./.RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPDR/W/5
19 May 2000
(00-2053)
Working Party on Domestic Regulation Original:  English
COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES
Applicability of the Disciplines on Domestic Regulation in the
Accountancy Sector to other Professional Services
The following communication has been received from the delegation of the European
Communities and their Member States with the request that it be circulated to the Members of the
Working Party on Domestic Regulation.
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Background
1. GATS Article VI:4 calls upon the CTS to develop disciplines aimed at ensuring that
qualification requirements and procedures, technical standards and licensing requirements do notconstitute unnecessary barriers to trade in services.  In December 1998 the CTS adopted the
Disciplines on Domestic Regulation in the Accountancy Sector  pursuant to Article VI:4 of the GATS.
2. Following the proposal of the Working Party to consult relevant authorities and bodies on the
development of disciplines on domestic regulation, the EC has sent out a questionnaire, seeking
comments on the applicability of the Disciplines on Domestic Regulation in the Accountancy Sector
to other professional services. This note gives a short analysis of the replies received.
The questionnaire
3. The questionnaire followed in its questions the paragraphs of the Disciplines , asking to
indicate if, and how, these disciplines would apply to the profession, and where they were seen as
unfitting, and if so, in what way.
4. The replies received allow an interesting insight into the concerns of the professions. A
number of  European and national professional associations, national chambers and companies,
covering a wide range of professional service sectors, from different European countries commented
on the Accountancy Disciplines in detail.
Analysis
5. The responses given to the questionnaire show a general acceptance of the relevance and
usefulness of such disciplines by most professions. Some of the associations and companies are of theopinion that the Disciplines in their current form could cover their professions as well. Most of those
responding regard the Accountancy Disciplines as a useful starting point, bearing some relevance for
their profession. Only very few associations/companies feel the Accountancy Disciplines to be totally
inappropriate for their profession.S/WPDR/W/5
Page 2
6. Some concern was expressed that the application of the Accountancy Disciplines to other
professions could lead to a lowering of qualification requirements, and some fear a weakening of
consumer protection.
7. Professions which, in their structure, are somewhat more similar to the accountancy
profession, like as lawyers, or engineers, are seen as more suitable being covered by the Disciplines
than those professions which are very distinct from accountancy, such as, for instance, medical
doctors. The consumer interest in the latter professions is seen by some as being “paramount and far
greater than for accountants”. However, even within professions which are more concerned, there
where responses which acknowledged the general approach of the Disciplines , such as the focus on
the principles of rule of law and proportionality which would make them applicable to almost any
regulated profession.
8. A clear tendency in favour of the application of the Disciplines  to other professions is
obvious.  However, some professional associations, while recognising the overall general nature of
the Disciplines,  favour a-sector-by-sector approach as opposed to a horizontal approach, in order to
allow the specific requirements and conditions of the various professions to be taken into account.
Summary and possible follow-up
9. The analysis of the replies to the questionnaire is encouraging and shows that a great deal of
work has already been done in the WPPS/WPDR by drawing up the Disciplines on Domestic
Regulation in the Accountancy Sector . It showed that the Disciplines  are not only a useful starting
point for the extension of them, but actually are seen as well defined rules which, with some
modifications, could be applied to other professi ons.  A sector-by-sector approach would, however,
increase the acceptance of disciplines by the concerned professions. Sectoral annexes to a core set ofhorizontal disciplines on domestic regulation in the area of professional services could be a sensible
solution. The specificities of the various professions can be taken into account and the general
acceptance of the applicability of the Disciplines to other professional services would probably be
higher.
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