2014-06-19
Today, WikiLeaks released the secret draft text for the Trade in Services Agreement (TISA) Financial Services Annex,
which covers 50 countries and 68.2%1 of world trade in services. The US and the EU are the main proponents of the agreement, and the authors of most joint
changes, which also covers cross-border data flow. In a significant anti-transparency manoeuvre by the parties, the
draft has been classified to keep it secret not just during the negotiations but for five years after the TISA enters
into force.
Despite the failures in financial regulation evident during the 2007-2008 Global Financial Crisis and calls for
improvement of relevant regulatory structures2, proponents of TISA aim to further deregulate global financial services markets. The draft Financial Services Annex
sets rules which would assist the expansion of financial multi-nationals – mainly headquartered in New York, London,
Paris and Frankfurt – into other nations by preventing regulatory barriers. The leaked draft also shows that the US is
particularly keen on boosting cross-border data flow, which would allow uninhibited exchange of personal and financial
data.
TISA negotiations are currently taking place outside of the General Agreement on Trade in Services (GATS) and the World
Trade Organization (WTO) framework. However, the Agreement is being crafted to be compatible with GATS so that a
critical mass of participants will be able to pressure remaining WTO members to sign on in the future. Conspicuously
absent from the 50 countries covered by the negotiations are the BRICS countries of Brazil, Russia, India and China. The
exclusive nature of TISA will weaken their position in future services negotiations.
The draft text comes from the April 2014 negotiation round - the sixth round since the first held in April 2013. The
next round of negotiations will take place on 23-27 June in Geneva, Switzerland.
Current WTO parties negotiating TISA are: Australia, Canada, Chile, Chinese Taipei (Taiwan), Colombia, Costa Rica, Hong
Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama, Paraguay, Peru, South Korea,
Switzerland, Turkey, the United States, and the European Union, which includes its 28 member states Austria, Belgium,
Bulgaria, Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the
United Kingdom.
China and Uruguay have expressed interest in joining the negotiations but so far are not included.
[1] Swiss National Center for Competence in Research: A Plurilateral Agenda for Services?: Assessing the Case for a Trade in Services Agreement, Working Paper No. 2013/29, May 2013, p. 10.
[2] For example, in June 2012 Ecuador tabled a discussion on re-thinking regulation and GATS rules; in September 2009 the Commission of Experts on Reforms of the International
Monetary and Financial System, convened by the President of the United Nations and chaired by Joseph Stiglitz, released
its final report, stating that "All trade agreements need to be reviewed to ensure that they are consistent with the need for an
inclusive and comprehensive international regulatory framework which is conducive to crisis prevention and management,
counter-cyclical and prudential safeguards, development, and inclusive finance."
Recommended reading
•On the Wrong Side of Globalization, by Joseph E. Stiglitz, March 15, 2014.
•U.S. Foreign Trade in Services: Trends and Policy Challenges, by the Congressional Research Service, May 15, 2014.
•TISA versus Public Services, a Public Services International study by Scott Sinclair and Hadrian Mertins-Kirkwood, April 28, 2014.
Public Submissions
The only avenue TISA negotiators offer for public input is via public submissions. Each country has their own method for
handling submissions. Below are the public submissions from the biggest proponents of TISA.
•Australia: All submissions will be made publicly available on the DFAT website unless the author specifies otherwise. Submissions
may be lodged electronically to: services.negotiations@dfat.gov.auwebsite
•United States Request for comments submissions from September to October 2013.
•European Union Public consultation Results of the public survey on TISA
•Canada: Submissions may be sent by e-mail to: TMSconsultation@international.gc.ca Consultations on a Plurilateral Services Agreement