Research and capacity building Eastern Mediterranean Region
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WHO-EM/PHP/036/E<br />
<strong>Research</strong> <strong>and</strong> <strong>capacity</strong> <strong>building</strong><br />
in trade in health services in the<br />
<strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Rabat, Morocco, 30 May– 1 June 2006
© World Health Organization 2006<br />
All rights reserved.<br />
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Printed by El Balagh, Cairo<br />
Document WHO-EM/PHP/036/E/12.06/300
Contents<br />
1. Introduction .......................................................................................5<br />
2. Globalization, trade <strong>and</strong> health.....................................................11<br />
2.1 Globalization, trade <strong>and</strong> health: WHO perspective.........11<br />
2.2 Underst<strong>and</strong>ing commitments in health services<br />
under GATS ...........................................................................14<br />
2.3 GATS application to health services...................................17<br />
2.4 Trade <strong>and</strong> health: a tool kit for analysis <strong>and</strong><br />
assessment<br />
of countries............................................................................18<br />
2.5 Discussion on presentations ................................................19<br />
3. <strong>Region</strong>al experience in trade in health services ..........................22<br />
3.1 Methodological framework for assessing trade<br />
in health services ..................................................................22<br />
3.2 Challenge of assessing trade in health services:<br />
experience from the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong>.......25<br />
3.3 Egypt.......................................................................................30<br />
3.4 Jordan......................................................................................32<br />
3.5 Lebanon ..................................................................................35<br />
3.6 Morocco ..................................................................................36<br />
3.7 Oman ......................................................................................38<br />
3.8 Pakistan ..................................................................................39<br />
3.9 Sudan .....................................................................................40<br />
3.1 0 Syrian Arab Republic............................................................42<br />
3.11 Tunisia ....................................................................................44<br />
3.12 Yemen .....................................................................................45<br />
3.13 Discussion on the country studies......................................46<br />
4. Working groups...............................................................................48<br />
5. Recommendations...........................................................................52<br />
Annexes<br />
1. Programme .............................................................................................54<br />
2. List of participants.................................................................................56
1. Introduction<br />
Globalization represents a challenge to health systems, both in<br />
the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong> (EMR) of the World Health<br />
Organization (WHO) <strong>and</strong> worldwide. The opening up of trade in<br />
health services will create new opportunities for health systems while<br />
also putting pressure on them <strong>and</strong> creating new challenges for them.<br />
Health systems are expected to benefit in particular from<br />
developments in information technology, which will facilitate access<br />
to up-to-date biomedical technology <strong>and</strong> skills for large segments of<br />
the population. At the same time, concerns have been expressed<br />
about the potential negative impacts of free trade in health services<br />
on access to essential health services, on the existing “brain drain” of<br />
qualified professionals from the <strong>Region</strong> <strong>and</strong> on overall equity with<br />
respect to health care.<br />
Over the past two years the WHO <strong>Region</strong>al Office for the<br />
<strong>Eastern</strong> <strong>Mediterranean</strong> (EMRO), International Development <strong>Research</strong><br />
Centre (IDRC) of Canada <strong>and</strong> United Nations Population Fund<br />
(UNFPA) Egypt, have undertaken a joint Concerted Action for<br />
<strong>Research</strong> <strong>and</strong> Capacity Building in Trade in Health Services in the<br />
<strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong> to comprehend the influence of trade<br />
on the efficient <strong>and</strong> equitable provision of health services. While<br />
international trade in health services has grown globally in recent<br />
years, the General Agreement on Trade in Services (GATS) has been<br />
instrumental in stimulating current thinking on the implications of<br />
globalization <strong>and</strong> the opening up of trade in health services for<br />
creating new opportunities <strong>and</strong> challenges for health systems.<br />
The <strong>Region</strong>al Office has been intensively involved in assessing<br />
the status of trade in health services in 10 countries of the <strong>Region</strong>:<br />
Egypt, Jordan, Lebanon, Morocco, Oman, Pakistan, Sudan, Syrian<br />
Arab Republic, Tunisia <strong>and</strong> Yemen. The results of these studies were<br />
shared with national policy-makers during the <strong>Region</strong>al Consultative<br />
Meeting on <strong>Research</strong> <strong>and</strong> Capacity Building in Trade in Health<br />
Services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong>, held in Rabat,<br />
Morocco, from May 30 to June 1 2006 (for the programme see Annex
6 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
1). The participants included country researchers, national health <strong>and</strong><br />
trade policy-makers, multilateral trade <strong>and</strong> health agencies,<br />
international development agencies, members of academia <strong>and</strong> civil<br />
society, <strong>and</strong> WHO staff (for the participants list see Annex 2).<br />
The Minister of Health of Morocco, His Excellency, Dr<br />
Mohamed Cheikh Biadillah, welcomed participants. He observed that<br />
it was a time of frontiers falling in the face of market-driven financial<br />
<strong>and</strong> trade flows, <strong>and</strong> the establishment of intellectual property laws.<br />
These events gave rise to various important questions of public<br />
concern: was it possible to protect ourselves in some areas of activity,<br />
were health services also going to be liberalized <strong>and</strong> what would<br />
become of hospitals, pharmacies <strong>and</strong> clinics?<br />
Trade liberalization had many effects on health, he noted. The<br />
lowering of custom tariffs improved access to medical technology<br />
<strong>and</strong> made medication available at reduced prices. However,<br />
modification of international regulations governing patents affected<br />
access to essential medicines, <strong>and</strong> national health regulations <strong>and</strong><br />
st<strong>and</strong>ards impacted on multilateral trade.<br />
He pointed out that GATS would have implications for the<br />
health sector on at least four levels: transnational supply of services<br />
(e.g. telemedicine); consumption of services abroad (treatment in<br />
another country); commercial presence (creation of health services in<br />
another country); <strong>and</strong> the brain drain of human resources.<br />
The involvement of countries in the management of these areas<br />
<strong>and</strong> in measures adopted in response would be beneficial, he said.<br />
Ministries of health should develop their <strong>capacity</strong> for analysis <strong>and</strong><br />
their knowledge of trade issues <strong>and</strong> their relation to health services.<br />
Collaboration should be strengthened with ministries of commerce<br />
<strong>and</strong> finance in order to anticipate <strong>and</strong> predict the impact of WTO<br />
measures.<br />
He congratulated WHO for according priority to the subject<br />
<strong>and</strong> for having established mechanisms of consultation with the Food<br />
<strong>and</strong> Agriculture Organization of the United Nations (FAO), United<br />
Nations Conference on Trade <strong>and</strong> Development (UNCTAD), World<br />
Intellectual Property Organization (WIPO), World Trade
Organization (WTO), etc. Since the Fifty-sixth World Health<br />
Assembly in 2003, WHO had been following developments <strong>and</strong> the<br />
implementation of the Doha Agreement, especially where they<br />
concerned public health <strong>and</strong> trade-related aspects of intellectual<br />
property rights (TRIPS).<br />
He pointed out that the meeting came at the right time to help<br />
health services decision-makers, managers <strong>and</strong> providers to find<br />
answers to their many questions in this field. He concluded by saying<br />
that he looked forward to the thoughts <strong>and</strong> comments of participants<br />
on the subject, <strong>and</strong> wished them full success in their work.<br />
UNFPA Representative in Egypt, Dr Faysal Abdel Gadir,<br />
speaking on the occasion, remarked that UNPFA Egypt was pleased<br />
to be part of this collaborative effort <strong>and</strong> was particularly interested<br />
in seeing progress in this field in Egypt. It was for this reason that<br />
UNFPA had supported a strong team that included Dr Mohammed<br />
Tag El Din, the former Minister of Health <strong>and</strong> Population of Egypt.<br />
Dr Abdel Gadir stated that UNFPA’s m<strong>and</strong>ate was in the area<br />
of reproductive health <strong>and</strong> it was interested to see how the<br />
liberalization of international trade in health services would impact<br />
on reproductive health services in Egypt. In addition, UNFPA Egypt<br />
was interested in looking into the broader area of international trade<br />
<strong>and</strong> health <strong>and</strong> in being able to assess how other trade agreements<br />
could influence reproductive health policies, such as on access to<br />
contraception, in the country. Finally, Dr Abdel Gadir thanked the<br />
WHO <strong>Region</strong>al Office for inviting UNFPA Egypt <strong>and</strong> wished the<br />
meeting complete success.<br />
Dr Raouf Ben Ammar, WHO Representative, Morocco,<br />
delivered a message by Dr Hussein A. Gezairy, WHO <strong>Region</strong>al<br />
Director for the <strong>Eastern</strong> <strong>Mediterranean</strong>.<br />
The objective of the workshop was to share the main policy<br />
findings of 10 country case studies on liberalizing trade in health<br />
services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong> within the framework<br />
of GATS, he said. This research-to-policy workshop was the<br />
concluding activity of the Concerted Action for <strong>Research</strong> <strong>and</strong><br />
Capacity Building in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong>, initiated as a
8 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
pioneer regional initiative in February 2004 in partnership with IDRC<br />
<strong>and</strong> UNFPA.<br />
GATS was one of the key agreements of the WTO <strong>and</strong> had<br />
brought trade in services for the first time within a multilateral<br />
framework. The Agreement aimed to gradually liberalize trade in<br />
services, including health services, carrying significant implications<br />
for the health care sectors of WTO member countries. To date, 10<br />
Member States of the <strong>Region</strong> were also members of the WTO, with an<br />
additional 6 countries maintaining observer status. While the process<br />
of services trade liberalization had been underway since 1995, much<br />
was yet to come on the health services front, he noted. Liberalization<br />
measures in this sector had been “back-loaded” or postponed, with<br />
the “wait-<strong>and</strong>-see” negotiations strategy reflecting concern over the<br />
potential impact of liberalization within the multilateral framework<br />
on the health care sector.<br />
Most countries had taken a conservative approach to the<br />
liberalization of trade in health services <strong>and</strong> the opening up of the<br />
health sector to the forces of globalization. One of the reasons behind<br />
this conservative approach was that the precise impact of<br />
globalization on the health services sector, in terms of efficiency,<br />
access <strong>and</strong> equity was difficult to evaluate. The need for a rigorous<br />
methodology to capture the impact of this phenomenon was,<br />
therefore, pertinent.<br />
One of the core components of the Concreted Action Plan was<br />
to develop a research methodology, which had been applied over the<br />
last two years in 10 countries of the <strong>Region</strong>. The policy messages of<br />
these studies should be instrumental in advising negotiators <strong>and</strong><br />
policy-makers on where to go next, <strong>and</strong> on how fast to advance on<br />
the liberalization front. Of no less importance, these country case<br />
studies had been able to provide key guidelines regarding the nature<br />
of the regulatory measures that should accompany the liberalization<br />
process, if it proceeded further.<br />
Trade in health services was not a new phenomenon, he noted.<br />
Traditional modes of trade whereby patients, physicians <strong>and</strong> students<br />
of medical sciences had been moving between countries in pursuit of
etter services, more prosperous livelihoods or education of higher<br />
quality had long been recorded <strong>and</strong> documented. More novel modes<br />
of trade such as cross-border supply of health services <strong>and</strong> foreign<br />
commercial presence were relatively new phenomena. Cross-border<br />
supply of health services had advanced in parallel with advances in<br />
communication <strong>and</strong> information technologies, <strong>and</strong> had become<br />
highly prolific, cutting down substantially on the cost of some<br />
medical services. Foreign direct investment (FDI) in the domain of<br />
health services was also on the rise, mainly due to the opening up of<br />
opportunities for the private sector to become an active player in the<br />
provision of health care services, especially in countries where this<br />
sector had traditionally been government dominated.<br />
There was an increased level of interest in assessing the impact<br />
of trade in health services, particularly in relation to public health<br />
considerations. Moreover, the question regarding the merits of<br />
liberalization within a multilateral framework versus unilateral<br />
liberalization, governed by national legislation, had been posed in<br />
most of the studies undertaken. The answers to these two questions<br />
would be debated over the coming few days, <strong>and</strong> it was hoped that<br />
by the end of the workshop clear policy messages would be available<br />
to policy-makers.<br />
He added that the liberalization of trade in services did not <strong>and</strong><br />
should not mean the absence of government regulatory control.<br />
Trade liberalization had its merits, as demonstrated by the case<br />
studies, yet in the absence of regulatory measures that ensured<br />
equality in the provision of health services as well as accessibility in<br />
the aftermath of liberalization, gains from trade may not accrue<br />
equally to all. It was the responsibility of policy-makers to ensure that<br />
gains from trade did not create a duality of health care systems or<br />
create shortages (“brain drain”) that would jeopardize the provision<br />
of essential health services.<br />
He concluded by describing some of the impediments that had<br />
been faced by researchers during their investigations. Data on trade<br />
in health services in the <strong>Region</strong> was sparse. The fragmented nature of<br />
data on trade in health services had been a key constraint on the
10 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
evaluation of the impact of liberalization. Further, communication<br />
between health <strong>and</strong> trade officials over issues regarding trade <strong>and</strong><br />
health had not been systematic. Reaching coherency between policies<br />
adopted at both levels was instrumental to a successful negotiations<br />
process, he said. These two issues needed to be addressed by policymakers<br />
so that the liberalization process did not fall short of ensuring<br />
equitable access to health care services, the quality of health care <strong>and</strong><br />
the efficient use of resources.<br />
Dr Belgacem Sabri, Director, Division of Health Systems <strong>and</strong><br />
Services Development, stated that globalization represented a<br />
challenge to health systems, both in the <strong>Region</strong> <strong>and</strong> worldwide. The<br />
opening up of trade in health services provided new opportunities<br />
for health systems while creating new challenges. The <strong>Region</strong>al<br />
Office, IDRC <strong>and</strong> UNFPA Egypt had been engaged in the Concerted<br />
Action for <strong>Research</strong> <strong>and</strong> Capacity Building in Trade in Health<br />
Services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong> since 2004. The purpose<br />
of this joint initiative was to:<br />
• build <strong>capacity</strong> of researchers <strong>and</strong> institutions in countries of the<br />
<strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong> for undertaking research on<br />
trade in health services;<br />
• advance <strong>and</strong> refine the research methodology for assessing the<br />
impact of trade in health services for countries of the <strong>Region</strong><br />
<strong>and</strong> beyond;<br />
• undertake case studies in countries of the <strong>Region</strong> to document<br />
trade in health services;<br />
• disseminate the research results among concerned policymakers<br />
<strong>and</strong> stakeholders to create awareness <strong>and</strong> elicit<br />
appropriate responses from countries.<br />
Dr Sabri then updated the participants on the main activities of<br />
the project so far, including recruitment of a study coordinator,<br />
refinement of the research methodology <strong>and</strong> survey instruments,<br />
holding of a research methodology workshop on trade in health<br />
services <strong>and</strong> the carrying out of 10 country case studies.
Dr Sabri outlined the objectives of the meeting as follows:<br />
• to create increased awareness among national health <strong>and</strong> trade<br />
policy-makers of the public health implications of trade in<br />
health services;<br />
• to share <strong>and</strong> debate the findings of the country studies<br />
undertaken on the subject with relevant policy-makers <strong>and</strong><br />
stakeholders;<br />
• to review the methodological aspects of undertaking country<br />
studies in trade in health services;<br />
• to develop a shared underst<strong>and</strong>ing <strong>and</strong> a regional strategy <strong>and</strong><br />
planned response for liberalization of trade in health services.<br />
The Chairmen of the meeting were Dr Mohammed Tag El Din<br />
(Day 1) <strong>and</strong> Dr Walid Ammar (Day 2 <strong>and</strong> 3). The Rapporteurs were<br />
Kevin Eisenstadt, Azza El Shinnawy <strong>and</strong> Ahmed Mokhtar.<br />
2. Globalization, trade <strong>and</strong> health<br />
2.1 Globalization, trade <strong>and</strong> health: WHO perspective<br />
Dr Nick Drager<br />
GATS is one of the most important trade agreements to emerge<br />
from the Uruguay Round negotiations that created the WTO. Services<br />
are one of the fastest growing areas for many economies <strong>and</strong> services<br />
of many kinds play important roles in the protection <strong>and</strong> promotion<br />
of health. GATS, therefore, creates numerous challenges for people<br />
working in public health, particularly since it is a complex legal<br />
agreement that borrows from existing international trade law to<br />
create new rules for services. The Agreement has become the subject<br />
of significant controversy, especially with respect to how it will affect<br />
health-related services <strong>and</strong> health policy.<br />
The debate about the impact of GATS on health policy has<br />
created a “tale of two treaties”. From one perspective, GATS is<br />
regarded as one of the worst of treaties since it is seen to undermine<br />
the exercise of national sovereignty. From another perspective, GATS<br />
is the best of treaties, since it respects health sovereignty through its<br />
flexibility, which allows each WTO member to shape its obligations
12 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
according to its national needs <strong>and</strong> interests. This “tale of two<br />
treaties” problem has made it difficult for the health policy<br />
communities to underst<strong>and</strong> how GATS may or may not affect their<br />
work. Risks <strong>and</strong> opportunities associated with trade in health services<br />
under the four GATS modes of supply are outlined in Table 1.<br />
Table 1. Health opportunities <strong>and</strong> risks<br />
Mode Opportunity Risk<br />
Mode I<br />
Increased care to remote Diversion of resources from<br />
Cross border<br />
supply of<br />
services<br />
<strong>and</strong> underserved areas other health services<br />
Mode 2<br />
Consumption<br />
abroad<br />
Mode 3<br />
Commercial<br />
presence<br />
Mode 4<br />
Presence of<br />
natural persons<br />
Generates foreign<br />
exchange earnings for<br />
health services<br />
Creates opportunities for<br />
new employment <strong>and</strong><br />
access to new<br />
technologies<br />
Economic gains from<br />
remittances of health care<br />
personnel working<br />
overseas<br />
Crowding out of local population<br />
<strong>and</strong> diversion of resources to<br />
service foreign nationals<br />
Development of two-tiered<br />
health system with an internal<br />
brain drain<br />
Permanent outflows of health<br />
personnel, with loss of<br />
investment in educating <strong>and</strong><br />
training such personnel<br />
It is important to assess the impact of liberalized trade in health<br />
services on access to, cost <strong>and</strong> quality of health services. Policies <strong>and</strong><br />
regulations should be in place to ensure that trade in health services<br />
increases equity in health <strong>and</strong> is in the interest of those in greatest<br />
need.<br />
The need for progressive liberalization within the GATS<br />
framework means that WHO members face decisions about whether<br />
or not to liberalize trade in services through market access <strong>and</strong><br />
national treatment commitments, including trade in health-related<br />
services. In relation to this, the GATS round of liberalization<br />
negotiations will potentially affect health policy in two areas:<br />
evaluating requests from other countries for, <strong>and</strong> offers to other<br />
countries of, specific commitments for market access <strong>and</strong> national<br />
treatment; <strong>and</strong> negotiations on GATS rules.
From the point of view of WHO, managing the GATS process<br />
from a health policy perspective should ensure that:<br />
• liberalized trade in health-related services leads to an optimal<br />
balance between preventive <strong>and</strong> curative services;<br />
• there is involvement of both private industry <strong>and</strong> civil society to<br />
ensure that liberalization of health-related services promotes<br />
participatory health policy;<br />
• improving access <strong>and</strong> affordability of health-related services is<br />
a goal of liberalization of trade in health-related services;<br />
• developing countries, <strong>and</strong> least-developed countries in<br />
particular, receive special consideration in the process of<br />
liberalizing trade in health-related services;<br />
• the status of health as a human right informs <strong>and</strong> guides<br />
proposals to liberalize trade in health-related services.<br />
The following set of key questions also needs to be addressed:<br />
• To what extent is the sector already open to foreign service<br />
providers, <strong>and</strong> what have been the regulatory concerns posed<br />
by existing foreign competition?<br />
• Do the commitments fit the strategies <strong>and</strong> directions identified<br />
by national health policy?<br />
• What effects will the commitments have on governmentprovided<br />
health services?<br />
• What regulatory burdens will the commitments create for the<br />
government in health-related sectors?<br />
• Will the commitments eliminate or weaken regulatory<br />
approaches necessary for the protection <strong>and</strong> promotion of<br />
health?<br />
• What evidence <strong>and</strong> principles can be used to analyse the<br />
possible effect of the commitments?<br />
• Can the commitments be crafted to both protect health policy<br />
<strong>and</strong> liberalize trade progressively?<br />
Managing the GATS process from a health policy perspective<br />
requires that health principles <strong>and</strong> criteria should drive policy<br />
decisions on trade in health-related services in the GATS<br />
negotiations. It is worth remembering “who owns the house”: GATS
14 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
provides countries with choices <strong>and</strong> does not force them to make<br />
liberalization commitments that are not in their best interests. If a<br />
country is unsure about the effects of making specific commitments,<br />
it is fully within its rights to decline to make legally binding<br />
commitments to liberalize, or to liberalize unilaterally without<br />
making binding commitments.<br />
2.2 Underst<strong>and</strong>ing commitments in health services under GATS<br />
Dr Sameen Siddiqi<br />
The purpose of GATS is to: create a credible <strong>and</strong> reliable system<br />
of international trade rules; ensure fair <strong>and</strong> equitable treatment of all<br />
participants; stimulate economic activity through guaranteed policy<br />
bindings; <strong>and</strong> promote trade <strong>and</strong> development through progressive<br />
liberalization. Liberalization of trade in health services has important<br />
public health implications, with both risks <strong>and</strong> benefits. Trade<br />
agreements can be multilateral such as GATS, regional (e.g. an Arab<br />
free trade agreement), or bilateral between two countries.<br />
There are certain threshold issues relating to GATS <strong>and</strong><br />
national health systems that need to be considered. These include: the<br />
extent of public or private financing in provision of health services;<br />
the extent to which the health system makes a distinction between<br />
national <strong>and</strong> foreign suppliers; the distinction between trade within<br />
<strong>and</strong> outside trade agreements; <strong>and</strong> the need for strong regulation in<br />
the face of liberalization of trade in health services. Most importantly,<br />
<strong>and</strong> despite some controversy, Article 1.3 of GATS ‘excludes services<br />
in the exercise of government authority’ as they are non-commercial<br />
<strong>and</strong> non-competitive.<br />
It is important to underst<strong>and</strong> how the health sector is defined<br />
under GATS . Member States can use their definitions, follow the UN<br />
Provisional Central Product Classification (UN CPC), or use WTO<br />
Services Sectoral Classification List (W 120), which has 12 Classes of<br />
Service Sectors. Box 1 shows how the health sector is defined under<br />
W 120. Members can define the scope of the sector <strong>and</strong> need not<br />
commit the entire sector.
Box 1. How the Health Sector is defined under GATS<br />
Class 8: Health Related <strong>and</strong> Social Services<br />
Hospital Services<br />
Other Human Health Services<br />
Social Services <strong>and</strong> Others<br />
Class 1: Business Services<br />
Professional Services<br />
(h) Medical <strong>and</strong> dental services<br />
(j) Services provided by midwives, nurses <strong>and</strong> paramedics<br />
Class 7: Financial Services<br />
All Insurance <strong>and</strong> Insurance Related Services<br />
Life, Accident <strong>and</strong> Health Insurance Services<br />
The four modes of supply under GATS are: cross-border supply<br />
(when only services cross the border); consumption abroad (when a<br />
consumer crosses the border to receive a service in another country);<br />
commercial presence (when there is FDI in a country to set up a<br />
facility to provide a service); <strong>and</strong> the movement of natural persons<br />
(when a provider moves to another country to provide a service).<br />
All WTO members have certain General Obligations, the most<br />
important of which is the Most Favoured Nation (MFN) status, which<br />
means treating all WTO members as you would treat your most<br />
favoured nation. Some exceptions to the MFN status are regional<br />
trade agreements, sectoral exemptions <strong>and</strong> recognition of<br />
qualifications, which has implications for the health sector.<br />
Additional obligations include transparency, review procedures for<br />
administrative decisions <strong>and</strong> certain basic competition disciplines.<br />
In addition, WTO members make certain modal commitments<br />
under GATS. When these cover a single mode of supply across all<br />
service sectors listed in the schedule, it is called a horizontal<br />
commitment. Sector-specific commitments for each mode can be<br />
made either as “market access” or “national treatment”. A<br />
commitment is a guaranteed minimum treatment to foreign service<br />
suppliers. A commitment under GATS means specifying the extent of
16 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
market access <strong>and</strong> national treatment for each service sector <strong>and</strong><br />
mode of supply. GATS commitments are binding once locked into.<br />
Countries have choices when making commitments with<br />
regards to the extent of commitment:<br />
• None or full: provides full market access <strong>and</strong>/or national<br />
treatment for a particular mode (no restrictions)<br />
• Partial commitment: provides market access <strong>and</strong>/or national<br />
treatment, with restrictions<br />
• Unbound: provides no commitment at all on market access<br />
<strong>and</strong>/or national treatment for a particular mode.<br />
Countries also have flexibility on the level of liberalization<br />
under GATS, which could be kept at the current level of access, or set<br />
at a more liberal or more restricted level.<br />
Developing countries are not obliged to liberalize trade in<br />
health services <strong>and</strong> have the flexibility to open fewer sectors,<br />
liberalize fewer transactions, progressively increase market access<br />
<strong>and</strong> attach conditions in line with national policy objectives. GATS<br />
recognizes the right to regulate, but certain disciplines apply<br />
depending on whether the measure is non-discriminatory (foreign<br />
suppliers <strong>and</strong> nationals) or discriminatory (foreign suppliers only). If<br />
commitments are made for any mode, discriminatory measures need<br />
to be listed in the national treatment schedule.<br />
GATS allows members to recognize the qualifications of some<br />
members <strong>and</strong> not others (which breaks the MFN rule), but members<br />
mutually recognizing qualifications need to inform WTO <strong>and</strong> give<br />
others the opportunity to demonstrate that they also meet the<br />
required st<strong>and</strong>ards. Under GATS, members are free to set their own<br />
st<strong>and</strong>ards.<br />
Before making any commitment in the health sector, WTO<br />
members should thus consider whether GATS can help achieve any<br />
of the health policy outcomes being sought, how to regulate trade in<br />
health services to achieve the best health outcomes once commitment<br />
is made, <strong>and</strong> the level of national <strong>capacity</strong> required to regulate trade<br />
in health services <strong>and</strong> the measures necessary to improve it.
It is essential to have policy coherence between ministries of<br />
health <strong>and</strong> trade <strong>and</strong> other stakeholders before committing. For this<br />
to happen, a mechanism for policy coordination needs to be evolved.<br />
In addition, a solid evidence base is critical in order to underst<strong>and</strong> the<br />
public health implications of GATS <strong>and</strong> to ensure that these are not<br />
compromised.<br />
2.3 GATS application to health services<br />
Dr Rudolf Adlung<br />
Liberalization (of market access <strong>and</strong> national treatment) with<br />
respect to GATS should not be taken to be synonymous with<br />
deregulation. GATS recognizes the right of WTO member countries<br />
to regulate <strong>and</strong> to introduce new regulations to meet national policy<br />
objectives, particularly in the health care sector. Liberalization<br />
through reciprocal exchange of concessions within the GATS<br />
framework is deeper <strong>and</strong> gains an important element of credibility<br />
through binding commitments.<br />
While GATS is far wider in coverage then conventional trade<br />
agreements, it is extremely flexible in application. Countries have<br />
three possible scenarios. They can opt for having specific sectors not<br />
covered, such as in the case of governmental services <strong>and</strong> air traffic<br />
control. These sectors are excluded from coverage on the basis that<br />
they are ‘services provided in the exercise of governmental authority’<br />
which, in turn, are defined as services that are supplied ‘neither on a<br />
commercial basis, nor in competition with one or more service<br />
suppliers’ (Article 1:3). They can also opt for specific sectors being<br />
covered with no access obligations. In this case, minimum<br />
(“unconditional”) obligations include MFN treatment, transparency<br />
requirements <strong>and</strong> some other “good governance” provisions<br />
(availability of legal remedies, etc.), but there is no obligation to open<br />
markets. Governments can also opt for access obligations (“specific<br />
commitments”), which denotes three basic concepts: “market access”<br />
(absence of quota type <strong>and</strong> similar restrictions), “national treatment”<br />
(non-discrimination with regard to all measures affecting the supply<br />
of a service) <strong>and</strong> “additional commitments” (plus “unconditional”
18 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
<strong>and</strong> '”conditional” obligations). Any limitations must be inscribed in<br />
the Schedules under the relevant modes. Scheduling a sector does not<br />
imply that trade must be liberalized across all modes. Specific<br />
commitments may vary across a spectrum between “unbound” (no<br />
commitment) <strong>and</strong> “none” (no limitation/full commitment). Specific<br />
commitments can be in a selection of sectors in which limitations are<br />
inscribed as less than status quo, the status quo or more liberal than<br />
the status quo.<br />
Of the 10 country studies: Lebanon, Sudan, Syrian Arab<br />
Republic <strong>and</strong> Yemen are not WTO members; Egypt, Morocco <strong>and</strong><br />
Tunisia are members without commitments on Medical <strong>and</strong> Hospital<br />
Services; <strong>and</strong> Jordan, Oman <strong>and</strong> Pakistan are members with<br />
commitments, Jordan <strong>and</strong> Oman in Medical <strong>and</strong> Hospital Services,<br />
<strong>and</strong> Pakistan in Hospital Services.<br />
The time-frame regarding trade in services negotiations is as<br />
follows: initial offers were submitted on 31 March 2003; revised offers<br />
on May 2005; <strong>and</strong> plurilateral requests on 28 February 2006. The<br />
second round of revised offers is to be submitted by 31 July 2006 <strong>and</strong><br />
the final draft schedules by 31 October 2006.<br />
2.4 Trade <strong>and</strong> health: a tool kit for analysis <strong>and</strong> assessment of<br />
countries<br />
Dr Nick Drager<br />
For a country analysis of the trade <strong>and</strong> health situation it is<br />
important to identify: the priority trade <strong>and</strong> health issues, including<br />
the policy <strong>and</strong> regulatory framework; any trade in health goods <strong>and</strong><br />
health-related services; any trade agreements <strong>and</strong> ongoing<br />
negotiations; the institutional <strong>capacity</strong> to manage trade liberation;<br />
<strong>and</strong> the elements of domestic policy coordination.<br />
Country experiences in ensuring national policy coherence with<br />
respect to trade liberalization in the domain of health services include<br />
establishing inter-ministerial committees, appointing dedicated staff<br />
in ministries of health to work on trade issues <strong>and</strong> in ministries of<br />
trade/commerce to work on health issues, consultation with<br />
stakeholders, developing the research <strong>and</strong> evidence base, <strong>and</strong><br />
technical cooperation with international organizations.
WHO <strong>and</strong> WTO collaboration to support successful policy<br />
coherence has included high-level policy consultations, governance<br />
meetings, research <strong>and</strong> analysis, country missions, regional/national<br />
meetings, training courses <strong>and</strong> informal consultations.<br />
To achieve trade <strong>and</strong> health policy coherence for human<br />
development, governments need to: develop a common<br />
underst<strong>and</strong>ing of the key trade <strong>and</strong> health policy issues through<br />
ongoing dialogue; have a clear commitment <strong>and</strong> ministry of health<br />
leadership to work towards trade <strong>and</strong> health policies that mutually<br />
support human development objectives; create sustainable<br />
institutional mechanisms to enhance coherence <strong>and</strong> use innovative<br />
instruments <strong>and</strong> appropriate incentives; ensure early <strong>and</strong> effective<br />
stakeholder involvement, build trust <strong>and</strong> recognise the importance of<br />
transparency; get the evidence right, develop costing <strong>and</strong> financing<br />
options, <strong>and</strong> propose alternatives; measure, track <strong>and</strong> evaluate<br />
progress, <strong>and</strong> make course corrections; <strong>and</strong> develop negotiation<br />
skills. The WHO website on globalization, trade <strong>and</strong> health<br />
(www.who.int/trade/) can support countries in these challenges.<br />
2.5 Discussion on presentations<br />
There was discussion about the possible conflict between<br />
liberalization <strong>and</strong> the ability to regulate the provision of health<br />
services at the national level. Globalization poses a credible threat to<br />
national health care systems, it was felt. So far there has been very<br />
little analysis of the costs associated with liberalization. The ‘right to<br />
health’ should be a guiding ‘lens’ to govern the liberalization process.<br />
The liberalization of health services can be looked at from two<br />
perspectives, the economic perspective <strong>and</strong> the health perspective,<br />
that are completely different in terms of the challenges <strong>and</strong><br />
opportunities posed. What should concern policy-makers is the<br />
health outcome of liberalization, <strong>and</strong> this should take precedence.<br />
It was felt that WHO should provide assistance to countries in<br />
the process of acceding to the WTO. There is a need to identify a few<br />
indicators by mode in order to evaluate the nature of the impact of<br />
liberalizing trade in health services on national health care systems.
20 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Other important issues include dispute settlement mechanisms <strong>and</strong><br />
how to operationalize them.<br />
The right to health should be a guiding principle with regards<br />
to the impact of globalization on health services, it was felt. However,<br />
so far the evidence has not been encouraging. The issue of human<br />
resources <strong>and</strong> the scarcities created as a result of the movement of<br />
health care professionals has become increasingly important. There is<br />
a possibility that governments’ are reducing their investment in<br />
medical services, in parallel to increased reliance on the private<br />
sector, both foreign <strong>and</strong> local. It was also noted that no country had<br />
scheduled commitments in the domain of health for a long enough<br />
time period to properly evaluate the nature of the impact created.<br />
The impact of former liberalizing efforts such as structural<br />
adjustment has shown that the costs may well be high <strong>and</strong> this calls<br />
for caution. A concise assessment of the benefits for a country of<br />
joining the WTO is needed. There is also a need for a more focused<br />
methodology with regards each particular mode of supply. The<br />
identification of priority areas in relation to trade <strong>and</strong> health services<br />
is required. When discussion of trade <strong>and</strong> health services takes place,<br />
the focus tends to be only on tertiary services, rather than on primary<br />
<strong>and</strong> secondary health care, the services that help the poor. There is<br />
therefore a need to evaluate how trade in health services can improve<br />
both primary <strong>and</strong> secondary health services. There is also a need to<br />
integrate the provision of these services at the regional level.<br />
Developing countries may be best advised to ‘wait <strong>and</strong> see’<br />
what the outcome of liberalization will be before committing.<br />
However, some felt that developing countries are best advised to<br />
schedule their commitments to reflect the status quo. That developed<br />
countries are refraining from opening up their health services sectors<br />
to the forces of globalization, should be taken as an indicator of the<br />
risks that may even go beyond the abilities of these countries.<br />
Negative examples have been seen of privatization in the social<br />
sectors. The health care sector has a different status to other of<br />
economic or social sectors, <strong>and</strong> this special status almost always<br />
negates free trade.
The nature of the assistance WTO is providing to developing<br />
countries in the domain of services trade liberalization was discussed.<br />
Apart from multilateral trade agreements, bilateral free trade<br />
agreements (FTAs) are also booming, so WTO advice to countries<br />
negotiating on FTAs is needed. It is important that countries are<br />
informed on rules-based negotiations.<br />
Commitments in services have proven to be positively linked to<br />
FDI flows <strong>and</strong> the quality of services, particularly for sectors such as<br />
telecommunications. However, in the case of health services, the<br />
situation has proven to be different, because of the sensitivity of the<br />
sector.<br />
When countries decide to schedule their commitments in any of<br />
the services sectors this ‘locks’ these commitments for increased<br />
credibility. WTO has seem some 100 trade disputes, but only two<br />
concerned services, indicating that GATS has worked more smoothly<br />
than any other agreement. However, small countries still have<br />
problems translating autonomous liberalization into commitments<br />
under the GATS framework, <strong>and</strong> this is where technical support is<br />
needed. WTO is just an umbrella organization, <strong>and</strong> the decision to<br />
commit is in the h<strong>and</strong>s of governments, with WTO being more like a<br />
notary. WTO can however provide technical assistance through<br />
various missions <strong>and</strong> seminars. The Aid for Trade initiative adopted<br />
at the Hong Kong ministerial meeting is meant to help institution<strong>building</strong><br />
in developing countries.<br />
It was pointed out that regional <strong>and</strong> bilateral trade agreements<br />
should be notified to WTO. In these agreements countries give more<br />
than in the MFN approach <strong>and</strong> with no safeguards. The extent to<br />
which bilateral <strong>and</strong> regional trade agreements take countries away<br />
from the GATS agenda was noted. However, FTAs have become an<br />
important foreign policy issue.<br />
The WTO negotiations process was discussed from an equity<br />
perspective. The role of government in the health care sector in<br />
relation to both globalization <strong>and</strong> liberalization was raised, because<br />
the market has been shown to fail in the health sector. Countries<br />
should not rush to liberalize as there is no conclusive evidence
22 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
regarding impact. There is a need to carry out more studies on trade<br />
<strong>and</strong> health in relation to liberalization under the multilateral<br />
framework <strong>and</strong> a need to analyse these results within the context of<br />
national policy objectives. Countries need to ensure that the benefits<br />
from trade in health services trickle down to the poor. At this early<br />
stage it is not possible to describe clear benefits.<br />
However, countries are under increased pressure to liberalize,<br />
<strong>and</strong> therefore may not be able to ‘wait <strong>and</strong> see’. There is therefore a<br />
need to feed the results of the country studies undertaken by the<br />
<strong>Region</strong>al Office into the policy debate through national policy forums<br />
on trade <strong>and</strong> health.<br />
3. <strong>Region</strong>al experience in trade in health services<br />
3.1 Methodological framework for assessing trade in health<br />
services<br />
Azza El Shinnawy<br />
The lack of information regarding the nature <strong>and</strong> extent of trade<br />
in health services <strong>and</strong> the risks <strong>and</strong> opportunities associated with<br />
each of the modes of supply, as well as the limited research <strong>capacity</strong><br />
in academic institutions for undertaking research on trade in health<br />
services, was the driving force behind the WHO, IDRC <strong>and</strong> UNFPA<br />
Concerted Action for <strong>Research</strong> <strong>and</strong> Capacity Building in Trade in<br />
Health Services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong>.<br />
The core components of the methodological approach included<br />
a review of the overall macroeconomic <strong>and</strong> trade environment <strong>and</strong><br />
the domestic health system to provide the contextual basis for the<br />
assessment of trade in health services. Among the key issues<br />
investigated were: whether trade liberalization is part of the country’s<br />
development strategy; the trends <strong>and</strong> regulation of FDI; the<br />
organization <strong>and</strong> financing of the health care system; the major health<br />
care challenges of the country; <strong>and</strong> possible sources of information.<br />
Under each of the supply modes, detailed questions were posed<br />
addressing the current status of trade in the mode, existing <strong>and</strong><br />
proposed GATS commitments in the mode, national policy in relation
to the mode <strong>and</strong> the regulatory regime for the mode. For example, for<br />
mode 1, questions addressed the current status of trade in mode 1,<br />
existing or proposed GATS commitments under mode 1 in health<br />
services, national policy on e-Health, the nature of the infrastructure<br />
<strong>and</strong> regulatory <strong>capacity</strong>, the regulatory regime for e-Health <strong>and</strong> the<br />
situation of information technology (IT) infrastructure. A note about<br />
data availability <strong>and</strong> sources of information for each mode was also<br />
included.<br />
An important part of the methodological approach was the<br />
review of national legislation <strong>and</strong> the regulatory framework<br />
governing trade in health services under the four modes of supply in<br />
order to identify the market access conditions that are in place as well<br />
as exemptions to national treatment. The methodological framework<br />
also presented a list of possible sources from which to collect<br />
information <strong>and</strong> data regarding estimates of the value <strong>and</strong> direction<br />
of trade in health services with respect to the four modes of supply<br />
under GATS.<br />
One of the core components of the methodological framework<br />
was the analysis <strong>and</strong> assessment of the level of country commitments<br />
for providing <strong>and</strong>/or seeking market access to health services, as well<br />
as an assessment of the challenges <strong>and</strong> opportunities posed by the<br />
liberalization of trade on the provision of health services <strong>and</strong> options<br />
for national policy-makers.<br />
The matrix of challenges <strong>and</strong> opportunities presented in the<br />
methodological framework was the basis for the analytical part of the<br />
country case-studies. The matrix presented a check list of possible<br />
implications of liberalising trade in health services which formed the<br />
basis for advising policy-makers on the pace <strong>and</strong> scope of<br />
liberalization under the GATS framework.<br />
Some key questions considered include:<br />
• How will GATS legally affect the country’s health policy?<br />
When, <strong>and</strong> how best, might negotiations be undertaken?<br />
• What is the single most important issue in determining whether<br />
to commit under GATS?
24 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
• How might a country best obtain the information necessary to<br />
inform policy?<br />
Discussion<br />
The idea that trade in health services is a governance issue of<br />
national security was discussed, as was the concept of global health<br />
governance <strong>and</strong> the leading role of WHO within this. The need for<br />
health systems to put their “house in order” in order to mitigate the<br />
bad effects of trade in health services was also discussed.<br />
The costs <strong>and</strong> benefits of joining or not joining the GATS were<br />
discussed. It was noted that the status of newly acceded members’<br />
(like Oman <strong>and</strong> Jordan) is different from that of the older members.<br />
However, while commitments may be made under pressure <strong>and</strong><br />
countries have to “pay” a lot, non-members are excluded from tariff<br />
reductions except through bilateral/regional agreements. It was<br />
explained that GATS allows countries to specify what they want to<br />
commit on <strong>and</strong> that health services can be excluded. It was noted that<br />
there are also bilateral/regional agreements that exist outside the<br />
WTO framework <strong>and</strong> it was clarified that Sudan <strong>and</strong> Yemen are<br />
currently under accession to WTO.<br />
The methodology used in the country case-studies was<br />
discussed <strong>and</strong> it was felt that there is a need to investigate trade in<br />
health services in terms of its impact on health services as well as on<br />
the determinants of health (including poverty <strong>and</strong> economic growth).<br />
It was noted that there has not yet been enough time to assess the<br />
impact on health, which could take many years to measure.<br />
It was felt that the focus should be on obtaining evidence that<br />
trade liberalization is good for health <strong>and</strong> that in the absence of such<br />
evidence it would be best for countries to adopt a “wait <strong>and</strong> see”<br />
approach to GATS. However, it was pointed out that trade in health<br />
services was already happening before GATS <strong>and</strong> therefore there is<br />
no new impact issue. A key question to address, it was suggested, is<br />
whether “open” or “non-open” health systems perform better. To<br />
measure this, indicators are required (by Mode) for openness <strong>and</strong>
performance. There is a need to focus on the impact in specific areas<br />
of concern; in this regard, a country-focus on different areas could be<br />
useful.<br />
It was explained that the methodology book had been refined<br />
<strong>and</strong> adapted for the <strong>Region</strong> from a WHO headquarters version, <strong>and</strong><br />
included a set of questions on health context, trade <strong>and</strong> health policy.<br />
The methodology was defined to encourage analysis <strong>and</strong><br />
interpretation, as well as policy recommendations, not just data<br />
collection. It was observed that the issue was not just one of asking<br />
the right questions but is also about identifying the right sources for<br />
the answers, of which there are many, often outside the Ministry of<br />
Health. There is no single source or nodal point, <strong>and</strong> this necessitates<br />
initiative.<br />
It was felt that the methodology needed to take into account the<br />
position of he different stakeholders, including hospitals, consumers,<br />
health insurance, physicians etc. It was noted that some countries,<br />
such as Malaysia, have done this <strong>and</strong> that some have set up websites<br />
to support the process. There are also conceptual issues that need to<br />
be further addressed, such as under which Mode to categorize some<br />
health services (for instance, visiting medical teams in Sudan). A<br />
concept workshop could help to improve the conceptual basis of the<br />
methodology. It was acknowledged that the methodology is a<br />
working methodology <strong>and</strong> will be further refined.<br />
3.2 Challenge of assessing trade in health services: experience from<br />
the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Dr Sameen Siddiqi<br />
The <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong> covers 22 countries <strong>and</strong> has<br />
a population of approximately 500 million. The proportion of the<br />
population aged less than 15 years is 40% <strong>and</strong> the dependency ratio is<br />
79%. Overall, the <strong>Region</strong> is a low middle-income region with a GNP<br />
per capita of US$ 1700 <strong>and</strong> contains five of the least developed<br />
countries. The <strong>Region</strong> faces several challenges in the area of trade in<br />
health services:<br />
• a lack of underst<strong>and</strong>ing <strong>and</strong> information on the nature <strong>and</strong><br />
extent of trade in health services;
26 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
• limited research <strong>capacity</strong> of institutions;<br />
• the need to place trade in health services on the health policy<br />
agenda <strong>and</strong> evolve a planned response;<br />
• the need to assess the implications of trade in health services on<br />
public health;<br />
• the need for countries to develop strategies to both protect the<br />
public health interest <strong>and</strong> maximize the benefits of trade<br />
liberalization.<br />
Pakistan, Sudan <strong>and</strong> Yemen are low-income countries. All<br />
three, by <strong>and</strong> large, promote market-driven policies, liberalization<br />
<strong>and</strong> deregulation <strong>and</strong> favour an open trade regime. All have liberal<br />
laws to encourage foreign investment <strong>and</strong> all underwent World Bank<br />
<strong>and</strong> International Monetary Fund-led stabilization <strong>and</strong> structural<br />
adjustment programmes in the 1990s. For the middle <strong>and</strong> upper<br />
middle-income countries of Egypt, Jordan, Morocco, Oman, Syrian<br />
Arab Republic <strong>and</strong> Tunisia there has been a progressive shift from an<br />
over-regulated to a market-oriented economy since the 1980s,<br />
progressive trade liberalization, encouragement for FDI, free trade<br />
agreements with other Arab countries <strong>and</strong> neighbours, <strong>and</strong> a reliance<br />
on services sectors, especially tourism <strong>and</strong> foreign remittances. In the<br />
Syrian Arab Republic there have been trade protectionist policies<br />
with strong central planning. Lebanon has long had a liberal trade<br />
regime, promoting extensive privatization, even in the social sectors,<br />
<strong>and</strong> banking <strong>and</strong> tourism are the leading services sectors.<br />
Table 2 provides an overview of the state of the domestic health<br />
sector in the countries studied, while table 3 gives a summary of their<br />
membership status <strong>and</strong> schedule of commitments to GATS in the<br />
health sector.
Table 2. State of health sector in country studies<br />
Areas Low income countries Lower middleincome<br />
countries<br />
Upper middleincome<br />
countries<br />
Governance Limited <strong>capacity</strong> for evidence-based policy formation <strong>and</strong> strategic<br />
planning<br />
Inadequate <strong>capacity</strong> to legislate, regulate <strong>and</strong> enforce rules <strong>and</strong><br />
regulations<br />
Financing Inadequate allocation<br />
to health<br />
High share of out-ofpocket<br />
payment<br />
Absence of social<br />
health insurance<br />
programmes<br />
Human<br />
resource<br />
development<br />
Service<br />
provision<br />
Health<br />
information<br />
Poor <strong>capacity</strong> for<br />
human resources<br />
planning<br />
Inappropriate skill mix<br />
Lack of trained health<br />
<strong>and</strong> hospital managers<br />
Accreditation system<br />
not functional<br />
Primary health care not<br />
universally accessible,<br />
basic package of health<br />
services absent<br />
Weak district health<br />
system, poorly<br />
functioning drug<br />
supply/referral systems<br />
Inadequate recognition<br />
of private sector role<br />
Poorly functioning<br />
management<br />
information systems<br />
Burden of<br />
disease/national health<br />
account not assessed<br />
Limited <strong>capacity</strong> for<br />
health services research<br />
Absence of<br />
universal coverage<br />
High share of outof-pocket<br />
payment<br />
Inefficient social<br />
health insurance<br />
programme<br />
Poor <strong>capacity</strong> for<br />
human resources<br />
planning<br />
Inappropriate skill<br />
mix<br />
Deficient cadre of<br />
health managers<br />
Accreditation<br />
system not fully<br />
functional<br />
Inadequate<br />
scheme for<br />
universal coverage<br />
of expatriates<br />
Heavy reliance on<br />
expatriate human<br />
resources<br />
Policies that<br />
promote national<br />
health workforce<br />
Inadequate focus of primary health care<br />
programmes on quality, responsiveness<br />
to changing burden of disease <strong>and</strong><br />
needs of aging population<br />
Escalating costs of health care/<br />
medicines<br />
Weak regulation of investment in<br />
complex centres, inappropriate use of<br />
technology<br />
Management information systems<br />
needs strengthening<br />
Burden of disease/national health<br />
account not institutionalized<br />
Limited <strong>capacity</strong> for health services<br />
research
28 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Table 3. WTO membership status <strong>and</strong> schedule of commitments to<br />
GATS in health sector<br />
Country Medical <strong>and</strong><br />
dental services<br />
Nurses,<br />
midwives,<br />
etc.<br />
Hospital<br />
services<br />
Other<br />
human<br />
health<br />
services<br />
Egypt X<br />
Jordan X X X X X<br />
Lebanon In process of accession to WTO/observer status<br />
Morocco No commitment in health sector<br />
Oman X X<br />
Pakistan X X<br />
Sudan In process of accession to WTO/observer status<br />
Syrian Arab<br />
Republic<br />
Not a WTO member<br />
Tunisia No commitment in health sector<br />
Yemen In process of accession to WTO/observer status<br />
Notes X = commitments made<br />
∗ = includes heath insurance, professional services<br />
Other<br />
relevant<br />
health<br />
sectors∗<br />
In terms of the overall status of the trade in health services for<br />
the four modes of supply in the case-study countries, none of the<br />
countries had a well developed tele-health services programme under<br />
mode 1 (cross-border supply). However, the Ministry of<br />
Communication <strong>and</strong> the Ministry of Health <strong>and</strong> Population in Egypt<br />
have recently launched a large initiative to develop the first telemedicine<br />
network.<br />
Mode 2 (consumption abroad, popularly called “medical<br />
tourism”) is important in the <strong>Region</strong> with many countries being net<br />
exporters <strong>and</strong> others net importers of health services. For instance,<br />
patients travel in large numbers from Yemen <strong>and</strong> Sudan to consume<br />
health care aboard, while Jordan is the leading promoter of medical<br />
tourism in the <strong>Region</strong>; 120 000 patients sought medical services in<br />
Jordan in 2002, generating an estimated revenue of US$ 620 million.
For mode 3 (foreign commercial presence), in 2004, foreign<br />
direct investment in Jordan’s hospital sector reached US$ 8.6<br />
million. Foreign investors are treated equally with Jordanians in<br />
terms of all rights <strong>and</strong> privileges awarded, except that non-<br />
Jordanians need to deposit bank drafts of no less than JD 50 000.<br />
Examples of FDI are also common in Egypt, such as the Dar-El-Fouad<br />
Hospital, which has a large foreign equity holding, <strong>and</strong> the Al-<br />
Maghraby hospitals <strong>and</strong> centres. In Pakistan, the Shifa International<br />
Hospital in Islamabad is an investment by Pakistani Americans.<br />
There was no evidence of FDI in health so far in Morocco, Oman,<br />
Sudan <strong>and</strong> the Syrian Arab Republic.<br />
In mode 4 (movement of natural persons) Egypt, Jordan,<br />
Pakistan, Sudan <strong>and</strong> Tunisia are net exporters of health workforce,<br />
while Oman, like all Gulf Cooperation Council countries, is a net<br />
importer.<br />
There is lack of policy coherence between ministries of trade<br />
<strong>and</strong> ministries of health in most countries. The Ministry of Commerce<br />
in Pakistan has a special WTO wing but collaboration with the<br />
Ministry of Health is weak. Oman has established a Higher<br />
Committee for WTO issues <strong>and</strong> the Ministry of Health is a permanent<br />
member, while in Jordan the Ministry of Health works closely with<br />
the Ministry of Industry <strong>and</strong> Trade <strong>and</strong> the Ministry of Tourism <strong>and</strong><br />
Antiquities to promote medical tourism.<br />
The lessons learnt from undertaking the case-studies can be<br />
summarized as follows: public health professionals need to learn the<br />
trade jargon <strong>and</strong> underst<strong>and</strong> trade <strong>and</strong> health issues before<br />
embarking on studies; the methodological framework is a useful<br />
guide to undertaking trade in health services studies, but innovation<br />
is required while collecting data; it is critical to share trade in health<br />
services messages with national policy-makers; <strong>and</strong> analysis of trade<br />
in health services should address how to ensure that public health<br />
interests are not compromised in favour of trade liberalization.<br />
In conclusion, most countries of the <strong>Region</strong> have an explicit<br />
trade liberalization policy which impacts on health services. Modes 2<br />
<strong>and</strong> 4 are currently the most important modes of trade in health
30 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
services in the <strong>Region</strong>. However, it is important to note that most<br />
trade in health services in the <strong>Region</strong> takes place outside GATS. It is<br />
essential that there is policy coherence among the ministries of health<br />
<strong>and</strong> ministries of trade in partnership with civil society. Finally,<br />
despite the limited data, health policy-makers now have greater<br />
awareness of the public health implications of trade in health services<br />
<strong>and</strong> GATS.<br />
3.3 Egypt<br />
Azza El-Shinnawy<br />
Egypt is the second largest economy in the Middle East <strong>and</strong><br />
North Africa after Saudi Arabia, with a GDP of 594 billion Egyptian<br />
Pounds (LE) (US$ 104 billion). It is classified as a lower middleincome<br />
economy <strong>and</strong> is one of the most densely populated countries<br />
of the <strong>Region</strong>. Egypt is a labour surplus economy, <strong>and</strong> is a major<br />
exporter of labour services to the <strong>Region</strong>. Some 1.9 million Egyptians<br />
are working abroad as temporary migrants. The Egyptian economy is<br />
also a service dominated economy, whereby services account for<br />
close to 47% of GDP.<br />
Despite Egypt’s commitments in several of the services sectors<br />
under the framework of the GATS, significant liberalization in the<br />
services sector has yet to materialize. Given the low sector coverage<br />
of commitments, <strong>and</strong> the relatively restrictive measures which apply<br />
to foreign commercial presence <strong>and</strong> natural persons in the scheduled<br />
sectors, a commitment to full service liberalization is not evident.<br />
Under the current stage of liberalization within the GATS<br />
framework, Egypt did not schedule health services in the Revised<br />
Conditional Offer. In the previous offer, only the health insurance<br />
sector was opened.<br />
It is difficult at this stage to quantify the exact magnitude of<br />
trade in health care services under mode 1. However, many hospitals<br />
surveyed had contracts with medical centres aboard to provide<br />
consultations through electronic mediums.<br />
With regards to mode 2, medical tourism is estimated to<br />
account for 2.5% of all incoming tourists to Egypt (4.3 million). As for<br />
Egyptian patients treated aboard (at government expense), the
numbers have gone down from 854 in 1994 at a total cost of LE 57<br />
million, to 240 in 2004, at a total cost of LE 20 million, reflecting an<br />
import substitution policy in this domain.<br />
Medical students studying in Egypt at national universities<br />
account for 8.1% of all foreign students (6000), while dentistry<br />
students account for 3.9% (2001/2002). Students from Arab countries<br />
account for 92% of all foreign students in Egypt. In private<br />
universities, the number of total foreign students has reached 4600,<br />
accounting for 28% of the student body: 25% study dentistry, 16%<br />
study medicine <strong>and</strong> 5.5% study pharmacy. Arabic studies accounts<br />
for 98% of foreign students in private universities.<br />
With regards mode 3, the current regulatory framework in<br />
Egypt is very liberal. Investment Law 8/1997 provided generous fiscal<br />
incentives to foreign investors to operate within the domain of<br />
hospital services (provided that 10% of <strong>capacity</strong> is available free).<br />
There is no ceiling on foreign equity share, no restrictions on l<strong>and</strong><br />
acquisition (except agricultural l<strong>and</strong>) <strong>and</strong> no ceiling on the number of<br />
foreign employees. The outcome has been a significant inflow of<br />
capital (foreign <strong>and</strong> local) in Egypt’s hospital sector.<br />
As for mode 4, which is of particular importance to Egypt<br />
according to the Egyptian Ministry of Manpower, Employment <strong>and</strong><br />
Immigration, health care services, including physicians <strong>and</strong> nurses,<br />
are among the most sought-after professions in neighbouring Arab<br />
countries. With regards to foreign professionals practicing in Egypt,<br />
Law 70/1996 regulates the provision of diagnostic <strong>and</strong> treatment<br />
services by foreigners in Egypt. The law clearly outlines the<br />
conditions under which private <strong>and</strong> public hospitals or clinics are<br />
allowed to utilize the services of foreign health professionals. Prior<br />
authorization is needed from the Ministry of Health <strong>and</strong> Population,<br />
based on the precondition that the service provider holds a<br />
distinguished track record in his/her domain <strong>and</strong> that no such<br />
expertise is available locally. The contract with the service provider<br />
cannot extend beyond three months <strong>and</strong> he/she cannot have a permit<br />
to work twice in Egypt during a single year. In 2005, 71 foreign<br />
medical experts provided their services in Egypt.
32 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
3.4 Jordan<br />
Dr Riyad Amin Okour <strong>and</strong> Dr Ratib Hinnawi<br />
The total population of Jordan is 5.35 million (2004), with a<br />
population growth rate of 2.8%. The proportion of people over 65 has<br />
been increasing <strong>and</strong> is expected to reach nearly 4% of the total<br />
population by 2015.<br />
Health care services in Jordan are provided by a complex<br />
amalgam of providers, mainly in the public sector, which includes the<br />
Ministry of Health, the Royal Medical Services <strong>and</strong> two university<br />
hospitals. The Ministry of Health provides primary, secondary <strong>and</strong><br />
tertiary services through a network of health centres, maternal <strong>and</strong><br />
child health centres, <strong>and</strong> hospitals. It runs 29 hospitals distributed<br />
throughout the country with 3500 beds, representing a third of<br />
hospital beds in the country.<br />
In 2001, total health care expenditure was estimated to be 598<br />
million Jordanian Dinars (JD), which accounted for 9.6% of GDP:<br />
public health care expenditure was 3.5% of GDP, while private health<br />
expenditure was 5.6% of GDP. Per capita health care expenditure was<br />
JD 115.4. Public sector health expenditure accounted for 45.0% of total<br />
health expenditure, private 48.7%, UNRWA 1.3% <strong>and</strong><br />
nongovernmental organizations 5.1%. The total (private) out-ofpocket<br />
expenditure on health was JD 242 million in 2001. The<br />
Ministry of Health is the major provider <strong>and</strong> financing agent within<br />
the public health system.<br />
With regards to trade in health services, mode 1 is practiced in<br />
Jordan on a limited scale. In the public sector it is not practiced yet,<br />
but the Ministry of Health is planning to utilize telemedicine. The<br />
Ministry has limited programmes on e-health <strong>and</strong> e-learning in<br />
selected areas of Jordan, but this experience is still in its first stages,<br />
<strong>and</strong> data are not yet available.<br />
In mode 2, Jordan has a reputable health care system <strong>and</strong> the<br />
private sector has gained a reputation as a centre of excellence for<br />
many subspecialties including cardiovascular surgery,<br />
transplantation, plastic surgery <strong>and</strong> cancer treatment. Reliable data<br />
on the extent of movement of Jordanian nationals for health services
abroad is difficult to obtain. Patients are covered by the Ministry of<br />
Health insurance scheme. During 2003, 32 cases were treated abroad<br />
at a total cost of US$ 1 million. These cases were treated mainly in the<br />
USA <strong>and</strong> UK.<br />
With regards to medical tourism in Jordan, over 100 000 non-<br />
Jordanian Arab patients are treated annually in Jordanian medical<br />
institutions, particularly in the highly advanced fields of coronary<br />
care <strong>and</strong> kidney, brain <strong>and</strong> eye surgery. Yearly revenues from visiting<br />
patients varied from JD 450 million to JD 500 million between 2000<br />
<strong>and</strong> 2005. In terms of the nationality of patients, Yemenis account for<br />
30%, Libyans for 20%– 25% <strong>and</strong> Sudanese for 20%. Other patients<br />
come from countries such as Algeria, Iraq, Palestine, Saudi Arabia<br />
<strong>and</strong> other GCC countries, <strong>and</strong> Tunisia.<br />
The success of Jordan in attracting this large number of patients<br />
in mainly attributed to the health system performance indicators that<br />
reflect a more advanced system with a physicians to population ratio<br />
that is much higher than other neighbouring Arab countries.<br />
Hospitals are also well-equipped with a high level of technology.<br />
Doctors’ fees for most medical procedures <strong>and</strong> other health care<br />
services are moderate <strong>and</strong> are cheaper than regional competitors by<br />
about 30%. Jordan also has medical cooperation protocols with<br />
Algeria, Libyan Arab Jamahiriya, Sudan <strong>and</strong> Yemen.<br />
Jordan's future strategy for medical tourism includes: attracting<br />
140 000 patients by 2010, including more Arab patients <strong>and</strong> other<br />
patients from Europe <strong>and</strong> Africa; promoting investment <strong>and</strong> high<br />
st<strong>and</strong>ards in the health care sector (hospitals, specialized health<br />
centres) to maintain the medical tourism industry; <strong>and</strong> increasing<br />
revenue from medical tourism to JD 1 billion.<br />
For mode 3, the market access limitations on trade in health<br />
services in Jordan include: one of the owners must be a physician<br />
except in a public limited company; at least three-quarters of<br />
physicians in any hospital or nursing/convalescent homes must be<br />
Jordanian nationals <strong>and</strong> at least half of all staff must be Jordanians;<br />
for other health services, especially medical laboratories, the director<br />
must be a Jordanian national; external investors are treated the same
34 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
as Jordanians in terms of rights <strong>and</strong> privileges, although non-<br />
Jordanians should have bank draft of not less than JD 50 000; <strong>and</strong> in<br />
the hospital sector, foreign investors can have 100% property<br />
ownership.<br />
With regards to mode 4, there are no general restrictions on the<br />
temporary movement of labour from Jordan to other countries.<br />
However, due to recent concerns of labour shortages in public health<br />
care, especially in nursing <strong>and</strong> specialized medicine, the Ministry of<br />
Health has placed temporary restrictions on these groups moving<br />
abroad. There is concern about a permanent “brain drain”, especially<br />
given large incentives to work in countries such as the UK. It is<br />
difficult to assess the flow of money into Jordan as a result of<br />
remittances made by Jordanian professionals working abroad.<br />
It is recommended that Jordan: establishes units within the<br />
Ministry of Health to tackle the issues of trade in health services <strong>and</strong><br />
to strengthen the <strong>capacity</strong> of all professionals concerned; carries out<br />
more in-depth situation analysis for various aspects of trade <strong>and</strong><br />
investment in health services, preferably a survey at the national<br />
level, <strong>and</strong> secures the needed human <strong>and</strong> financial resources for this;<br />
ensures policy development, strategic planning, regulations <strong>and</strong><br />
legislation to manage <strong>and</strong> empower trade in health services;<br />
strengthens <strong>and</strong> promotes partnership among stakeholders, including<br />
the private sector, academia, nongovernmental, organizations, UN<br />
agencies (especially WHO) <strong>and</strong> other sectors such as commerce <strong>and</strong><br />
industry; raises awareness among health professionals, mid-level<br />
mangers <strong>and</strong> community leaders; benefits from opportunities offered<br />
by trade in health services such as generation of foreign exchange<br />
earnings for health services, creating opportunities for new<br />
employment <strong>and</strong> access to new technologies <strong>and</strong> economic<br />
remittances of health care personnel working abroad; <strong>and</strong> avoids or<br />
minimizes risks such as brain drain <strong>and</strong> diversion of resources from<br />
other health services through better regulation <strong>and</strong> wise decisionmaking.<br />
It is also recommended that the <strong>Region</strong>al Office initiates a<br />
regional forum on trade <strong>and</strong> health for the provision of guidance,
<strong>capacity</strong> <strong>building</strong>, regional networking <strong>and</strong> supporting different<br />
activities undertaken within the trade <strong>and</strong> health framework.<br />
3.5 Lebanon<br />
Dr Nabil Kronfol<br />
Lebanon has a population of 4 million, with an annual growth<br />
rate of 1.7%. There is an 89% literacy rate <strong>and</strong> a 15% unemployment<br />
rate. Total health expenditure is US$ 2 billion (12.3% of GDP), <strong>and</strong><br />
there is a per capita health expenditure of US$ 500. Public sources<br />
account for 18% of the total, households 70% <strong>and</strong> pharmaceuticals<br />
25%. Public providers include National Social Security Fund (26%),<br />
the Cooperative of Civil Servants (4.4%), the military (11.2%) <strong>and</strong><br />
Ministry of Health as the insurer of last resort/safety net (43%).<br />
With regards to trade in health services under mode 1, the<br />
following initiatives exist: World Care, MedNet, e-learning (Arab<br />
Open University, courses, conferences) <strong>and</strong> e-commerce (Euro-Med<br />
initiative to develop the legal <strong>and</strong> regulatory framework <strong>and</strong> to<br />
promote development of e-commerce).<br />
For mode 2, there are no restrictions on travelling abroad. In the<br />
past, a trend existed to seek care in the Syrian Arab Republic (tests,<br />
dental care). Active steps have been taken to support medical tourism<br />
by both the government <strong>and</strong> the private sector. The flow increased<br />
after September 2001 <strong>and</strong> there has been active marketing by<br />
hospitals. About 5% of patients are foreigners, mainly Syrian Arab<br />
Republic nationals <strong>and</strong> citizens of GCC countries.<br />
In relation to mode 4, there is a serious problem of nursing staff<br />
shortages <strong>and</strong> a lesser one for doctors. There are restrictions on<br />
medical doctors moving to Lebanon due to professional requirements<br />
that need to be met in order to practice. There is a moderate inflow of<br />
nurses from the Philippines.<br />
Recommendations for mode 1 include: improving the<br />
telecommunication infrastructure <strong>and</strong> internet access; promoting egovernment;<br />
establishing the legal framework for e-commerce;<br />
responding to security concerns; raising business awareness of the<br />
benefits of e-commerce; provision of academic programmes on ecommerce<br />
law; establishing programmes to assist in <strong>capacity</strong>
36 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
<strong>building</strong>, encourage internet usage, improve IT skills <strong>and</strong> improve<br />
knowledge of customers/suppliers; health institution cooperation in<br />
the development of telemedicine <strong>and</strong> e-learning both nationally <strong>and</strong><br />
regionally; <strong>and</strong> health insurance involvement through development<br />
of telemedicine-based second medical opinions.<br />
Under mode 2, medical tourism has been encouraged in many<br />
countries of the <strong>Region</strong>, giving rise to health competition. It is<br />
recommended that there should be provision of quality medical care<br />
at competitive prices <strong>and</strong> recognition of the importance of pricing<br />
(flat rates, prospective payment modalities) to encourage the flow of<br />
patients <strong>and</strong> students to educational establishments in Lebanon.<br />
In terms of mode 3, FDI in the health sector has been small,<br />
unlike other sectors, <strong>and</strong> health insurance in the <strong>Region</strong> is still in the<br />
development stage. It is therefore recommended that government<br />
oversee good practices in this sector to protect the consumer.<br />
International competition ought to be encouraged to protect patient<br />
interests <strong>and</strong> FDI encouraged to enter into partnership with (or buy<br />
into) existing family-owned facilities. Listing establishments on the<br />
Beirut stock exchange should be considered.<br />
For mode 4, it is recommended that Lebanon should recognise<br />
that restrictive measures have not been helpful in any country. There<br />
is a need to produce a greater number of nurses, <strong>and</strong> to retain them<br />
through provision of better job opportunities <strong>and</strong> work conditions to<br />
minimize the “push" factors. However, new employment<br />
opportunities exist in the <strong>Region</strong> <strong>and</strong> human resources should be<br />
viewed as “movable assets”.<br />
3.6 Morocco<br />
Professor Lahcen Achy<br />
Morocco is a middle income country, where GDP per capita is<br />
less than US$ 1700 (2004). The population is more than 30 million, life<br />
expectancy at birth is almost 70 years, the maternal mortality ratio is<br />
227 per 100 000 live births <strong>and</strong> the under-five mortality rate is 48 per<br />
1000 live births. Total expenditure on health is almost US$ 60 per<br />
capita (more than 5% of GDP), while out-of-pocket payments<br />
(household direct payments) st<strong>and</strong> at 52% of total health expenditure.
Between 30%–35% of the population are covered by m<strong>and</strong>atory<br />
health insurance.<br />
Under mode 1, substantial efforts are needed to improve<br />
training about, <strong>and</strong> access to, electronic resources for health care<br />
professionals. Cross-border supply of health services is still in the<br />
experimental stage <strong>and</strong> the regulatory regime for e-commerce is<br />
currently in preparation. However, a draft law has been prepared to<br />
deliver full-scale e-commerce transactions. Morocco’s comparative<br />
advantages under mode 1 are largely based on geographical<br />
proximity with Europe, close linguistic <strong>and</strong> cultural ties with some<br />
European countries <strong>and</strong> the emerging “call centre” sector that is a<br />
good starting point for other IT-related services including e-health.<br />
Under mode 2, National Fund of Social Protection<br />
Organizations (CNOPS) data indicates that in 2001, 500 patients were<br />
sent abroad for specialized health care <strong>and</strong> surgical treatments;<br />
transfers to cover their health expenses amounted to US$ 2.25 million.<br />
Consumption of health services abroad declined between 1993 <strong>and</strong><br />
2002, with the share in total reimbursements by CNOPS declining<br />
from 32% in 1993 to 4% in 2002. France is the main destination of<br />
Moroccan patients seeking health care services abroad. Foreign<br />
exchange worth US$ 4.8 million has been legally transferred by<br />
institutions <strong>and</strong> individuals for health purposes (medical insurance<br />
amounting to 50% <strong>and</strong> the rest being mainly out-of pocket money).<br />
With regards to mode 3, the health sector is currently not open<br />
to FDI. Only physicians who have fulfilled the requirements for<br />
practicing medicine in Morocco may establish private clinics <strong>and</strong><br />
comparable medical facilities. Morocco has no commitment under<br />
foreign commercial services in health services. Insurance is an<br />
exception, but commitments were made under financial <strong>and</strong><br />
insurance services.<br />
Under mode 4, Morocco has made no commitments on the<br />
movement of health professionals. However, for foreigners to be able<br />
to practice in Morocco, they have to have permanent residency in<br />
Morocco, be the spouse of a Moroccan national or have a bilateral<br />
agreement with one, or have government authorization.
38 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Morocco is committed to the opening up of trade in health<br />
services <strong>and</strong> hence legislation should evolve to support this. Building<br />
<strong>capacity</strong> <strong>and</strong> fully underst<strong>and</strong>ing GATS provisions <strong>and</strong> the<br />
implications of any form of liberalization on the national health<br />
system are crucial prerequisites. A national forum on trade <strong>and</strong><br />
health is recommended to be established to provide an opportunity<br />
for all stakeholders to voice their interests <strong>and</strong> concerns, <strong>and</strong> identify<br />
areas of possible gains or losses that may arise with the opening up of<br />
trade in health services.<br />
3.7 Oman<br />
Dr Batool Jaffer Suleiman<br />
Oman is an upper-middle income country with a population of<br />
2 340 000, including 1 782 000 nationals. In 2003, GDP was 8302<br />
million Omani Rials (OR) <strong>and</strong> per capita GDP was OR 3547. Ministry<br />
of Health expenditure per capita was OR 73.4 <strong>and</strong> formed 5.4% of<br />
overall government expenditure.<br />
Over 95% of the population have access to the public health<br />
system, <strong>and</strong> services are free for all Omani nationals, government<br />
employees <strong>and</strong> some other categories. There is an annual registration<br />
charge of US$ 2.58 <strong>and</strong> a nominal outpatient department visit fee of<br />
US$ 0.52. Most private hospitals <strong>and</strong> clinics are local ventures.<br />
Oman became a member of the WTO on November 2000.<br />
Modes 2 <strong>and</strong> 4 are currently the two active modes of trade in health<br />
services in Oman. There are no commitments in GATS mode 1 which<br />
is in a very nascent stage, although tele-education <strong>and</strong> tele-medicine<br />
will start soon. However, under mode 2, there is an outward<br />
movement of consumers (students <strong>and</strong> patients). The government<br />
sponsors Omani patients for treatment abroad; in 2002, the treatment<br />
abroad rate was 22 per 100 000 population. Omani patients may also<br />
go abroad for special treatment at their own expense.<br />
In terms of mode 3, there is no clear evidence of FDI in the<br />
health sector. Foreign suppliers are allowed to establish a presence in<br />
Oman as long as there is an Omani share of at least 30%. Companies<br />
with foreign equity of up to 70% pay the same rate of taxation as<br />
wholly Omani-owned companies. There is a 20% limitation on
foreign personnel. As for mode 4, Oman continues to be a net<br />
importer of qualified health professionals <strong>and</strong> teachers, <strong>and</strong> there is<br />
import of health-related materials (drugs, vaccines, medical<br />
equipments, etc.). The attrition rate for Omani doctors st<strong>and</strong>s at 1%.<br />
It is recommended that additional financial resources are<br />
identified to help reduce the burden on the Ministry of Health<br />
through cost-sharing <strong>and</strong> that the salaries of Ministry of Health staff<br />
are improved in order to maintain a high quality health care system.<br />
Incentives should be provided to attract FDI <strong>and</strong> human resources to<br />
remote areas.<br />
The Ministry of Health should maintain data for all patients<br />
sent for treatment abroad (sponsored <strong>and</strong> non-sponsored) <strong>and</strong> the<br />
volume of FDI should be identified by maintaining information about<br />
the true owners of private sector health institutions. <strong>Research</strong> should<br />
be done on the value <strong>and</strong> volume of the current <strong>and</strong> expected modes<br />
of trade in health services.<br />
3.8 Pakistan<br />
Dr Zafar Mirza<br />
Pakistan is a low income country in which the share of trade in<br />
GDP is 15.5%. In 2004, more than 65% of exports were manufactured<br />
goods. Pakistan is one of the founding members of the GATT <strong>and</strong><br />
WTO, <strong>and</strong> the current trade policy formulation is based on marketdriven<br />
policies, liberalization <strong>and</strong> deregulation.<br />
More than 50% of the population is under 19 years of age <strong>and</strong><br />
around 30% people live in absolute poverty. Pakistan has the sixth<br />
largest burden of tuberculosis in the world, 25% of births are low<br />
weight <strong>and</strong> 65% of women of child-bearing age are anaemic. The ratio<br />
of public : private expenditure on health is 22 : 78.<br />
Pakistan's schedule of commitments under GATS covers 47<br />
activities which fall under 6 service groups, including health-related<br />
<strong>and</strong> social services.<br />
Pakistan has only made commitments under the hospital<br />
services sub-sector, which means that Pakistan is committed to allow<br />
private hospitals services to be established in Pakistan by foreign<br />
nationals/companies (mode 3). A mix of modes exists in the supply of
40 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
medical <strong>and</strong> dental services. There is an overlap between hospital<br />
services, medical <strong>and</strong> dental services, <strong>and</strong> movement of natural<br />
persons as in most cases these are interdependent.<br />
Before the GATS commitments there existed an outflow of<br />
students <strong>and</strong> health professionals going abroad for studies/training<br />
<strong>and</strong> patients for treatment. A limited number of medical <strong>and</strong> allied<br />
students came to Pakistan from neighbouring countries, the Middle<br />
East <strong>and</strong> Africa.<br />
Capacity <strong>building</strong> needs to be done in the Ministry of Health on<br />
trade issues <strong>and</strong> in the Ministries of Commerce <strong>and</strong> Foreign Affairs<br />
on health policy issues. The Ministries of Health <strong>and</strong> Commerce need<br />
to work together, <strong>and</strong> national priorities need to be set clearly <strong>and</strong><br />
adhered to strongly. Before making any further GATS commitments,<br />
an equity-based impact analysis needs to be done. Further research is<br />
required in this area.<br />
3.9 Sudan<br />
Dr Mounif Babikar<br />
Sudan is in the process of acceding to the WTO. In the domain<br />
of health services, Sudan has offered to open the following services:<br />
• Medical <strong>and</strong> dental services: specialized medical services where<br />
no limitations were placed concerning national treatment or<br />
market access, except for commercial presence. Commercial<br />
presence is made subject to an economic needs test based on the<br />
availability of services in the location concerned. No<br />
commitments are made concerning the movement of natural<br />
persons.<br />
• Veterinary services: same as above.<br />
• Health related <strong>and</strong> social services: hospital services (private,<br />
for-profit only). Commitments concerning cross-border supply<br />
<strong>and</strong> movements of natural persons were not made.<br />
Establishment of hospitals is granted taking into account, inter<br />
alia, the degree of specialization, geographical spread <strong>and</strong> the<br />
medical needs of the location concerned.<br />
• Other human health services: Sudan has only made<br />
commitments on some <strong>and</strong> not all services listed under this
sector/sub-sector. No limitations are put on consumption<br />
abroad or commercial presence, but no commitments are made<br />
concerning cross-border supply <strong>and</strong> movement of natural<br />
persons.<br />
Opening up the health care sector will present the opportunity<br />
for improvement of service quality through increased competition<br />
<strong>and</strong> retention of trained nationals within the country by offering<br />
better employment opportunities. Savings could be made in the<br />
treatment, travel, accommodation <strong>and</strong> subsistence expenses that are<br />
presently shouldered by patients who receive treatment abroad <strong>and</strong><br />
their accompanying carers.<br />
However, there is the threat that primary health care may be<br />
marginalized if foreign commercial presence (mode 3) concentrates<br />
on private tertiary <strong>and</strong> secondary care that targets the wealthier<br />
segments of the population. Weak regulatory <strong>capacity</strong> could hinder<br />
achieving the health <strong>and</strong> development goals of health for all <strong>and</strong><br />
jeopardise poverty reduction. Public counterpart institutions will lose<br />
the protection that may be offered by government through subsidies<br />
<strong>and</strong> exemptions.<br />
In terms of mode 1, the national laboratory stopped sending<br />
diagnostic test samples abroad in 1994. However, there is high<br />
potential for trade in health services via the internet <strong>and</strong> electronic<br />
means.<br />
With regards to mode 2, during 2000–2003 total patients sent<br />
abroad for care via the Medical Commission reached 4758, but this<br />
mode has lost its significance mainly due to import substitution.<br />
Egypt <strong>and</strong> the United Kingdom were the major destinations until the<br />
1980s, but in the 1990s, trade patterns shifted towards Jordan which<br />
became the main trade partner, followed by Egypt <strong>and</strong> other minor<br />
European <strong>and</strong> Asian partners.<br />
Under mode 3, two types of institutions are currently present,<br />
Hawwasha (Chinese) hospitals located in Alamaratin, Khartoum,<br />
where 8 private hospitals are located, <strong>and</strong> Alhasry Hospital, in central<br />
Khartoum, an area burgeoning with private for-profit hospitals. This<br />
indicates that foreign commercial presence through FDI has in fact
42 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
overcome the limitations placed by Sudan on specialized health<br />
services.<br />
As regards mode 4, the number of Sudanese health<br />
professionals working abroad has increased <strong>and</strong> their remittances<br />
may support national health expenditures directly through the social<br />
transfers they make to their families <strong>and</strong> indirectly by stimulating the<br />
economy through their investment <strong>and</strong> consumption activities. An<br />
indirect impact on the national health system will be the more<br />
diversified professional experience that these workers will bring with<br />
them on their return to Sudan.<br />
Doctors are the largest category of foreigner employed by<br />
public sector institutions; while a few foreign graduate nurses <strong>and</strong><br />
technicians are also found, no foreign general workers are employed<br />
in the public health sector. The largest category of doctors come from<br />
Arab countries (111) followed by Africans (41), Asians (18) <strong>and</strong><br />
Europeans (12). In the private sector, doctors also head the list, but<br />
the numbers <strong>and</strong> categories of other health personnel are<br />
proportionately more. Moreover, the private sector also employs<br />
foreign general workers.<br />
The offers that Sudan has made in specialized health services<br />
encourage greater commercial presence, especially given the<br />
favourable regulatory environment. The current status for mode 2<br />
indicates that Sudan may have a deficit in the consumption of<br />
treatment abroad but a surplus in consumption of medical<br />
educational services. An assessment of the import-substitution policy<br />
on consumption abroad needs to be made. Sudan seems to have a<br />
surplus in movement of natural persons; however the data is<br />
deficient, especially in value measurements of trade.<br />
3.10 Syrian Arab Republic<br />
Dr Mahmoud Dashash<br />
Universal health care in the Syrian Arab Republic is guaranteed<br />
by the Constitution, <strong>and</strong> the Syrian health care system is a mix of<br />
private <strong>and</strong> public provision. There has been an expansion of primary<br />
health care institutions focusing on preventive services, <strong>and</strong> medical
procedures are low in cost in comparison with neighbouring<br />
countries.<br />
Major health care challenges include health financing,<br />
reformulating the free health care policy to target free services to the<br />
poor <strong>and</strong> needy, increasing <strong>capacity</strong> <strong>and</strong> improving service quality,<br />
increasing current allocations to health to raise wages, making new<br />
investments, <strong>and</strong> assuming a strong regulatory role.<br />
Under mode 1, the ICT penetration rate is low (less than 10%),<br />
although a draft law to regulate e-commerce is under deliberation.<br />
There is no government agency with a direct m<strong>and</strong>ate to regulate ehealth<br />
<strong>and</strong> no data exists on e-health providers. Given low<br />
penetration <strong>and</strong> the absence of adequate infrastructure, it is likely<br />
that the volume of trade under mode 1 is negligible.<br />
N relation to mode 2, no data exists on financial resources spent<br />
on health education abroad <strong>and</strong> treatment abroad is likely to be<br />
limited due to affordability. There are no figures on the number of<br />
Syrians studying medicine abroad, although popular destinations<br />
include neighbouring Jordan <strong>and</strong> Lebanon, in addition to the<br />
European Union <strong>and</strong>, to a lesser extent, the USA.<br />
For mode 3, no data is available on the breakdown of inward<br />
FDI flows, but the majority is assumed to be in the oil <strong>and</strong> gas sector.<br />
There is no specific legislation regulating FDI in the health sector.<br />
In terms of mode 4, no statistics are available on the number of<br />
health care professionals working abroad, although the vast majority<br />
who do are there on a permanent or long-term basis. Popular work<br />
destinations for expatriate Syrians are the countries of the Arabian<br />
peninsular.<br />
As for foreign health care professionals in the Syrian Arab<br />
Republic, labour regulations make it very difficult for foreigners to<br />
obtain work permits, but exceptions are made for specializations that<br />
are not available in the country, although this is hard to prove. There<br />
are no published figures on the number of foreign nationals working<br />
in the Syrian health care system.<br />
Lack of data makes it difficult to assess the status of trade in<br />
health services in the Syrian Arab Republic, making it impossible to
44 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
formulate an evidence-based negotiation strategy for their<br />
liberalization. The Ministry of Health has made improvements in<br />
administration of the health care system a priority. This includes<br />
implementing more efficient IT systems, introducing telemedicine<br />
<strong>and</strong> creating electronic health records.<br />
3.11 Tunisia<br />
Dr Noureddine Achour<br />
In 2004, life expectancy at birth was 73.4 in Tunisia, with a birth<br />
rate of 16.8/1000. Total expenditure on health was 6.2% of GDP in<br />
2004, at US$ 174 per capita, with 52.2% being government<br />
expenditure <strong>and</strong> 47.8% being private expenditure. The Tunisian<br />
health system is a mix of public <strong>and</strong> private provision.<br />
The health system is currently having to respond to the<br />
changing demographic, epidemiological <strong>and</strong> risk profile of the<br />
population, as well as to rising expectations, changes in medical<br />
technology, a fast growing private sector <strong>and</strong> the desire of<br />
government to exp<strong>and</strong> services <strong>and</strong> achieve universal health<br />
coverage. This has produced new responsibilities related to public<br />
health, health system reform <strong>and</strong> regulation. Tunisia has no specific<br />
commitments in health services under GATS.<br />
With regards to trade in health services under mode 1, there is<br />
limited usage of cross-boarder supply of medical services in Tunisia,<br />
mainly due to the high cost of installing <strong>and</strong> the limited <strong>capacity</strong> to<br />
use such services.<br />
In terms of mode 2, a total of 132 foreign patients were treated<br />
at a cost of US$ 3.2 million in Tunisia in 2003.<br />
Under mode 3, Tunisia has not yet achieved any significant<br />
progress with regards to foreign commercial presence in the health<br />
care sector. There is only one off-shore clinic in Djerba financed by<br />
local <strong>and</strong> French (majority) capital.<br />
With regards to mode 4, Tunisia exports health professionals to<br />
many countries (GCC <strong>and</strong> European countries). Foreign physicians<br />
recruited by the Ministry of Public Health are mainly from eastern<br />
Europe <strong>and</strong> China. There are also a small number of private<br />
physicians who are married to Tunisians.
3.12 Yemen<br />
Dr Zeinab El Bakri<br />
An application was made to join WTO in 1999, <strong>and</strong> Yemen has<br />
so far been granted observer status. The National Committee under<br />
the Ministry of Trade oversees preparation for Yemen’s accession. As<br />
Yemen is a least developed country, GATS articles requiring<br />
commitments on market access <strong>and</strong> national treatment do not apply<br />
immediately.<br />
The public health sector infrastructure has exp<strong>and</strong>ed<br />
tremendously since 1990. However, there is lack of operating funds,<br />
medical staff <strong>and</strong> a problem regarding the geographical disparity in<br />
facilities. Also, there is an inability to provide efficient <strong>and</strong> quality<br />
services or accessibility to the poor. As a result, a health sector reform<br />
strategy was initiated in 1998, although no major improvement in<br />
health situation is evident as yet.<br />
Yemen is a net importer in trade in health services. Existing<br />
health institutions, public or private, are not equipped or staffed to<br />
provide quality health care. The government promotes provision of<br />
health services through private sector <strong>and</strong> foreign investors, granting<br />
easy entry to foreign professionals. Mode 2 is of particular<br />
importance to Yemen, since a large number of patients travel to seek<br />
medical services abroad. The government facilitates <strong>and</strong> partially<br />
funds the movement of Yemeni patients to seek medical treatment<br />
abroad for complicated diseases.<br />
In relation to mode 3, Yemen has so far attracted the<br />
establishment of only small-sized Arab investment in the health<br />
sector despite the liberal <strong>and</strong> generous provisions of its recently<br />
amended investment law. Mode 4 mainly involves the movement<br />
into Yemen of foreign health personnel to either work in national<br />
health facilities, public <strong>and</strong> private, or in medical colleges of<br />
government universities. Yemen enjoys no comparative advantage or<br />
potential for exporting professional health services to other countries.<br />
The three main issues that concern this area are the absence of a<br />
well-established system of data collection on trade in health services,<br />
deficiency in the regulatory regime governing the external trade in
46 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
health services <strong>and</strong> lack of rigorous study on the impact of each mode<br />
of trade in health services.<br />
3.13 Discussion on the country studies<br />
It was asked whether the studies met Ministry of Trade needs<br />
for information that would support GATS negotiations. It was felt<br />
that countries need to establish a database on the health sector first,<br />
before liberalizing. The current schedule of negotiation deadlines<br />
requires that this is done soon. There is therefore need for the quick<br />
dissemination of the research results of the ten country case.<br />
However, it was questioned whether the recommendations of the<br />
studies were based on strong enough data <strong>and</strong> provided a good<br />
enough basis for policy-making.<br />
Some felt that the studies seemed to describe trade in health<br />
services rather than the impact of trade in health services <strong>and</strong> GATS<br />
on health. There was a need to look beyond trade to questions about<br />
the access to, quality <strong>and</strong> price of health services. It was, however,<br />
noted that a dual system (public/private) already existed in countries,<br />
<strong>and</strong> that the question should rather be whether foreign suppliers will<br />
create or accentuate inequality. It was also noted that GATS will<br />
affect the future of trade in health services <strong>and</strong> not the situation that<br />
is described in the case-studies.<br />
It was felt that there was no evidence as yet on the impact of<br />
GATS on national public health objectives. The GATS system is<br />
currently taking shape <strong>and</strong> it would be important to see how to<br />
ensure that it was better geared to the objectives of the health sector,<br />
taking into account that the health sector is different from the<br />
commercial sector, with prominence given to issues of accessibility,<br />
affordability, equality <strong>and</strong> equity. In this regard, liberalization is not<br />
an end in itself, but rather health is the goal. Liberalization is a means<br />
that can have both negative <strong>and</strong> positive impact; it is therefore<br />
important to protect health if there is liberalization.<br />
Some felt that the data seemed to indicate that it is best not to<br />
rush into liberalizing until there is the evidence that countries are<br />
ready for it. However, it was pointed out that the study of trade in
health services <strong>and</strong> of liberalization needs to be differentiated. The<br />
evidence does not seem to be enough to support liberalization in this<br />
regard. The next step should be to assess the impact of trade in health<br />
services in the four Modes on health services.<br />
It was felt that despite the pressure on countries to liberalize<br />
their health sectors, they have the right to “wait <strong>and</strong> see” before<br />
committing. Countries can start by making commitments in the least<br />
controversial areas <strong>and</strong> take their time before committing on the<br />
other areas. Countries should ask why they need to commit in an<br />
area, how strong they are in it <strong>and</strong> what the impact will be. It was<br />
noted that newer countries are paying a higher “price” in<br />
commitments. There were questions around why those countries that<br />
have made commitments have made them <strong>and</strong> on their<br />
competitiveness in the various Modes.<br />
It was pointed out that it would not be the decision of the<br />
health sector whether to liberalize or not. However, the sector can<br />
assess the situation, identify opportunities <strong>and</strong> threats, <strong>and</strong> put<br />
policies in place to protect <strong>and</strong> improve health outcomes. The<br />
instruments to do these things need to be developed. The issue is one<br />
of how to make trade work to improve health outcomes, such as<br />
access.<br />
There was discussion on the potential opportunities <strong>and</strong> threats<br />
of trade in health services, including the possibility of recycling funds<br />
generated by health tourism into the public health system. It was<br />
noted that health tourism in Jordan earns money that goes towards<br />
the upgrading of the overall health system (both public <strong>and</strong> private),<br />
as well as into the economy, <strong>and</strong> also leads to improved technology<br />
<strong>and</strong> international st<strong>and</strong>ards in health services. However, it was<br />
pointed out that it could lead to a focus on tertiary care at the expense<br />
of secondary <strong>and</strong> primary care, sectors that are often weak in the<br />
<strong>Region</strong> but which provide the vast majority of health care in<br />
countries (<strong>and</strong> that could prevent cases that require more expensive<br />
tertiary care). The increasingly expensive cost of health technology<br />
<strong>and</strong> the issue of medical litigation as consumers go abroad for<br />
services were also noted.
48 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
The need to take a regional approach was discussed, to ensure<br />
that different countries’ health services are coordinated so that they<br />
compliment rather than compete with each other. Money spent<br />
abroad on health services could be saved <strong>and</strong> spent on improving<br />
services within countries, or at least kept within the <strong>Region</strong>. In some<br />
cases, it was noted that there may be a “win—win” situation, such as<br />
the treatment of patients from GCC countries in Jordan. It was<br />
suggested that the country studies publication could incorporate an<br />
index of competitiveness of countries of the <strong>Region</strong> in the different<br />
Modes. This would be a useful platform for a regional approach.<br />
The issue of the comparability of the country case-studies was<br />
discussed. It was suggested that a balance needs to be struck between<br />
achieving uniformity for comparability <strong>and</strong> reflecting the diversity of<br />
the <strong>Region</strong>. It was noted that the data included in the studies covered<br />
only formal rather than the informal flows in trade in health services<br />
that would be needed to obtain a more complete picture. It was felt<br />
that there was a need for more data, especially quantitative data, <strong>and</strong><br />
a greater analysis of trends. Comparative analysis <strong>and</strong> categorization<br />
is required as countries are in different situations.<br />
It was pointed out that information has a cost <strong>and</strong> needs to be<br />
invested in. The case studies are just a beginning <strong>and</strong> the research is<br />
exploratory at this stage, seeking to raise awareness of the issues<br />
rather than providing hard evidence as yet. It was also observed that<br />
the availability of data varies. However, it was noted that the<br />
methodology guide would be very useful for other sectors.<br />
4. Working groups<br />
Participants were distributed in three groups based on<br />
language preference (Arabic, English or French) to permit greater<br />
interaction. Based on what they had discussed over the last three<br />
days, the groups were asked to identify priority areas <strong>and</strong> propose<br />
recommendations for Member States <strong>and</strong> WHO. The main<br />
recommendations proposed by the three groups were as follows:
• Trade in health services-related activities need to be<br />
institutionalized within the work of ministries of health <strong>and</strong> of<br />
trade through the establishment of trade <strong>and</strong> health units.<br />
• Resources are needed to move forward a trade <strong>and</strong> health<br />
services agenda within countries. This would require writing<br />
project proposals for submission <strong>and</strong> approaching funding<br />
agencies, for which technical assistance from WHO will be<br />
required.<br />
• Improved coordination within <strong>and</strong> between countries in the<br />
area of trade in health services can be achieved through the<br />
establishment of a network for sharing experiences <strong>and</strong><br />
exchange of information.<br />
• In-depth studies on specific modes of trade in health services<br />
relevant to countries should be undertaken. This will require<br />
further work on the development of assessment methodology<br />
for each mode of supply.<br />
• All stakeholders, including the professional orders, civil society<br />
<strong>and</strong> consumers should be mobilized to build consensus <strong>and</strong><br />
greater policy coherence in the area of trade in health services.<br />
• There is a need for more research, including econometric<br />
studies, beyond the descriptive studies that have so far been<br />
undertaken.<br />
• A trade <strong>and</strong> health unit should be established in the <strong>Region</strong>al<br />
Office that provides support to countries on all aspects of the<br />
area, including trade in health services.<br />
• WHO should continue dialogue with WTO to develop a<br />
common underst<strong>and</strong>ing <strong>and</strong> perspective on trade <strong>and</strong> health<br />
issues.<br />
• WHO should allocate additional recourses to support <strong>capacity</strong><br />
<strong>building</strong>, country studies <strong>and</strong> regional meetings on trade <strong>and</strong><br />
health issues.<br />
• WHO should allocate resources to a special programme on<br />
trade <strong>and</strong> health in its biennial plan
50 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
• WHO should produce a regional publication on current work in<br />
the area, especially the country studies undertaken on trade in<br />
health services.<br />
• WHO should plan studies in future that measure the impact of<br />
WTO membership on health outcomes <strong>and</strong> objectives.<br />
Discussion<br />
It was suggested that trade in health services could be<br />
discussed at <strong>Region</strong>al Committee, possibly as a st<strong>and</strong>ing agenda item,<br />
to support regional coordination on the issue.<br />
A reservation was expressed that the language of the meeting<br />
had been in English, restricting the full participation of some<br />
attendees, particularly those from Francophone countries. It was<br />
requested that the issue of interpretation into French <strong>and</strong>/or Arabic be<br />
addressed in future gatherings.<br />
The next steps in the process were outlined as being: a<br />
workshop report; publication of the country case-studies; a policy<br />
briefing on trade in health services; <strong>and</strong> an article in a peer-reviewed<br />
journal. The need for a forum at country level to take the issues<br />
forward was raised. It was noted that the case-studies publication<br />
would be translated into Arabic <strong>and</strong> French. Attention was drawn to<br />
the availability of relevant WHO headquarters publications in French.<br />
Information on the case-studies <strong>and</strong> trade in health services would<br />
also be made available on the <strong>Region</strong>al Office’s Health System<br />
Observatory website (www.emro.who.int/healthobservatory) on<br />
health services in the <strong>Region</strong>, which could become a forum for<br />
networking.<br />
It was noted that the same approach was required at countrylevel,<br />
possibly within the broad framework of trade <strong>and</strong> health. It was<br />
essential that countries build <strong>capacity</strong> in the area, strengthen<br />
governance <strong>and</strong> develop their health system to meet the challenges<br />
<strong>and</strong> opportunities posed by trade <strong>and</strong> health, <strong>and</strong> more broadly by<br />
globalization. WHO country offices have a key role in supporting this
work, including facilitating coordination, <strong>capacity</strong> <strong>building</strong>, training<br />
<strong>and</strong> bringing together stakeholders.<br />
It was suggested that WHO Representatives could usefully<br />
provide the case-studies to Ministries of Health <strong>and</strong> discuss with<br />
Ministries of Trade. However, it was noted that focal points or<br />
taskforces within ministries <strong>and</strong> mechanisms of coordination would<br />
be more sustainable in many countries than the creation of new units,<br />
given existing <strong>capacity</strong>. The issues would affect all departments in<br />
Ministries of Health. The stewardship role of Ministries of Health<br />
needs to be strengthened. Bringing together studies on governance,<br />
public/private partnership, contracting <strong>and</strong> trade in health services<br />
could help in this respect.<br />
The utility of regional <strong>and</strong> country training seminars <strong>and</strong><br />
modules on the issue was expressed. Pre-conference training was<br />
noted as a cost-effective approach to be considered. The existence of<br />
WHO headquarters’ training modules, both web-based <strong>and</strong> face-toface,<br />
on globalization, trade <strong>and</strong> health was noted. The development<br />
of a critical mass of trained <strong>and</strong> experienced human resources<br />
(including trade negotiators) within the <strong>Region</strong> would be useful, as<br />
would be links to academic institutions. The experience that already<br />
exists within the <strong>Region</strong> was pointed out, for instance Egypt <strong>and</strong><br />
Pakistan’s experience in GATS negotiations <strong>and</strong> Jordan’s experience<br />
in coordination between ministries of health <strong>and</strong> trade. The useful<br />
role of WHO headquarters in sharing existing experience <strong>and</strong> best<br />
practice on the issue was noted, in helping countries to update<br />
legislation for instance. It was suggested that WHO could host a joint<br />
WHO/WTO meeting in the <strong>Region</strong> of representatives from Ministries<br />
of Health <strong>and</strong> Trade.<br />
It was observed that the opportunities provided by<br />
globalization had not been explored enough <strong>and</strong> that countries<br />
needed to address the challenges, given that the process was already<br />
occurring, by strengthening their health systems <strong>and</strong> making them<br />
more competitive, <strong>and</strong> in seeking to benefit from any comparative<br />
advantages.
52 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
5. Recommendations<br />
To Member States<br />
1. The knowledge base about trade in health services should be<br />
further improved through additional research for each mode of<br />
supply.<br />
2. Trade in health services-related activities should be<br />
institutionalized within the work of ministries of health <strong>and</strong><br />
collaboration improved with ministries of trade <strong>and</strong> commerce<br />
so that public health priorities are protected during trade<br />
negotiations.<br />
3. National policy forums should be initiated bringing together all<br />
concerned stakeholders, including civil society <strong>and</strong> academia,<br />
to share information on trade in health services <strong>and</strong> to engage<br />
in policy dialogue.<br />
4. Resources should be mobilized in order to build <strong>capacity</strong> in the<br />
assessment of national needs, in negotiations skills <strong>and</strong> in<br />
policy dialogue <strong>and</strong> the updating legislation in relation to trade<br />
in health services.<br />
5. Methodological approaches should be developed <strong>and</strong><br />
implemented in order to assess the implications of trade in<br />
health services on access to health, equity, safety <strong>and</strong> public<br />
health, <strong>and</strong> to build national scenarios for trade in health<br />
services.<br />
To WHO<br />
6. Technical support should be mobilized in countries seeking<br />
help in various steps of accession negotiation <strong>and</strong><br />
implementation of GATS Agreement.<br />
7. Support should be provided to development of a database on<br />
trade in health services as part of the regional Health System<br />
Observatory <strong>and</strong> to facilitate the sharing of the knowledge<br />
among researchers <strong>and</strong> policy-makers in the <strong>Region</strong>.
8. A regional heath policy forum on trade in health services<br />
should be initiated to help promote strategic thinking among<br />
concerned parties in the <strong>Region</strong>.<br />
9. The research methodology for each mode of supply in health<br />
should be refined <strong>and</strong> national <strong>and</strong> regional tool kits developed<br />
to support a comprehensive assessment of overall situation in<br />
trade <strong>and</strong> health in the <strong>Region</strong> <strong>and</strong> to improve policy coherence<br />
on trade in health services.<br />
10. Capacity <strong>building</strong> should be supported in areas related to trade<br />
in health services using existing links with academic, research<br />
<strong>and</strong> public health institutions.
54 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Tuesday, 30 May 2006<br />
Annex 1<br />
Programme<br />
08:30–09:00 Registration<br />
09:00–10:30 Inaugural Session<br />
Message of Dr Hussein A. Gezairy,<br />
WHO <strong>Region</strong>al Director for the<br />
<strong>Eastern</strong> <strong>Mediterranean</strong><br />
Speech by H.E Minister of Health,<br />
Morocco<br />
Comments on behalf of IDRC <strong>and</strong><br />
UNFPA<br />
Objectives of the meeting<br />
Introduction of participants <strong>and</strong><br />
nomination of Chairpersons <strong>and</strong><br />
Rapporteurs<br />
1030–11:00 Globalization, trade <strong>and</strong> health:<br />
WHO perspective/Nick Drager<br />
11:00–11:30 Conceptual issues in trade in Health<br />
services/Sameen Siddiqi<br />
11:30–12:00 Methodological framework for<br />
assessing trade in health<br />
services/Azza El Shinnawy<br />
12:00–14:00 Discussion<br />
14:00–17:00 Country studies: Jordan, Lebanon,<br />
Morocco, Pakistan, Syrian Arab<br />
Republic<br />
Discussion<br />
Wednesday, 31 May 2006<br />
08:30–09:00 GATS <strong>and</strong> trade in health services:<br />
WTO perspective/Rudolf Adlung<br />
09:00–10:30 Panel discussion on trade
liberalization in health services <strong>and</strong><br />
on-going GATS negotiations<br />
10:30–14:00 Country studies: Egypt; Oman;<br />
Sudan; Tunisia; Yemen.<br />
Discussion<br />
14:00–14:30 The challenge of assessing trade in<br />
health services: An <strong>Eastern</strong><br />
<strong>Mediterranean</strong> <strong>Region</strong><br />
perspective/Sameen Siddiqi<br />
14:30–15:10 Trade <strong>and</strong> health: A tool kit for<br />
analysis <strong>and</strong> assessment of<br />
countries/Nick Drager<br />
15:10–15:30 How can health <strong>and</strong> trade objectives<br />
converge at the policy level/Azza El<br />
Shinnawy<br />
15:30–17:00 Group work<br />
Thursday, 1 June 2006<br />
08:00–10:30 Group work<br />
10:30–12:00 Group presentation <strong>and</strong> discussion<br />
12:30–13:00 Closing session
56 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
EGYPT<br />
Walid El Nozhai<br />
Head, Central Department<br />
World Trade Organization<br />
Cairo<br />
Mr Gamal Abdul Rasheed<br />
First Secretary<br />
Trade Office<br />
Geneva<br />
Annex 2<br />
List of participants<br />
Azza El Shinnawy<br />
Development Studies Institute (DESTIN)<br />
London School of Economics<br />
London<br />
Dr Mohammed Tag El Din<br />
Director<br />
Arab Company for Trade <strong>and</strong> Medical Appliances<br />
Cairo<br />
JORDAN<br />
Dr Ratib Hanawi<br />
Ministry of Health<br />
Amman<br />
Dr Riyad Amin Okour<br />
Directorate of Health Economics<br />
Ministry of Health<br />
Amman
LEBANON<br />
Dr Walid Ammar<br />
Director-General<br />
Ministry of Public Health<br />
Beirut<br />
Dr Bahij Arbid<br />
Planning Expert<br />
Ministry of Public Health<br />
Beirut<br />
Dr Nabil Kronfol<br />
President<br />
Lebanese Health Care Management Association<br />
Beirut<br />
MOROCCO<br />
Professor Lahcen Achy<br />
Professor of Economics<br />
INSEA, Rabat Institutes<br />
Rabat<br />
Mr Hamid Bekkar<br />
Chef de la Division du Contentieux et Affaires Professionnelles<br />
Rabat<br />
Mr Abderrahim Chakour<br />
Chef de la Division des Industries Chimiques et Parachimiques<br />
Rabat<br />
Mrs Khadija Meshak<br />
Directeur de la Réglementation et du Contentieux<br />
Rabat
58 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
Mrs Samira Yamani<br />
Chef du Service des Industries Chimiques<br />
Rabat<br />
Dr Abderrahmane Zahi<br />
Secretary General<br />
Fondation Hassan II pour les Marocains Residents a L’Etranger<br />
Rabat<br />
OMAN<br />
Mr Salah Nasser Al Muzahmi<br />
Director of Health Information <strong>and</strong> Statistics<br />
Ministry of Health<br />
Muscat<br />
Dr Batool Jaffer Suleiman<br />
Director of <strong>Region</strong>al Drug Use<br />
Ministry of Health<br />
Muscat<br />
PAKISTAN<br />
Mr Manzoor Ali Bozdar<br />
Deputy Drugs Controller<br />
Islamabad<br />
Mr Ahmad Mokhtar<br />
Section Office (WTO)<br />
Ministry of Commerce<br />
Islamabad
SUDAN<br />
Dr Muneef Abdelbagi Babkir<br />
Assistant Professor (Health Economics)<br />
University of Khartoum<br />
Khartoum<br />
Dr Mustafa Salih Mustafa<br />
Director<br />
Planning Health Directorate<br />
Khartoum<br />
SYRIAN ARAB REPUBLIC<br />
Dr Mahmoud Dachach<br />
Director<br />
Planning <strong>and</strong> International Cooperation<br />
Damascus<br />
TUNISIA<br />
Dr Hichem Abdessalam<br />
Director, Technical Cooperation Unit<br />
Ministry of Public Health<br />
Tunis<br />
Dr Noureddine Achour<br />
Director<br />
National Institute of Public Health<br />
Tunis<br />
Mr Jamel Eddine Torki<br />
Deputy-Director<br />
General Directorate of Economic <strong>and</strong> Commercial Cooperation<br />
Ministry of Commerce <strong>and</strong> H<strong>and</strong>crafts<br />
Tunis
60 Trade in health services in the <strong>Eastern</strong> <strong>Mediterranean</strong> <strong>Region</strong><br />
YEMEN<br />
Dr Ebtihaj Al Kamel<br />
Ministry of Public Health <strong>and</strong> Population<br />
Sanaa<br />
OTHER ORGANIZATIONS<br />
AFRICAN DEVELOPMENT BANK<br />
Dr Zeinab El Bakri<br />
Director<br />
Social Development Department<br />
Central <strong>and</strong> West <strong>Region</strong> (OCSD)<br />
Tunis<br />
UNITED NATIONS POPULATION FUND (UNFPA)<br />
Dr Faysal Abdel Gadir<br />
Representative<br />
Cairo<br />
Dr Tarek Morsy<br />
Project Officer<br />
Unit for Monitoring Population Activities<br />
Cairo<br />
WORLD BANK<br />
Dr Akiko Meada<br />
Health Sector Manager, MENA <strong>Region</strong><br />
Washington<br />
WORLD TRADE ORGANIZATION<br />
Dr Rolf Adlung<br />
Geneva
WHO Secretariat<br />
Dr Abdel Aziz Saleh, Special Adviser (Medicine), WHO/EMRO<br />
Dr Raouf Ben Ammar, WHO Representative, Morocco<br />
Dr Belgacem Sabri, Director, Health Systems <strong>and</strong> Services<br />
Development, WHO/EMRO<br />
Dr Nick Drager, Senior Adviser, SDE, ETH, WHO/HQ<br />
Dr Jaouad Mahjour, WHO Representative, Lebanon<br />
Dr El Fatih El Samani, WHO Representative, Oman<br />
Dr Ibrahim Abdel Rahim, WHO Representative, Tunisia<br />
Dr Sameen Siddiqi, <strong>Region</strong>al Adviser, Health Policy <strong>and</strong> Planning,<br />
WHO/EMRO<br />
Dr Amr Mahgoub, <strong>Region</strong>al Adviser, Health Management Support,<br />
WHO/EMRO<br />
Dr Zafar Mirza, <strong>Region</strong>al Adviser, Essential Drugs <strong>and</strong> Biologicals,<br />
WHO/EMRO<br />
Dr Ong-arj Viputsiri, Acting <strong>Region</strong>al Adviser, <strong>Research</strong> Policy <strong>and</strong><br />
Cooperation, WHO/SEARO<br />
Dr Benjamin Ng<strong>and</strong>a, Focal Person for Trade <strong>and</strong> Health Issues,<br />
Division of Health Environments <strong>and</strong> Sustainable Development,<br />
WHO/AFRO<br />
Dr Zein El Din Idrissi, Health Economics, WHO/EMRO<br />
Mr Kevin Eisenstadt, Editor, WHO/EMRO<br />
Mrs Hanaa Ghoneim, Senior Administrative Assistant, WHO/EMRO<br />
Ms Lamia Torki, Secretary, WHO/EMRO