WORKSHOP on Implementation of Vietnam s WTO Commitments on Trade in Services Implementing the WTO Commitments in the

1. 1 WORKSHOP on Implementation of Vietnam�s WTO Commitments on Trade in ServicesImplementing the WTO Commitments in the Area of Trade in Services : International Experience and Challenges for VietnamHa Noi, 23. January 2008 by Dr. Dietrich Barth MUTRAP Key EU Expert

2. 2 6 Steps for Implementation of Vietnam�s GATS obligations and Commitments:(1) Review of GATS Obligations and Commitments(2) Status of relevant Vietnamese legislation and regulation (all forms of legal documents) (3) Analysis of GATS-Consistency of Legislation/Regulation (4) Proposals for Legislative Action(5) Legislative Action(6) Enforcement and Universal Practical Application 

3. 3 Vietnam is under the legal and political obligation to implement its WTO obligations in national law: Vienna Treaty Convention WTO Treaty Vietnam Treaty Law National Assembly Resolution No. 71/2006 Post WTO Action Plan Economic Trade and investment interests Need to ensure future respect of GATS obligations; no new trade barriers The need to implement

4. 4 Difficulties of GATS implementation Need for better understanding and political will in some quarters General GATS obligations affect many horizontal laws Negotiated commitments (market access, national treatment) in 11 major service sectors and 110 sub-sectors affect sector-specific legislation Complexities of Vietnam�s legal system Decentralisation of administration GATS implementation is a permanent excercise (implementation at present and future) More legislative efforts required

5. 5 Legal framework for GATS-implementation in Vietnam Legislative progress already 2005/2006 Treaty Law 2005: priority of international treaties over conflicting national law Enterprise Law, Investment Law, Commercial Law, Law on Foreign Exchange etc. Progress in horizontal and sector-specific legislation (general GATS obligations on MFN, transparency, banking, insurance, securities, express delivery, transport services) No or slow progress in other sectors

6. 6 Different legislative approaches Treaty Law and NA Resolution 71/2006 provide for different options: Classical method:sector- and issue-specific transformation into national law Direct application of GATS law; condition: sufficiently detailed and clear; first attempt by NA Resolution 71 on specific issues of 6 laws General rule of priority of treaty law over conflicting national law Omnibus trade bill method More discussion later (Mr. Ngoc, MoJ)

7. 7 General GATS obligations GATS scope and coverage: all commercially tradable services, except services provided in exercise of governmental authority, air traffic rights, measues related to entry, stay and employment markets 4 modes of delivery MFN Transparency Domestic regulation Disciplines on licensing procedures Progressive liberalisation Need to implement at all levels of Government

8. 8 Vietnam�s horizontal GATS commitments (market access, national treatment) Commercial presence (mode 3): relevant for Vietnam�s foreign investment regime; important legislative changes under way; Movement of persons (mode 4):relevant for Vietnam�s immigration and labour market regime, although GATS does not affect domestic legislation on immigration, stay and employment of foreignetrs; legislative changes under way; GATS-consisteny difficult.

9. 9 International Experience WTO Members require notification and precise explanation of national implementation measures (legislation, regulation and practice); Risk of Dispute Settement Procedures and possible trade sanctions in case of non-compliance; recent examples: China conflicts with US and EU on IPRs etc, Mexico case Many countries have difficulties with implementation of WTO obligations. �Doha Development Round has recognised this and is negotiating on specific measures to alleviate the burden, in particular for least developed countries. No definite results yet. Details on specific issues regarding GATS implementation available in WTO Trade Policy Reviews and a few dispute settlement cases WTO interested in legally and practically correct implementation of GATS commitments, but not in ways and means how Member States do it. Relevant for Vietnam�s discussion on legal options for implementation. Almost all countries implement GATS obligations through specific transformation into national law.

10. 10 Main recommendations for action According to international legal obligations and NA mandate: Further accelerate implementation (which should have been concluded on the date of accession, i.e. 11. January 2007) Identify remaining gaps and inconsistencies between Vietnam�s services legislation/regulation and WTO obligations in all service secors, including 110 subsectors, covered by Vietnam�s GATS commitments Adopt WTO-consistent legislation/regulation, including implementing regulation, where necessary Ensure future WTO-consistency of legislation/regulation Raise awareness on WTO obligations and commitments at all levels of legislation, administration, judiciary, business and other stakeholders.

11. 11 THANK YOU