Question

To ask Her Majesty’s Government what assessment they have made, in the light of Singapore’s conclusion by 2005 of free trade agreements which include services with Japan, the United States, India and China, of the reasons why the European Union has not entered into such agreements with those countries.

The European Union is currently negotiating free trade agreements with Japan, the United States, India (currently at a standstill) and an investment agreement with China. Each of these negotiations includes services.

For the EU, trade in services is of strategic importance. The sector accounts for some three-quarters of EU gross domestic product (GDP) and of EU jobs. Liberalising trade in services will be an important component of the EU negotiations with Japan and the United States.

The EU is committed to the inclusion of services in its free trade agreements. In the investment agreement with China, the EU is addressing market access issues relating to services and it is hoped that the India FTA negotiations will resume. In the Transatlantic Trade and Investment Partnership agreement (TTIP) between the EU and US, better market access for services is one of the top priorities.

In recognising the importance of trade in services negotiations the EU is also taking an active role in the Trade in Services (TiSA) negotiations. TiSA is based on the WTO's General Agreement on Trade in Services (GATS), which involves all WTO members.

More information on TiSA can be found on the following website http://ec.europa.eu/trade/policy/in-focus/tisa/