RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPDR/M/5
18 May 2000
(00-2027)
Working Party on Domestic Regulation
REPORT ON THE MEETING HELD ON 13 APRIL 2000
Note by the Secretariat
1. The Working Party on Domestic Regulation held a meeting on 13 April 2000.  The agenda for
the meeting is contained in Airgram WTO/AIR/1281/ REV.1.  Following the appointment of the new
chairperson, Members continued their discussion of necessity, transparency and other conceptsrelating to the development of regulatory  disciplines.  The OECD made an informal presentation of
their work on regulatory reform and a new paper on regulatory transparency.   Members then reported
on domestic consultations with professional services organizations regarding the potential horizontal
applicability of the accountancy disciplines.
(a) Appointment of Chairperson
2. The first item on the agenda was the appointment of the new Chairperson of the Working
Party.  The previous Chairperson, Paul Robertson of Canada, noted that the Council for Trade in
Services had agreed that Sergio Escudero of Chile would be the new Chairperson of the WPDR.
Mr. Robertson noted the progress made by the Working Party, and thanked Members and the
Secretariat for their efforts and cooperation.  He then asked Mr. Escudero to take the chair.
3. Members thanked Mr. Robertson for his efforts over the past year, and complemented
Mr. Escudero on his appointment.
(b) Discussion of Concepts Relating to the Development of Regulatory Disciplines
4. The new Chairperson observed that at the previous Working Party meeting in February,
Members made preliminary comments on a new informal paper from the European Communities,
circulated as Job No. 1061, dated 24 February, 2000.  Members also requested that the OECD be
asked to make a presentation of their current work on regulatory transparency.  Canada had since
circulated their comments from the meeting as an informal paper, Job No. 2198, dated 10 April 2000.
5. Switching first to informal mode, the Chairperson invited the OECD to make its presentation
concerning recent work on services and regulatory reform, including the OECD paper entitled
Strengthening Regulatory Transparency:  Insights fo r the GATS from the Regulatory Reform Country
Reviews .  Following the presentation, the Chairperson emphasized three aspects of the OECD's work:
analyzing the role of transparency;  evaluating current transparency mechanisms;  and outlining
existing multilateral rules.  He noted that the six principles for regulatory transparency identified in
the OECD paper were based on principles derived from the GATS and the TBT agreement.  Members
then expressed their appreciation for the presentation, with several making specific comments, and
urged continued cooperation between the Working Party and the OECD.
6. Before next opening the floor to general informal discussion, the Chairperson noted that
during previous Working Party discussions several major points had arisen, especially concerning
whether Members should focus on legitimate objectives other than those specified in the TBT and
SPS agreements;  the "third aspect" of the necessity test (i.e. the idea that a measure that has the effectof restricting trade can be considered "necessary" only if there is no alternative measure lessS/WPDR/M/5
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disruptive of trade which a Member may reasonably be expected to employ to achieve the same
policy objective);  and the issue of potential additional legitimate objectives.  Several delegations then
presented their views, speaking in informal mode;  the United States also introduced a new paper on
possible disciplines on transparency, subsequently issued as WTO document S/WPDR/W/4, dated
3 May 2000.
7. In summarizing the discussions, the Chairperson stated that the Working Party was grateful
for the paper received from the OECD.  Several de legations had not only raised specific questions on
the paper, while expressing their own views, but had also referred to future OECD work on these
matters.  Discussion then continued on items which had been discussed at the previous WPDR
meeting, essentially the necessity test and different aspects thereof, as well as on transparency issues.
The US proposal on transparency had been presented, and other delegation referred to certainelements which that delegation believed should form part of the Working Party's discussions,
e.g. publication and notification of measures affecting licenses and authorizations, the possibility of a
"question and answer" regarding such measures, and the establishment of standards.
8. One delegation referred to the mandate contained in Article VI:4 as defining the limit of the
work on transparency.  Another delegation referred to the potential administrative burden of any new
transparency measures, not only with respect to deve loping country capabilities, but also in regard to
the effects on local as well as central governments.  Some delegations referred to legitimate
objectives, and the issue of whether a listing of such objectives was needed.  One delegation noted
that many of the examples that had been suggested were very broad-ranging, and therefore doubtscould be raised over the effectiveness of including such objectives.
9. In concluding, the Chairperson suggested that Members update their proposals, in order to
reflect the contents of the meeting's discussions.
(c) Development of General Disciplines for Professional Services
10. Returning to formal mode, Chairperson noted that Members had agreed at the last meeting to
have the Secretariat consolidate their recommendations of relevant international organizations for
consultation.  This compilation was circulated in draft form on 6 April, as Job No 2139.  The
compilation included summaries of readily available background information on each organization.
11. Before opening the floor for comments on the Secretariat compilation, the Chairperson
observed that the agreed deadline for communicating the results of the Members' own consultations
with domestic professional organizations was 31 March 2000.  As no communications had yet been
received as of the meeting, Members therefore needed to decide on the next steps to take.  As part of
that process, he urged Members to describe to the Working Party their progress to date.
12. The delegation of Australia stated they were in the process of finalizing their survey, and
should complete it in about the next two weeks.  The representative of Uruguay expressed
appreciation for the Secretariat compilation.  His government was still consulting, but three replies
had been received so far, from engineers, notaries and universities.  These replies would soon be
submitted to the WTO.  The representative also su ggested two additional organizations to add to the
Secretariat compilation.
13. The delegation of Hong Kong, China said that they had consulted with 28 professional
services bodies, and had a good response rate.  With a few exceptions, the responses indicated strong
support for the creation of multilateral disciplines, and general acceptance of the principles containedin the accountancy disciplines.  A submission of the responses would soon be made to the WTO.
14. The representative of Mexico recalled that Mexico had previously expressed reservations on
the Secretariat consultations, notably the concern that they might pre-empt the domestic consultations.S/WPDR/M/5
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He said his government had received three replies to date, in the areas of engineering, architecture and
medicine, and was trying to complete their consultations.
15. After suggesting an addition to the Secretariat compilation, the representative of Poland said
that his government had almost finalized, and would soon submit, the report on its domestic
consultations.  The consultations included tax advisors, medical, dental, veterinary, real estate
associations and others.  Some associations were ready to adopt the disciplines, while others
proposed amendment to several of the provisions.  Concern was expressed by some on the effects of
the disciplines on ensuring the quality of the service.  It was recommended by at least one association
that the disciplines be accepted without amendment, in order to ensure the overall balance of rights
and obligations.
16. The representative of the European Communities said the Commission had consulted with
both European and national associations.  As preliminary comments, there was a  general acceptance
of the relevance of the accountancy disciplines, and they were considered a useful starting point.
Some concern was expressed, however, over the potential weakening of qualification requirements
and consumer protection.  The general approach of the disciplines made them widely acceptable, butsome said they favoured a sector-by-sector approach.  The accountancy disciplines were an excellent
starting-point for the creation of new disciplines.
17. The representative of Thailand (speaking on behalf of ASEAN) said the goal of consultations
was to consider the potential horizontal applicability of the accountancy disciplines, not to harmonize
standards across nations.  Therefore, the definition of international organizations contained in the
footnote to GATS article VI:5(b) was probably not  applicable to the Working Party in this case.
18. The representative of the United States said they had consulted with four bodies representing
architects, engineers and surveyors, which had found the disciplines generally appropriate to their
professions.  Regarding international organizations, he suggested the Secretariat send a letter to
several organizations enquiring about the general applicability of the accountancy disciplines.  The
delegate said the initial list of those to be consulted should be kept short, in order to test the process,
suggesting the International Union of Architects, the International Federation of Consulting
Engineers, the World Federation of Engineering Organizations and the International Bar Association.
19. The representative of Argentina said his government had consulted with 15 organizations, but
had received very few replies to date.  Further time was needed for the consultations.  In regard to the
Secretariat consultations, his government reserved its rights, enquiring whether the consultations
might be better limited to the criteria specified in the GATS footnote, i.e. contacting only those
organizations whose membership is open to at least all Members of the WTO.
20. The representative of Brazil said their government had contacted around 30 organizations,
receiving three answers to date from the national federations of liberal profession, doctors and
paramedics.  The responding organizations considered the accountancy disciplines to be generally
satisfactory, but expressed some concerns over changes needed to ensure consumer protection and the
quality of the service.  On the Secretariat consultations, the delegation shared Argentina's concerns
21. The representative of Mauritius expressed his support for the U.S. proposal on Secretariat
consultations.
22. The representative of New Zealand said his government was continuing with domestic
consultations, and that the deadline was only an indicative one.  His government was reviewing the
list and criteria for Secretariat consultations.  He said that the Secretariat consultations should be
considered to be for background purposes only, and not representative of Member viewpoints.  They
should not be regarded as a substitute for domestic consultations.S/WPDR/M/5
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23. The representative of Guatemala said that no answers had yet been received by her
authorities, but that they would be forthcoming.  In regard to the Secretariat consultations, she also
suggested that the criteria in the GATS footnote should be used.
24. In summarizing the discussions, the Chairperson observed that many delegations had
provided information on the progress made in their domestic consultations.  The progress varied, with
many delegations expecting to provide additional in formation in the near future.  Some delegations
stated they wished to abide by the parameters of  the GATS footnote in regard to the Secretariat
consultations.  One delegation wished to see the internal consultation processes concluded before the
Secretariat contacted international organizations.  Another delegation suggested four organizations for
the initial consultations;  due to lack of time, however, further discussion on this topic would have to
be postponed until the next meeting.
25. The Chairperson concluded by stating that Members would take up all these issues for further
discussion at the next meeting.
(d) Request for Observer Status from the International Association of Insurance Supervisors
26. The Chairperson observed that the previous Working Party meeting had noted that a request
for observer status had been received from the International Association of Insurance Supervisors.
This request was contained in Job No. 779, dated 10 February 2000.  This Association was also
requesting observer status from the Committee on Financial Services.  Members again agreed to savethe issue for the next meeting.
(e) Date of Next Meeting
27. The Chairperson noted that Members had requested in the Council for Trade in Services that
meetings of subsidiary bodies be grouped close to meetings of the Council, with the dates of Council
meeting for the remainder of the year set in advanc e.  In accordance with this request, the Chairperson
suggested that the next meeting also be held be fore the Council meeting, which was scheduled for
26 May.  Members approved the suggestion.
(f) Other Business
28. The Chairperson stated that he would be presenting an oral report to the next day's Special
Session of the Council for Trade in Services, toge ther with other chairpersons of the subsidiary
bodies.  He noted that he would make the repo rt on his own authority, unless Members had any
objections.  No objections were received.
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