Free market boosts economies, says WTO |05 October 2010

The opening session of the workshop yesterday

Abdel Hamid Mamdouh, who heads the trade in services division of the World Trade Organisation, said this yesterday at Care House where he is helping trade partners draft a proposal Seychelles hopes to submit to the WTO as part of our move to join.

“In our experience with 152 countries – most of which are developing – we have seen that liberalisation of the economy, allowing the private sector to be the main player with the government as regulator, brings about tremendous benefits,” he said.

“Liberalisation has that magic ingredient of competition, which brings about better services, lower prices and wider choice for consumers.”

However, Mr Mamdouh said involvement of non-government agencies makes it necessary to bring in new laws to help fight unfair competition and poor-quality goods or services.

Seychelles hopes to send the draft to the WTO by November, said Michael Nalletamby, who chairs our trade in services taskforce.

Mr Nalletamby – who is also principal secretary for investment and natural resources – said the services sector accounts for 65% of Seychelles’ gross domestic product and this is expected to grow further.

“As trade in services is a major part of the global economy, and because services trade is very complex, interdependent and intertwined, it is important that special attention is given to it so stakeholders better understand the subject,” he said.

“This better understanding will then allow more informed decision-making in the scheduling and negotiation process that we are to do, for a decision in one sector is bound to have an implication for at least one other sector or sub-sector simply because of the interdependence of the services sectors.”

He said Seychelles’ main pillars of the economy – tourism, financial services and fisheries – depend heavily on services.

These sectors have great potential for growth and “will therefore remain the most important vehicles of economic growth”.

Mr Nalletamby said the three-day workshop will help trade partners better prepare the “services offer” Seychelles is hoping to make to the WTO indicating the degree of openness of the services sector as we move to join the world trade body.

Among those present at the opening of the workshop yesterday were members of the National Assembly who are part of the accession working group, principal secretary for  employment Marina Confait, representatives of the Central Bank of Seychelles and of the Seychelles Chamber of Commerce and Industry.