Transparency and Domestic Regulation Mina Mashayekhi Division on International Trade UNCTAD

Why transparency is important? Regulatory transparency is key to good governance Basic principle underlying the trading system Enhanced predictability of the trading environment Making specific commitments more effective Removing bureaucratic impediments &ensuring economic efficiency An area where progress could be achieved horizontally Element of regulatory impact analysis &Tool for assessing necessity Particularly important for Modes 4 & 3

Transparency in the GATS GATS is a …framework for …trade in services…under conditions of transparency Transparency in Article III: –Publication of all measures of general application –Notification: prompt/annually of new and changes –Enquiry points: for specific information Article IV : Contact points for developing countries –Commercial & technical aspects, recognition of professional qualifications& availability of technology Mandate under Article VI:4 (a) for development of disciplines to ensure: –Transparent criteria for qualification requirements & procedures, technical standards, licensing requirements Specific commitments

Transparency in specific services sectors: telecommunications Annex on Telecommunications Public availability of information on access and use of public telecom transport networks and services: –Tariffs –Technical information –Institutions – Notification, registration or licensing requirements Telecommunication Reference Paper Transparency of interconnection arrangements –Public availability of existing agreements or of a reference interconnection offer-procedures for interconnection

Transparency in the disciplines on DR in the accountancy sector Make publicly available information on: –competent authorities for licensing –regulated activities, requirements to obtain licence, technical standards, firms licensed in the jurisdiction Upon request, provide rationale in relation to legitimate objectives behind regulatory measures Best endeavor clause to allow for comments and consider them before adopting a measure Make public procedures for review of administrative decisions, including time-limits

Transparency in SPS Concerning measures: Include legislative, and subordinate, also procedural Publishing information at an early stage on all measures Prior notification and prior comment of measures: –Where there are no international standards, guidelines, recommendations –Where difference may be substantial between domestic and international standard Notification include objective and rationale for regulations Time given for comments and they are taken into account Local and non-government bodies expected to comply

Transparency in SPS Concerning procedures to check fulfillment of SPS Undertaken without undue delay National treatment guaranteed Public availability of information on established or anticipated processing time Applicant is fully informed about the process & requirements, deficiencies & corrective action - delays justified Fees are based on the cost of services Requirements for information are limited to what is necessary and reasonable Procedure for reviewing complaints

Transparency in TBT Related to technical regulations and procedures for assessment of conformity Similar provisions on prior notification and prior comment to SPS Agreement Differences include: Notification of regulations of local governments Code of good practice for standardizing bodies- notification of work programmes so interested parties could comment

Transparency in specific GATS modes of supply: Mode 4 Economic Needs Tests: –Defining criteria, procedures for application, guidelines for administration, providing information, establishing duration & review Transparent and objective implementation of visa (transparent&streamlined process) and work permit regimes; Classification in categories and occupations National treatment Requirements for procedures for recognition of qualifications

Transparency provisions in some regional agreements include: Contact points Advance publication and prior comment: –Responding to inquiries of interested persons on regulations –To extent possible, address in writing to prior comments from interested persons on draft regulations Administrative procedures Review and appeal

Transparency in the Sectoral Proposals & Requests Transparency elements in specific sectoral proposals:financial services –deadlines for processing of applications. –procedures for license and authorizations; –respond to inquiries on regulations to services suppliers –mechanism for appeal and review – opportunity for prior comment & inquiries –national treatment in procedures Transparency elements have been included in some requests

Examples: transparency Inability of interested parties (non-government) of other Members to communicate with government officials and obtain complete information Inadequate prior notice Non-transparent regulatory environment Unclear laws, unfair administration, ambiguous criteria Lack of information on subsides Non-transparent zoning regulations with impact on location Delays in approval Non-transparent regulations/standards for risk management

What is the optimal level of transparency ? Are GATS existing provisions not enough? Could Accountancy Disciplines apply horizontally? Cost and benefit of increased transparency? Administrative burden Prior comment-incompatible with regulatory and legislative systems of many countries Importance of Transparency for professional services and Mode 4 ? Allowing for differences in development? Key regulatory challenges need to be addressed nationally