Hon members and hon Chair, I speak on behalf of the DA in support of the Protocol on Trade in Services. Hon Fubbs is quite correct. To get a grip on the implications of this, however, we need to learn from the ongoing debate and negotiations at present going on in Geneva to develop a Trade in Services Agreement, otherwise known by its acronym, Tisa.
As of September 2013, 50 participating nations representing 70% of the world's trade in services will develop new sets of protocols. The benefits of such a protocol is, firstly, to establish new market access commitments and universal rules that reflect 20th century trade as a result of technological advances, changing business practices and deeper global integration.
Secondly, the protocol has the potential to create conducive trading conditions and to challenge barriers to increase trade in the service sector, such as the limited movements of data across borders, unfair competition from state-owned enterprises, lack of transparency and the need for due process of law and forced local ownership, as in the case of Zimbabwe, for example, and discrimination in obtaining business licences and permits.
For the Southern African Development Community, SADC, to adopt such guidelines could also result in greater regional integration and increased competitiveness globally. However, such protocols are not without risks, especially for developing countries. Let me say that the protocol is intended to be a broad and comprehensive agreement with no service sectors excluded from the very outset. Potentially, therefore, all service sectors could be covered, including public services such as health care and education.
Education remains one of the least covered sectors because of legitimate concerns that trade liberalisation can constrain - I repeat - trade liberation can constrain the ability of governments to effectively provide and regulate quality education, even though private sector lobby groups and several countries have been pressing for further and deeper commitments.
Given the fact that most education systems do in fact contain a mixture of not-for-profit and commercial, public and private provisions, it is unlikely that the education sector in most countries would be excluded from the protocol. Including educational services in any trade agreement raises significant concerns. Let me just mention two of them. Firstly, trade rules are legally binding and can have the effect of locking in and intensifying pressures of commercialisation and privatisation. For instance, rules around market access can limit the ability of countries that make commitments on education services to limit the entry and regulate the operations of private and for-profit schools and institutions.
Protocols such as this is aimed at ensuring competitive neutrality or a level playing field between the public and private providers, meaning governments could not treat public schools more favourably. It is really quite a fundamental point.
Secondly, commercialisation of education potentially endangers its quality. Trade agreements can also adversely affect the ability of authorities to ensure the quality of education provided. Let me end by saying that at the same time private sector providers must be fully supported in the regulatory frameworks and incentivised to expand where the protocol runs into effect. Let me give you a local example. English as a foreign language has become a real industry in South Africa. There has been a phenomenal increase in students from francophone and lusophone African countries as well as from Brazil and, increasingly, also from China.
We have 40 English as a foreign language, EFL, institutions in South Africa today. China normally sends its students to Australia and Brazil, but is now looking to South Africa. Brazil and Argentina are increasingly sending students to South Africa. But the schools that we have require SA Qualifications Authority, Saqa, recognition. They require value-added tax, VAT, exemption and ease of travel, which has to do with visas.
When we become a signatory to this protocol, Ministers Blade Nzimande, Pravin Gordhan and Naledi Pandor have to make the necessary reforms to give direct support to private education provision in order to comply with the requirements of the new protocol. Thank you very much. [Applause.]