./.WORLD TRADE
ORGANIZATIONS/CSS/W/52
14 March 2001
(01-1409)
Council for Trade in Services
Special SessionOriginal:  English/
French
COMMUNICATION FROM CANADA
Initial Negotiating Proposal on Professional Services
The attached communication has been received from the delegation of Canada with the
request that it be circulated to Members of the Council for Trade in Services.
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1. Canada reserves the right to modify this pro posal at any time. This proposal does not prejudge
Canada’s position on other service sectors, nor any future offer on this or other sectors. This proposal
should be read in conjunction with the principles and objectives as outlined in Canada’s initial
negotiating proposal.
A. INTRODUCTION
2. The purpose of this proposal is to stimulate discussions toward seeking improved conditions
for the treatment of professional services in the context of the current round of the GATS
negotiations.
B. IMPORTANCE OF PROFESSIONAL SERVICES
3. Over the past decade, there has been a marked increase in trade in professional services,
particularly on a cross-border basis. This increase is due in part to the recognition of the importance ofthis sector as contributing to inward investment and to overall economic growth in both developed
and developing countries alike, either through the involvement of professions in direct delivery of
services (legal or accounting advice to consumers and companies, etc.) or as necessary inputs to
broader development activities (engineering, architectural, urban planning services to construction,
mining and environmental projects, etc.).
4. Despite their growing importance, it is widely evident that trade in professional services by
foreign businesses and, in particular, individual professional service providers continues to be
hampered by a variety of regulatory measures. The protection of the consumer, as well as the need to
ensure competency and quality of service, are paramount considerations that underlie many
regulations. However, the extensive differentiation of regulations and their application oftenconstitutes serious impediments to trade.
C. S
ECTORAL COVERAGE
5. The following sub-sectors are included for consideration:
• engineering services (including integrated engineering);S/CSS/W/52
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• architectural services;
• urban planning and landscape architectural services;
• accounting, auditing and book-keeping services;
• taxation services (excluding legal services);
• foreign legal consultancy services (advisory services on foreign and international
public law);
• real estate appraisal services;
• management consulting services; and
• land surveying services.
D. PROPOSAL
6. The following is an illustrative checklist of issu es that Canada believes should form part of
the GATS negotiations. Improving conditions for the treatment of professional services is animportant area for renewed negotiating efforts. These efforts could be concentrated on a number of
inter-related fronts that are essential for any further expansion and liberalization in trade in
professional services.
• National treatment and market access restrictions: seek improvements in the quantity and
quality of commitments across modes 1, 2 and 3. Seek the elimination of overt discriminatory
requirements in the form of nationality and citizenship requirements and alternatives topermanent residency and residency to the extent that other less restrictive means are available
(i.e., collaboration with locals, bonding requirements to ensure recourse and agreements on
cross-border disciplinary actions). Canada has made a number of improvements in this area
including the development of licensing regimes to facilitate access for a number of foreign
service professionals (legal, engineering, architectural services).
• Facilitating entry (mode 4) of professional service providers: seek improvements in the
coverage for the temporary entry and stay of foreign professions. Canada has contributed a
separate proposal on mode 4.
• Mutual recognition of credentials: examine ways to encourage the development of mutual
recognition agreements between professional regulators and to ensure participation of all
WTO Members as a means to facilitate and improve access to foreign markets. The possibility
of extending the “Guidelines for Mutual Agreements or Arrangements in the Accountancy
Sector” to professional services in general could be a good starting point.
• Domestic Regulation (GATS VI:4): transparency assumes considerable importance given the
highly regulated nature of most licensed professions and the scope of administrative
discretion in the operation of licensing regimes. Canada is committed to continuing to work
within current and other bodies as appropriate to improve the openness of domestic regulatory
regimes. Canada will also continue to work toward the development of general disciplines
with the possibility of developing specific  disciplines to accommodate specific characteristics
of individual professions. In this regard, Canada has expressed interest in examining the
following professional services: engineering, architecture, legal, urban planning, real estate
appraisal and land surveying.
• Tools of the trade: examine the need for rules to allow for the temporary admission of
professional equipment necessary to carry out the service in a foreign market.
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