Domestic Regulations and

Multilateral negotiations

Sumanta ChaudhuriCounsellor,

Permanent Mission of India to the WTO

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

Mandate on DR In-built mandate in GATS - Article VI:4 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

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

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 VI:4

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

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

Transparency Relevant for all aspects of Article VI:4 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

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,

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

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 LDC’s – longer periods, best endeavour

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

Conclusions DR disciplines essential deliverable of

services package in DDA Need to cover in balanced way differing

interests of Members covering all aspects of VI:4

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