WORLD TRADE  
ORGANIZATION  S/WPDR/W/34 
6 September 2005 
 
 (05-3868) 
Working Party on Domestic Regulation Original:   English 
  
 
COMMUNICATION FROM AUSTRALIA 
 
Development of Disciplines on Domestic Regula tion for the Legal and Engineering Sectors
 
  The following communication, dated 5 Septembe r 2005, from the delegation of Australia is 
being circulated to the Members of the Working Party on Domestic Regulation. 
_______________ 
 
 
1. Australia submits this proposal to the Working Party on Domestic Regulation for 
consideration by Members with a view to advancing work under the mandate provided by 
Article VI:4 of the General Agreement on Trade in  Services.  Australia proposes the development of 
disciplines on domestic regulation for the engineering and legal sectors. 
2. The proposals draw substantially from a range of  existing proposals submitted to the WPDR 
and promote a focus on issues specific to qualification requirements and procedures, technical standards and licensing requirements and procedures.  The proposal also draws on input provided to 
the Secretariat by international professional services associations on the work of the WPDR (refer to 
JOB(03)/126/Rev.5). 
3. The focus on two professional services sub sectors by Australia is without prejudice to 
proposals Members may wish to bring forward in the WPDR covering other areas, sectors or sub-sectors. S/WPDR/W/34 
Page 2  
 
 WORLD TRADE ORGANIZATION 
 
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS) 
 
Article VI:4
 
 
Draft Disciplines on Domestic Regulation in the Legal Sector 
 
The Council for Trade in Services [Members], 
Recalling  that the objectives of the General Agreem ent on Trade in Services (GATS) are to: 
− promote higher levels of liberalisation in trade in services; 
− improve levels of transparency, particularly in areas covering sub-sectors in which specific 
commitments are made; and 
− recognise the right of Members to regulate, a nd to introduce new regulations, on the supply of 
services within their territories in order to meet national policy objectives; 
Recognising the mandate to develop disciplines on domest ic regulation under Article VI:4 of the 
GATS as a means to augment and give effect to market access commitments; 
Recalling the decision of the Council for Trade in Services on 26 April 1999 (S/L/70) establishing the 
Working Party on Domestic Regulation to de velop and make recommendations on domestic 
regulatory disciplines prior to the end of the current round of services negotiations; 
Having regard  to the Disciplines on Domestic Regulation in  the Accountancy Sector adopted by the 
Council for Trade in Services on 14 December 1998 (S/L/64); 
Recognising  the benefit to Members of building on the Accountancy Disciplines to develop 
meaningful disciplines to cover other areas, including the legal sector; 
Accepting  the heterogeneous nature of the legal profession across the membership where the 
profession in individual Members' economies has been  shaped by inherently localised historical, 
cultural, political and economic contexts, but anchored in one or more families of law; 
Recognising , notwithstanding its heterogene ous nature, that all legal professions fulfil a special 
function in society in maintaining the integrity of the justice system by facilitating the administration 
of, and access to, justice as well as upholding the rule of law based on the following common 
principles: 
− a commitment to the independence of lawyers and the legal profession; 
− a commitment to the preservation of client confidence; 
− a prohibition against conflicts of inte rest in the practice of law; and 
− the maintenance of high ethical standards; 
Hereby agree  on the following disciplines on domestic regulation in the legal sector:  S/WPDR/W/34 
 Page 3 
 
 
 I. OBJECTIVES 
1. The purpose of these disciplines is to facilitate  trade in legal services by ensuring that 
domestic regulations affecting trad e in legal services meet the requirements of Article VI:4 of the 
GATS.  The disciplines therefore do not address me asures subject to scheduling under Articles XVI 
and XVII of the GATS, which restrict access to the domestic market or limit the application of 
national treatment to foreign suppliers.  Such  measures are addressed in the GATS through the 
negotiation and scheduling of specific commitments. 
II. GENERAL PROVISIONS 
2. Members shall ensure that measures not subject  to scheduling under Articles XVI or XVII of 
the GATS1, relating to licensing requirements and proce dures, technical standards and qualification 
requirements and procedures are not prepared, adopted or  applied with a view to, or with the effect of, 
creating unnecessary barriers to trade in legal services.   For this purpose, Members shall ensure that 
such measures are not more trade-restrictive than necessary to fulfil a legitimate objective.  In this 
context, it is recognised that in many Member St ates, lawyers play an essential role in protecting 
individual political, civil and economic rights and that  the rule of law and integrity of the legal 
system, promoted by lawyers, is vital and importa nt to the highest degree.  Therefore, Members 
recognise that these core values are given consider ation when developing regulations that have a 
direct impact on the operations of the legal profession.  Legitimate objectives are, inter alia , the 
protection of consumers (which includes all user s of legal services and the public generally), the 
quality of the service, professional competence, the protection of the independence of the profession, 
the protection of client confidentiality, the avoidance of conflicts of interest, and the integrity of the 
profession. 
3. Members note that regulations should be designed and administered in a manner which 
promotes the interests of clients and encourages and facilitates the effective delivery of legal services 
to the fullest extent practicable, consistent with th e protection of the public in the host jurisdiction, the 
maintenance of professional standards and the independence of the lega l profession of the host 
jurisdiction. 
4. Members shall take such reasonable measures as may be available to them to ensure that 
qualifications, licensing and technical standards requi rements and procedures maintained by different 
levels of government, including by regional and local governments and authorities and non-
governmental bodies, are not applied in a way that they make the supply of legal services across the 
various jurisdictions of the territory of the Member unduly burdensome or expensive. 
III. TRANSPARENCY 
5. Members shall make publicly available, including through the enquiry and contact points 
established under Articles III and IV of the GATS, the names and addresses of competent authorities 
(i.e. governmental or non-governmental entities respons ible for the licensing and/or disciplining of 
professionals or firms). 
6. Members shall make publicly available, or sha ll ensure that their competent authorities make 
publicly available, including through the enquiry and contact points: 
(a) where applicable, information describing the activities and professional titles which 
are regulated or which must comply with specific technical standards including ethical rules and rules of professional conduct; 
                                                     
 
1  The text of GATS Articles XVI and XVII is reproduced in an appendix to this document. S/WPDR/W/34 
Page 4  
 
 (b) requirements and procedures to obtain, re new or retain any licences or professional 
qualifications and the competent authorities' monitoring arrangements for ensuring compliance; 
(c) information on technical standards, includi ng ethical rules and rules of professional 
conduct;  and 
(d) upon request, confirmation that a particular professional or firm is licensed to practise 
within their jurisdiction. 
7. Members shall inform another Member, upon re quest, of the rationale behind domestic 
regulatory measures in the legal sector, in rela tion to legitimate objectives as referred to in 
paragraph 2. 
8. When introducing measures which significantly a ffect trade in legal services, Members shall 
endeavour to provide opportunity for comment, and give consideration to such comments, before 
adoption. 
9. Details of procedures for the review of ad ministrative decisions, as provided for by 
Article VI:2 of the GATS, shall be made public, in cluding the prescribed time-limits, if any, for 
requesting such a review. 
IV. LICENSING REQUIREMENTS 
10. Licensing requirements (i.e. the substantiv e requirements, other than qualification 
requirements, to be satisfied in order to obtain or  renew an authorisation to practise) shall be pre-
established, publicly available and objective a nd shall include, where applicable, licensing 
requirements in relation to temporary services pr ovided under the home title of the foreign lawyer, 
and in relation to permanent establishment under the home title.  Members agree that licensing 
requirements should also take into considerati on any disciplinary sanctions imposed on applicant 
lawyers by the relevant professional bodies in their home countries.  In this and subsequent articles 
where the words 'qualification' a nd 'licensing' appear, they sha ll have the following meanings: 
(a) 'qualification' shall mean the substantive requirements that a lawyer is required to 
fulfil to obtain a certification or licence, su ch as education, examination requirements, 
practical training and experience or language requirements; and 
(b) 'licensing' shall mean those substantive requirements, other than qualification 
requirements, with which a lawyer must co mply in order to obtain formal permission 
to supply legal services. 
11. Where Members have a 'limited licensing' system
2, either on its own or together with a 'full 
licensing' system3, to accommodate the provision of legal advisory services4 in foreign law5 and 
                                                      
2 Typically, a limited licence system provides fo r foreign lawyers to pr actise foreign law and 
international law through a licensing process (generally, on ly required to register with local authorities without 
the need for full admission to the local bar) that is less burdensome than going through the licensing process to 
obtain the rights to practise as a host country (domestic) lawyer. 
3 A full licence system would grant access to the local title of host co untry lawyers with full practice 
rights as a domestic lawyer. 
4  Legal advisory services is defined as including the provision of advice to and consultation with 
clients in matters, including transactions, relationships and disputes, involving the application or interpretation of law; participation with or on behalf of clients in negotiations and other dealings with third parties in such 
matters; and preparation of documents governed in whole or in part by law, and the verification of documents of  S/WPDR/W/34 
 Page 5 
 
 
 international law6, Members shall ensure that foreign lawy ers are not required to satisfy licensing 
requirements for a 'full licence', but would be gr anted a 'limited licence' permitting the practice of 
foreign and international law if the foreign lawyer: 
(a) is licensed or authorised to practise law by , and is in good standing with, his or her 
home regulatory authority; 
(b) is a person of good character and repute; 
(c) agrees to submit to the Code of Ethics, or its equivalent of the host regulatory 
authority;  and 
(d) if applicable, carries liability insurance or  bond indemnity or other security consistent 
with domestic law7 and which, if applicable, is no more burdensome that required by 
the host regulatory authority of fully licensed local lawyers. 
12. Where residency requirements not subject to scheduling under Article XVII of the GATS 
exist, Members shall consider whether less trade r estrictive means could be employed to achieve the 
purposes for which these requirements were set, taking into account costs and local conditions. 
13. Where membership of a professional organisation is required, in order to fulfil a legitimate 
objective in accordance with paragraph 2, Members sh all ensure that the terms for membership are 
reasonable, and do not include conditions or pre-c onditions unrelated to the fulfilment of such an 
objective.  Where membership of a professional organisation is required as a prior condition for 
application for a licence (i.e. an authorisation to practise), the period of membership imposed before the application may be submitted shall be kept to a minimum. 
14. Members shall ensure that the use of firm na mes is not restricted, save in fulfilment of a 
legitimate objective. 
15. Members shall ensure that requirements re garding professional indemnity insurance for 
foreign applicants take into account any existing insu rance coverage, in so far as it covers activities in 
its territory or the relevant jurisdiction in its territo ry and is consistent with the legislation of the host 
Member, subject to Members being permitted to put th e burden, including the costs of the exercise, on 
to foreign applicants to show the extent of their existing insurance, and the solvency and security of 
the company providing such insurance.  The same principles shall apply to any existing pension or 
social security arrangements or fidelity fund for wh ich Members have requirements covering foreign 
applicants. 
16. Fees charged by the competent authorities shall reflect the administrative costs involved, and 
shall not represent an impediment in themselves to practising the relevant act ivity.  This shall not 
preclude the recovery of any additional costs of verification of information, processing and 
examinations.  A concessional fee for applicants  from developing countries may be considered. 
                                                                                                                                                                    
 
any kind for purposes of and in accordance with the requirements of law. Does not include advice, consultation 
and documentation services performed by service suppliers entrusted with public functions, such as notary services.
 
5 Foreign law is defined in the context of a WTO Member scheduling commitments as the law of the 
territories of WTO Members and other countries other than the law of the territory of the specific Member scheduling those commitments. 
6 International law is defined as including law esta blished by international treaties and conventions, as 
well as customary law. 
7 Domestic law (host country law) is defined in the context of a WTO Member scheduling 
commitments as the law of the territory of th e specific Member scheduling those commitments. S/WPDR/W/34 
Page 6  
 
 V. LICENSING PROCEDURES 
17. Licensing procedures (i.e. the procedures to be followed for the submission and processing of 
an application for an authorization to practise) shall be pre-established,  publicly available and 
objective, and shall not in themselves constitute  a restriction on the supply of the service. 
18. Application procedures and the related documen tation shall be not more burdensome than 
necessary to ensure that applicants fulfil qualifi cation and licensing requirements.  For example, 
competent authorities shall not require more documents  than are strictly necessary for the purpose of 
licensing, and shall not impose unreasonable require ments regarding the format of documentation.  
Where minor errors are made in the completion of  applications, applicants shall be given the 
opportunity to correct them.  The establishment of  the authenticity of documents shall be sought 
through the least burdensome procedure and, wher ever possible, authenticated copies should be 
accepted in place of original documents. 
19. Members shall ensure that the receipt of an application is acknowledged promptly by the 
competent authority, and that applicants ar e informed without undue delay in cases where the 
application is incomplete.  The competent author ity shall inform the applicant of the decision 
concerning the completed application within a reas onable time after receipt, in principle within six 
months, separate from any periods in respect of  qualification procedures referred to below. 
20. On request, an unsuccessful applicant shall be in formed of the reasons for rejection of the 
application.  An applicant shall be permitted, with in reasonable limits, to resubmit applications for 
licensing. 
21. A licence or practising certificate, once granted, shall enter into effect immediately, in 
accordance with the terms and c onditions specified therein. 
VI. QUALIFICATION REQUIREMENTS 
22. A Member shall ensure that, whether or not  the Member adopts the "full licensing" or 
"limited licensing" system, its competent authoriti es take account of qualifications acquired in the 
territory of another Member, on the basis of equiva lency of education, experience and/or examination 
requirements so that qualifications that are not  necessarily the same as those required for lawyers by 
the host Member, but are equivalent, are recognised.  In doing so, equivalent criteria/standards as 
applied to domestic recognition of qualifications may prima facie be applied to recognition of foreign 
qualifications.  This does not imply harmonisation of criteria/standards but that unduly burdensome 
requirements should not be applied to verify fore ign qualifications which could result in impairing 
market access commitments.  Members note that foreign lawyers who seek a limited licence to 
practise only foreign and international law should not be required to obtain additional host Member 
specific qualifications required of fully licensed local lawyers. 
23. The scope of examinations and of any other qualification requirements shall be limited to 
subjects relevant to the activities for which authori zation is sought.  Residency in host country or 
experience in specific locations in host country shal l not be made a pre-requisite for eligibility for 
such examinations unless found necessary for meeting legitimate public objectives. 
24. Qualification requirements may include education, examinations, practical training, 
experience and language skills.  Language fluenc y requirements, when part of examination 
requirements, should be based on meeting legitimate objectives such as the safety of the consumer, ensuring quality of the services or where working kn owledge of the language is essential for practice.  
Language should not be used as a barrier in itself to prevent foreign service suppliers from sitting in 
such exams.  S/WPDR/W/34 
 Page 7 
 
 
 25. Members note the role which mutual recognition agreements can play in facilitating the 
process of verification of qualifications and/or  in establishing equivale ncy of education.  
VII. QUALIFICATION PROCEDURES 
26. Verification of an applicant's qualifications acqui red in the territory of another Member shall 
take place within a reasonable time-frame, in prin ciple within six months and, where applicants' 
qualifications fall short of requirements, shall result in a decision which identifies additional 
qualifications, if any, to be acquired by the applicant. 
27. Examinations, if required, shall be scheduled at reasonably frequent intervals, preferably 
more than once a year, and shall be open for all eligible applicants, including foreign and foreign-
qualified applicants.  The possibility of using el ectronic means for conducting such examinations, 
wherever feasible, and of providing opportunities fo r taking such exams in the home country of the 
foreign services supplier should also be explored  having regard also to the extra costs and 
administrative burdens this might entail amongst all re levant factors.  Applicants shall be allowed a 
reasonable period for the submission of applications. 
28. Appeal/review channels should be provided fo r non-recognition of qualifications.  Further, 
possibility of re-submission of applications and ot her materials substantiating the case for meeting the 
qualification requirements should be allowed, including provision for the re-submission of 
applications for the recognition of qualifications that have been previously rejected.  Fees charged by 
the competent authorities shall reflect the administ rative costs involved, and shall not represent an 
impediment in themselves to practis ing the relevant activity.  This shall not preclude the recovery of 
any additional costs of verification of information,  processing and examinations.  A concessional fee 
for applicants from developing countries may be considered. 
VIII.  TECHNICAL STANDARDS 
29. Members shall ensure that measures relating to technical standards are prepared, adopted and 
applied only to fulfil legitimate objectives.  In th e context of legal services, the term "technical 
standards" refers not only to technical standards in the narrow sense, but also to ethical rules and rules 
of professional conduct. 
30. In determining whether a measure is in confor mity with the obligations under paragraph 2, 
account shall be taken of any internationally rec ognized standards (such term to mean not only 
technical standards in the narrow sense, but also ethical rules and rules of professional conduct) of 
relevant international organisations8 applied by that Member. 
                                                      
8 The term "relevant international organisations" refe rs to international bodies whose membership is 
open to the relevant bodies of at least all Members of the WTO. S/WPDR/W/34 
Page 8  
 
  
 
APPENDIX  
 
 
For the purpose of clarity, the text of GATS Articles XVI and XVII is reproduced below. 
 
Article XVI  
 
Market Access  
 
1. With respect to market a ccess through the modes of supply identified in Article I, each 
Member shall accord services and service suppliers of  any other Member treatment no less favourable 
than that provided for under the terms, limitatio ns and conditions agreed and specified in its 
Schedule.
9 
 
2. In sectors where market-access commitments are undertaken, the measures which a Member 
shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire 
territory, unless otherwise specified in its Schedule, are defined as:  
(a) limitations on the number of service supplie rs whether in the form of numerical 
quotas, monopolies, exclusive service suppliers or the requirements of an economic 
needs test; 
(b) limitations on the total value of service transactions or assets in the form of numerical 
quotas or the requirement of an economic needs test; 
(c) limitations on the total number of service ope rations or on the total quantity of service 
output expressed in terms of designated numerical units in the form of quotas or the 
requirement of an economic needs test;
10 
(d) limitations on the total number of natura l persons that may be employed in a 
particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical 
quotas or the requirement of an economic needs test; 
(e) measures which restrict or require specific types of legal entity or joint venture 
through which a service supplier may supply a service; and 
(f) limitations on the participation of forei gn capital in terms of maximum percentage 
limit on foreign share-holding or the total va lue of individual or aggregate foreign 
investment. 
                                                     
 
9 If a Member undertakes a market-access commitment in  relation to the supply of a service through the 
mode of supply referred to in subparagraph 2(a) of Article I and if the cross-border movement of capital is an 
essential part of the service itself, that Member is ther eby committed to allow such movement of capital.  If a 
Member undertakes a market-access co mmitment in relation to the supply of  a service through the mode of 
supply referred to in subparagraph 2(c) of Article I, it is thereby committed to allow related transfers of capital 
into its territory. 
10 Subparagraph 2(c) does not cover measures of a Member which limit inputs for the supply of 
services.  S/WPDR/W/34 
 Page 9 
 
 
 Article XVII  
 
National Treatment  
 
1. In the sectors inscribed in its Schedule, and subject to any conditions  and qualifications set 
out therein, each Member shall accord to services  and service suppliers of any other Member, in 
respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers.
11 
 2. A Member may meet the requirement of paragraph 1 by according to services and service 
suppliers of any other Member, either formally iden tical treatment or formally different treatment to 
that it accords to its own like services and service suppliers.  3. Formally identical or formally different treatme nt shall be considered to be less favourable if 
it modifies the conditions of competition in favour of services or service suppliers of the Member 
compared to like services or service suppliers of any other  Member. 
 
 
_______________ 
 
 
 
    
 
     
 
    
 
     
 
    
 
                                                     
 
11 Specific commitments assumed under this Article sh all not be construed to require any Member to 
compensate for any inherent competitive disadvantages wh ich result from the foreign character of the relevant 
services or service supplies. S/WPDR/W/34 
Page 10  
 
 WORLD TRADE ORGANIZATION 
 
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS) 
 
Article VI:4
 
 
Draft Disciplines on Domestic Regul ation in the Engineering Sector 
  
The Council for Trade in Services [Members], 
Recalling  that the objectives of the General Agreem ent on Trade in Services (GATS) are to: 
− promote higher levels of liberalisation in trade in services; 
− improve levels of transparency, particularly in areas covering sub-sectors in which specific 
commitments are made; and 
− recognise the right of Members to regulate, a nd to introduce new regulations, on the supply of 
services within their territories in order to meet national policy objectives; 
Recognising the mandate to develop disciplines on domest ic regulation under Article VI:4 of the 
GATS as a means to augment and give effect to market access commitments; 
Recalling the decision of the Council for Trade in Services on 26 April 1999 (S/L/70) establishing the 
Working Party on Domestic Regulation to de velop and make recommendations on domestic 
regulatory disciplines prior to the end of the current round of services negotiations; 
Having regard  to the Disciplines on Domestic Regulation in  the Accountancy Sector adopted by the 
Council for Trade in Services on 14 December 1998 (S/L/64); 
Recognising  the benefit to Members of building on the Accountancy Disciplines to develop 
meaningful disciplines to cover other areas, including the engineering sector; 
Recognising  that professional engineers hold the basic tenet of safety, health and welfare of the public 
as well as the protection of both th e natural and built environment in accordance with the principles of 
sustainable development as being of paramount importance; 
Hereby agree  on the following disciplines on domestic regulation in the engineering sector: 
I. OBJECTIVES 
1. The purpose of these disciplines is to facilitate trade in engineering services by ensuring that 
domestic regulations affecting trade in engineering services meet the requirements of Article VI:4 of 
the GATS.  The disciplines therefore do not address measures subject to scheduling under 
Articles XVI and XVII of the GATS, which restrict access to the domestic market or limit the 
application of national treatment to foreign supp liers.  Such measures are addressed in the GATS 
through the negotiation and scheduling of specific commitments. 
II. GENERAL PROVISIONS 
2. Members shall ensure that measures not subject  to scheduling under Articles XVI or XVII of 
the GATS
12, relating to licensing requirements and proce dures, technical standards and qualification 
                                                      
12  The text of GATS Articles XVI and XVII is reproduced in an appendix to this document.  S/WPDR/W/34 
 Page 11 
 
 
 requirements and procedures are not prepared, adopted or  applied with a view to, or with the effect of, 
creating unnecessary barriers to trade in engineering services.  For this purpose, Members shall ensure 
that such measures are not more trade-restrictiv e than necessary to fulfil a legitimate objective.  
Legitimate objectives are, inter alia , the protection of consumers (which includes all users of 
engineering services and the public generally), the qu ality of the service, professional competence, the 
avoidance of conflicts of interest, and the integrity of the profession. 
3. Members note that regulations should be designed and administered in a manner which 
promotes the interests of clients and encourages a nd facilitates the effective delivery of engineering 
services to the fullest extent practicable, consiste nt with the protection of the public in the host 
jurisdiction as well as the maintenance of profession al standards of the engineering profession of the 
host jurisdiction. 
4. Members shall take such reasonable measures as may be available to them to ensure that 
qualifications, licensing and technical standards requi rements and procedures maintained by different 
levels of government, including by regional and local governments and authorities and non-
governmental bodies, are not applied in a way that  they make the supply of engineering services 
across the various jurisdictions of the territory  of the Member unduly burdensome or expensive. 
III. TRANSPARENCY 
5. Members shall make publicly available, including through the enquiry and contact points 
established under Articles III and IV of the GATS, the names and addresses of competent authorities 
(i.e. governmental or non-governmental entities respons ible for the licensing and/or disciplining of 
professionals or firms). 
6. Members shall make publicly available, or sha ll ensure that their competent authorities make 
publicly available, including through the enquiry and contact points: 
(a) where applicable, information describing the activities and professional titles which 
are regulated or which must comply with specific technical standards; 
(b) requirements and procedures to obtain, re new or retain any licences or professional 
qualifications and the competent authorities' monitoring arrangements for ensuring 
compliance; 
(c) information on technical standards; and 
(d) upon request, confirmation that a particular professional or firm is licensed to practise 
within their jurisdiction. 
7. Members shall inform another Member, upon re quest, of the rationale behind domestic 
regulatory measures in the engineering sector, in re lation to legitimate objectives as referred to in 
paragraph 2. 
8. When introducing measures which significantly a ffect trade in engineering services, Members 
shall endeavour to provide opportunity for comment, a nd give consideration to such comments, before 
adoption. 
9. Details of procedures for the review of ad ministrative decisions, as provided for by 
Article VI:2 of the GATS, shall be made public, in cluding the prescribed time-limits, if any, for 
requesting such a review. S/WPDR/W/34 
Page 12  
 
 IV. LICENSING REQUIREMENTS 
10. Licensing requirements (i.e. the substantiv e requirements, other than qualification 
requirements, to be satisfied in order to obtain or  renew an authorisation to practise) shall be pre-
established, publicly available and objective.  In  this and subsequent articles where the words 
'qualification' and 'licensing' appear, they shall have the following meanings: 
(a) 'qualification' shall mean the educational re quirements that a engineer is required to 
fulfil to obtain a certification or licence,  
(b) 'licensing' shall mean those substantive re quirements, including qualification or other 
requirements, such as education, examina tion, practical training and experience, 
language or continuing professional deve lopment requirements; with which a 
engineer must comply in order to obtain and maintain formal permission to supply 
engineering services. 
11. Where residency requirements not subject to scheduling under Article XVII of the GATS 
exist, Members shall consider whether less trade r estrictive means could be employed to achieve the 
purposes for which these requirements were set, ta king into account costs and local conditions.  
Members shall also consider implementing a 't emporary licence' system, based on the foreign 
engineer's home licence or recognised professional body membership, to facilitate access for foreign 
engineers to provide engineering services on a tempor ary basis or in relation to specific projects.  
However, Members shall ensure that such a tempor ary licence or registration is not implemented in 
place of providing longer-term acces s to the local market and should not operate to prevent a foreign 
engineer from gaining a local engineering licence  subsequent to satisfying the necessary local 
licensing requirements.  A temporary licensing sy stem may require foreign engineers to be: 
(a) bound by the codes of professional conduct established and enforced by their home 
jurisdiction and by the host jurisdiction;  
(b) held individually accountable for their ac tions, both through requirements imposed by 
the licensing body in the host jurisd iction and through legal processes; 
(c) temporary licenses should be issued based on home registration without further 
assessment or examination; 
(d) that temporary licenses should not have a time limit of less than 1 year, and should be 
renewable if the project is incomplete; and 
(e) that engineers must be able to apply for a full license while holding a temporary 
licence.  
12. Licensing requirements may include education, ex aminations, practical training, experience, 
language skills and maintaini ng Continuing Professional Devel opment.  Language fluency 
requirements, when part of examination requi rements, should be based on meeting legitimate 
objectives such as the safety of the consumer, en suring quality of the services or where working 
knowledge of the language is essential for practice.  Language should not be used as a barrier in itself 
to prevent foreign service suppliers from sitting in  such exams.  Neither should residency in host 
country or experience in specific locations in host country be made a pre-requisite for eligibility for 
licensing requirements unless found necessary for meeting legitimate public objectives. 
13. Members shall consider adopting a licensing system based on Competency Assessment 
combined with Continuing Professional Develo pment (CPD).  Competency Assessment based  S/WPDR/W/34 
 Page 13 
 
 
 licensing does not require the undertaking of written examinations and may be implemented in two 
stages with two levels of licensure: 
(a) Stage 1:  this level of competency is achieved on completion of a recognized or 
accredited educational qualification.  It is  primarily concerned with ensuring that 
engineers at this level show awareness and understanding of the body of knowledge 
of their discipline and the ability to apply it to problems and situations.  Engineers 
who are Stage 1 competent are ready to practise under supervision and begin CPD. In employment, they will typically work initially on tasks of limited scope and complexity, under the guidance of a more experienced person, while they develop 
practice competencies and experience; and 
(b) Stage 2:
 this level of competency is assessed af ter 3-5 years of supervised practice at 
Stage 1 competency level.  Persons who are Stage 2 competent are practice-experienced and are capable of work ing autonomously in normal operating 
environments. 
14. Competency assessment for Stage 2 may incl ude a professional interview where self-
assessment practice reports outlining the experience ga ined by the individual after graduation, which 
is verified by a senior experienced engineer, a nd details of CPD undertaken since gaining Stage 1 
competency is considered.  The interview can also  involve an assessment of the applicant's knowledge 
of the codes and standards relevant to their e ngineering discipline and the principles of ethical 
practice.  Once the applicant is granted Stage 2 competency, they may be required to complete a 
minimum number of hours of CPD per three-year period to maintain their Stage 2 assessment.  CPD 
may involve short courses, further study at the high er degree or post-graduate diploma level, on-the 
job training, private study, attending conferences, sy mposiums and technical inspections and meetings 
and the preparation and presentati on of courses and conference papers. 
15. Where membership of a professional organisation is required, in order to fulfil a legitimate 
objective in accordance with paragraph 2, Members sh all ensure that the terms for membership are 
reasonable, and do not include conditions or pre-c onditions unrelated to the fulfilment of such an 
objective.  Where membership of a professional organisation is required as a prior condition for 
application for a licence (i.e. an authorisation to practise), the period of membership imposed before the application may be submitted shall be kept to a minimum. 
16. Members shall ensure that the use of firm na mes is not restricted, save in fulfilment of a 
legitimate objective. 
17. Members shall ensure that requirements re garding professional indemnity insurance for 
foreign applicants take into account any existing insu rance coverage, in so far as it covers activities in 
its territory or the relevant jurisdiction in its territo ry and is consistent with the legislation of the host 
Member, subject to Members being permitted to put th e burden, including the costs of the exercise, on 
to foreign applicants to show the extent of their existing insurance, and the solvency and security of 
the company providing such insurance.  The same principles shall apply to any existing pension or 
social security arrangements or fidelity fund for wh ich Members have requirements covering foreign 
applicants. 
18. Fees charged by the competent authorities shall reflect the administrative costs involved, and 
shall not represent an impediment in themselves to practising the relevant activity. This shall not 
preclude the recovery of any additional costs of verification of information, processing and 
examinations.  A concessional fee for applicants  from developing countries may be considered. S/WPDR/W/34 
Page 14  
 
 V. LICENSING PROCEDURES 
19. Licensing procedures (i.e. the procedures to be followed for the submission and processing of 
an application for an authorization to practise) shall be pre-established,  publicly available and 
objective, and shall not in themselves constitute  a restriction on the supply of the service. 
20. Application procedures and the related documen tation shall be not more burdensome than 
necessary to ensure that applicants fulfil qualifi cation and licensing requirements.  For example, 
competent authorities shall not require more documents  than are strictly necessary for the purpose of 
licensing, and shall not impose unreasonable require ments regarding the format of documentation.  
Where minor errors are made in the completion of  applications, applicants shall be given the 
opportunity to correct them.  The establishment of  the authenticity of documents shall be sought 
through the least burdensome procedure and, wher ever possible, authenticated copies should be 
accepted in place of original documents. 
21. Members shall ensure that the receipt of an application is acknowledged promptly by the 
competent authority, and that applicants ar e informed without undue delay in cases where the 
application is incomplete.  The competent author ity shall inform the applicant of the decision 
concerning the completed application within a reasona ble time after receipt, in principle within three 
months, separate from any periods in respect of  qualification procedures referred to below. 
22. On request, an unsuccessful applicant shall be in formed of the reasons for rejection of the 
application.  An applicant shall be permitted, with in reasonable limits, to resubmit applications for 
licensing. 
23. A licence, once granted, shall enter into effect immediately, in accordance with the terms and 
conditions specified therein. 
VI. QUALIFICATION REQUIREMENTS 
24. A Member shall ensure that its competent auth orities take account of education qualifications 
acquired in the territory of another Member, on the ba sis of equivalency so that qualifications that are 
not necessarily the same as those required for engineers by the host Member, but are equivalent, are 
recognised.  In doing so, equivalent criteria/ standards as applied to domestic recognition of 
qualifications may prima facie be applied to recognition of foreign qualifications.  This does not 
imply harmonisation of criteria/standards but th at unduly burdensome requirements should not be 
applied to verify foreign qualifi cations which could result in impairing market access commitments.   
25. A Member shall ensure that its competent authorities take account of other licensing 
requirements met in the territory of another Member , on the basis of experience and/or examination 
requirements so that qualifications that are not n ecessarily the same as those required for engineers by 
the host Member, but are equivalent, are recognised.  In doing so, equivalent criteria/standards as 
applied to domestic recognition of qualifications may prima facie be applied to recognition of foreign 
qualifications.  This does not imply harmonisation of criteria/standards but that unduly burdensome 
requirements should not be applied to verify fore ign qualifications which could result in impairing 
market access commitments.  Memb ers shall ensure that a 'temporary licence', if implemented, will be 
granted on the basis of the foreign engineer's home qualifications and without the requirement to 
undertake additional written or oral examinations. 
26. The scope of examinations and of any other education qualification requirements shall be 
limited to subjects relevant to the activities for wh ich authorization is sought.  Residency in host 
country or experience in specific locations in hos t country shall not be made a pre-requisite for 
eligibility for such examinations unless found n ecessary for meeting legitimate public objectives.  S/WPDR/W/34 
 Page 15 
 
 
 27. Members note the role which mutual recognition agreements can play in facilitating the 
process of verification of qualifications and/or  in establishing equivale ncy of education.  
VII. QUALIFICATION PROCEDURES 
28. Verification of an applicant's university qualifi cations acquired in the territory of another 
Member shall take place within a reasonable time-f rame, in principle within two months and, where 
applicants' qualifications fall short of requireme nts, shall result in a decision which identifies 
additional qualifications, if any, to be acquired by the applicant. 
29. Examinations, if required, shall be scheduled at reasonably frequent intervals, preferably 
more than once a year, and shall be open for all eligible applicants, including foreign and foreign-
qualified applicants.  The possibility of using el ectronic means for conducting such examinations, 
wherever feasible, and of providing opportunities fo r taking such exams in the home country of the 
foreign services supplier should also be explored  having regard also to the extra costs and 
administrative burdens this might entail amongst all re levant factors.  Applicants shall be allowed a 
reasonable period for the submission of applications.  Oral examinations should also be considered 
where possible as a legitimate alternative to written examinations. 
30. Appeal/review channels should be provided fo r non-recognition of qualifications.  Further, 
possibility of re-submission of applications and ot her materials substantiating the case for meeting the 
qualification requirements should be allowed, including provision for the re-submission of 
applications for the recognition of qualifications that have been previously rejected.  Fees charged by 
the competent authorities shall reflect the administ rative costs involved, and shall not represent an 
impediment in themselves to practis ing the relevant activity.  This shall not preclude the recovery of 
any additional costs of verification of information,  processing and examinations.  A concessional fee 
for applicants from developing countries may be considered. 
VIII.  TECHNICAL STANDARDS 
31. Members shall ensure that measures relating to technical standards are prepared, adopted and 
applied only to fulfil legitimate objectives. 
32. In determining whether a measure is in confor mity with the obligations under paragraph 2, 
account shall be taken of any internationally re cognized standards of relevant international 
organisations13 applied by that Member. 
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13 The term "relevant international organisations" refers to international bodies whose membership is 
open to the relevant bodies of at least all Members of the WTO. S/WPDR/W/34 
Page 16  
 
 APPENDIX 
 
  For the purpose of clarity, the text of GATS Articles XVI and XVII is reproduced below.  
Article XVI  
 
Market Access  
 
1. With respect to market acces s through the modes of supply identified in Article I, each 
Member shall accord services and service suppliers of  any other Member treatment no less favourable 
than that provided for under the terms, limitatio ns and conditions agreed and specified in its 
Schedule.
14 
2. In sectors where market-access commitments ar e undertaken, the measures which a Member 
shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire 
territory, unless otherwise specified in its Schedule, are defined as: 
(a) limitations on the number of service supplie rs whether in the form of numerical 
quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test; 
(b) limitations on the total value of service transactions or assets in the form of numerical 
quotas or the requirement of an economic needs test; 
(c) limitations on the total number of service ope rations or on the total quantity of service 
output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;15 
(d) limitations on the total number of natura l persons that may be employed in a 
particular service sector or that a service supplier may employ and who are necessary 
for, and directly related to, the supply of a specific service in the form of numerical 
quotas or the requirement of an economic needs test; 
(e) measures which restrict or require specific types of engineering entity or joint venture 
through which a service supplier may supply a service; and 
(f) limitations on the participation of forei gn capital in terms of maximum percentage 
limit on foreign share-holding or the total va lue of individual or aggregate foreign 
investment. 
                                                     
 
14 If a Member undertakes a market-access commitmen t in relation to the supply of a service through 
the mode of supply referred to in subparagraph 2(a) of Article I and if the cross-border movement of capital is 
an essential part of the service itself,  that Member is thereby committed to allow such movement of capital.  If a 
Member undertakes a market-access co mmitment in relation to the supply of  a service through the mode of 
supply referred to in subparagraph 2(c) of Article I, it is thereby committed to allow related transfers of capital 
into its territory. 
15 Subparagraph 2(c) does not cover measures of a Member which limit inputs for the supply of 
services.  S/WPDR/W/34 
 Page 17 
 
 
 Article XVII  
 
National Treatment  
 
1. In the sectors inscribed in its Schedule, and s ubject to any conditions and qualifications set 
out therein, each Member shall accord to services  and service suppliers of any other Member, in 
respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers.
16 
2. A Member may meet the requirement of paragraph 1 by according to services and service 
suppliers of any other Member, either formally iden tical treatment or formally different treatment to 
that it accords to its own like services and service suppliers. 
3. Formally identical or formally different treatment  shall be considered to be less favourable if 
it modifies the conditions of competition in favour of services or service suppliers of the Member compared to like services or service suppliers of any other  Member. 
 
__________ 
 
 
                                                     
 
16 Specific commitments assumed under this Article sh all not be construed to require any Member to 
compensate for any inherent competitive disadvantages wh ich result from the foreign character of the relevant 
services or service supplies.