§ Mr. David StewartTo ask the Secretary of State for Trade and Industry if she will make a statement on the impact of GATS on trade and industry. [66868]
§ Ms Hewitt[holding answer 4 July 2002]: The purpose of the GATS is to promote economic growth through the expansion of trade in services. Quantifying the benefits of services liberalisation is difficult, but the available estimates suggest positive benefits for both developed and developing countries in particular.
For the United Kingdom, liberalisation of services markets should be of particular benefit. The UK is the second largest exporter of services in the world and fourth
147Wlargest importer. In 2001 exports of services amounted to £77 billion and imports were worth £65 billion. Services account for nearly 70 per cent. of our GDP.
We believe that liberalisation of services underpinned by effective domestic regulatory frameworks can bring benefits to developing countries. Recent studies point to the economic efficiency and welfare gains that liberalisation can bring. The World Bank estimate that services liberalisation could boost the income of developing countries by nearly $900 billion. This is nearly five times the gain the bank estimate that they would obtain from liberalisation in goods. Liberalisation of infrastructure services such as financial, telecommunications and transport services can help developing countries by fostering the efficiency and growth of other sectors of their economies.
Under the GATS countries can decide in which sectors and to what extent they wish to liberalise or privatise and when they think it would be beneficial for them to do so.
Date Company Origin Location Cap Ex £(m) New Safe Partner Project Source Aug 1998 Edwards Pearson Holland Somerset 2 10 90 SEP 162 Direct Dec 1998 Logoplaste Portugal Bridgwater 6.00 70 0 SEP 463 INUK Aug 2000 Equitea Kenya Taunton 0.00 5 SEP 1123 INUK Flight Visions Nov 2000 UK Ltd USA Langport 0.02 5 0 SEP 1183 Direct Nov 2000 Chickmaster USA Bridgwater 1.00 0 70 SEP 524 INUK Singapore Jul 2001 Seamap Somerset 0.05 12 0 SEP 1108 Direct Total to date: 6 £9.07m 102 160 Somerset has also benefited from investment under the Single Regeneration Budget (£1.2m) and the Market and Coastal Towns Initiative (£50K).