WORLD TRADE  
ORGANIZATION  S/WPDR/7 
26 November 2004 
 (04-5148) 
Working Party on Domestic Regulation  
 
 
 
ANNUAL REPORT OF THE WORKING PARTY ON DOMESTIC REGULATION  
TO THE COUNCIL FOR TRADE IN SERVICES (2004) 
 
 
1. Since the annual report of 2003 to the Council for Trade in Services, the Working Party on 
Domestic Regulation (WPDR) held four fo rmal meetings and one informal meeting1.  Both formal 
and informal papers have been submitted to the Work ing Party.  The formal papers were submitted by 
the Secretariat,2 Australia,3 Colombia,4 and  Mexico.5  Informal papers were submitted by Australia;6  
the Chairperson;7  Hong Kong, China;8  New Zealand;9  the Secretariat;10  and the United States. 11 
2. At the formal meeting on 31 March 2004, Members approved the appointment of 
Mr. David Cairns of the United Kingdom as the new WPDR Chairperson, replacing the previous 
Chairperson, Mr. Johannes Bernabe of the Philippines.   
I. ORGANIZATION OF FUTURE WORK 
3. At the formal meeting on 24 June, 2004, the Chairperson  gave an overview of the informal 
WPDR meeting held on 8 June 2004.  He reporte d that there had been a good discussion, based on a 
Chairperson's Note (JOB(04)/63 dated 26 May 2004).  
4. Members confirmed they wished to make pr ogress in the Working Party in the Round and 
during the year, and that the approach should be conc rete, practical and deal with substance.  There 
was no need to prejudice the approach, especially in re gard to horizontal versus sectoral disciplines.  
A number of Members believed that some elements  for regulatory disciplines were missing, and they 
were encouraged by others to fill the gaps by co ming forward with papers.  Regarding the next stage 
of negotiations, there were some differences of vi ew on when the Working Party would be ready.  
There was, however, the general view that further progress would depend on receiving new 
submissions, the discussion of those submissions, and whether Members in the WPDR agree on how 
to proceed.  The dates in the Chairper son's paper were therefore indicative. 
5. Regarding the involvement of regul ators, delegations welcomed the Workshop on Domestic 
Regulation  (see below), and the benefits it had brought to  regulators, negotiators, and industry.  Some 
                                                      
1 Reports of these meetings are contained in documents S/WPDR/M/24 – 27.  They should be read in 
conjunction with this report. 
2 S/WPDR/W/26, dated 12  November 2003, and S/WPDR/W/27, dated 2  December 2003, respectively. 
3 S/WPDR/W/28, dated 22  June 2004. 
4 S/WPDR/W/29, dated 7  July 2004. 
5 S/WPDR/W/30, dated 24  September 2004. 
6 JOB (04)/137, dated 24 September 2004. 
7 JOB (04)/63 dated 26 May 2004. 
8 JOB(04)/24, dated 31 March 2004. 
9 JOB(03)/219, dated 3 December 2003, and JOB(04 )/136, dated 24 September 2004, respectively. 
10 JOB(03)/126/Rev.2, dated 17 June 2004;  JOB(02)/20/Rev.8, dated 16 September 2004;  and  
JOB(03)/126/Rev.3, dated 16  September 2004, respectively. 
11 JOB(04)/128, dated 15 September 2004. S/WPDR/7 
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 Members expressed interest in holding regional even ts.  There was agreement that the WPDR should 
consider such events at a late r stage, and that it was necessar y to take into account the overall 
programme of events.  With respect to technical work, delegations indicated general interest in 
compiling a bibliography on domestic regulation, as well as in listing the elements of free trade 
agreements relating to domestic regulation. 
II. DEVELOPMENT OF REGULATORY DISCIPLINES UNDER GATS ARTICLE VI:4 
6. With respect to the development of any necessary disciplines on domestic regulation, the 
Working Party further examined Japan's informal paper, Draft Annex on Domestic Regulation  
(JOB/(03)/45/Rev.1, dated 2 May), as well as the paper from the European Communities, Proposal 
for Disciplines on Licensing Procedures (S/WPDR/W/25, dated 10  July 2003).  The Working Party 
also further discussed the informal paper by Singapore, GATS Article VI:5 and its relation to the 
future Article VI:4 Disciplines  (JOB(03)/113, dated 11 June 2003).   
7. The Working Party discussed an informal  paper by Hong Kong, China, entitled Relationship 
of Regulatory Disciplines with National Treatment  (JOB (04)/24, dated 31 March 2004).   
8. Members commented on a formal paper by Co lombia (S/WPDR/W/29 dated 7 July 2004),  
entitled Examples of Measures Relating to Administrati ve Procedures for Obtaining Visas or Entry 
Permits .  The delegation of Mexico submitted a formal paper on technical standards, Mexico's 
Experience of Disciplines on Technical Standards and Regulations in Services  (S/WPDR/W/30 dated 
24 September 2004), which also received comments.  The delegation of the United States submitted 
an informal paper, Proposal for Transparency Discip lines in Domestic Regulation (JOB(04)/128), on 
15 September 2004 which also received preliminary comments. 
9. The Working Party discussed a paper by the Secretariat, entitled " Necessity Tests" in the WTO 
(circulated as document S/WPDR/W/27, dated 2 D ecember 2003).  Members also further reviewed 
the measures, including the additional examples pr ovided by delegations, listed in the informal 
Secretariat paper on Examples of Measures to be Addressed by Disciplines under GATS Article VI:4  
(the latest version is JOB(02)/20/ Rev.8, dated 16 September 2004).   
III. DEVELOPMENT OF DISCIPLINES FOR PROFESSIONAL SERVICES 
10. The Secretariat updated its compilation of the resu lts of the consultations  with international 
professional organizations concerning  the potential suitability of the Disciplines on Domestic 
Regulation in the Accountancy Sector  (S/L/64, dated 17 December 1998) for other professions.  The 
most recent version is JOB(03)/1 26/Rev.3, dated 16 September 2004. 
11. Members extensively commented on an informal paper by New Zealand, Implementation of 
Article VI:6 Obligations in Engineering Services  (JOB(03)/219 dated 3 December 2003.  The 
Working Party also discussed th e formal paper  by Australia, Professional Recognition in Australia  
(S/WPDR/W/28, dated 22 June 2004).  Members ma de further comments on the informal paper 
submitted by India on recognition issues (J OB(03)/192, dated 30 September 2003).   
12. No further comments were made on the informal Secretariat paper Synthesis of Results to 
Date of the Domestic Consultations in Professional Services  (the most recent version is 
JOB(02)/204/Rev.1, date d 21 February 2003).    S/WPDR/7 
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 IV. WPDR WORKSHOP ON DOMESTIC REGULATION 
13.   At the formal meeting on 31 March 2004, the Chairperson  asked the Secretariat to give a 
brief summary of the Workshop on Domestic Regulation , held at the request of the Working Party in 
Geneva from 29 to 30 March. 
14.   The Secretariat  representative said the objective of the Workshop  was to bring together and 
inform regulators, trade negotiators, and other re levant officials of the background and progress to 
date of the work taking place in the WPDR.  There were between 300 and 350 participants.  
Discussions focused exclusively on technical and le gal aspects, and did not attempt to duplicate the 
discussions taking place in the Working Party.  With financial assistance from the Government of 
Flanders, the WTO financed 97 capital-based partic ipants from developing countries.  There were 
18 presentations at the Workshop , including from UNCTAD, the OECD, representatives of domestic 
and international professional associations, academics and the Secretariat.  All presentations were 
posted on the WTO website.   
15. Delegations thanked the donors, the speakers, th e Chairperson, and the Secretariat, and made 
many specific comments, as recorded in the Report on the meeting (S/WPDR/M/25).   
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