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Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
@CoppetainPU
Feb 14, 2022 • 17 tweets • 9 min read • Read on X
Scrolly
Very niche🧵

Who invented the 4 modes of services supply?

I took a deep dive into historical Uruguay Round negotiating documents following contributions from @ScheeleJonathan @AmyPorges @henrysgao @RMelendezOrtiz

Short answer: it was an evolution, crystallised by the EU

1/14
The four modes of services supply are:

1 cross border supply
2 consumption abroad
3 foreign commercial presence
4 movement or presence of natural persons

Within the 1986–94 Uruguay Round negotiations, this evolved from Feb 1987 to Oct 1989

2/14 wto.org/english/tratop… Image
Feb 23–25, 1987 meetings

The earliest reference to this idea is in summary note MTN.GNS/7
docs.wto.org/dol2fe/Pages/S…

This has (1) cross-border supply, (2) (partial) presence of natural persons, (3) commercial presence.

Not consumption abroad

3/14 Image
Apr 9, 1987—Singapore discusses the concepts in detail under “consumption” v “trade” in paper MTN.GNS/W/6
docs.wto.org/dol2fe/Pages/S…
 
Apr 8–10, 1987 meeting—Discussed at length under “definitional issues”. First mention of consumption abroad. MTN.GNS/8

4/14 docs.wto.org/dol2fe/Pages/S… Image
Also in the Apr 8–10, 1987 meeting—one delegation proposed five types (one being purely domestic). The way these modes are described shows how much negotiators were still struggling with concepts

5/14 docs.wto.org/dol2fe/Pages/S… Image
Jun 19, 2022—UN Statistical Office notes these modes in paper MTN.GNS/W/9
docs.wto.org/dol2fe/Pages/S…

This shows that other organisations were also grappling with the concepts. Whether any of them ended up with four is not reflected in the Uruguay Round negotiating documents

6/14 Image
Discussion continues

Jun 24, 1988. A GATT Secretariat paper on “definitions” has an in-depth look at two concepts

• where the service itself crosses the border
• cross-border factor flows but not necessarily the service itself

MTN.GNS/W/38/Rev.1

7/14 docs.wto.org/dol2fe/Pages/S…
Nov 25, 1988. The negotiating group’s report to the Montreal Ministerial TNC. MTN.GNS/2
docs.wto.org/dol2fe/Pages/S…

Under “definition”—3 types: cross-border movement of services, consumers, factors of production (which would cover commercial presence and movement of people)

8/14 Image
In the same document for the Montreal Ministerial meeting—the first time “mode” is used in this context (“mode of delivery”), but it comes under “transparency” (or with market access, which seems to be the US route)

MTN.GNS/2
docs.wto.org/dol2fe/Pages/S…

9/14 Image
Dec 9, 1988. Montreal ministerial decision. Echoes MTN.GNS/2 on the definition. MTN.TNC/7(MIN), but not on transparency/market access

10/14 docs.wto.org/dol2fe/Pages/S… Image
Sep 18–22, 1989 meeting. Lengthy discussion reflects paragraph 4 of the Montreal Decision, with several delegations referring specifically to commercial presence and movement of people, instead of just factors of production. MTN.GNS/25

11/14 docs.wto.org/dol2fe/Pages/S…
Oct 17, 1989. US draft has different approach. MTN.GNS/W/75

Ch 3 “Market Access”—separate articles on “Establishment”, “Cross-Border Provision of Services”, “Temporary Entry for Services Providers”

“Definitions” includes movement of consumers

12/14 docs.wto.org/dol2fe/Pages/S…
Oct 19, 1989—the first time the four modes appear together clearly, but not called “modes”.

In an EU paper on definition of trade in services. MTN.GNS/W/76
docs.wto.org/dol2fe/Pages/S…

The approach ended up in GATS

13/14 Image
It's pretty clear therefore that the final formulation came from the EU, although the ideas had already been percolating in the negotiating group for almost 2 years.

@ScheeleJonathan says the EU was thinking about it before the paper was circulated

14/14
Correction. In the previous tweet that should be "percolating in the negotiating group for almost THREE years"
CORRECTION June 19, 1987

Thread continues here
The 🧵⬆️ is now blogged tradebetablog.wordpress.com/2022/02/15/ori…

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More from @CoppetainPU

Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
Jun 9, 2022
🧵 On Sunday, the much-postponed 12th WTO Ministerial Conference #MC12 starts.

Here is another curtain-raiser, with @BobWolfeSPS

@wto Director-General @NOIweala believes it will be a success.

But what does “success” mean?

1/11 tradebetablog.wordpress.com/2022/06/09/tou…
“Many gaps remain but we are making progress,” @NOIweala told members on Tuesday Jun 7

“The success of this whole endeavour is in our hands. Let us deliver. The people outside are waiting for us and, believe it or not, I really think we will do it.”

2/11 wto.org/english/news_e…
Fingers crossed, there might even be a deal on fisheries subsidies, she and the talks’ chair @WillsSantiago said.

But despite “cautious optimism” WTO spokesperson Dan Pruzin warned journalists to expect ministers to meet late into the night at #MC12

3/11 tradebetablog.wordpress.com/2022/06/09/tou…
Read 12 tweets
Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
May 29, 2022
Was it worth the time looking at the UK’s big deal with Indiana? The one the government hails as a “milestone” and the minister calls a “US trade deal”?

They wants us to take it seriously. So I did. Let’s say I did it so you don’t have to.

1/8 tradebetablog.wordpress.com/2022/05/29/mil…
TL:DR it's not a trade agreement.

It's a memorandum of understanding, a non-binding statement of intent.

The only trade barrier that might get tackled is govt procurement.

Indiana's state-level entities have no commitments on procurement in the WTO

2/8 tradebetablog.wordpress.com/2022/05/29/mil…
Indiana “will actively work towards” (not a commitment) treating UK suppliers the same as suppliers from other US states except those neighbouring Indiana.

“That’s the weirdest MFN clause I’ve ever seen,”—@Lorand_Bartels

3/8 tradebetablog.wordpress.com/2022/05/29/mil…
Read 10 tweets
Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
May 27, 2022
“Agreement with Indiana marks milestone in UK’s trade with the US”—the UK government proclaims

Read on

It's a memorandum of understanding on what the UK and Indiana want to develop in their trade and economic relations. That stretches the meaning of “agreement” quite a lot

1/9
Good question⬇️. Short answer: no

So, all we know is what the UK government press release says.

2/9
This is what it says:

“The MoU creates a framework to remove barriers to trade and investment, paving the way for UK and Indianan businesses to invest, export, expand and create jobs.”

Remember: all major trade barriers are handled in Washington

3/9 gov.uk/government/new…
Read 10 tweets
Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
May 22, 2022
It’s been clear for some time that WTO members are unlikely to agree on anything substantial on agriculture—despite declaring it a priority—when their ministers meet in Geneva Jun 12–15

Information from trade sources on a meeting last Thu May 19 reinforce that assessment🧵

1/11
The focus has changed in recent months—the Ukraine war has increased concerns about food security.

But the best binding decision that can be expected is to exempt the World Food Programme’s humanitarian purchases from export restrictions—still opposed by India & Tanzania.

2/11
Expect some non-binding/“best-endeavour” statement on food security, eg, the UK-led proposal⬇️, which draws on familiar themes of keeping supplies flowing, increasing transparency, minimising market disruption.

Even transparency is a problem…

3/11 docs.wto.org/dol2fe/Pages/S…
Read 11 tweets
Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
May 20, 2022
Another day, another WTO topic where members find themselves under pressure to reach agreement within days.

Today: fisheries subsidies, at the end of a “Fish Week” of talks in various formats on curbing harmful subsidies that encourage overfishing.

1/8 tradebetablog.wordpress.com/wto-fish-talks…
Chair @WillsSantiago briefed the media after a stock-taking meeting of the membership.

Sandwiched between plenaries Mon and Fri, were sessions in various formats. Wills said 30-40 delegations were involved in each of those sessions, total about 50.

2/8 tradebetablog.wordpress.com/wto-fish-talks…
@WillsSantiago said the talks were constructive with good signals that need to be turned into agreement.

He announced a “Fish Decision” week from May 30, giving members a fortnight to resolve their differences.

3/8 tradebetablog.wordpress.com/wto-fish-talks…
Read 8 tweets
Peter Ungphakorn (also @coppetainpu.bsky.social) Profile picture
May 19, 2022
WTO members on all sides were urged today to sort out their reservations over the proposed compromise, so that a deal on waiving some intellectual property protection for COVID-19 can be struck by the Jun 12-15 Ministerial Conference, trade sources say.

1/14 #TRIPSwaiver
In an informal meeting of the WTO intellectual property (TRIPS) council, Director-General @NOIweala said WTO members have no option but to produce a result for the #MC12 Ministerial Conference, even if that means negotiating round the clock, the sources said.

2/14
Today's meeting was held to take stock of the first two days of real negotiations on the compromise text⬇️, on Mon&Wed, May 16&18. During those sessions, @NOIweala urged delegates to be prepared to compromise: "the perfect is the enemy of the good"

3/14 tradebetablog.wordpress.com/text-g4-trips-…
Read 15 tweets

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