Because most countries have made market access commitments on the basis of the old

classification list, it is imperative to ensure that the full array of commercial activities by energy

services providers be covered by that list.  Any classification also should be sufficiently flexible

so as to encompass new energy activities and technologies as they arise.

Energy services providers face a variety of barriers that fall within two key categories   limits on

market access and restrictive or discriminatory regulatory systems.

Market access restrictions are similar to those faced by many services providers and include lack

of a right of establishment, an inability to provide cross border services, barriers to entry of

needed personnel and equipment, restrictive procurement practices, among others.

But just as important   or in some cases even more important   are regulatory frameworks that

are opaque, discriminatory, arbitrary, or simply confusing. Without a regulatory network that

provides a basis for fair competition, energy services companies often are at a disadvantage to

one favored competitor.

Both market access and regulatory issues therefore must be addressed in the negotiations.

Market access commitments may well be meaningless without regulatory reform, and it does

little good to create a pro competitive regulatory environment unless market access restrictions

are eliminated.  To take but one example, if a country were to make a market access commitment

liberalizing the trading and brokering of energy, that commitment would be meaningless unless it

also committed to a regulatory environment that ensured fair, nondiscriminatory access to the

pipeline system so that the trader could deliver its product.

The maximum removal of barriers to energy services trade will create an environment in which

energy services providers can deliver the highest degree of benefits to energy services consumers

in terms of cost, investment, transfer of technology, and employment.

The following are the key principles that ESC is seeking in energy services commitments:

Broadest possible market access commitments: Energy services providers should have

the opportunity to provide and distribute their services through cross border supply,

consumption/purchase abroad, establishment of a commercial presence, and through the

temporary movement of natural persons.

Technological neutrality: Technology in energy services continues to evolve at a rapid

pace.  To ensure that energy services providers can use the best available technology,

market access should be made without regard for the technology used to provide the

energy services.

Temporary entry of equipment/tools of the trade: Energy services providers often rely on

specialized equipment to perform their service.  When market access commitments are

made in energy services, energy services providers should be allowed to enter, on a

18