Preparing Requests and Offers

7.4 Technical Aspects of Offers

Offers would normally address the same issues as listed above, i.e. the addition of new sectors; the removal of existing limitations or the binding of modes not currently committed; the undertaking of additional commitments under Article XVIII; and the termination of MFN Exemptions. Participants would take into account all requests received, after careful assessment of the growth, developmental and other relevant policy implications.

While requests are usually presented in the form of a letter, an offer normally consists of a draft schedule of commitments. Therefore, offers do require considerable technical preparation. In the Uruguay Round, in the absence of pre-existing schedules of commitments, participants started the negotiating process with the submission of offers. These were followed by requests, amended offers, and so forth.

In the new round, offers will be submitted against the backdrop of existing schedules. The technical implications are currently being discussed in the Council for Trade in Services and the Committee on Specific Commitments. In these discussions, Members expressed a preference for using, as a starting-point, consolidated schedules that incorporate not only the Uruguay Round outcome, but any later amendments and extensions, including those resulting from the negotiations on basic telecommunications and financial services. The modifications offered in current negotiations would be indicated through strikeouts, bolded insertions, italics or other agreed methods. The draft offer(s) would constitute negotiating document(s) with no legal status and would have no binding effects on the participant concerned.

On that occasion, Members may also wish to introduce technical clarifications to existing commitments.

In the future course of the negotiations, there would be a succession of requests and offers. The initial offers, to be submitted by 31 March 2003, will be subject to revisions in response mainly to new or renewed requests. The offers are traditionally circulated multilaterally. This is not only useful for transparency purposes, but also from a functional point of view. While offers reflect the requests received (and, possibly, autonomous policy choices), they need to be open to consultation and negotiation by all partners.

With the submission of offers, participants enter a decisive stage of the negotiating process. Many governments send delegations to Geneva to conduct a long schedule of bilaterals with other delegations. Less time will be spent in Council or Committee meetings.

As an off-shoot from the bilateral process, substantive issues of common interest might arise and require further multilateral discussion. For example, participants may want to address regulatory issues via Article XVIII, further clarify concepts and disciplines contained in the GATS, or improve existing sector classifications. The Reference Paper in basic telecommunications, inscribed under Article XVIII, may stimulate work in other sectors facing similar problems of network access and market dominance, such as rail transport or electricity distribution. Other regulatory issues, e.g. transparency requirements, may be addressed as well. The development of a reference paper should essentially be open to all participants. Of course, once adopted or agreed upon, the paper only takes legal effect if it is incorporated in a Member’s schedule.