It may be possible to develop formulae or model schedules for concerted or more coordinated approaches to liberalization, such that WTO Members end up making more far-reaching commitments on these modes. At the very least, the market access and national treatment commitments must capture the services depicted in Table 1 (Option 1 below). But limiting the negotiating focus to a few IT and simple BPOs can only follow from an unjustifiably static view of international trade in services. Besides it will not be easy to anticipate the full range of services that could be supplied cross-border, and how they relate to the existing classification of services used for scheduling purposes (especially input or BPO services). WTO Members may therefore consider whether it is feasible and desirable to obtain full commitments on cross-border trade on the widest possible range of services. How this may be accomplished while respecting national regulatory concerns is discussed under Option 2 below.

# **_Option 1: Targeted Commitments for Cross-Border Trade in IT and BPO Services_**

This option presents a targeted approach to ensure free cross-border trade in a selected set of IT and BPO services. Under a model schedule (see below) Members would be expected to make full market access and national treatment commitments on the positive list of services. The service categories are specified in their most aggregate form (two-to-three digit level) in order to include all possible sub-activities. The selected categories include directly identified business services, as well as elements of other services, such as bookkeeping and auxiliary financial services, which are increasingly outsourced. Annex Table 2 shows the current state of commitments with respect to these services.

It is important to understand that the model schedule takes a nuanced approach. For example, while it proposes full GATS mode 1 and 2 commitments on all computer and related services at the highest, two-digit, level, with respect to telecommunication services, it proposes only a full commitment on online information and data processing services that are relevant to BPO services. In the regulated professional services full commitments are proposed only with respect to accounting, auditing, bookkeeping and taxation services. Most commitments would have to be undertaken in the other business service category which - taken together – covers most BPO Services. For completeness of the business service commitments, the model schedules adds market research/public opinion polling services, management consulting services, services related to manufacturing, consulting, technical testing and analysis services, related scientific / technical consulting services and finally printing and publishing services.

The schedule takes a more limited approach to education, financial and recreational services. Specifically, it proposes only two education services that are not central to public education systems - adult education and other education. In the same vein, the schedule only asks for commitments on one particular insurance and two specific banking services<sup>74</sup> . None of these services entail capital mobility and thus avoid a sensitive area of policy. Finally, the recreational services “library and archive services” is included because this category covers

> 74 Services auxiliary to insurance are services closely related to the management of insurance and pension funding (i.e. insurance, financial and pension consultancy services, evaluation and adjustment services of insurance claims, actuarial services, etc.). The banking services included are the provision and transfer of financial information and financial data processing and related software by providers of other financial services and other services auxiliary to financial intermediation (financial consultancy services, other services auxiliary to financial intermediation).

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