markets and investors from services companies. Better and deeper WTO commitments covering more services trade will benefit a wide variety of services having an impact on the daily life of citizens of all countries. Improvement in agriculture-related services will lead to greater productivity and increases in exports, especially from developing countries, which have the most room for growth. For these reasons we are writing to you and each of your colleagues who represent WTO Members that have not yet tabled an initial GATS offer, to urge your country to do so as soon as possible. We ask you to consider that, first and foremost, services liberalisation is in your own interest. Studies have shown that encouraging a more efficient services economy by lowering trade barriers will improve welfare in your own and in other countries. Therefore, we urge you to do your utmost to engage your country in the WTO services negotiations and participate actively in the request and offer exercise as soon as possible. Yours sincerely, Ms. Jane Drake-Brockman, Executive Director, Australian Services Roundtable (ASR) Mr. Pascal Kerneis, Managing Director, European Services Forum (ESF) Mr. Alistair Abercrombie, Director, International Financial Services, London (IFSL) Mr. Hiroshi Kadota, Director General, JSN (Japan Services Network)/Director, /Nippon Keidanren Mr. WK Chan, Secretary-General, Hong Kong Coalition of Service Industries (HK CSI) Mr. Robert Vastine, President, U.S. Coalition of Service Industries (US CSI) # # # # # CSI is the leading business organization dedicated to reducing barriers to U.S. services exports and mobilizing support for domestic U.S. policies, including tax policies, which enhance the global competitiveness of its members. CSI was formed in 1982 to ensure that U.S. trade in services would become a central goal of U.S. trade policy and trade negotiations. It played a major role in the General Agreement on Trade in Services (GATS) and in the advocacy effort leading to the 1997 World Trade Organization (WTO) Basic Telecommunications and Financial Services Agreements. CSI’s knowledge of the process of services trade negotiations, its ties to the WTO and its network of relationships with governments and industry in other countries are unmatched. For a complete list of CSI members, visit our website at www.uscsi.org.