§ Dr. TongeTo ask the Secretary of State for Trade and Industry if he will make a statement on the impact of the General Agreement on Trade in Services on developing countries. [142512]
§ Mr. Caborn[holding answer 14 December 2000]: The General Agreement on Trade in Services was one of the agreements concluded at the end of the Uruguay round. It applies to all member countries of the World Trade Organisation (the majority of whom are developing countries) and includes specific provisions relating to flexibility for individual developing countries, particularly the least-developed countries.
The GATS provides for successive rounds of negotiations aimed at achieving progressive liberalisation of trade in services. Each member country, including developing countries, chooses for itself both which sectors they want to liberalise and the extent of that liberalisation by choosing the commitments they make (the "bottom-up" approach). They do not have to liberalise if they choose not to. In the current round, which began in January 2000, developing countries have sought to emphasise the importance of liberalisation in sectors of export interest to them, such as tourism services and movement of people. The Government support the GATS negotiations and believes that its results should bring benefits to all WTO members, including developing countries.