development of content, which is driven by consumer needs, and marketing objectives rather

than the constraints or economics of any particular medium or marketing tool.

Another facet of the evolution of the advertising sector is the development of the global

advertising market.  Because of technology, the world has become a much smaller place and this

global marketplace is accessible to consumers all over the world.   Most newspapers and

magazines have local or national circulation, so these media have traditionally sold space to

advertisers in a local or national market.   With the spread of multi channel television delivered

to consumers by satellite or cable, programming channels can sell ad time to allow advertisers to

reach consumers in many countries with a single advertising spot.  The Internet further expands

the reach of advertisers. Through the magic of search engines, Internet chat rooms, and email,

consumers have the ability to find information   including advertising   with the click of a

mouse, and to virtually visit any seller of goods or services through their websites almost

anywhere in the world.

V.

Advertising Services Classification and Countries' Commitments

Advertising Services are listed in the Services Sectoral Classification List (document

MTN.GNS/W/120), which was adopted for scheduling purposes under the GATS, as a sub 

category of  Other Business Services.   The activities covered are referenced and defined in the

UN provisional Central Product Classification Code (CPC) as Group 871.  This group is divided

into the following Classes:

8711   Sale or leasing services of advertising space or time

8712   Planning, creating and placement services of advertising

8719   Other advertising services

51 WTO Members (23 developed economies; 28 developing and transition economies) have

made commitments in advertising services, counting the E.U. Member States as one.  Most

commitments cover the sector in full and do not exempt any specific market segments.

VI.

Current Impediments to Advertising Globally

Government restrictions on the distribution and placement of advertising services can delay the

introduction of new products or services to overseas markets.  This places many companies at

competitive disadvantage vis a vis domestic firms.  Such restrictions cost companies millions of

dollars a year, much of which could be invested in the local and regional economies.

As a result of the negotiations, Southern Africa should make commitments in advertising

services to provide full market access and national treatment, as well as commit to the adoption

of the least trade restrictive measures for advertising.

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