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S/WPDR/M/57  
 
7 May 2013  
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Working Party on Domestic Regulation    
 
 REPORT OF THE MEETING HELD ON 21 MARCH 2013 
NOTE BY THE SECRETARIAT1 
The Working Party on Domestic Regulation (WPDR) held a meeting on 21 March 2013, chaired by 
Mr Kerem Alp of Turkey. The meeting was closed by the new Chairperson Ms. Virag Halgand Dani 
of Hungary. The agenda for the meeting was contained in airgram WTO/AIR/4091 dated 
11 March 2013. An annotated agenda for the meeting was circulated in JOB/SERV/143 dated 
12 March 2013. The agenda was adopted as proposed. 
1  ITEM A - DEVELOPMENT OF REGULATORY  DISCIPLINES UNDER GATS ARTICLE VI:4 
1.1.  The Chairman noted that there were two sub- items under this point of the agenda. First, the 
discussion of technical issues submitted by Members. Second, the Regulatory Issues Note 
prepared by the Secretariat, as contained in document S/WPDR/W/48 dated 13 June 2012. 
1.2.  For the technical discussions, the Chairman pr oposed that, as on past occasions, this item 
would be undertaken in informal mode so as to allow for an easier and more open exchange of 
views. He highlighted that Members had three main areas of work. First, Members had the opportunity to provide any additional comments on the themes considered at the previous meeting 
on 5 December 2012. These themes were verification and assessment of qualifications; 
identification of deficiencies of qualifications; and examinations. Second, a group of Members had submitted a room document (RD/SERV/88) on th e implications of discussions from November 
2011 till December 2012 on the draft disciplines. Th ird, in accordance with the indicative work 
plan, the questions to be addressed at this meeting were those under the themes of technical 
standards and general provisions. Discussions on the questions continued in informal mode. 
1.3.  On the Regulatory Issues Note, the Chairman recalled that, at the last meeting, it was agreed 
that the Note should be discussed in parts. He reca lled that a provisional schedule, as contained in 
JOB/SERV/134, had been circulated. For this meeting, Members would address the parts of the Note on architectural services; construction and related engineering services; legal services; 
accountancy services; educational services; and mode 4. Before opening the floor, the Chairman 
also announced that as requested, the Secret ariat had circulated a supplementary Note on 
"Services-related regulatory challenges faced by developing countries" (S/WPDR/W/51). This Note had been programmed for discussion as from the next Working Party meeting onwards. 
Nevertheless, as it had been provided early by the Secretariat, Members might already wish to 
take relevant issues in this meeting. The Chairman also recalled that as had been requested by Members, the Secretariat would provide additional information on regulatory issues relating to 
health services before the next meeting. The Se cretariat was invited to introduce the sectors and 
mode of supply to be discussed at the meeting.  
1.4.  The Secretariat explained that the sectors grouped for discussion at this meeting related 
mainly to professional services. The accountancy  and legal services sectors shared a number of 
common features and had many similar regulatory aspects, with the focus on ensuring the quality of the service and consumer protection. These assu med particular importance when it came to the 
verification of competence and the recognition of qualifications. Architecture, construction and 
related engineering services shared some of thes e aspects but in a sector where the output would 
be of a physical nature, other regulatory frameworks such as zoning, building codes, 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/WPDR/M/57 
 
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  environmental regulation, and so on, would also be applicable. In this and other sectors, the 
question was the extent which regulatory co-operation could build bridges and reduce the incidence of regulatory diversity am ongst markets and jurisdictions.  
1.5.  Education services, had many interesting aspects in its own right, some of which related to 
professional services. An important regulatory aspect of this sector related to quality assurance, 
the standards of which might vary from one coun try to another. The relationship between the 
education sector and the employment market in terms of recognition of qualifications would also 
be critical to employment opportunities. Again, a key consideration would be the extent which 
regulatory co-operation might be a way to reduce trade frictions. Finally, the relationship between 
mode 4 and the other sectors was quite evident sinc e it related to the mobility of natural persons. 
An important aspect of the regulatory issues raised here concerned those that might be said to be 
under the immigration regulatory framework. While mode 4 did not extend to immigration, all the 
regulatory measures which applied to mode 4 were usually within the realm of immigration regulation. It was underscored by the representative of the Secretariat that while the Note had 
tried to stimulate discussion, the most important part of this exercise would be the views, 
experiences and perspectives of Members. Any obse rvations or corrections to the Note would be 
gratefully received.  
1.1  Architectural services 
1.6.  The Chairman pointed out that in architectural services regulations usually focused on 
ensuring the quality of the service provided an d consumer protection.  As such, the assessment 
and recognition of qualifications and experience , and standards on professional conduct assumed 
particular importance. It was highlighted that the relevant sections are contained in paragraphs 48 
to 56 of the Note.  
1.7.  The representative of Australia stated that persons wishing to practice as architects in the 
country had to be registered. Usual requirements would be a degree from an accredited school of 
architecture, as well as specific professional experience requirements. Persons with qualifications in architecture obtained outside Australia would be assessed in terms of their equivalence with an 
Australian qualification. This might include an interview process. 
1.8.  In discussions with industry, Australian authorities had been informed that multiple 
regulatory requirements impacted on the country's  architectural trade. While other countries might 
have similar licencing requirements to Australia, the key regulatory barrier faced by Australians 
seeking to work overseas was the non-recognition of foreign, or Australian, qualifications. Efforts 
by Australian industry in recent years had focused on initiatives to facilitate mutual recognition agreements, such as the APEC Architect initiative which provided a framework for reciprocal 
exemptions from professional recognition requirements between eligible APEC economies. Mutual 
recognition agreements, however, could be onerous and time-consuming to negotiate, and so the industry had stated that greater cooperation between regulators and academic institutions would 
be needed.  
1.9.  Once Australian architects obtained authorisation to practice in a foreign country, one of the 
key regulatory hurdles faced would be mandatory fee structures. In Australia, a fee structure based on a pre-agreed percentage scale of the total building costs was common practice. In other 
countries, however, a fixed fee system would be required. This created difficulties as it often did 
not take into account the total costs incurred over the life of the project. 
1.2  Construction and related engineering services 
1.10.  On construction and related engineering se rvices, the Chairman pointed out that the sector 
was subject to many different aspects of domestic regulation, in the form of licences, 
authorizations and registrations to supply construction services, as well as requirements in respect 
of professional qualifications and experience. Health, environmental and safety standards were 
also important considerations. He highlighted that construction and related engineering services were discussed in paragraphs 120 to 138 of the Note. 
1.11.  The representative of Turkey reported that their Ministry of Environment and Urban 
Planning had reviewed the relevant chapters of the Secretariat's Regulatory Issues Note. The S/WPDR/M/57 
 
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  definitions and analysis contained therein focused on the supply of services on a project basis by 
professionals. However, other related services ex isted such as “technical consultancy services”, 
which were different from project design or actual construction. To reflect the diversity of the various professions involved (architects, engineers,  technical consultants, builders), the document 
ought to provide a conceptual definition of these distinct occupations, and clarify their differences 
and overlaps. Especially in the construction se ctor, the related architectural and engineering 
services often involved also consultancy services. Usually the latter did not require the same level 
of professional qualifications or owners hip of the entire construction project. 
1.12.  The representative of Chinese Taipei concurred with the comment made in the Secretariat 
Note that most Members had their own qualificatio n requirements in order to ensure safety and 
quality in construction. Service suppliers engaging in such work often had to obtain a license. 
National licensing schemes differed, reflecting different national conditions and business 
environments. For example, Chinese Taipei's “Professionals and Technologists Examination Act” provided that foreign suppliers wishing to provide construction or engineering services in its 
territory had to pass an exam and comply with relevant practical-training requirements before any 
licence could be issued. She explained that Chinese Taipei was actively promoting a mutual recognition mechanism with other Members in the Asia-Pacific region, which could positively 
contribute to the cross-border movement of architects and engineers. The relevant Committee had 
already been established. In the future, the la tter would be able to handle, on behalf of 
governments, all aspects relating to the certification and registration of qualified Asia-Pacific and international engineers, thus facilitating their cross-border practice. 
1.13.  Recalling his delegation's strong interest in this sector, the representative of Japan stated 
that, given the close linkages between construction  and related engineering services, delegations 
should concentrate on regulatory matters in both subsectors in a comprehensive manner so as to 
allow business to supply better types of services. 
1.14.  The representative of Australia reported th at her delegation had been informed by industry 
that multiple regulatory requirements impacted on Australia’s trade in construction and related 
engineering services. Some of the issues cited by  industry included the lack of recognition of 
qualifications of professionally qualified project team members, unduly onerous licensing requirements for construction firms and subcontractors, and unduly onerous visa procedures. 
1.15.  The representative of the European Union noted that the European Commission report 
referred to in paragraph 130 of the Secretariat No te predated the introduction of the Services 
Directive in 2006. The latter covered construction and related engineering services and significantly reduced the administrative burden for service suppliers from one EU Member State 
wishing to provide services, or establish, in the EU. For instance, the Services Directive had 
introduced Points of Single Contact for businesses in each EU Member State. Through these points, 
service suppliers could easily find out about the rules, regulations and formalities applying to a 
given service activity and complete the administ rative procedures online, by submitting the 
necessary application forms and supporting documents electronically.  
1.16.  The representative of Chile explained th at, for more than 30 years, the professional 
associations in Chile had not had any role in regulating specific sectors. The right to exercise a 
profession in Chile was not linked to any licensing, examination or subsequent review by any 
professional association or board. Access to a profession was usually linked to having the necessary education and training (academic title, etc.). This did not mean, however, that there 
were no types of, voluntary or mandatory, standards in any given sector. Within the sectors under 
consideration at this meeting, perhaps the only one where Chile had more specific regulation was construction. For example, specific regulation applied to all types of construction in earthquake-
prone areas.  
1.3  Legal services 1.17.  On legal services, the Chairman recalled that as an accredited profession, its supply was 
often subject to many regulatory requirements. These typically sought to protect the consumer, 
ensure competent and ethical conduct, safeguard public interest through the effective 
administration and the rule of law. He highlighted that the relevant section in the Note was contained in paragraphs 22 to 37.  S/WPDR/M/57 
 
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  1.18.  The representative of the European Union agreed with the observations set out in the 
Secretariat Note with respect to legal services, noting that many of these applied more broadly to 
other professional services. The representative re iterated his delegation's commitment to drawing 
up effective disciplines on domestic regulation, and noted the particular importance of international 
regulatory convergence, including the recognition of professional titles. Within the European Union, 
the Services Directive had tackled a range of such regulatory issues, addressing important matters beyond those described in GATS Article VI:4, such as competition-related measures requiring 
minimum or maximum fees, or the obli gation to supply other services.  
1.19.  The representative of Australia said that a key barrier to the supply of legal services within 
its territory were the different regulatory regi mes applicable within its different states and 
territories. The assessment of foreign qualifications and experience varied considerably within 
these jurisdictions, which led to forum shopping by lawyers qualified elsewhere. Australia had 
made progress however in furthering the uniformity of regulations governing the admission of foreign lawyers within its territory. There existed, for example, the option of conditional admission, 
allowing a foreign lawyer to practice during a limited time or with respect to a specific area of the 
law. Abroad, burdensome registration requirements  were a frequent barrier to Australian lawyers 
seeking to supply legal services. These barriers included ambiguously expressed restrictions, 
onerous penalties, lack of transparency, and onerous visa procedures. 
1.4  Accountancy services 1.20.  Turning to accountancy services, the Chairman noted that this was yet another accredited 
profession where regulations were often directed at  protecting the public and promoting the quality 
of the service. Accountancy regulations also have an important role to play in the implementation 
and enforcement of prudential requirements and other financial measures. He highlighted that as explained in paragraphs 22 to 37 of the Note, it was a sector that had seen considerable 
development in the international regulatory framework since 2000.  
1.21.  The representative of Indonesia emphasiz ed that her country's accountancy regulatory 
framework was generally in keeping with the descrip tion in the WTO Secretariat’s Note. The sector 
was regulated by the State, with in some cases, multiple regulators for certain services (i.e. 
financial audit). Auditors, for example, must also obtain a practice license from the Ministry of Finance. Those wanting to offer audit services in the capital market must register with the capital market authority, while bank auditors must also be registered with the central bank (Bank 
Indonesia). 
1.22.  As indicated in the United Nations Central Product Classification, the main services offered 
by the accountancy service sector in Indonesi a were accounting, auditing and bookkeeping. 
Bookkeeping involved classifying and recording events or transactions which have financial impact 
on an institution or individual; accounting was concerned not only with recording but also with reporting the transactions/events in the form of financial statements as well as analyzing them 
(services included in this category are financial statements compilation, accounting advisory 
services, accounting system design and installation, etc); and auditing and assurance are services performed by an independent qualified person wh ose duty would be to express opinion on the 
fairness of a set of financial statements (services included in this category are general financial 
auditing, review of financial statements, attestation, etc.). 
1.23.  In Indonesia, most business establishment and some other institutions are required by 
statutory legislation to prepare financial statements. These must be prepared in accordance with a 
certain set of accounting standards as recognized by the legislation. These institutions included 
publicly listed companies, certain private limi ted companies, banks, insurance companies, 
charities, co-operatives, political parties, and universities. Some of the aforementioned institutions 
would be required to have their financial statem ents audited by a public accountant. There are 
three primary professional qualifications under the profession: Public Accountant, i.e. Indonesia’s statutory auditors who hold the exclusive right of being able to offer independent financial audit and to open a public accounting office; Registered accountant, for which the registration would be 
maintained by the Ministry of Finance; and Accounting Technician which would be the title used by 
skilled workers trained in bookkeeping. S/WPDR/M/57 
 
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  1.24.  There are two main groups of technical standards in the accountancy sector. Accounting 
standards are compiled and set by Ikatan Akuntan Indonesia (IAI, Indonesian Institute of Accountants). These standards are currently codified into three books: (1) General Financial Accounting Standards, which are mandatory for entities with public accountability such as banks, 
publicly listed companies, insurance companies, etc.; (2) Financial accounting standards for 
entities without public accountability; and (3) Financial accounting standards for Syariah. The General Financial Accounting Standards applied by Indonesia are already in conformity with the 
International Financial Reporting Standards (IFRS) issued by the International Federation of 
Accountants –International Accounting and Auditing Standard Board (IFAC – IAASB). 
1.25.  In addition, there was also the "Standar Akuntansi Pemerintah" (SAP, Governmental 
Accounting Standards), which are standards for governmental institutions. Regarding auditing 
standards, the Council for Professional Standard (DSP) of the Indonesian Institute of Public 
Accountants (IAPI) was currently compiling and setting the Public Accountant Professional Standards (SPAP). The technical standards applicable to public accountants when rendering 
professional services are codified in SPAP. These include: (1) auditing standards; (2) attestation 
standards; (3) review and accounting standards; (4) consultation standards; and (5) quality control standards. 
1.26.  The representative of Turkey provided information on regulatory aspects of accounting 
services, including on the Public Oversight, Acco unting and Auditing Standards Authority recently 
established in November 2011. This Authority was responsible for regulating accounting and auditing standards in Turkey. With the globalization of capital markets and the increased volume of 
international investment companies operating in the country, there was a need to provide high 
quality financial information to access financial re sources. Furthermore, internationally accepted 
and reliable financial information would also be necessary for the overseas customers of domestic 
companies. Therefore, Turkey aspired to harmonize its financial reporting standards with the 
international financial reporting standards. 
1.27.  In addition, the Public Oversight, Account ing and Auditing Standards Authority was also in 
the process of developing a new audit framework to  cover specific issues in approval, continuing 
education and mutual recognition; registration and professional ethics; auditing standards and audit reporting; quality assurance; investigations and penalties; and public oversight. The aim would be to develop and publish auditing standards in compliance with international auditing 
standards. The Authority ensured that all statutor y auditors and audit firms would be subject to 
principles of professional ethics, including integr ity and objectivity; professional competence; due 
care and secrecy. In addition to these gene ral principles, the Authority would determine 
professional ethical standards on the basis of principles contained in the International Federation 
of Accountants (IFAC) Code of Ethics. 
1.28.  Statutory auditors are required to take part in appropriate programs of continuing education 
determined by the Authority. Procedures and principles of continuing education would be regulated 
by the Authority on the basis of International Education Pronouncements published by IFAC. The Authority had also established an External Quality Assurance System, which are essential to ensuring audit quality. This system added credibility to the financial information presented and 
protected shareholders, investors, creditors and other interested parties. The external quality 
assurance system had been designed to be objective and independent from the auditing 
profession. In order to enhance the quality of au dits, the Authority, which was independent from 
the profession, would play an active role in the in spection of audit firms. All statutory auditors and 
audit firms are subjected to a system of quality as surance. This system had been organized so as 
to be independent of the reviewed statutory audi tors and audit firms, and was subject to public 
oversight.  
1.29.  The representative of Australia noted that the accountancy services sector had undergone 
recent major global governance reforms, driven in part by global responses to the financial crises. 
This resulted in bodies setting international accounting and auditing standards being more 
independent from the accountancy profession. Accounting services had moved from a model 
primarily based on professional self-regulation, to one with stronger external regulation by governments and international bodies. Historically, domestic accounting standards created a 
natural barrier to entry for foreign firms. However, the introduction of International Financial 
Reporting Standards – IFRS – and international auditing standards, had created demand for greater professional mobility. For example, grow th in IFRS adoption across the Asian region S/WPDR/M/57 
 
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  resulted in greater demand for accountants from Australia and other countries who had already 
adopted IFRS.  
1.30.  Recognising the greater global demand for Australian accountants, as well as for foreign 
a c c o u n t a n t s  t o  w o r k  i n  A u s t r a l i a ,  p r o f e s s i o n a l  b o d i e s  h a v e  b e e n  w o r k i n g  t o  p r o g r e s s  m u t u a l  
recognition agreements with other countries. At the same time, Australia had undertaken long 
term regulatory reform in corporate law, coveri ng auditing, transparency and financial services 
reform. These had resulted in changes to licencing arrangements for accountants. To practice as 
an accountant, membership of a professional acco unting body was encouraged by the profession, 
but it was not mandatory. Membership would not confer an automatic right to practice in certain areas of the accounting sector. Certain types of services required specific licensing or registration. These services included the audit of certain pu blic and private companies, taxation services, 
services related to insolvency and bankruptcy. In each of these cases, accountants would be 
required to hold the relevant registration, as well as ensure that they meet the conditions imposed by the relevant law and the supervising authority. 
1.31.  Each of Australia’s three accounting professional bodies had procedures in place that 
allowed for the recognition of equivalence of overseas accounting qualifications. Depending on the area of practice, however, some foreign accountants might be subject to additional conditions, 
such as the completion of subjects in Australian tax and company law. 
1.5  Educational services 1.32.  With regard to educational services, the Chairman explained that this sector had been 
included with professional services as academic qualifications were often the minimum pre-
requisite for professional accreditation. As highli ghted in paragraphs 153 to 169 of the Note, it was 
also the case that students might select educational establishments depending on whether diplomas and/or degrees are recognized by profe ssional bodies in a particular jurisdiction.  
1.33.  The representative of Australia noted th at its regulations were intended to achieve 
important public policy objectives, such as re quirements for quality assurance purposes and 
consumer protection. In the Australian higher education sector, recent reforms had been 
undertaken to ensure that students receive a high quality education at any higher education 
provider. A new Tertiary Education Quality and Standards Agency had been established and was responsible for registering and approving domestic and foreign higher education providers in Australia. The agency was responsible for assessing performance of education providers against a 
new framework. Revised national protocols aime d to better regulate the recognition of new 
universities, the operation of overseas universities in Australia and the accreditation of courses offered by providers of higher education. The reforms included a number of new provisions, which 
would allow more diverse types of higher education institutions to develop in Australia, including 
specialist universities, self-accrediting institutions other than universities, university colleges and overseas institutions. In terms of regulations for overseas institutions, the revised rules had helped 
clarify the conditions governing entry and the use of the title of "university".  
1.34.  These revisions had assisted more overseas institutions to establish a presence in Australia 
and offer their own qualifications, and had helped to ensure the comparability of qualifications and learning outcomes with those offered in the country. The reforms had also ensured national 
consistency in the regulation of higher educatio n. Previously, the regulatory activity had been 
undertaken by states and territories, where different requirements existed. A key issue that Australia understood to be of interest to overseas university providers, was whether they would be 
able to accredit their own courses. Under the current arrangements, Australian universities have 
the authority to accredit their own courses. Most other higher education providers do not have such authority, as this would be carried out by the Tertiary Education Quality and Standards 
Agency.  
1.6  Mode 4 1.35.  Turning to mode 4, the Chairman noted th at this section of the Note, from paragraphs 281 
to 303, mainly described issues relating to transparency; procedures concerning admission and 
stay; verification of competence; and mechanisms to ensure a person's return. He also noted that 
regulatory requirements on mode 4 clearly have an  impact on many service sectors, not least, the S/WPDR/M/57 
 
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  delivery of professional services, as the latter usually required the individual to be physically 
present in another Member's territory.  
1.36.  The representative of India said that he would share some of the inputs received from 
domestic services suppliers and would try to address some of the questions raised in the 
Secretariat Note. He underlined that many of the points made in the context of accountancy 
services also applied to other professional serv ices and had a significant overlap with mode 4 
issues. 
1.37.  The two most important barriers as reported by the Institute of Chartered Accountants of 
India were lack of recognition of qualifications and restrictions on temporary movement of skilled professionals, particularly in categories de-linked from commercial presence. All market access could be effectively negated in the absence of recognition of qualifications. In many Members, 
professionals were asked to go through lengthy procedures to get their credentials assessed, 
undergo multiple exams in the host country, incur expenditure on travel and visa procedures to sit these exams, meet residency requirements and repeat courses, training and experience 
requirements. 
1.38.  The impact of those requirements had been assessed in a working paper on foreign 
professionals and domestic regulation co-aut hored by Mr. Aaditya Mattoo in 2008. The paper 
provided a detailed description of regulatory requ irements faced by Indian professionals in four 
sectors, namely accountancy, engineering, medica l and architectural services, in a major Member. 
It estimated the costs incurred by the professional s in meeting these requirements as substantial. 
In some cases the extra cost were noted to be pure waste, where the measure was a frictional 
barrier. 
1.39.  In addition to these barriers, India’s accounting services association had reported many 
restrictive regulations such as requirements for nationality, registration, local language, ‘buy 
national’ public procurement policies, differential taxation treatment, excessive fees, monopolies in 
the host market, compartmentalization and restrictive scope of practice, need to partner with local firms and restrictive business structures. This was further compounded by the fact that in some 
Members, service suppliers had to meet differing requirements in each sub-federal jurisdiction, 
making it difficult to access that Member as a single integrated market. 
1 . 4 0 .   W i t h  r e g a r d  t o  m o d e  4  i n  g e n e r a l ,  a s  reported by India’s industry body, the level of 
restrictiveness had further increased in the recent years in many developed Members, by way of 
measures such as disproportionately high visa fees, targeted reductions in entry of foreign service 
providers and other changes in conditions of entr y. Restrictive barriers in mode 4 operated to 
erode competitive advantage of developing Members. As the Secretariat Note had already 
captured a great number of the specific issues involved under the various subtitles, the 
representative said he would focus on the questions raised in the Note. 
1.41.  Before turning to those questions, however, he wished to highlight one additional issue, 
namely that developing country professionals were often subjected to the payment of social 
security contributions in the host country even though they were not eligible for the benefits, since their period of stay was generally lower than th e minimum period required. This resulted in a 
peculiar situation where developing country service suppliers were funding social security 
programmes of developed Members to the tune of, as per some estimates, billions of dollars, 
without any benefit in return. This clearly imposed an extra cost. 
1.42.  Turning to the questions in the Secretar iat Note, the answer to question (a) was yes. 
Transparency was important for all modes. However,  it gained additional significance for mode 4 
as there were many more requirements that needed  to be fulfilled, those requirements were most 
likely not available at a single place. They often had to be fulfilled many times over, because of the 
temporary nature of entry (unlike for mode 3, for instance) and the existing level of transparency 
was generally less than that for other modes. As rightly explained in the Note, these requirements 
were more burdensome to meet for service supp liers de-linked from commercial presence. Another 
complication was that, in the case of mode 4 movements, requirements changed very frequently in 
some Members and relevant information was not disseminated sufficiently in advance. Further, 
sometimes those changes were made without consulting stakeholders, and based purely on the basis of domestic political considerations. S/WPDR/M/57 
 
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  1.43.  Regarding question (b), temporary servic e providers had to be separated from permanent 
labour flows, so that normal immigration procedures would not hinder such temporary movement. This could be achieved either by introducing a sp ecial GATS visa for categories of persons covered 
by Members’ horizontal and sectoral mode 4 commitments or through a special sub-set of 
administrative rules and procedures which possessed the following features: conditions for entry 
and stay less stringent than for permanent immigration; visas granted within strict time-frames (2-4 weeks maximum); flexibility for visas on shorter notice; transparent and streamlined 
application processes; mechanisms to find out the status of applications, causes of rejection and 
requirements to be fulfilled; and easier renewal and transfer procedures. 
1.44.  With respect to question (c) about Article VII:4, while India saw value in strengthening 
those provisions, the real issue at that stage wa s the lack of implementa tion of existing GATS 
provisions. For example, as the Secretariat had explained at the informal meeting of the Council 
for Trade in Services held in February, until that time there had not been perhaps a single notification under Article VII:4(b). 
1.45.  Regarding question (d), India was not sure if the question was really relevant in case of 
mode 4 movements of skilled professionals. The representative had not come across any study that noted that, in case of temporary movements of skilled professionals, overstaying or illegally 
staying was a major cause of concern. In fact, when skilled professionals were concerned, many 
Members’ regimes provided mechanisms to conver t temporary movement to longer duration or 
permanent stay. 
1.46.  Echoing India’s comments, the representative  o f  T u r k e y  s a i d  t h a t  t h e  m o d e  4  r e g u l a t o r y  
issues highlighted in the Secretariat Note we re of a broad scope, including both entry and 
presence. Her delegation also regarded these issues as very important and interlinked aspects of providing services through mode 4. As indicated in the Secretariat Note, when procedures did not 
distinguish between temporary and permanent moveme nt of labour, they oftentimes inhibited the 
ability to respond to time-sensitive types of mo de 4 movements, such as business visitors. When 
business people missed meetings or business/trade fairs as a result of excessively long and 
burdensome visa procedures, it became difficult to establish the necessary contacts and 
arrangements that could lead to the provision of services in the longer term. 
1.47.  In this context, transparency was a crucial issue to focus on in terms of implementing mode 
4 commitments. For instance, as outlined in the Note, business visitors were likely to be faced 
exclusively with entry requirements. Such requir ements can become particularly burdensome in 
cases where natural persons were not linked to commercial entities already established in the host country. It was therefore important to make all information and measures that pertained to the 
temporary admission of natural persons and the obtainment of work permits easily accessible, 
online if possible, and to provide information on the formalities required of an applicant seeking temporary admission for business purposes. The timeframes for the issuance of business visas and 
work permits had to be specified, and the reasons for denial of an application and any 
reapplication requirements had to be transparent. The establishment of contact points to facilitate 
communication and information flows and to respond to inquiries regarding regulations affecting movement of natural persons would prove beneficial . Turkey would be keen to explore such issues 
further and to exchange Members’ experiences in these regards. 
1.48.  The representative of the European Union said that the Secretariat Note provided a good 
picture of domestic regulatory issues related to mode 4. By way of general comments, the 
representative noted that the EU made a clea r distinction between the mode 4 provision of 
services on the one hand and visas, work permits or residence permits on the other hand. The EU treated the latter as part of its immigration policy, and did not deal with them in the context of 
trade negotiations. 
1.49.  The EU Blue card scheme mentioned in the Note was such an instrument of EU immigration 
policy. It aimed at facilitating conditions for entry and residence in the EU of third-country nationals for the purpose of highly-skilled employment. It had to be noted that, in most cases, 
posted service providers did not benefit from the Blue Card scheme. In particular, third country 
nationals entering the EU under commitments contained in an international agreement (such as the GATS or FTAs) were not covered by the Blue Card scheme. The Scheme also required a valid 
work contract or binding job offer of at least one year, thus excluding contractual service suppliers 
and independent professionals from its scope of application. S/WPDR/M/57 
 
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  1.50.  The representative of Switzerland said that mode 4 movements were very heavily regulated 
and restricted, independently of any sectoral rules. Domestic regulatory measures could effectively 
undermine mode 4 access opportunities. The Secretariat Note offered a very useful description of those hurdles, including with regard to visa requirements and work permit requirements when 
these were necessary. As all these requirements ha d to be fulfilled, each could potentially be an 
obstacle to mode 4 trade. As long as these measures fell within the definition of “measures affecting trade in services” under Article I:1 of the GATS, they could affect service suppliers in all 
Members. 
1.51.  The representative of Chile registered his delegation’s interest in mode 4. He highlighted 
that two aspects that were fundamental in Chile’s position with regard to this mode of supply, 
namely that mode 4 was different from migrat ion, and that mode 4 commitments had to be 
operationalised. While developing countries had submitted negotiating requests in mode 4, the 
issue was of interest also to multinational enterprises and manufactures when setting up a commercial presence abroad and relevant to all businesses. As such, mode 4 should not be a 
polarising topic in discussions between developing and developed countries. 
1.52.  The Chairman took note of the statements made. He re-confirmed that for the next meeting 
of the Working Party, Members would discuss issu es related to development; telecommunication 
services; computer and related services; audiovisual services; and modes 1 and 2. It was so 
agreed.  
2  ITEM B -FUTURE WORK 2.1.  On future work, the Chairman provided so me reflections on what he drew from discussions 
during his time my time on the podium.  He noted that in 2011 Members had made considerable 
efforts to close gaps. He believed that good work had been undertaken and on some areas, Members did make progress. However, given the overall situation in the Doha Round, it had not 
been enough to allow the issuance  of a "bracketed" text. In seeking to re-energize work, Members 
launched into a discussion of technical issues, with some 95 questions, covering virtually every aspect under consideration in the draft domestic regulation disciplines. This exercise was still on-
going and based on the Indicative Work Plan, Members have 2 more meetings to complete. 
Overall, the discussions have enlightened the Working Party on some of the finer points of Members' regulatory practices. Through the rese arch conducted for the technical discussions, 
some Members have indicated changes in their positi on on what they consider might be achievable 
on certain elements of the domestic regulation disciplines.  
2.2.  He reminded Members that the Working Party had a mandate to develop any necessary 
disciplines to ensure that "measures relating to licensing requirements and procedures, technical 
standards and qualification requirements and procedures do not constitute unnecessary barriers to 
trade in services".  Thus, the existing programme of  work had to be viewed in terms of whether it 
was contributing to the fulfilment of this mand ate. Members might differ in terms of timing but 
there cannot be much debate that the technical discussions must somehow serve the negotiations.  
2.3.  The Chairman stressed that while Secret ariat Notes were very useful they could not 
substitute for Members' proposals. After spending more than a decade negotiating domestic regulation disciplines, he felt that the Working Party should reflect broadly on the experience 
gained. In this regard, Members should consider a number of questions, such as what has worked 
in the negotiations, what has not and what can be improved; are there different approaches that should be considered; or should the Working Party stay on the same course. He urged Members to 
engage in an open reflection on how best to pursue the domestic regulation mandate and to 
provide specific ideas on how to move the process forward. The Working Party needed some new thinking and could not always expect to obtain best results while doing the same thing again and 
again. He hoped that Members would take these idea s in the spirit in which they have been given, 
which was to look beyond the details and at the larger picture.  
2.4.  The representative of Hong Kong, China agr eed with the Chairman that it was important to 
keep in mind the Article VI:4 mandate, and that while the Working Party might pursue its work in 
different formats, the ultimate purpose would be to fulfil it. He also concurred that it was not 
always useful to repeat the same tasks. The Working Party's strength was its ability to look for constructive ways to see what would be achievable. Having said that, it was his delegation's view, S/WPDR/M/57 
 
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  that the process of attempting to see what can be agreed amongst Members to address the most 
burning and outstanding regulatory challenges ha d not been completed. He hoped that Members 
would make progress on this important work. His delegation did not have any particular proposals for future work. The discussions conducted under this chairmanship over the past year have been 
helpful and instrumental. That programme of work  was not yet complete. Hong Kong, China would 
be happy to continue along those lines keeping in focus that the end goal would be to fulfil the Article VI:4 mandate.  
2.5.  The Chairman took note of the statement made.  It was so agreed.  
3  ITEM C - OTHER BUSINESS 
3.1.  No items were raised under this agenda item.  4  ITEM D - APPOINTMENT OF THE NEW CHAIRPERSON 
4.1.  Based on the consensus reached amongst Members, the Chairman announced the 
appointment of Ms. Virag Halgand Dani of Hungar y as the new Chairperson of the Working Party. 
He expressed confidence that she would guide the future work of the Working Party skilfully and 
efficiently. He also expressed his appreciation to Members for their cooperative and constructive 
spirit in seeking to fulfil the mandate of the Working Party. Ms. Virag Halgand Dani was elected by acclamation.  The Chairman also expressed his thanks to the Secretariat.  
4.2.  The new Chairperson expressed her apprecia tion for the confidence placed in her by the 
Members and to the outgoing Chairman for all his work and leadership. She would conduct work in 
a balanced and impartial manner, keeping in mind the mandate and common will of Members. She was open to receiving ideas and comments from Members and would also reach out with thoughts 
on the way forward. 
4.3.  Members expressed their appreciation to the outgoing Chairman and support to the new 
Chairperson.  
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