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FTAA.sme/inf/114
August 12, 2003

Original: Spanish
Translation: FTAA Secretariat

FTAA – CONSULTATIVE GROUP ON SMALLER ECONOMIES

PARAGUAY

REQUEST FOR FINANCIAL AND TECHNICAL ASSISTANCE UNDER THE HEMISPHERIC
COOPERATION PROGRAM – RELATED TO SERVICES

 

Introduction

This project is related to Paraguay's needs in the area of services. It is in line with the objectives of the FTAA's Hemispheric Cooperation Program, which seeks to strengthen countries' capacities to implement the FTAA and to participate fully in it.

To participate in a beneficial and equitable manner in the FTAA's negotiations on services and assume its commitments, Paraguay requests support under the FTAA’s Hemispheric Cooperation Program, in order to strengthen its statistical information systems, with an emphasis on surveying domestic supply and demand.
 
  1. Project Title

    Strengthening Paraguay’s negotiating capacity for the negotiations on services in the FTAA.

  2. Background

    Paraguay has participated actively in the NGSV. Thus far, the negotiations have mainly addressed the normative scope of the Chapter on Services.

    As stipulated by the TNC, countries must present their offers between 15 December 2002 and 15 February 2003 (FTAA.TNC/20).

    Paraguay has a statistical system based on balance-of-payments manuals. This system was developed by the country’s Central Bank; nevertheless, since Paraguay does not possess any particular expertise in the area of trade negotiations, the manuals do not allow for an internal analysis of sensitive sectors that is crucial for formulating offers and requests.

    This is because of the lack of financial resources with which to implement and improve the statistical system and the lack of experience in quantifying trade in services.

    Conditions stemming from the very nature of the provision of services and their intangible nature, the general absence of a physical transference across country borders that would allow services to be recorded in the way goods are recorded, and the lack of reliable international records for cross-checking are among the main difficulties in quantifying the commercial flow of services.

    Some FTAA member countries have, however, made progress in developing statistics on services. Paraguay, for its part, has implemented a recording system with a view to initiating the development of a statistical system similar to those developed by these member countries.


  3. Rationale

    As the trade negotiations move forward, having regional and national statistics on trade in services is becoming increasingly important. To this end, Paraguay must gain familiarity with successful regional initiatives and replicate them or improve upon the corresponding national efforts.

    The FTAA-level mandate for presenting an offer in services within such a short period of time, including vis-ā-vis the World Trade Organization, requires having a reliable statistical system to enhance the predictability of assumed commitments and the impact of such commitments over time, allowing corrective steps to be taken, if necessary, through safeguard mechanisms.

    Having such a mechanism will allow the FTAA countries, including Paraguay, to make offers that are farther reaching and more conducive to free trade.

     
  4. Objectives of the project

    • To develop a methodology for formulating statistics on trade in services, adapted to the needs of the relevant international trade negotiations.
    • To develop mechanisms for coordination with other sources of statistics in the region.
    • To train technical experts in developing statistics on trade in services.

     

  5. Inputs
    • An expert in the development of statistical methodologies and the analysis of trade in services will be required for six months.
    • Implementation of the proposed statistical system in accordance with the methodology, along with the training of local staff.
    • The development of software and the acquisition of international statistics on trade in services.
     
  6. Expected Results

    • Once the project has been completed, we expect to have a methodology for developing statistics, a database, and trained personnel.
    • In addition, we expect to have a reliable, comparable statistical system for trade in services that is operational and guaranteed to be sustainable.
    • The establishment of statistical mechanisms to complement other regional centers that develop statistics on trade in services.
 
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