Analytical Note, June 2009

Negotiating Services Free Trade Agreements (FTAs) with the European Union: Some Issues for Developing Countries to Consider.

This Analytical Note explores the options available to developing countries in negotiating agreements establishing Free Trade Areas (FTAs) involving a trade in services component with the European Union (EU).

It examines the issues that are challenging for development in the EU proposals which include amongst other things the EU negotiating template, Mode 4 limitations, the domestic regulatory framework and the MFN clause.

Secondly it identifies the options available to developing countries. These include cooperation arrangements with the EU, respect for regional initiatives, recognition of special treatment for LDCs and retaining the GATS architecture and flexibilities.

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