17 July 2023, Vientiane Capital – The Lao PDR Department of Foreign Trade Policy (DFTP), Ministry of Industry and Commerce, in collaboration with the International Trade Centre (ITC) under the EU-funded ARISE Plus project, organized a training workshop on Understanding the Negative List for Services Trade Agreements from July 17-18, 2023. The workshop aimed to increase the capacity for Lao government agencies and related stakeholders on Trade in Services regarding the utilization of negative list agreements. In particular, learn and gain knowledge on how to transition from positive to negative list scheduling.
The negative list approach is an important aspect of trade in services agreements. In 2020 and 2021, Lao PDR signed and ratified both the ASEAN Trade in Services Agreement (ATISA) and the Regional Comprehensive Economic Partnership Agreement (RCEP). In both of these agreements, Lao PDR is required to move from a positive list to a negative list approach for scheduling services commitments over the next decade.
It is crucial for officials engaged in trade negotiations and policy formulation/implementation to have knowledge of the various modes of trade in services and the contributions of services to trade in goods, as well as the commitments Lao PDR has made to services on a multilateral and regional basis. Institutions, departments, and agencies relevant to each sector must work together to coordinate support and engagement for a coherent and effective services policy.
The course was highly practical and interactive, providing participants with a comprehensive understanding of the negative list approach in regional trade agreements. Workshop participants learned about the format and information requirements for annexes of non-conforming measures under the RCEP and ATISA agreements, led by an expert in services. Participants were divided into mall groups worked on practical exercises focusing on the transport and tourism sectors to reinforce understanding. In addition to the negative list approach, the workshops also covered two other important topics in trade: digital and services domestic. It aimed to help Lao PDR officials gain an understanding of the potential growth of cross-border digital services trade for a landlocked country.
“The service sector contributes significantly to the country’s economy by generating income. Therefore, I hope that trade negotiators and experts in the trade in services will gain a deeper understanding of and ability to deepen the preparations for the transition from an open (Positive List) to a closed (Negative List) form of obligations in the Lao PDR, thereby increasing efficiency and effectiveness.” Said Mr, Khemdeth Sihavong, Deputy Director General, DFTP.
“A thorough understanding of services trade is crucial for unlocking its full potential in the country. Providing officials with the necessary skills and knowledge to effectively navigate this dynamic landscape is one of the goals of the EU-ARISE Plus project and DFTP. We hope that all participants will bring the lessons learned from this training series back to their work with impact.” Said Ms. Khankeo Moonvong, ARISE Plus Lao PDR project Coordinator, ITC.
The training workshops is expected to equip Lao PDR services exporters with the knowledge and skills needed to take advantage of the benefits of negative list agreements and to meet the obligations set out in the RCEP and ATISA agreements. This will enable them to expand their businesses and increase their competitiveness in the regional and global markets.
About Arise Plus Lao PDR: The ASEAN Regional Integration Support – Lao PDR Trade Related Assistance project (ARISE Plus Lao PDR) is funded by the European Union (EU). It aims to contribute to inclusive economic growth, increased climate change resilience, mitigation of vulnerability and job creation in Lao PDR.
About ITC – The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the United Nations’ Sustainable Development Goals.
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