Identifier
Created
Classification
Origin
05DUBLIN597
2005-05-20 10:23:00
CONFIDENTIAL
Embassy Dublin
Cable title:  

IRISH RESPONSE TO WTO SERVICE DEMARCHE

Tags:  ECON ETRD WTO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

201023Z May 05
C O N F I D E N T I A L DUBLIN 000597 

SIPDIS

E.O. 12958: DECL: 01/31/2015
TAGS: ECON ETRD WTO
SUBJECT: IRISH RESPONSE TO WTO SERVICE DEMARCHE

REF: A. STATE 81619


B. WILSON-EU TRADE OFFICERS E-MAIL OF MAY 10 AND
PREVIOUS

Classified By: Political-Economic Counselor Mary E. Daly; Reasons 1.4 (
B) and (D).

C O N F I D E N T I A L DUBLIN 000597

SIPDIS

E.O. 12958: DECL: 01/31/2015
TAGS: ECON ETRD WTO
SUBJECT: IRISH RESPONSE TO WTO SERVICE DEMARCHE

REF: A. STATE 81619


B. WILSON-EU TRADE OFFICERS E-MAIL OF MAY 10 AND
PREVIOUS

Classified By: Political-Economic Counselor Mary E. Daly; Reasons 1.4 (
B) and (D).


1. (C) Summary: On May 16, Post delivered ref A demarche to
Frank Doheny, Deputy Principal Officer in the Department of
Enterprise, Trade, and Employment. Doheny noted that Member
States would likely approve the revised EU services offer the
week of May 23. The offer would seek to cover the 10 new
Member States, clarify modalities for Mode 4, and add
elements focusing on the energy and "well-being" services
sectors. As a robust economy facing near full employment,
Ireland favors a liberal approach to Mode 4. Ireland's
strongest interests in the EU's revised offer center on
financial, telecommunication, and computer-related services.
End summary.

The Revised EU Offer
--------------


2. (C) The EU's revised WTO services offer, now under review
by Member States, featured updates on three "prongs," said
Doheny. First, the revised offer sought to extend the
commitments of the original EU-15 to the 10 new Member States
(per ref B). Second, the offer would include clarifications
of modalities for Mode 4, relating to economic needs tests
(ENTs),numerical ceilings, etc. The second prong, said
Doheny, remained the most nettlesome, given significant
differences in Member States' positions. Third, the revised
offer would add two elements to the EU's initial offer, one
focusing on energy and the other on "well-being" (a broad
sector covering hairdressing, spas, and services with a
"curative" dimension). Doheny said that Ireland did not have
many difficulties with the current draft of the revised EU
offer, which built on what the GOI regarded as a strong
initial offer. He added that Member States were aiming to
approve the revised offer either at the May 25 133 Committee
meeting or at the May 27 Deputies Meeting.

Ireland and Mode 4
--------------


3. (C) Ireland favored a liberal approach to Mode 4,
explained Doheny. With strong economic growth (5 percent in
2004),robust employment creation (57,000 new jobs in 2004),
and an economy at near full employment (4.2 percent
unemployment currently),Ireland needed an influx of labor,
particularly in the services sector, to sustain economic
momentum. The GOI thus supported high numerical ceilings
under Mode 4 and, to the extent possible, the lifting of
ENTs. The GOI acknowledged, however, that unemployment
problems and slow economic growth in other Member States
precluded them from taking a similarly liberal approach.
Doheny mentioned that the Commission had hired Ireland's
Economic and Social Research Institute (ESRI) to provide the
Member States a confidential analysis of Mode 4. He added
that EU Trade Commissioner Mandelson had made clear to Member
States that finalization on Mode 4 would depend on the U.S.
approach to the issue in its revised services offer. Per ref
B, Emboff cautioned that there were no imminent improvements
on Mode 4 as part of the U.S. revised offer.

Sectors of Interest
--------------


4. (C) Regarding the sectors highlighted in ref A talking
points, Ireland's strongest interests were in financial,
telecommunication, and computer-related services, according
to Doheny. He noted that financial services were an
increasingly critical component of the Irish economy (now
receiving roughly one-third of total FDI),and he cited the
GOI's hope that the U.S. revised offer would rise to the
level of openness in the EU's offer for this sector. The GOI
likewise favored the removal of restrictions on
telecommunications, as Ireland aspired to become a digital
hub. Doheny said that the EU offer featured a wider
classification for "basic" telecoms, allowing for a greater
level of opening than in the initial U.S. offer. Ireland, as
the world's leading software exporter, had a particularly
strong interest in the software component of computer-related
services. Doheny pointed out that the EU had not made offers
on audiovisual and public (health and social) services and
that the GOI favored that approach. On environmental
services, Ireland would likely defer to the more developed
positions put forward by Germany and Sweden.
KENNY