Balai Ikhtisas Malaysia

The International Workshop on WTO and Liberalization of World Trade in Services held on 28-29 September 1999 in Kuala Lumpur, Malaysia jointly organized by the Federation of Consultants from Islamic Countries (FCIC) and the Malaysian Professional Center (BIM) and supported by the Islamic Development Bank.

We, the participants of the International Workshop on WTO and Liberalization of World Trade in Services held on 28029 September, 1999 in Kuala Lumpur, have deliberated on issues relating to the World Trade Organization (ETO) and the General Agreement on Trade in Services (GATS) with special reference to professional services sector and sub sectors in developing countries.

We, as the professionals and service provider in developing countries, are very concerned about the pressure entered by governments of developed countries to use the WTO to further open up the markets of our countries in the interests of their larger companies and services providers to detriment of our people, domestic businesses and service. In particular, we view negatively the proposals by the major developed countries to launch negotiations on new issues such as investment, competition policy and market access in government procurement. If taken up by WTO, these issues will lead to further opening up of our markets when we are still unprepared. Therefore, government of developing countries to introduce these new issues in the forthcoming WTO Conference in Seatle on November 30, 1999 to Decembers, 1999.

Developing countries must take a very cautious approach to further liberalization during the services negotiations that will resume in the year 2000. Government of developing countries have already undertaken considerable liberalization measures. Some of these measures, will put immerse pressures on our service providers. We should have a pause to access the results and effects of the existing WTO agreements before embarking on further liberalization. We, therefore, call on our governments to consults us and set up a dialog mechanism so that our views can be fully taken into account before the governments begin further negotiations. we should also be consulted regularly during the negotiations.

We call upon the governments of developing countries to collectively and individually demand for a review of existing WTO agreements including GATS in order to eliminate problems faced by developing countries in implementing the present agreements. This review should also focus on the developing countries' concerns for equitable growth and development.

We further call for reforms to the WTO system which lacks transparency and truly effective participation in negotiations and decision making. In particular, we call for the following measures to be taken in future WTO proceedings:-

Consultations, discussions, negotiations and decision making in the WTO have to be truly transparent, open, participatory and democratic; All WTO members must be allowed to be present and participate in discussions and negotiations (including informal groups and meetings, where many key decisions are made). The practice of small informal groups making decisions for all Members should be discontinued; Any proposals for new and agreements should be made known in their draft form to the public at least six months before decisions are taken so that civil society in each country can study them and advice their governments; Parliaments or legislative bodies should be constantly informed of proposals and developments at the WTO, and civil society should be given genuine opportunities to know the issue being discussed and to express their views and influence the outcome of policies through their respective governments.

We call upon professional organizations and bodies in developing countries to collectively and individually undertake programs to upgrade knowledge and improve skills and capabilities of their member in order to meet the challenges presented by globalization and liberalizations of trades in services. Therefore, we recommended the setting up of a coordinating committee at the national and international levels consisting of representatives from all professional service sectors and sub sectors to monitor developments in WTO, to make representation to the governments and to participate in WTO meetings, proceedings, etc. also to establish network with other non-government organization (NGO).

We also call upon governments of developing to collectively and individually take steps to increase and upgrade their capabilities and resources, and to co-operate with NGO in dealing with WTO matters.

Lastly, we call upon international organizations and institutions promoting or concerned with the interests of developing countries to set up a special mechanism similar to the Special WTO Unit created by the Islamic Development Bank to monitor developments in WTO and to provide assistance to professional bodies in developing countries in order to protect and promote the interests of their members in facing the challenge posed by liberalizations of trade in services.