REMARKS BY AMBASSADOR LOLITA APPLEWHAITE, DEPUTY SECRETARY-GENERAL, CARICOM, ON THE OCCASION OF THE LAUNCH OF THE GUYANA COALITION OF SERVICE PROVIDERS, 1 JUNE 2005, GEORGETOWN, GUYANA

The services sector is the largest and fastest growing sector of the world economy, providing more than 60% of the GDP in many countries and an even larger percentage of employment. For example, according to the World Travel and Tourism Council, tourism is the world's largest employer, accounting for one in ten workers worldwide. Figures show that in 2000 services trade represented over one third of total trade in goods and services. Total measurable trade in services (as defined under the General Agreement on Trade in Services- GATS currently stands at US$2.3 trillion.

In light of the enormous potential the services sector trade has for developing countries, the Council for Trade and Economic Development (COTED) in 2001 agreed on the elements of a regional services sector development plan, which seeks to bring the trade in services regime on the same footing as that of the trade in goods regime.

The regional plan has two components: the strengthening of the private sector and policy development. The formation of a national coalition of service industries in each Member State of CARICOM and a regional coalition of services industries constitutes the private-sector-strengthening component of the plan.

Today's launch of the Guyana Coalition of Service Providers signals the successful completion here in Guyana of a three-phased plan agreed to by the COTED.

The first phase – an assessment phase – started about three years ago when the CARICOM Secretariat and the Ministry of Foreign Trade and International Cooperation conducted an assessment of the willingness of the service providers to come together to prepare themselves for the challenges of the services regimes of the CARICOM Single Market and Economy (CSME), the free trade area of the Americas (FTAA), and of bi-lateral and multi-lateral agreements, including the EU Economic Partnership Agreements, and the World Trade Organisation under the GATS.

The assessment indicated that all of the professionals, organised in associations as well as non-organised individual professionals, were willing to come together to face the challenges and take advantage of the opportunities in the before mentioned regimes.

More important, they were willing to form a national coalition of professional associations and individuals.

Work then started on the second phase of mobilising service professionals for which the Minister of Foreign Trade, Honourable Clement Rohee and the Director of the International Development Institute of the University of Guyana, Professor Thomas were successful in obtaining funds from the Canadian International Development Agency (CIDA).

Professionals such as nurses, teachers, bankers, lawyers and engineers were brought together in workshops which facilitated the establishment of a core group of persons who were committed and willing to meet frequently to address the logistics required for the establishment of the coalition.

At this juncture, I must stress that the necessary and sufficient conditions for the completion of the second phase were present here in Guyana. First you had the support of the government in the person of Minister Rohee and his team of dedicated staff. Second you had a driver from the non-state sector in the form of Professor Thomas, also ably assisted by his staff at the Institute of Development Studies. This combination was able to maximise the comparative advantages of the state and non-state sectors.

I have taken time to highlight the above conditions which are necessary for the successful completion of phase two of the work because in Member States where these are absent, there has been less progress.

The national coalitions are expected to pursue four common objectives. These are: –

(a) Increasing exports of services within the CSME and between the CSME and third countries; (b) Establishing standards for professionals;
(c) Organising the non-organised professionals wherever possible; and
(d) Providing technical and other inputs into the trade in services negotiations.

In achieving these objectives, it is envisioned that the GCSP will be a partner in the national development process. It will, specifically, provide a focal point for liaising with government; represent the interests of service providers; serve as a think tank for policies in the services sector and promote fair international and multilateral rules for trade in service, among other things.

It will be important to deliver on some high impact benefits to the Coalition's membership as soon as possible. The promotion of a “service- friendly” environment, the conduct of research projects and studies on the development of the service sector and the promotion of the services sector both locally and internationally will contribute to this. The Region is currently working on domestic regulations to facilitate the licensing and registration of professionals so that they can enjoy free movement within the CSME. The GCSP has a critical role to play in this exercise mobilising the stakeholders to provide their inputs, and building consensus on the draft regulations.

I note that representatives from several service industries are already on board. You need, however, to move quickly to include all of the service providers so that the GCSP becomes a major private sector voice for the service sector.

Finally let me congratulate the Guyana Coalition of Service Providers on its launch, being the third national coalition to be established after Barbados and Saint Lucia.