Domestic Regulations and Multilateral negotiations

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 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

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 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

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 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

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 LDC’s – 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 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