Trade & ICT: A Services View
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1 Trade & ICT: A Services View A Presentation by the Ministry of Trade, Industry & Investment Winston O Young Senior Trade Specialist Services COTE October
2 ECONOMICS OF ICT World exports of IT products - US$ 1.4 trillion in ICT trade as 12.5% (2008) of World merchandise trade from 18% (2000) Global Forecast ( ) predicts Global cloud computing market to grow from $37.8 billion in 2010 to $121.1 billion in
3 ICT Services Sector 3
4 GATS Classification GATS General Agreement on Trade in Services - Multilateral framework of principles & rules for trade in services Computer Services a sub-sector of Business and Professional services. 1. BUSINESS SERVICES Section B B. Computer and Related Services a. Consultancy services related to the 841 installation of computer hardware b. Software implementation services 842 c. Data processing services 843 d. Data base services 844 e. Other
5 Telecommunication services 2. COMMUNICATION SERVICES C. Telecommunication services a. Voice telephone services 7521 b. Packet-switched data transmission services 7523 c. Circuit-switched data transmission services 7523 d. Telex services 7523 e. Telegraph services 7522 f. Facsimile services g. Private leased circuit services h. Electronic mail 7523 i. Voice mail 7523 j. On-line information and data base retrieval
6 WTO: Computer Services Very dynamic area at the WTO Friends of Computer Services evolved into a plurilateral negotiating group Friends+ eg Canada, Costa Rica, India Develop joint request documents and a list of countries to which these requests will be submitted. Huge multinational service businesses work with each group. Ministerial Declaration on Trade in Information Products (ITA) - No CARICOM participants (design or oversight?/policy reluctance?) 6
7 Friends of Computer Services Computer & Related Services (CRS) as tool for economic development Statement calls for full liberalization of CRS by making full market access and national treatment commitments for the sector as a whole (CPC 84) 7
8 Ministerial Declaration - Trade in Information Products (ITA) December participants - 97% of world trade in IT products Duties completely eliminated Developing country participants have been granted extended periods for some products No CARICOM participants (design or oversight?/policy reluctance?) 8
9 How ICTs benefit business Extends reach of business services Reduces transaction costs OECD ICT contributes to economic performance through production... Investment in technology adds to capital stock & raises labour productivity Use of ICT to enhance efficiency & innovation. 9
10 ICT & Sectoral Development Use of ICT in consumer services such as Tourism (on-line travel) Health (telemedicine, electronic records) Education (distance learning) Financial services (on-line banking) & Entertainment (Music/Visual Art/Carnival e.g ICT³M project) 10
11 Case: ICT & Creative Industries ICT Enormous potential to revolutionize the production and marketing of goods & services of Creative Economy On-line bookings /information accessibility On-line art auctions and internet sale of art Mobile applications (Music/Ringtones) Digitization assures reproduction quality 11
12 ICT In Trade Agreements: EPA EPA 2007 CARIFORUM/EU Trade Agreement Title II Investment, Trade in Services and E-commerce - Section on Computer Services: Article on Understanding on Computer Services (governs trade liberalisation) Chap on E-Commerce - cooperation 12
13 ICT In Trade Agreements: EPA/CARICOM-Canada Title IV Trade Related Issues Protection of Personal Data: Legal regimes & administrative capacity to implement data protection principles & enforcement mechanisms - Negotiations for CARICOM Canada Trade & Development Agreement covers ICT (incl Telecommunications) & E-commerce 13
14 National Framework on Sustainable Development Pillar 4 Information and Communication Technology Three (3) stages for National Development: 1. Substituting old technology for new 2. Increase in applications facilitated by new technology e.g. TTBizLink 3. Generation of new technology-related businesses and societal change 14
15 Policy Framework 2nd National ICT Strategy (underway) eteck 15-year Strategic Plan Universality Framework for Telecommunication Services in Trinidad and Tobago 15
16 T&T IT-BPO Target Segments 16
17 Telecommunications Statistics: TATT
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