AUSTRALIA is the second country to notify preferential
treatment to LDCs in as many as 74 services such as tourism,
transport (maritime, air, rail, road and auxiliary services) and business
services (computer, professional and other business services). The objective
is to enhance LDCs’ participation in world services trade. In their request,
the WTO LDC Group had requested preferential treatment on 74 services sectors.
This is the second notification by a WTO member and comes after Canada notified
the Services Council in March 2015. Members agreed that delegations in a position
to grant preferences shall endeavour to notify the WTO as early as possible,
and no later than 31 July 2015. Sixteen WTO members reiterated their commitment
to meet the deadline and said that they are completing their internal processes.
This follows a 2011 Ministerial Decision to waive WTO members’ commitment
under the WTO General Agreement on Trade in Services to provide non-discriminatory
treatment to services and service suppliers of other WTO members (Most-Favoured
Nation principle). Australia said that the preferences — like the waiver —
are due to last until a country graduates from the United Nations list of LDC
countries.
The LDC Group welcomed Australia’s notification and urged members in a position
to do so to notify their preferences as soon as possible and to include, when
possible, measures pertaining to the cross-border movement of natural persons
(Mode 4). The LDC Group reported that 25 bilateral meetings had taken place
since the last Services Council meeting on 18 March and suggested an evaluation
after July. This could be a success story for another Bali outcome and for
the developing world, the LDC Group said, referring to the insertion in the
WTO rulebook of the new Trade Facilitation Agreement on 27 November 2014.
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