Participants in Services Regulation Talks
Outline Steps taken to Implement New Disciplines
Brazil,
China, Costa Rica and the United Kingdom presented how they are implementing services
domestic regulation disciplines at the national level at a virtual meeting of the
negotiations on services domestic regulation on 10 June. Participants also welcomed
the UK’s draft schedule of commitments, which indicates how it aims to incorporate
in its WTO commitments the disciplines under negotiation regarding licensing and
qualification requirements and procedures as well as technical standards for services
suppliers.
A group
of 63 WTO members(1) are
currently engaged in negotiations on disciplines which seek to ensure that domestic
regulation measures relating to qualification requirements and procedures, technical
standards and licensing requirements do not constitute unnecessary barriers to trade
in services. With the disciplines, participants seek to promote clear, predictable
and transparent procedures for trade in services, while guaranteeing flexibilities
to help governments implement the measures domestically and regulate according to
their national policy objectives.
The coordinator
of the negotiations, Jaime Coghi Arias of Costa Rica,
issued a revised "close-to-final" version of the negotiating text in December 2020.
He welcomed the participants' continued "positive engagement and commitment"
as they remain committed to achieving an outcome by the 12th Ministerial Conference
(MC12), to take place from 30 November to 3 December in Geneva.
Participants
reiterated that a broader participation in the talks would help widen the benefits
of the disciplines.
Brazil
told participants that its 2019 Economic Freedom Act confirms the country's commitment
to providing businesses with more transparency and certainty. It promotes the free
exercise of economic activities through a rational and efficient development of
regulations. In Brazil, when enacting or modifying a law or regulation, competent
authorities carry out public consultations with interested stakeholders following
a regulatory impact assessment analysis. Certain moderate and high-risk economic
activities may be authorized following a risk assessment procedure.
China
outlined how its domestic requirements to submit and process applications, to publish
information, and to apply authorization fees sometimes go beyond the draft transparency
disciplines on services domestic regulation. The Chinese legislation seeks to improve
administrative efficiency and facilitate the processing of applications. Applications
for administrative authorization may be submitted electronically, and all requirements
and procedures are published on relevant websites to ensure transparency.
Costa
Rica noted that the development of its regulatory measures is carried out by authorities
in an independent, impartial and non-discriminatory manner, as laid out in its Constitution
and General Law of Public Administration. All public officials' decisions are subject
to review at the administrative or judiciary level. The institutional framework
also guarantees that all measures undertaken by the public administration are rational,
reasonable and proportional.
The UK
noted the conformity of its domestic regulatory system with the negotiated disciplines.
The UK government is committed to increasing access to electronic administrative
procedures and to consolidating information relevant for service suppliers (including
on fees, fixed timeframes, tacit authorization and contact points) in a single online
portal. The implementation of the UK Provision of Services Regulations also benefits
foreign businesses seeking to provide services or to establish themselves in the
UK.
In presenting
its draft schedule, the UK explained that the streamlined processes under discussion
would benefit all WTO members by reducing the costs and uncertainties associated
with trading internationally. The UK aims to apply the domestic regulation disciplines
to all sectors committed under the WTO's General Agreement
on Trade in Services (GATS) and remains committed to securing an outcome
on domestic regulation services by MC12. The delegation expressed support for the
inclusion of a clause to promote non-discrimination between men and women as women
have generally been disproportionately affected by the COVID-19 crisis.
Up to
now, a total of 32 indicative schedules have been submitted, representing 58 WTO
members. Canada, Japan and the European Union
shared their implementation experiences at a virtual meeting
on 10 May. Australia, the Republic of Korea, Turkey and the United States
did so at a virtual meeting
on 10 April.
Pointing
to the importance of outreach to help in raising awareness about the ongoing negotiations
on services domestic regulation globally, Canada reported on a webinar co-organized
with the Eastern Caribbean States in May. The event showed how reducing regulatory
barriers and increasing transparency and predictability in services trade can benefit
economies of all sizes. As co-host of the webinar, the Organisation of Eastern Caribbean
States highlighted the importance of domestic regulatory reform in helping
to support high quality services in the Caribbean region so that firms can better
access global markets.
Reporting
on a webinar entitled "Strengthening
institutional and regulatory capacities for services trade" hosted
by the International Trade Centre in early
June, Mr Coghi said that work
on services domestic regulation is being carried out in various fora, including
the Asia-Pacific Economic
Cooperation , the European Union and the Organisation for Economic Cooperation and Development . He
noted the role of transparent, clear and predictable services regulations in helping
businesses – especially micro, small and medium sized enterprises – reduce regulatory
compliance costs.
Background
Ministers
from 59 WTO members launched negotiations at the 11th Ministerial Conference held
in December 2017 in Buenos Aires. In May 2019, ministers meeting on the side lines
of the Organization for Economic Cooperation and Development meetings confirmed their commitment to delivering
a meaningful outcome by MC12.
1.
Albania; Argentina; Australia; Austria; Belgium; Brazil; Bulgaria;
Canada; Chile; China; Colombia; Costa Rica; Croatia; Cyprus; Czech Republic; Denmark;
El Salvador; Estonia; European Union; Finland; France; Germany; Greece; Hong Kong,
China; Hungary; Iceland; Ireland; Israel; Italy; Japan; Kazakhstan; Korea, Republic
of; Latvia; Liechtenstein; Lithuania; Luxembourg; Malta; Mauritius; Mexico; Moldova,
Republic of; Montenegro; Netherlands; New Zealand; Nigeria; North Macedonia; Norway;
Paraguay; Peru; Poland; Portugal; Romania; Russian Federation; Saudi Arabia, Kingdom
of; Slovak Republic; Slovenia; Spain; Sweden; Switzerland; Separate Customs Territory
of Taiwan, Penghu, Kinmen and Matsu; Thailand; Turkey; Ukraine; United Kingdom;
and Uruguay