Trade Negotiations Insights (TNI), Vol.6, No. 5, September 2007
Trade in services should be negotiated within the framework
of the EPAs. The European economy is essentially driven by
services: the sector represented 75 percent of EU GDP in
2005 and generated 90 percent of new jobs in the EU in 2004.
European companies need a binding agreement in services not
only to improve their own foothold in foreign markets but to
allow ACP company suppliers reciprocal access to help Europe
keep its competitive edge.
But negotiations on trade in services are also a tool for ACP
countries to implement their development strategy and to
achieve sustainable economic development. When conditions
are ripe for foreign investment in the service sector, foreign
companies participate in the development of local economies,
investing in infrastructure and network services such as
energy, telecommunications, transport, logistics and financial
services. In turn, the numbers of local jobs created by foreign
services companies multiply.
Moreover, foreign companies also provide new choices and
cheaper services for local consumers, including small and
medium-sized companies (SMEs), which subsequently become
more competitive and are able to develop new jobs and create
growth for the local economy.
Author(s): Pascal Kerneis