Domestic%20Regulations%20and%20Multilateral%20negotiations

1
Domestic Regulations and Multilateral
negotiations

• Sumanta Chaudhuri
• Counsellor,
• Permanent Mission of India
• to the WTO

2
Importance of Domestic Regulation Disciplines

• Complement market access, particularly in areas
  of interest to developing countries like Mode 4
• Maintain the balance between right to regulate
  and DR not being used to impede Market Access
• Lack of specific disciplines leaves the road open
  to disputes and creates uncertainty
• Disciplines on DR can provide incentive for
  needed domestic reforms
• Capacity constraints in implementation of
  disciplines should be factored in

3
Mandate on DR

• In-built mandate in GATS - Article VI4 for
  development of disciplines
• Covers
• Qualification Requirements and Procedures (QRP) ,
  
• Licensing Requirements and Procedures (LRP) and
• Technical Standards (TS)
• Hong Kong Ministerial
• Specific mandate for developing disciplines
  before end of Round
• Call for intensification by developing tests
• Basis proposals and Illustrative List of
  Elements

4
Current State of Play

• Move from proposals to textual language proposals
  
• Texts put on the table on
• QRP
• LP
• TS
• Transparency
• S D
• General Principles including Right to Regulate
• Next stage is development of Consolidated Text by
  Chair
• June/July 2006
• Nature of Consolidation

5
Current State of Play(continued)

• Differences in levels of ambition both overall
  and on specific elements
• General move towards horizontal disciplines
  covering possibly all aspects of Article VI4
• Specific sectoral disciplines unlikely to be
  pursued
• Would apply almost definitely only in sectors
  where specific commitments undertaken
• Relationship with Articles XVI/XVII
• Need for some S D recognized while realizing
  that different regulations infeasible

6
Specific Issues - Right to Regulate

• Balance between right to regulate and DR not
  constituting unnecessary barriers to trade
  recognized
• Concept of Necessity Test
• Broad necessity test jurisprudence issues
• Can be covered through specific disciplines in
  all aspects
• Balance not achieved only through NT
• Issue of national policy objectives
• Specific mention vs leaving it open
• Broader than only quality of service

7
Transparency

• Relevant for all aspects of Article VI4
• Add to existing obligations on transparency
• Specific features
• Notification/publication Domestic, WTO
• Effective use of Enquiry/Contact Points
• Reasonable time between notification/publication
  and entry into force
• Issue of prior Comments

8
Qualification Requirements

• Of particular importance for effective market
  access especially in Mode 4
• Core relates to availability of mechanisms for
  verifying foreign qualifications
• Specification and assessment of education, course
  work, training, work experience
• Identification of additional requirements
• Possibility of meeting identified deficiencies
  other than only in host Country
• Permission to supply service through such
  mechanism
• Examinations including relevance to service
  supplied, eligibility and accessibility,
  frequency of exams,

9
Licensing Procedures

• Administration concepts of neutrality,
  objectiveness and impartiality
• Documentation not burdensome, format and
  relevance
• Timeframes
• Reasonableness
• Entry into effect of license
• Fees related to administrative costs,
  concession for developing countries, revenue
  considerations
• Review/appeal reasons for rejection,
  resubmission of applications

10
Special Differential Treatment

• Longer implementation periods for compliance
• Compliance to take account of regulatory capacity
  and levels of development
• Technical assistance and capacity building
  including in implementing disciplines
• Recognition of needs and regulatory capacity to
  facilitate services exports from developing
  countries phased introduction for compliance
• Treatment for LDCs longer periods, best
  endeavour

11
Technical Standards

• Lack of information on such standards in services
  and on standard setting bodies
• Mandatory vs. voluntary standards
• Technical regulations/standards
• Non governmental bodies/associations with
  delegated authority
• Use of relevant international standards
• How these are developed relevant international
  organizations
• Relation with domestic standards
• Presumption of consistency with disciplines if
  used in domestic law
• Conformity assessment

12
Conclusions

• DR disciplines essential deliverable of services
  package in DDA
• Need to cover in balanced way differing interests
  of Members covering all aspects of VI4
• Levels of ambition and depth of coverage likely
  to be different and still undecided
• Disciplines likely to reaffirm expound on
  balance between right to regulate and regulations
  not constituting unnecessary trade barriers