TEAM TiSA Hosts Official Launch Event
Team TiSA, the official business coalition devoted to promoting a new Trade in Services Agreement,
officially launched June 18th at an event held on Capitol Hill. United States Trade Representative Michael Froman,
members of the Congress, and Ambassador Kenichiro Sasae of Japan were on hand to speak about trade in services and help introduce the coalition.
For more information, please click here to access the announcements page.
United States Government
United States Trade Representative
US Trade Representative's TiSA Resource Center
International Trade Administration (Dept. of Commerce)
International Government Websites
Australian Department of Foreign Affairs and Trade
European Union Directorate General for Trade
Foreign Affairs, Trade, and Development Canada
Services Resources
What are state-owned enterprises?
State-owned enterprises (SOEs) are businesses that operate commercially, but are owned by the government. Government-owned business can often be found in industries such as transportation and telecommunication.
Why are state-owned enterprises significant?
State-owned enterprises have grown to claim a substantial share of GDP and market capitalization in many countries around the world. In Finland, for example, the assets of SOEs represent 80% of GDP and in China SOEs constitute 70% of market capitalization. SOEs typically exist in sectors which influence a large part of the population: energy, communications, finance, and utilities. The most well-known type of SOE is one where the state itself controls the firm directly or through majority shareholding. But SOEs where the state exercises indirect control by holding minority shares in holding companies, or by providing loans to a firm through state-owned banks and funds, also exist.
What problems are associated with state-owned enterprises?
While SOEs can provide valuable goods and services to the public, they may obtain special privileges through their government connections. These privileges are of concern to both domestic and foreign businesses since they may give SOEs an unfair competitive advantage in trade and commerce. These benefits include:
How will TiSA's regulations on state-owned enterprises affect the service industry?
The TiSA negotiations provide an opportunity for countries to agree on standards limiting unfair competition by SOEs. For example, regulations could be included that prevent SOEs from being granted extra benefits from governments, such as preferential financing, when doing business. SOEs could also be subject to all of the disciplines that govern the entities that own them.
Completing the TiSA negotiations would greatly enhance the ability of businesses worldwide, especially small and medium-sized businesses, to compete with the growing power of SOEs in international trade. The benefits of this increased competition, including more commercial options and competitive pricing, would benefit consumers in many countries around the world.
What is regulatory transparency?
Regulatory transparency means that when a business wants to trade in another country, the business owners can easily determine what documents and permissions they need in order to begin trading or working in that country. For services such as medicine and law, for example, suppliers must have a license to operate in the field, and requirements to obtain lisences can differ greatly across borders. Other potential regulations include requirements for local management or ownership of a business, restrictions on the form of foreign businesses, or limits on fees and advertising. Businesses need to know about these rules and regulations, and they need to be enforced fairly, to ensure effective operation.
Why is regulatory transparency significant?
Discrimination in obtaining licenses and business permits often prevents firms from establishing operations or outlets in foreign markets.
What problems are associated with regulatory transparency?
If an architecture firm in the US wants to expand their business internationally, they first need to know what the rules are for opening a business in each country. If they can't find all the rules they need to follow, they may be unable to grow in that country, and may even be prosecuted. Therefore, it is essential that these regulations be clear as well as fairly and equally enforced for all groups, both foreign and domestic.
How will TiSA affect regulatory transparency?
One of the goals of TiSA, according to the Office of the US Trade Representative, is to "support the development of strong, transparent, and effective regulatory policies", which will facilitate US service businesses' opportunities to export and create more jobs.
What are cross-border data flows?
Cross-border data flows can refer to any number of transactions. The personal data that millions of people share on social networking sites like Twitter and Facebook is used by companies to develop better marketing practices. Cloud computing allows customers and businesses to access digital data from powerful off-site servers. Digital shopping on sites like Amazon is more popular than ever. Physical objects—TVs, home appliances, and cars for example—are being connected to each other more frequently in what’s termed the “Internet-of-Things.” Far from being exclusive to high-tech firms, data flows are used by almost all businesses and customers.
Why are cross-border data flows significant?
Countries are concerned about these free data flows, however, for a variety of reasons: revelations about the ability of governments to collect digital traffic; protectionist goals to favor local companies; and concerns about the security of personal data, to name just a few. In response, barriers are being imposed on the free flow of data across borders by various nations, both developed and developing.
What problems are associated with cross-border data flows?
These barriers to free data flows form considerable obstacles to global trade. Customers would find themselves unable to access valuable digital services. Small and medium-sized enterprises (SMEs), which could greatly benefit from digital trade, would be disproportionately affected by these barriers. They do not have the resources to bear these unnecessary costs, and are far more restricted in their global reach.
How will the TiSA affect cross border data flows?
The relative novelty of these developments means that trade laws have not been properly updated to address them. The ongoing TiSA negotiations allow an opportunity for these barriers to be neutralized and for the world’s major trading nations to agree on an international framework which promotes free data flow.
Some possible solutions which could be added to these trade negotiations include:
OUR MISSION:
The TiSA Business Coalition, or “Team TiSA”, is dedicated to promoting and advocating for an ambitious agreement which eliminates barriers to global services trade, to the benefit of services providers, manufacturers and farmers, and consumers globally.
Team TiSA is now on Twitter! Follow for services trade updates.