REGULATORYREGULATORYDISCIPLINES IN DISCIPLINES IN

TRADE AGREEMENTSTRADE AGREEMENTSDr. Sherry StephensonDr. Sherry Stephenson

Director, Department of Trade, Tourism Director, Department of Trade, Tourism and Competitiveness, OASand Competitiveness, OAS

Canberra, May 3, 2007Canberra, May 3, 2007

THESIS STATEMENTTHESIS STATEMENT

MODERN TRADE MODERN TRADE AGREEMENTS ARE AS AGREEMENTS ARE AS

MUCH ABOUT MUCH ABOUT REGULATORY REGULATORY

DISCIPLINES AS THEY DISCIPLINES AS THEY ARE ABOUT SERVICES ARE ABOUT SERVICES

LIBERALIZATIONLIBERALIZATION

Regulatory Rights and Regulatory Rights and Trade AgreementsTrade Agreements

WTO does NOT pronounce on the WTO does NOT pronounce on the content of national regulation or content of national regulation or on government policy on government policy objectives : in Preamble to GATSobjectives : in Preamble to GATS

Regional trade agreements Regional trade agreements (RTAs) follow the same (RTAs) follow the same approach: the government right approach: the government right to regulate is intactto regulate is intact

What then is the role of What then is the role of trade rules in addressing trade rules in addressing

regulations?regulations?Three main functions:Three main functions:1. Trade rules may help to encourage good 1. Trade rules may help to encourage good

regulatory practicesregulatory practices And provide impetus to domestic economic reform effortsAnd provide impetus to domestic economic reform efforts

2. Trade rules can address possible 2. Trade rules can address possible cases where regulation is used for cases where regulation is used for protectionprotection And balance this with the right to regulateAnd balance this with the right to regulate

3. Trade rules can help to encourage 3. Trade rules can help to encourage regulation that supports liberalizationregulation that supports liberalization Effective liberalization can require (re) regulationEffective liberalization can require (re) regulation

KEY QUESTIONSKEY QUESTIONS

How do trade agreements How do trade agreements discipline these measures?discipline these measures?

Which type of trade Which type of trade agreement does this more agreement does this more effectively?effectively?

i.e. GATS-type, or new i.e. GATS-type, or new RTAs?RTAs?

Various types of regulatory Various types of regulatory measures can negatively measures can negatively

affect services tradeaffect services trade Denial of market access Denial of market access Discrimination against services or services providers Discrimination against services or services providers Lack of information on applicable service regime Lack of information on applicable service regime Anticompetitive commercial practices Anticompetitive commercial practices

Insufficient objectivity or effectiveness of the Insufficient objectivity or effectiveness of the regulation designed to address the competence, regulation designed to address the competence, capacity, etc. of the foreign service or service providercapacity, etc. of the foreign service or service provider

Insufficient impartiality in administrative processes Insufficient impartiality in administrative processes related to the regulations (ex. the granting of licenses)related to the regulations (ex. the granting of licenses)

Insufficient objectivity or effectiveness of qualitative Insufficient objectivity or effectiveness of qualitative norms affecting the service or service provider norms affecting the service or service provider (competence, capacity, etc.)(competence, capacity, etc.)

Provisions in Trade Provisions in Trade Agreements to address Agreements to address

Regulatory IssuesRegulatory Issues Quotas or Quotas or

quantitative quantitative restrictionsrestrictions

addressed by addressed by Art. XVI in GATSArt. XVI in GATS

addressed by MA addressed by MA Article in RTAsArticle in RTAs

Internal Internal discriminatory discriminatory practicespractices

addressed by addressed by Art. XVII in GATSArt. XVII in GATS

addressed by NT addressed by NT Article in RTAsArticle in RTAs

Provisions in Trade Provisions in Trade Agreements to address Agreements to address

Regulatory IssuesRegulatory Issues Domestic Domestic

regulationsregulations addressed by addressed by

Art. VI in GATSArt. VI in GATS addressed by DR addressed by DR

Article in recent Article in recent RTAsRTAs

TransparencyTransparency addressed by Art. addressed by Art.

III in GATSIII in GATS addressed by chapter addressed by chapter

on Transparency in on Transparency in recent RTAsrecent RTAs

REGULATORY REGULATORY DISCIPLINES DISCIPLINES

UNDER THE WTO UNDER THE WTO SERVICES SERVICES

AGREEMENT AGREEMENT (GATS)(GATS)

Disciplines on Market Disciplines on Market Access Restrictions under Access Restrictions under

GATSGATSArticle XVI: Limitations onArticle XVI: Limitations on

The number of service suppliers;The number of service suppliers; The total value of service transactions or The total value of service transactions or

assets; assets; The total number of service operations;The total number of service operations; The total number of natural persons that may The total number of natural persons that may

be employed;be employed; The participation of foreign capital;The participation of foreign capital; Specific types of legal entity.Specific types of legal entity.

Disciplines on National Disciplines on National Treatment Restrictions - Treatment Restrictions -

GATSGATSArt. XVII : Unlimited restrictionsArt. XVII : Unlimited restrictions

Examples of National Treatment Examples of National Treatment Limitations : Limitations :

Restrictions on the international movement of payments Restrictions on the international movement of payments and remittances;and remittances;

Recognition requirements for professional qualifications;Recognition requirements for professional qualifications; Requirements for practice and experience in the Requirements for practice and experience in the

country; country; Nationality/and or residency requirements;Nationality/and or residency requirements; Restrictions on the acquisition of real estate;Restrictions on the acquisition of real estate; Partnership requirements with local firms.Partnership requirements with local firms.

Disciplines on Transparency Disciplines on Transparency under GATSunder GATS

Article IIIArticle III: : Obligation to publish all measures Obligation to publish all measures

affecting services trade and make them affecting services trade and make them publicly availablepublicly available

Obligation to notify all new measures Obligation to notify all new measures affecting services trade and/or changes to affecting services trade and/or changes to existing measures at all on an annual existing measures at all on an annual basisbasis

Disciplines on Domestic Disciplines on Domestic Regulation under GATS Regulation under GATS

GATS Article VI : In sectors where GATS Article VI : In sectors where commitments are undertakencommitments are undertaken::

VI:4 - “Necessity” test to be appliedVI:4 - “Necessity” test to be applied VI:6 - Procedures to verify competence in placeVI:6 - Procedures to verify competence in place

In all sectors, with or without commitmentsIn all sectors, with or without commitments:: VI:1 - Reasonable, objective and impartial VI:1 - Reasonable, objective and impartial

administration of measures of general applicationadministration of measures of general application VI:2 - Procedures for the review of administrative VI:2 - Procedures for the review of administrative

decisions affecting trade in servicesdecisions affecting trade in services VI:3 - Decisions on applications to be made within VI:3 - Decisions on applications to be made within

a reasonable perioda reasonable period

Core of regulatory Core of regulatory discipline “Necessity” testdiscipline “Necessity” test

GATS objective is to ensure that domestic regulations DO NOT CREATE UNNECESSARY BARRIERS TO TRADE (Article VI:4)

… that measures relating to qualification requirements and procedures, technical standards and licensing requirements are, inter alia: Based on objective and transparent criteria, such as

competence and the ability to supply the service Not more burdensome than necessary to ensure the

quality of the service; In the case of licensing procedures, not in

themselves a restriction on the supply of the service.

Domestic Regulation Domestic Regulation Discipline - Provisional Discipline - Provisional

applicationapplicationArticle VI:5 Article VI:5

““(a) In sectors in which a Member has (a) In sectors in which a Member has undertaken specific commitments, undertaken specific commitments, pending pending the entry into force of disciplines the entry into force of disciplines developed in these sectors pursuant to developed in these sectors pursuant to paragraph 4paragraph 4,, the Member shall not apply the Member shall not apply licensing and qualification requirements and licensing and qualification requirements and technical standards that nullify or impair technical standards that nullify or impair such specific commitments …”such specific commitments …”

Are GATS disciplines on Domestic Are GATS disciplines on Domestic Regulation adequate?Regulation adequate?

Controversial issue for past 10 years in Working Controversial issue for past 10 years in Working Party on Domestic Regulation Party on Domestic Regulation

Stronger disciplines are found in:Stronger disciplines are found in: WTO TBT Agreement Art. 2.2-3WTO TBT Agreement Art. 2.2-3 WTO SPS Agreement Art. 2.2, Art. 5.6WTO SPS Agreement Art. 2.2, Art. 5.6 GATS Disciplines on Domestic Regulation in the GATS Disciplines on Domestic Regulation in the

Accountancy SectorAccountancy Sector

““Necessity text” also found in:Necessity text” also found in: GATS Annex on Telecommunication, para. 5(3) GATS Annex on Telecommunication, para. 5(3) GATS Art. XIV on General ExceptionsGATS Art. XIV on General Exceptions

WTO Disciplines on WTO Disciplines on Accountancy go furtherAccountancy go further

““Necessity test”Necessity test” Measures should not be Measures should not be more trade-restrictive than more trade-restrictive than

necessarynecessary to fulfill a legitimate objective……. to fulfill a legitimate objective……. defined as, among others: protection of consumers, quality defined as, among others: protection of consumers, quality

of the service, professional competence, and integrity of of the service, professional competence, and integrity of the professionthe profession

TransparencyTransparency Not just provide information on requirements, procedures Not just provide information on requirements, procedures

and technical standards……… but alsoand technical standards……… but also state reason for the measure and its relation to legitimate state reason for the measure and its relation to legitimate

objective……, andobjective……, and provide opportunity for public commentprovide opportunity for public comment

Disciplines on Domestic Disciplines on Domestic Regulation for Accountancy – a Regulation for Accountancy – a

model?model? Licensing requirementsLicensing requirements Known in advance, public Known in advance, public

& objective& objective Alternatives for the Alternatives for the

residency requirementresidency requirement Reasonable affiliation to Reasonable affiliation to

professional bodyprofessional body Reasonable administrative Reasonable administrative

costscosts Licensing proceduresLicensing procedures Known in advance, publicKnown in advance, public Only strictly necessary Only strictly necessary

documentation requireddocumentation required

Qualification requirementsQualification requirements Take into account degrees Take into account degrees

earned abroad on the basis earned abroad on the basis of “equivalency”of “equivalency”

Provide examination for Provide examination for the activitythe activity

Qualification proceduresQualification procedures Verification of diplomas in Verification of diplomas in

a reasonable time framea reasonable time frame Carry out exams in a Carry out exams in a

reasonable time framereasonable time frame

Ways to strengthen regulatory Ways to strengthen regulatory disciplines under GATSdisciplines under GATS

To reduce impact of excessively To reduce impact of excessively burdensome regulations on services burdensome regulations on services tradetrade

1)1) Strengthen NATIONAL TREATMENTStrengthen NATIONAL TREATMENT2)2) Stronger TRANSPARENCY disciplinesStronger TRANSPARENCY disciplines3)3) HARMONIZATION of normsHARMONIZATION of norms4)4) MUTUAL RECOGNITIONMUTUAL RECOGNITION5)5) Adoption INTERNATIONAL STANDARDSAdoption INTERNATIONAL STANDARDS6)6) SECTOR-SPECIFIC DISCIPLINESSECTOR-SPECIFIC DISCIPLINES

REGULATORY REGULATORY DISCIPLINES FOR DISCIPLINES FOR

SERVICES IN REGIONAL SERVICES IN REGIONAL TRADE AGREEMENTSTRADE AGREEMENTS

Evolution in thinking in Evolution in thinking in RTAs on Regulatory Issues RTAs on Regulatory Issues

during 1990sduring 1990s Increased importance attributed to regulatory disciplines:Increased importance attributed to regulatory disciplines:

1)1) Sector-specific regulatory discipline elaborated furtherSector-specific regulatory discipline elaborated further

2)2) Transparency disciplines strengthenedTransparency disciplines strengthened

3)3) Domestic Regulation provision addedDomestic Regulation provision added DR provision:DR provision:

Viewed as “third pillar” for services liberalization, along with Viewed as “third pillar” for services liberalization, along with market access and national treatmentmarket access and national treatment

seen as necessary to discipline non-quantitative, non-seen as necessary to discipline non-quantitative, non-discriminatory regulations that can act as barriers to tradediscriminatory regulations that can act as barriers to trade

Approach of RTAs to Approach of RTAs to Regulatory DisciplinesRegulatory Disciplines

Area where regional agreements have Area where regional agreements have followed and drawn from the multilateral followed and drawn from the multilateral GATS disciplines but have gone furtherGATS disciplines but have gone further

RTA’s have been reluctant to engage in RTA’s have been reluctant to engage in rule-making in the DR arearule-making in the DR area

But RTAs have strengthened application of But RTAs have strengthened application of DR article and have evolved additional DR article and have evolved additional regulatory sectoral disciplines and regulatory sectoral disciplines and transparency disciplinestransparency disciplines

Approach of recent RTAs Approach of recent RTAs towards Services towards Services

RegulationRegulation Article on domestic regulation in services and

investment chapter identical to GATS Article VI.3 and 4, but permanent in nature and of general application

Treatment of regulatory issues with respect to licensing and certification for professional services in Annex on Professional Services

Separate chapters with regulatory disciplines for telecommunications and financial services

Same approach followed by all NAFTA-type agreements negotiated by U.S. and by Mexico and Chile

Recent US FTAs deal with Recent US FTAs deal with regulatory issues explicitlyregulatory issues explicitly

Evolution in FTAs with respect to Regulatory Disciplines Evolution in FTAs with respect to Regulatory Disciplines after 2000 (under new TPA Act)after 2000 (under new TPA Act)

US-Chile (2003)US-Chile (2003) US-Singapore (2003)US-Singapore (2003) US-CAFTA (2004)US-CAFTA (2004) US-Australia (2004)US-Australia (2004) US-Morocco (2004)US-Morocco (2004) US-Peru (signed 2006)US-Peru (signed 2006) US-Colombia (signed 2007)US-Colombia (signed 2007) US-Panama (signed 2007)US-Panama (signed 2007) US-South Korea (signed 2007)US-South Korea (signed 2007)

All contain similar approach covering regulatory issues All contain similar approach covering regulatory issues

spread out through the agreement.spread out through the agreement.

RTAs Agreements CHAPTERS CONTAINING REGULATORY DISCIPLINES AFFECTING SERVICES

  CROSS-BORDER TRADE

INVESTMENT TELECO - MMUNICATIONS

FINANCIAL SERVICES

ELECTRONICCOMMERCE

TRANSPARENCY

TEMPORARY ENTRY OF BUSINESS PERSONS

COMPETITION

CHILE-USA(01 January 2004 )

CHAPTER 11 CHAPTER 10 CHAPTER 13 CHAPTER 12 CHAPTER 15 CHAPTER 20 CHAPTER 14 CHAPTER 16

SINGAPORE-USA(01 January 2004)

CHAPTER 8 CHAPTER 15 CHAPTER 9 CHAPTER 10 CHAPTER 14 CHAPTER 19 CHAPTER 11 CHAPTER 12

AUSTRALIA-USA(01 January 2005 )

CHAPTER 10 CHAPTER 11 CHAPTER 12 CHAPTER 13 CHAPTER 16 CHAPTER 20   CHAPTER 14

PERU-USA(12 April 2006)

CHAPTER 11 CHAPTER 10 CHAPTER 14 CHAPTER 12 CHAPTER 15 CHAPTER 19   CHAPTER 13

COLOMBIA-USA(22 November 2006)

CHAPTER 11 CHAPTER 10 CHAPTER 14 CHAPTER 12 CHAPTER 15 CHAPTER 19   CHAPTER 13

PANAMA-USANot signed yet

CHAPTER 11 CHAPTER 10 CHAPTER 13 CHAPTER 12 CHAPTER 14 CHAPTER 18    

KOREA-USA

               

1. Chapter on 1. Chapter on TransparencyTransparency

Applies to all matters under the agreement, Applies to all matters under the agreement, including servicesincluding services

Disciplines on: contact points; publication; notification Disciplines on: contact points; publication; notification and provision of information; administrative and provision of information; administrative proceedings; prior comment; advance publication; proceedings; prior comment; advance publication; and judicial review and appeal and judicial review and appeal

Additional transparency disciplines present in: Additional transparency disciplines present in: Cross-Border Trade in Services Chapter, Investment Cross-Border Trade in Services Chapter, Investment Chapter; Professional Services Annex; Temporary Chapter; Professional Services Annex; Temporary Movement Chapter; Telecommunications Chapter; Movement Chapter; Telecommunications Chapter; and Financial Services Chapterand Financial Services Chapter

2. Chapter on Cross-Border 2. Chapter on Cross-Border Trade: DR ProvisionTrade: DR Provision

Includes Article on Domestic Regulation Includes Article on Domestic Regulation with identical text to that contained in with identical text to that contained in GATS Article VI.3 and VI.4GATS Article VI.3 and VI.4

BUTBUT Article is of general application to all Article is of general application to all

services, services, Article is a definitive, not a provisional textArticle is a definitive, not a provisional text Cross Reference to Investment chapter Cross Reference to Investment chapter

means that mode 3 is also covered means that mode 3 is also covered (investment in goods and services)(investment in goods and services)

3. Annex on Professional 3. Annex on Professional ServicesServices

Contains regulatory disciplines to address Contains regulatory disciplines to address licensing and qualification requirementslicensing and qualification requirements

Additional objectives:Additional objectives: --To develop mutually acceptable standards and --To develop mutually acceptable standards and

criteria for licensing and certification of criteria for licensing and certification of professional services providers professional services providers

--To provide recommendations on mutual --To provide recommendations on mutual recognition agreementsrecognition agreements

US-Chile FTA: specific sections on foreign legal US-Chile FTA: specific sections on foreign legal consultants and engineers – work programs to be consultants and engineers – work programs to be undertaken to provide for temporary licensingundertaken to provide for temporary licensing

4. Sector Specific 4. Sector Specific Regulatory DisciplinesRegulatory Disciplines

Telecommunications chapter Set of pro-competitive regulations Stronger than WTO “Reference Paper”

Financial services Chapter Self-contained Transparency, procedural disciplines Market-access commitments for

investment and services

Sectoral Disciplines with Sectoral Disciplines with Domestic Regulation Domestic Regulation

componentcomponentAT MULTILATERAL LEVELAT MULTILATERAL LEVEL

Reference Paper on Telecommunications Reference Paper on Telecommunications Accountancy DisciplinesAccountancy Disciplines

AT REGIONAL LEVEL – “NAFTA-type” RTASAT REGIONAL LEVEL – “NAFTA-type” RTAS Chapter on TelecommunicationsChapter on Telecommunications Annex on Professional ServicesAnnex on Professional Services Chapter on Financial ServicesChapter on Financial Services Chapter on Temporary Entry Business PersonChapter on Temporary Entry Business Person

Objective of regulatory Objective of regulatory disciplines in recent RTAsdisciplines in recent RTAs

To ensure that regulations are not “more To ensure that regulations are not “more burdensome than necessary” to ensure burdensome than necessary” to ensure the quality of the servicethe quality of the service

To ensure that regulations do not To ensure that regulations do not undermine liberalization undertakingsundermine liberalization undertakings

But allowing regulatory autonomy to But allowing regulatory autonomy to remain intact.remain intact.

Regional Trade AgreementsRegional Trade AgreementsDisciplines on Domestic Regulation in RTA’s (since

mid-1990s)

Article on Domestic Regulation in Cross- Border Services Chapter

(Text of GATS Art. VI.3 & 4)

General application to all services sectors

Applies to modes 1 and 2as well as to mode 3

through cross referenceto the Investment chapter

Complimented by Annex on Professional Services

Strengths of recent RTAs Strengths of recent RTAs with respect to Regulatory with respect to Regulatory

DisciplinesDisciplines Promote gains in transparencyPromote gains in transparency Lock-in the Lock-in the status quostatus quo in all sectors in all sectors Encourage a domestic regulatory audit of Encourage a domestic regulatory audit of

service sector regimesservice sector regimes

Apply national treatment and the necessity Apply national treatment and the necessity test in form of a general obligation to all test in form of a general obligation to all service sectorsservice sectors

Focus of recent RTAsFocus of recent RTAs On expanding and deepening On expanding and deepening

transparency provisionstransparency provisions On strengthening sector-specific On strengthening sector-specific

regulatory disciplinesregulatory disciplines On generalizing application of the existing On generalizing application of the existing

“necessity” test rather than further “necessity” test rather than further defining concept of “necessity”defining concept of “necessity”

Definition of what is an appropriate level Definition of what is an appropriate level of regulatory intervention may be left of regulatory intervention may be left open to future panelsopen to future panels

Some ConclusionsSome Conclusions There has been little progress likely There has been little progress likely

at multilateral level on developing at multilateral level on developing deeper regulatory disciplines for deeper regulatory disciplines for services other than telecomsservices other than telecoms

RTAs have gone furtherRTAs have gone further

Gap in rule-making and in application Gap in rule-making and in application of rules between WTO and RTA’s will of rules between WTO and RTA’s will continue to widencontinue to widen

Thank You!Thank You!

1. Strengthened National 1. Strengthened National TreatmentTreatment

Best alternative to expanded domestic Best alternative to expanded domestic regulation disciplines?regulation disciplines?

AT MULTILATERAL LEVEL: NT is conditional; AT MULTILATERAL LEVEL: NT is conditional;

only applies to listed service sectorsonly applies to listed service sectors AT REGIONAL LEVELAT REGIONAL LEVEL: New and high quality RTAs : New and high quality RTAs

following the negative list approach provide for following the negative list approach provide for general application of the NT discipline (i.e. to all general application of the NT discipline (i.e. to all service sectors, subject to limited exceptions or service sectors, subject to limited exceptions or non-conforming measures) – non-conforming measures) –

extremely strong disciplineextremely strong discipline

1. Strengthened National 1. Strengthened National TreatmentTreatment

Best alternative to expanded domestic Best alternative to expanded domestic regulation disciplines?regulation disciplines?

AT MULTILATERAL LEVEL: NT is conditional; AT MULTILATERAL LEVEL: NT is conditional;

only applies to listed service sectorsonly applies to listed service sectors AT REGIONAL LEVELAT REGIONAL LEVEL: New and high quality RTAs : New and high quality RTAs

following the negative list approach provide for following the negative list approach provide for general application of the NT discipline (i.e. to all general application of the NT discipline (i.e. to all service sectors, subject to limited exceptions or service sectors, subject to limited exceptions or non-conforming measures) – non-conforming measures) –

extremely strong disciplineextremely strong discipline

2. Transparency2. Transparency AT MULTILATERAL LEVELAT MULTILATERAL LEVEL

GATS Art. III requirementsGATS Art. III requirements--publication--publication--notification of changes in --notification of changes in regulations that regulations that “significantly” affect foreign “significantly” affect foreign services/ service providers services/ service providers ----

[ Requirements in [ Requirements in Accountancy Disciplines Accountancy Disciplines --provide reason for the --provide reason for the measure and its relation to measure and its relation to legitimate objectivelegitimate objective--provide, when possible, --provide, when possible, opportunity for public opportunity for public comment before the adoption comment before the adoption of new measures ]of new measures ]

AT REGIONAL LEVELAT REGIONAL LEVEL

Separate chapter on Separate chapter on Transparency ---Applies to all Transparency ---Applies to all matters under the agreement, matters under the agreement, including services. Covers: including services. Covers: contact points; publication; contact points; publication; notification and provision of notification and provision of information; judicial review information; judicial review and appeal and administrative and appeal and administrative proceedingsproceedings--Opportunity for prior --Opportunity for prior commentcomment--Written response to --Written response to commentscomments

Additional transparency Additional transparency disciplines for services in disciplines for services in Cross-Border Services Cross-Border Services Chapter; Financial Services Chapter; Financial Services Chapter; Temporary Entry Chapter; Temporary Entry ChapterChapter

3. Harmonization of 3. Harmonization of StandardsStandards

AT MULTILATERAL LEVELAT MULTILATERAL LEVEL No attempt to carry out harmonization of services No attempt to carry out harmonization of services

standardsstandards

AT REGIONAL LEVELAT REGIONAL LEVEL No attempt to carry out harmonization in most No attempt to carry out harmonization in most

RTAsRTAs Exceptions :Exceptions :

Andean Community (sectoral norms) Andean Community (sectoral norms) CARICOM (establish common standards for CARICOM (establish common standards for

accreditation of qualifications- professional services)accreditation of qualifications- professional services) European Union (sectoral norms)European Union (sectoral norms)

4. Mutual Recognition / 4. Mutual Recognition / EquivalenceEquivalence

AT MULTILATERAL LEVELAT MULTILATERAL LEVEL• GATS Art. VII on Recognition GATS Art. VII on Recognition allows allows for conclusion of for conclusion of

recognition agreementsrecognition agreements Intends to assure such arrangements may be acceded to by Intends to assure such arrangements may be acceded to by

other WTO membersother WTO members ““Guidelines for Mutual Agreements or Arrangements in the Guidelines for Mutual Agreements or Arrangements in the

Accountancy Sector.Accountancy Sector.

AT REGIONAL LEVELAT REGIONAL LEVEL Many RTAs contain article on Mutual Recognition that Many RTAs contain article on Mutual Recognition that

encourages encourages conclusion of such agreementsconclusion of such agreements Annex on Professional Services in NAFTA-type agreements Annex on Professional Services in NAFTA-type agreements

encouragesencourages the development of mutually acceptable the development of mutually acceptable professional standardsprofessional standards Section on Foreign Legal Consultants and Engineers Section on Foreign Legal Consultants and Engineers

mandates consultations with professional bodiesmandates consultations with professional bodies

5. International 5. International standardsstandards

The existence of international standards would The existence of international standards would facilitate implementation of a ‘necessity’ testfacilitate implementation of a ‘necessity’ test International standards would also assist in the International standards would also assist in the

development of MRAs development of MRAs

Development of international standards could clearly have Development of international standards could clearly have a trade facilitating effecta trade facilitating effect..

However, at present there are few However, at present there are few internationally agreed standards for services.internationally agreed standards for services.

6. Sector-Specific 6. Sector-Specific DisciplinesDisciplines

Useful to clarify, elaborate or supplement Useful to clarify, elaborate or supplement horizontal disciplines in sectors with unique horizontal disciplines in sectors with unique characteristics characteristics

Network-based infrastructure servicesNetwork-based infrastructure services Services with asymmetries of informationServices with asymmetries of information Social services (“universal service objective”)Social services (“universal service objective”)

Specific sectoral treatment carried out through Specific sectoral treatment carried out through individual chapters, annexes, etc.individual chapters, annexes, etc.

Specific treatment can also be provided for Mode Specific treatment can also be provided for Mode 44

Sectoral Disciplines with Sectoral Disciplines with Domestic Regulation Domestic Regulation

componentcomponentAT MULTILATERAL LEVELAT MULTILATERAL LEVEL

Reference Paper on Telecommunications Reference Paper on Telecommunications Accountancy DisciplinesAccountancy Disciplines

AT REGIONAL LEVEL – “NAFTA-type” RTASAT REGIONAL LEVEL – “NAFTA-type” RTAS Chapter on TelecommunicationsChapter on Telecommunications Annex on Professional ServicesAnnex on Professional Services Chapter on Financial ServicesChapter on Financial Services Chapter on Temporary Entry Business PersonChapter on Temporary Entry Business Person

REGULATORY REGULATORY DISCIPLINES FOR DISCIPLINES FOR

SERVICES IN REGIONAL SERVICES IN REGIONAL TRADE AGREEMENTSTRADE AGREEMENTS