Computer and Related Services Trade Priorities

(By issue)

Negotiations for the information technology services sector should achieve full market

access and national treatment commitments for all services relating to information

technology in the on line and off line worlds.  A non exhaustive list of information technology

services covered by computer and related services category would include consulting, software 

related services, data processing services, database services, information technology outsourcing,

web hosting, application hosting, information technology security services, computer

maintenance and repair, customer support, information technology training, and other related

services.

Existing commitments for all services should apply when these services are made available

over the Internet.  Internet enabled information technology services are not  new  services.

Rather, they are examples of services already listed in the GATS GNS/W/120 classification

system    such as database services, software implementation services, and data processing

services    that are facilitated and delivered electronically.

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 The method of delivery of a service

does not affect the applicability of commitments, and countries should agree that technologically

evolving computer and related services are covered by existing commitments.

Liberalization commitments in all services, including computer and related services should

be taken at the highest level possible.  Differentiation between sub sectors is increasingly

irrelevant due to the development of integrated service offerings enabled by the Internet and

rapid advances in information technology.

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  The negotiators should agree to fully liberalize trade

in information technology services across modes 1, 2, and 3 (cross border trade, consumption

abroad, and physical presence) in a way that covers advancing technology and evolving services.

Software and other digitized products that are made available online, whether classified as

a good or a service, should receive market access, MFN and national treatment no less

favorable than the products would receive if it were traded as a good through physical

delivery.  For example, software is traditionally traded as a good, and information technology

companies are increasingly making software available to their customers through more efficient

and convenient electronic mechanisms.

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  Since software is critical to the operation of

information technology services, the goal should be to ensure that software receives favorable

trade treatment regardless of classification or means of delivery.  To the extent that software that

is made available electronically is considered a service, the services negotiations should establish

no less favorable trade treatment than the software would receive if it were traded as a good.

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Most of the information technology services listed above can be delivered via the Internet.  Web hosting and application hosting

are common examples, but most other information technology services can also be made available over the Internet.

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The rapid pace of technological change in the Computer and Related Services sector (e.g., software related services, web

hosting, IT outsourcing over the Internet) means the language used to define this sector (the United Nations Central Product

Classification [CPC]) is, and will always be, out of date.

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 The circumstances under which software is provided in the on line environment will vary considerably.  In some cases it will

be in the form of the delivery of a good, much like the delivery of software in CD ROM format, and in others it will be more like

what is traditionally thought of as a service.  The central point is to ensure that all software made available in the on line

environment is treated at least as liberally as software would enjoy as a good, regardless of its classification.  Any other approach

would create confusion and uncertainty as to the trade treatment for software in the on line and off line worlds.

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