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Domestic Regulations and Multilateral negotiations

Domestic Regulations and Multilateral negotiations. Sumanta Chaudhuri Counsellor, 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

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Domestic Regulations and Multilateral negotiations

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  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

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