Services Trade Liberalisation in the Australia – EU FTA : Progress but no Quantum-Leap

Australia declared services trade liberalisation in Australia-European Union Free Trade Agreement (AUEFTA) negotiations a priority, while an impact assessment by the EU indicated no measurable impact on sectoral output for services in an AEUFTA in services. The two sides will not only have to agree on the relative importance of the services chapter, but also on the type of regulatory structure pursued. At this point, the outcome of negotiations remains unknown. While some elements of substantial liberalisation are expected in the liberalisation of trade in professional services along with temporary movement of persons, and in education services, the currently proposed regulatory structure of the AEUFTA service chapter suggests limited regulatory innovation. However, both parties have confirmed their intention to deepen liberalisation within the scope of their respective schedule of commitments beyond their Trade in Services Agreement (TiSA) offers in 2016. Given that both parties have furthermore confirmed their commitment to modernisation and deepening of international rules in services trade liberalisation in the plurilateral forum of TiSA negotiations, the AEUFTA service chapter may therefore serve also as a stepping-stone to subsequent successful conclusion of plurilateral TiSA negotiations