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T ISA :  U PDATE D  A N A LYSIS  OF  T HE  LE A KE D  ‘CORE  T EX T’ FR OM  J U LY  2 01 6

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The  Trad e  i n  Ser vices  Ag r eem en t  ( TISA )  is  bein g  neg o t ia t ed  b y  a  s elf  s el ected  g r o u p  of  m a i n ly 

r i ch  c o u n t r i es ,  ca l l i ng  t h em s elves  t h e  ‘R ea l l y  Go o d  Fr i end s  of  Ser vic es ’.  The  l ea ked  ‘cor e’  t ext 

p r ov ides  fur t h er  eviden c e  o f  th eir  g am e  p la n  t o  by p as s  o t h er  g ov ern m ent s  in  th e  Wo r l d  Tr a de 

O r g a nizat ion  ( WTO)  a nd  r ew r i t e  its  s er vices  a g r eem en t  in  th e  i nt er es t s  of  th ei r  cor p o r a tio n s . 

It  al s o  m akes  th e  n ew  r i s k s  fr o m  T ISA  to  g ov er nm en t s ’  r i g ht  to  r e g ula t e  i n  t h eir  nat ion al 

int er es t  m uch  cl ea r er. 

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M a n y  of  t h e  b a s i c  r u les  are  c a r r ied  o v er  fr om  t h e WTO ’S  Gen er a l  Agr eem en t  on  T r a de  i n 

S er vi ces  (GATS),  s o  t hat  TISA  c an  be  expo r t ed  b ac k  i n t o  th e  WTO  w ith ou t  having  to  r evis e  t h e 

cor e  r u les .  By  a d d i ng  n ew  r ul es  a n d  changi n g  s o m e  exi s t i ng  o n es  t h ey  a i m  to  tig ht en  t h e 

h and cu ffs  on  th e  f r eedo m  of  g ov er nm en t s  to  r eg u la te  th ei r  s er vic es .  

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Th is  p a p er  u p d a t e s  t h e  ea rlie r  a n a l y s is  by  re fer ring  t o  t he  Ju ly  2016  d raf t  t ext.  It  comment s 

o n  t wo  a r ea s  o f  c on t r o v er sy :  I)  t h e  mo st  fa v ou r ed  n a ti o n  (MFN )  provisio n,  w h ich  re q u ir e s  a 

TiS A  pa r t y  t o  give  s er v ic es  a n d  serv ic e  s up pliers  fr om  a  TiSA  c o u n t r y  the  bes t  t r eatme n t  i t 

g iv es  t ho se  o f  a n y  other  c ou ntr y ;  a n d  (ii)  r ules  t h a t  w i ll  re s t r ic t  cer t a in  kind s  of  do me s t i c 

r eg u la tion  of  serv ices,  which  a re  als o  su b ject  t o  a  sep a rate  an nex .  Co mm en t s  o n  t hes e  t w o 

iss ue  a re  in s er t ed  in  bo ld  it a lic s  in t o  t he  prev iou s  an alysis  o f  t he  c ore  TiS A  t e x t  on  pa g es  5 

6  (MFN )  an d  pa ges  7  8  (d omestic  r eg u la t io n )  of  t h is  p a p er .  Th e  p rop os e d  str u c t u r e  o f  TiS A 

h a s  als o  been  u p da t e d. 

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W h at  TI S A  rein fo r ces 

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Wh i l e  TISA  th reat en s  to  i m po s e  m or e  extr em e  r es tr i ction s  on  g ov er nm en t s ,  th e  pr o b lem  li e s 

w ith  t h e  cor e  r u les  th em s el ves .  The  foll o w ing  i l lus tr a tes  s o m e  o f  th eir  m a in  im p li ca t ion s

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(s ee  foo tn ot es  f o r  r efer en ces  to  th e  l ea k ed  t ext ):  

 Tr ade  in  s er vices  a g r eem en t s  t r ea t  s er vices  as  m a r ket able  c o m m o d i ties ,

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 a n d  d en y  or 

s ub or din a t e  o r  den y  a lto g eth er  th ei r  s o c ia l ,  c u l t u r a l ,  en vir on m en t al ,  em plo y m ent ,  a n d 

d evelo p m ent  fu n ctio n s .  Peo ple  are  n ot  viewed  a s  citizen s  or  m em ber s  o f  t h eir 

com m u n ities    th ey  a r e  ‘con s um er s ’.

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 Tho s e  wh o  p ro vide  t h e  s erv ices  d o  n o t  n eed  t o  h ave  a n y  con nect i o n  t o  t h e  p eo p le  or 

com m u n ities  th at  rely  on  th ei r  s er vices  –  t h ey  c a n  be  ‘s u p pli ed ’  fr o m  o ffs h or e,

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 or  by  a 

t em po r ary  vis ito r ,

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 o r  t h r ou g h  fo r ei g n  fi r m s  w h o  es tabli s h  a  l o ca l  pr es en ce  bu t  w ho s e 

p r i or ity  i s  t o  deli ver  pr o fits  to  offs ho re  s h ar eh o lder s .

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 No n e  o f  t h es e  ‘s u p p li er s ’  h a s  any 

lon g  t er m  res p o n s i b i li ty  or  a c cou nt abil ity  to  th e  c o u n t r y  th at  ‘c o n s u m es ’  th em .  

                                          

 Pr o fe s s or  Ja ne  Ke l s e y ,  Fa c ul ty  of  L a w,  Uni v ers i t y  of  Auc kl a n d,  N ew  Ze a l a nd

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Thi s  l i s t  i s  i llu s t rati v e  a nd  not  a n  exte ns i ve  a na l ys is  o f  a l l  the  G A TS  r u l e s  c a r r i e d  t hr ou gh  t o  Ti SA.  

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 A r t i c l e  I  2 (g) 

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 A r t i c l e  I  2 (g)  a n d  (i ) 

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 A r t i c l e  I  1 . 2  (a )  a nd  (b) 

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 A r t i c l e  I  1 . 2 (d) 

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