§ Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry if she will make a statement on the cost to developing countries of implementation of regulations that arise from General Agreement on Trade in Services negotiations. [121363]
§ Mr. Mike O'Brien[holding answer 25 June 2003]: The GATS process is based on a positive list, bottom up approach. Countries decide for themselves in which sectors and to what extent they wish to liberalise. Therefore, it will be for them to assess if potential costs will outweigh potential benefits. However, HMG recognises that developing countries require support in this assessment, and this is why the Department for International Development is co-ordinating with the World bank and UNCTAD to conduct research in this area, which will help inform the position of developing countries in the negotiations.
§ Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry how WTO investment rules apply to(a) multinationals and (b) national Governments. [121365]
§ Mr. Mike O'Brien[holding answer 25 June 2003]: Some existing WTO Agreements, for example, the WTO Agreement on Trade Related Investment Measures, the General Agreement on Trade in Services and the Agreement on Subsidies and Countervailing Measures, contain rules which may affect the way Governments offer incentives to invest in their country or specific sectors, but these rules do not form a complete set of multilateral rules governing investment. WTO agreements apply only to measures taken by 926W Governments or public bodies and not to multinationals. Any future agreements negotiated in the WTO are likely to be concluded on the same basis.