The World Trade Organisation's (WTO) services negotiations hold particular importance for Egypt. From accounting to value-added telecommunications and beyond, these services account for more than 20 per cent of overall global trade. Mustafa Imam sounds out the Director of the Trade in Services at the WTO Abdel-Hamid Mamdouh, on Egypt's stakes, as it liberalises its services sectors What has been achieved so far in Egypt's negotiations on the liberalisation of computer and postal services? Egypt is making requests to other countries, in order to grant Egyptian services exporters improved access to their markets, just as these countries are (likewise) demanding improved access (to the Egyptian market). What is currently being negotiated is not the liberalisation of postal services as a whole, but the liberalisation of express delivery. The negotiators are trying to separate conventional services, especially letters and parcels which weigh less than 20 grammes, from express delivery. As for computer services, Egypt anticipates that the round will culminate in the liberalisation of computer services, since it is doing a lot at home to liberalise these services. What Egypt wants to ensure, is that a commitment to liberalisation will not be reversed. What do you mean by saying that Egypt wants to ensure that the commitment to liberalisation will not be reversed? The aim of these negotiations is to get governments to make pledges and commitments to open certain markets. According to the WTO's regulations, if certain commitments are made in any sector, one cannot go back on them except through further negotiations. One cannot unilaterally rescind any commitment. This is the whole point of creating a legal system like that which the WTO provides. The current negotiations of the Doha round aim to get countries to make a new set of commitments that will open the markets up. Sometimes, the negotiations tackle commitments in markets that are already open. But the aim is to ensure that the openness will continue. What is the nature of the demands that Egypt is making in the Doha round? Are we talking about unresolved matters concerning the liberalisation of certain services? Egypt has made certain requests to other countries. It has also received certain requests, especially in the area of labour mobility. The talks are not about mobility in general. They are about the movement of specialised labour such as lawyers, accountants, computer experts and programmers who will provide specific services. What are the drawbacks of allowing foreigners into Egypt's professional services, such as legal and accounting services? Egypt's professional services sector has not been fully liberalised. According to Egyptian law, all licensed lawyers must be Egyptian nationals. This (means) not allowing any foreign lawyers, however qualified, to work in that field. The same (principle) applies to accountants. But in the domain of legal services, we are trying to achieve a measure of liberalisation. This is a matter that involves drawing a line within the legal services (sector), so that a foreign lawyer may have a licence allowing him to engage in one, but not the full range, of services. We can give a limited licence. You do not need to give a licence to a foreign lawyer to practice in Egyptian law. A lawyer should be qualified for the service, and a lawyer who has not studied Egyptian law cannot provide a legal consultation concerning Egyptian law. A foreign lawyer who studies international law, however, may conceivably open an office and give legal advice in international law matters. This would be useful, because you have numerous transactions that involve foreign and local companies. So it is conceivable for a US lawyer to open an office in Egypt and advice clients on US laws. To do so, such a lawyer would need a licence. But under the current regulations, a lawyer should have a licence that entitles the practice of all types of law, without it (he or she) cannot practice at all. This is a good example of the need to adjust the legislation and regulations that (currently) govern a certain service. What we are now doing is helping governments improve their regulations, so that the markets become more open. At the same time, you don't need to abandon the vital principles that guarantee the market's stability, and the efficiency in the provision of services. When you liberalise a sector such as legal services, you -- as a state -- should have the power to specify the qualifications that a lawyer should have, in order to obtain a licence. What procedures should Egypt adopt to keep up with the trend towards liberalisation ? Egypt is proceeding well in this respect, and is opting for the type of liberalisation that will offer better services and more competition. But the challenge which Egypt is facing is the modernisation of the laws and regulations governing various sectors. Egypt has laws dating back to previous eras. The circumstances then were totally different from those which the markets are facing today, and could face tomorrow. These changes are happening quite fast. If you look at the various sectors of services, and the development that have occurred in them over the past five years, especially those involving modern technology, you will find that the pace of change has been amazing. Therefore, the laws and regulations must change in order to keep up with the new developments. They must also change in order to keep up with the emergence of services that hadn't existed in the past, such as web- hosting and Internet services. Those are new services that call for new laws and regulations. Other older services, like the legal and accounting services, have undergone significant changes. These days, lawyers and accountants are capable of providing services electronically from overseas. We have to have laws that can deal with this new situation. How long would liberalising such sectors take? Is there a set period that is specified in international agreements? There are no deadlines, but the more efforts are exerted, the less time the process takes. Talks like the Doha round offer the opportunity for intensifying efforts regarding vital sectors. What are the obstacles facing the liberalisation of the insurance sector in Egypt? The liberalisation of the insurance sector is a problem, not just in Egypt or developing countries, but across the world. Banking, by comparison is the one sector that has made great strides when it comes to the liberalisation of financial services. The reason is that the insurance sector involves a major concentration of financial resources. Let's differentiate here between life insurance, and other types of insurance like cars, and cargo and property. The life insurance sector amasses considerable financial resources. Countries thus usually prefer to keep this activity in the exclusive hands of their domestic institutions. As for other types of insurance, many countries have begun to open up and allow foreign insurance companies to operate in their markets, either through joint ventures or directly. The matter calls for the further modernisation of the legal and organisational regulations which govern the insurance sector. Insurance is a very sensitive sector, and countries need to revise the laws and regulations covering the consumer side of the insurance. In Egypt, the insurance law is currently under revision, especially in matters concerning the establishment of insurance companies and the stimulation of competition.
