RESTRICTED  WORLD TRADE  
ORGANIZATION  S/WPDR/W/45 
14 April 2011 
 (11-1931) 
Working Party on Domestic Regulation  
  
 
DISCIPLINES ON DOMESTIC REGULATION  PURSUANT TO GATS ARTICLE VI:4 
 
Chairman's Progress Report
 
  
1. The purpose of this Report is to register the progress, so far achieved, in the negotiation of 
disciplines on domestic regulation pursuant to GATS Artic le VI:4.  It also serves as the Report of the 
Chairman of the Working Party on Domestic Regulation to the Council of Trade in Services in Special Session.  
2. Following the call by Members at the General Council meeting of December 2010 for 
renewed engagement across all areas of the Doha Development Agenda and in accordance with the 
wish expressed by Members for a Chair-driven "bot tom-up" process, the Working Party has been in 
an intensified drafting phase since the beginning of the year. 
3. A key point in the intensification of the pr ocess was the "sweeping exercise" of 10 and 
11 February 2011, in which Members undertook a pa ragraph by paragraph reading of the draft 
provisions contained in the Chair's March 2009 text
1 and related proposals, with the aim of identifying 
parts of the draft that were stabilized, and those on which further work is required.  Following the 
"sweeping exercise", which saw a reduction in the number of language options, three separate 
weeklong intensive drafting sessions were organised to further resolve differences regarding the 
content and levels of ambition of the various provisions.  The first session was held from 28 February to 4 March, the second session was held from 7 to 10 March and the third session from 4 to 
8 April 2011. 
4. In these sessions, Members discussed and explored  language options for all the disciplines 
envisaged in the Chair's March 2009 text.  Proposals have also been submitted to add new paragraphs 
to the Chair's March 2009 text.  These additional paragr aphs relate to: a definition of "authorization";  
insertion of a "necessity test" or related language; th e role of mutual recogn ition agreements; language 
examinations; and an additional provisio n under the chapter on development.  
5. Considerable efforts were made in the in tensive drafting sessions to identify areas where 
differences could be isolated by introducing brackets into either the paragra phs of the Chair's March 
2009 text or in an alternative language proposal.  It should be noted that all language proposals, 
submitted either in a written form or introduced or ally during the intensive phase of negotiations, are 
contained in the Chairman's Consultative Note.
2 
6. In the third and final drafting session of 4 to 8 April 2011, Members made a concerted effort 
to further reduce the language options contained in the Chairman's Consultative Note, with a view to 
agreeing on language that would capture any conve rgence achieved. In cases where the divergence 
                                                      
1 Second Revision, Draft Disciplines on Domestic Regulation Pursuant to GATS Article VI.4, Informal 
Note by the Chairman, Room Document, 20 March 2009. 
2 RD/SERV/46/Rev.2.  This Note included language proposals up to 23 March 2011.  S/WPDR/W/45 
Page 2  
 
  could not be bridged, an attempt was made to c onsolidate the differences into a single alternative 
containing a select number of brackets. 
7. Overall, Members had constructive and engaged discussions but it was evident by the end of 
the week of 4 April that some dist ance still needed to be covered in order to produce a revised text.  
More time was also needed, as not all the provisi ons of the draft disciplines were given a final 
consideration during that week.  Those paragraphs th at were not revisited during the week of 4 April 
are those in the "introduction", the chapter on "tec hnical standards" and paragraphs 43 to 46, as well 
as the proposal for an additional paragraph in th e "development" chapter.   These chapters had, 
nevertheless, been discussed on previous occasions.  The Chapter XI on "instit utional provisions" has 
not been discussed as there have been no language proposals.  
8. In terms of the results from the intensifica tion of the process and without prejudice to the 
working assumption that nothing is agreed until ever ything is agreed, the draft disciplines can now be 
said to be at different stages of progress.  More sp ecifically, these stages can be characterised in terms 
of the following three broad categories: 
1. Agreement reached on an ad referendum  basis
:  Captured in this category are those 
paragraphs on which agreement has been reached on an ad referendum  basis.  In 
these situations, the paragraph in the Ch air's March 2009 text has either been 
maintained or replaced by a corresponding paragraph.  In one instance there was ad 
referendum  agreement on including an additional paragraph.  In two other instances 
ad referendum  agreement was reached on deleting paragraphs from the Chair's March 
2009 text.  Included under this category are the following: 
Chapter I  – INTRODUCTION  
   Paragraph 3 
Chapter II  – DEFINITIONS   
   Paragraphs 5, 6, 7 and 8 
  Chapter III – GENERAL PROVISIONS  
   Paragraph 10 
  Chapter IV – TRANSPARENCY  
    Paragraphs 13 and 14    Chapter V – LICENSING REQUIREMENTS
 
    Paragraph 16 
Chapter VII – QUALIFICATION REQUIREMENTS  
 Paragraph 29  S/WPDR/W/45 
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    Chapter VIII – QUALIFICATION PROCEDURES  
   An additional paragr aph on "mutual recognition"   
Chapter X – DEVELOPMENT  
Paragraph 46 
2. Single alternative : While this category reflects situ ations where agreement has not 
yet been reached, progress h as been achieved and alternative language proposals have 
been reduced to one single negotiating text  with remaining differences captured in 
brackets.  In some cases, language proposal s, which share the same basis but appear 
in the Chairman's Consultativ e Note as separate options, have been consolidated into 
a single alternative with brackets reflec ting the differences. Included under this 
category are proposals made under the following paragraphs.  
Chapter I  – INTRODUCTION  
   Paragraphs 1 and 4 
Chapter II  – DEFINITIONS  
Paragraph 9 
Chapter III – GENERAL PROVISIONS  
Paragraphs 11 and 12 
Chapter IV – TRANSPARENCY  
 Paragraph 15 Chapter VI – LICENSING PROCEDURES
 
 Paragraphs 18, 21, 22 and 26 
Chapter VIII – QUALIFICATION PROCEDURES  
 Paragraphs 34, 35, 36,37 and 39 Chapter X – DEVELOPMENT
 
 Paragraphs 44 and 45 
3. Multiple alternatives:  This category reflects situations where progress has been 
limited, and multiple alternatives and langua ge options remain. Included in this 
category are proposals made under the following paragraphs: 
Chapter I  – INTRODUCTION  
Paragraph 2 
 S/WPDR/W/45 
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  Chapter VI – LICENSING PROCEDURES
 
Paragraphs 17, 19, 20, 23, 24, 25 
Chapter VII – QUALIFICATION REQUIREMENTS  
Paragraphs 27 and 28 
Chapter VIII – QUALIFICATION PROCEDURES  
Paragraphs 30, 31, 32, 33 and 38 
Chapter IX – TECHNICAL STANDARDS  
Paragraphs 40 and 41 
Chapter X – DEVELOPMENT  
Paragraphs 42 and 43 
9. All of the paragraphs agreed on an ad referendum  basis and the two other remaining 
categories of paragraphs have been included in th is progress report and represent the textual elements 
for a revised text.  The task ahead for the Working Party is to convert all the remaining paragraphs 
under category 3 into either category 2 or, better still, to category 1.  This would provide the basis for 
the formulation of a revised text with brackets.   
10. For category 2 paragraphs, the differences have b een consolidated into a single alternative, 
but there remains a significant number of brackets in some of the paragraphs, particularly in the chapters on licensing and qualification pr ocedures, and in general provisions.   
11. In terms of the paragraphs in category 3, there are many facets to the outstanding issues, 
which are both technical and policy-related in nature .  There are nevertheless some gateway issues 
that if resolved could help unblock the discussions.  For example, while not agreed to be included in 
the disciplines, the proposal on a definition of "autho rization" would have implications for the scope 
of the definitions and may thus determine the ap plication of the substantive provisions of the 
disciplines. Agreement on this issue could fac ilitate convergence throughout many parts of the 
disciplines.  It would also help tremendously if there could be some resolution to the fundamental 
difference on whether the disciplines in the licensing a nd qualification chapters should have similar or 
different levels of ambition.  Resolving this i ssue would facilitate agreement on the recurring problem 
of whether paragraphs under these chapters  should be merged or kept separate. 
12. It should be noted that the presentation of the paragraphs on licensing requirements and 
procedures, qualification requirements and procedures, in this report, is without prejudice to the final 
outcome on the structure of these chapters and whethe r certain paragraphs would be merged.  In some 
cases, through the discussions, Members arrived at a si ngle alternative with a merged paragraph.  In 
other instances, there are multiple alternatives w ith language options based either on the separate 
paragraphs of the Chair's March 2009 text or on a proposal for a merged paragraph.  The important 
issue of the structure of these chapters would be bett er addressed in light of the final content of the 
respective paragraphs.   
13. With respect to technical standards, a key ques tion that remains to be resolved is whether 
voluntary standards fall within the scope of the di sciplines and if so, how can Members effectively 
discipline action by private actors outside the ov erall scope of the GATS.  For the development  S/WPDR/W/45 
 Page 5 
 
 
  chapter, there are proposals for transition periods as  well as other development-oriented measures.  
These proposals have helped frame what is desired from this chapter, though the degree of flexibility 
needed is something that would usually be best a ddressed after it is clear what strength of obligation 
would be imposed by the disciplines.  While there are multiple alternatives to one paragraph of the 
introductory chapter, these are differences of a so mewhat different nature, since they relate to 
appropriate preambular language reflecting the conten t of the disciplines, rather than the operational 
provisions themselves.  
14. Apart from the differences reflected in these cate gories, one of the most difficult subjects in 
these negotiations has been the question of whether a normative standard in the form of a "necessity 
test" should be included into the disciplines.  On this subject, Members appear to have fundamental 
differences on the very principle of whether such  a normative standard is needed.  Dedicated 
consultations, including text-based discussions, have been held, and the language proposals for a 
"necessity test" have been included in the Chairman's  Consultative Note and in the textual elements 
contained in this progress report.  While the language has been reflected in the chapters in which they 
were proposed, such inclusion does not in any way indicate agreement on the principle and inclusion 
of this subject in the disciplines, rather these serve as a placeholder for the proposals. 
15. The state of play regarding the textual elements  for a revised text, which form part of this 
progress report have been compiled into their resp ective categories and follow below.  The Chair's 
March 2009 text has also been appended to this report.   
 
_______________ 
 
 
 
 
 
 S/WPDR/W/45 
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  STATE OF PLAY 
   
CHAIR'S MARCH 2009 TEXT 
I. INTRODUCTION 
1. Pursuant to Article VI:4 of the GATS, Memb ers have agreed to the following disciplines on 
domestic regulation. 
SINGLE ALTERNATIVE 
1. Having regard to the objectives in Article VI :4 of the GATS, Members have agreed to the 
following disciplines on domestic regulation.  S/WPDR/W/45 
 Page 7 
 
 
   
CHAIR'S MARCH 2009 TEXT  
 
2. The purpose of these disciplines is to facilitate  trade in services by ensuring that measures 
relating to licensing requirements and procedures,  qualification requirements and procedures, and 
technical standards are based on objective and transp arent criteria, such as competence and the ability 
to supply the service, and do not constitute di sguised restrictions on trade in services. 
 
MULTIPLE ALTERNATIVES 
2. The purpose of these disciplines is to facilitate  trade in services by ensuring that measures 
relating to licensing requirements and procedures,  qualification requirements and procedures, and 
technical standards are based on objective and transp arent criteria, such as competence and the ability 
to supply the service, and do not constitute dis guised restrictions on trade in services, while 
guaranteeing the right of Members to regulate in  order to achieve public policy objectives. 
"Necessity test"-related proposals: 
2. The purpose of these disciplines is to facilitate  trade in services by ensuring that measures 
relating to licensing requirements and procedures,  qualification requirements and procedures, and 
technical standards are based on objective and transp arent criteria, such as competence and the ability 
to supply the service, and do not constitute unnecessary barriers to trade in services. 
2. The purpose of these disciplines is to facilitate  trade in services by en suring that measures 
relating to licensing requirements and procedures,  qualification requirements and procedures, and 
technical standards are, inter alia: 
 
(a) based on objective and transparent criteria , such as competence and the ability to 
supply the service; 
(b) not more burdensome than necessary to en sure the quality of the service;  and  
(c) in the case of licensing procedures, not in themselves a restriction on the supply of the 
service. S/WPDR/W/45 
Page 8  
 
  CHAIR'S MARCH 2009 TEXT 
3. Members recognize the right to regulate, and to introduce new regulations, on the supply of 
services within their territories in order to meet  national policy objectives and, given asymmetries 
existing with respect to the degree of development of services regulations in different countries, the 
particular need of developing countries to exer cise this right.  These disciplines should not be 
construed to prescribe or impose particular regul atory approaches or any particular regulatory 
provisions in domestic regulation. 
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
Same as above.  S/WPDR/W/45 
 Page 9 
 
 
  CHAIR'S MARCH 2009 TEXT 
4. Members recognize the difficulties which may be faced by individual developing country 
Members in implementing disciplines on domestic regula tion, particularly difficulties relating to level 
of development, size of the economy, and regulat ory and institutional capacity.  Members recognize 
the difficulties which may be faced by service supplie rs, particularly those of developing country 
Members, in complying with measures relating to licensing requirements and procedures, qualification requirements and procedures, a nd technical standards of other Members. 
SINGLE ALTERNATIVE 
4. Members recognize the difficulties which may be faced by individual developing country 
Members in implementing disciplines on domestic regula tion, particularly difficulties relating to level 
of development, [size of the economy,] and regulat ory and institutional capacity.  Members recognize 
the difficulties which may be faced by service supp liers, [particularly those of developing country 
Members,] in complying with measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical  standards of other Members. In this context, 
Members take particular account of the specific difficulties which may be f aced by service suppliers 
from Least Developed Country Members. S/WPDR/W/45 
Page 10  
 
  CHAIR'S MARCH 2009 TEXT 
II. DEFINITIONS 
5. "Licensing requirements" are substantive requi rements, other than qualification requirements, 
with which a natural or a juridical person is require d to comply in order to obtain, amend or renew 
authorization to supply a service. 
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
Same as above. 
 
  S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
6. "Licensing procedures" are administrative or procedural rules that a natural or a juridical 
person, seeking authorization to supply a service, including the amendment or renewal of a licence, 
must adhere to in order to demonstrat e compliance with licensing requirements. 
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
Same as above. S/WPDR/W/45 
Page 12  
 
  CHAIR'S MARCH 2009 TEXT 
7. "Qualification requirements" are substantive requirements relating to the competence of a 
natural person to supply a service, and which are re quired to be demonstrated for the purpose of 
obtaining authorization to supply a service.  
AGREEMENT REACHED ON AN AD REFERENDUM  BASIS 
7. "Qualification requirements" are substantiv e requirements relating to the competence of a 
natural person in relation to the supply of a service,  and which are required to be demonstrated for the 
purpose of obtaining authorization to supply a service. 
  S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
8. "Qualification procedures" are administrative or  procedural rules that a natural person must 
adhere to in order to demonstrate compliance w ith qualification requirements, for the purpose of 
obtaining authorization to supply a service. 
AGREEMENT REACHED ON AN AD REFERENDUM  BASIS 
Same as above. 
 S/WPDR/W/45 
Page 14  
 
  CHAIR'S MARCH 2009 TEXT 
9. "Technical standards" are measures that lay down the characteristics of a service or the 
manner in which it is supplied.  Technical standa rds also include the procedures relating to the 
enforcement of such standards. 
SINGLE ALTERNATIVE 
9. "Technical standards" are measures [that pr escribe] the characteristics of a service or the 
manner in which it is supplied.  Technical standa rds also include the procedures relating to the 
enforcement of such standards. 
  S/WPDR/W/45 
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  PROPOSAL FOR A DEFINITI ON ON "AUTHORIZATION" 
One Member proposed to add the following definition of the word "authorization" to the Chapter on 
Definitions. 
 
"Authorization" is a measure permitting a natural or legal person to engage in  the supply of a service 
in the territory or a regional subdivision of a Member, and includes a license or a determination that such a person is qualified to supply a service.  "Authorization" does not include measures: 
 
(a)   governing the general conduct of a busin ess, including locations, times of operation and 
similar conditions; 
(b)   governing the safety or the impact on human, anim al or plant life or health of the service or of 
construction or engineering activities associated with the service;  or 
(c)   concerning government procurement. 
During consultations, it was proposed to split this  paragraph in two parts, one  part with a definition 
of "authorization" and another part that indicates measures that should not be included under the 
term and could be placed in either the c hapter on general provisions or paragraph 25.. 
 
For the purpose of these disciplines, "authorization" refe rs to the granting of pe rmission to a natural or 
legal person to supply a service in or into the te rritory or a regional subdivision of a Member, and 
includes a license or a determination that such a person is qualified to supply a service.    "Authorization" does not include measures:  
(a)   governing the general conduct of business,  including locations, times of operation and similar 
conditions; 
(b)   governing the safety or the impact on human, animal or plant life or health of the service or 
the physical structures associated with the service;  or 
(c)   concerning government procurement. S/WPDR/W/45 
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CHAIR'S MARCH 2009 TEXT 
III. GENERAL PROVISIONS 
10. These disciplines apply to measures by Members relating to licensing requirements and 
procedures, qualification requireme nts and procedures, and technical  standards affecting trade in 
services where specific commitments are undertaken.  They do not apply to measures to the extent 
that they constitute limitations subject to  scheduling under Article XVI or XVII. 
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
Same as above.  S/WPDR/W/45 
 Page 17 
 
 
  CHAIR'S MARCH 2009 TEXT 
11. Measures relating to licensing requirements a nd procedures, qualifi cation requirements and 
procedures, and technical standards shall be pr e-established, based on objective and transparent 
criteria and relevant to the supply of the services to which they apply. 
SINGLE ALTERNATIVE 
11. Measures relating to licensing requirements a nd procedures, qualifi cation requirements and 
procedures, and technical standards shall be: 
(a) based on objective[1] and transparent criteria[2] and 
(b) clearly related to the objectives of the measu re at issue and to the service being regulated. 
Applications for licensing and/or qualifications sha ll be examined under measures in force at the date 
of application. Where pending applications are to  be examined under amended or replaced measures, 
the Member shall promptly inform all applicants and provide reasonable time to such applicants to 
adapt their applications to such amended/new measures.  ________________ 
[
1 Members understand that objective criteria include cr iteria that may not be quantifiable, such as 
competence, ability to supply the service and e nvironmental, social and health effects.] 
[2 Members understand that in reaching decisions a competent authority may balance competing 
criteria. ] S/WPDR/W/45 
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  "NECESSITY TEST"-RELATED PROPOSALS 
One Member proposed to add paragraph 11bis to the Chapter on General Provisions: 
[11bis. Members shall ensure that measures relating to licensing requirements and procedures, 
technical standards and qualification requirement s and procedures are not prepared, adopted or 
applied with a view to or with the effect of cr eating unnecessary barriers to trade in services.  For this 
purpose, Members shall ensure that such measures are not more trade-restrictive than necessary to 
fulfil specific national policy objectives, incl uding to ensure the quality of a service.] 
Another Member proposed to add the following paragraph to the Chapter on General Provisions: 
[The content of the measures should be reasonable in light of ensuring the quality of the service, 
taking into account such elements as the views and needs of the service providers.] 
    
 
 
 
   
 
  S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
12. Nothing in these disciplines prevents Member s from exercising the right to introduce or 
maintain regulations in order to ensure provision of  universal service, in a manner consistent with 
their obligations and commitments under the GATS. 
SINGLE ALTERNATIVE 
During consultations, a number of Members agreed that  the paragraph could be deleted. A number of 
other Members preferred to retain the paragraph for the time being. Some Members were willing to 
consider moving this paragraph to the introductory chapter. 
[12. Nothing in these disciplines prevents Memb ers from exercising the right to introduce or 
maintain regulations in order to ensure provision of  universal service, in a manner consistent with 
their obligations and commitments under the GATS.] S/WPDR/W/45 
Page 20  
 
  CHAIR'S MARCH 2009 TEXT 
IV. TRANSPARENCY 
13.  Each Member shall publish promptly, through printed or electroni c means, measures of 
general application relating to licensing requireme nts and procedures, qualification requirements and 
procedures, and technical standards, as well as deta iled information regarding these measures.  This 
information shall include, inter  alia: 
(a) whether any authorization, including appli cation and/or renewal where applicable, is 
required for the supply of services;  
(b) the official titles, addresses and contact info rmation of relevant competent authorities;  
(c) applicable licensing requirements and  criteria, terms and conditions of licences, and 
licensing procedures and fees;  
(d) applicable qualification requirements, cr iteria and procedures for verification and 
assessment of qualifications including fees;  
(e) applicable technical standards;  
(f) procedures re lating to appeals or reviews of applications;  
(g) monitoring, compliance or enforcement pr ocedures including notification procedures 
for non -compliance;  
(h) where applicable, how public involvement in the licensing process, such as hearings 
and opportunity for co mment, is provided for;  
(i) exceptions, derogations or changes to measu res relating to licensing requirements and 
procedures, qualification requirements and pr ocedures, and technical standards; and  
(j) the normal timeframe for processing of an application.  
Where publication is not practicable, such informati on shall be made otherwise publicly available.  
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
13. Each Member shall publish promptly, through printed or electronic means, all measures of 
general application relating to licensing requireme nts and procedures, qualification requirements and 
procedures, and technical standards.  This shall include the following information, where it exists, 
inter alia : 
(a) requirements for authorization, requirements for periodic renewal of such 
authorization, and generally applicable te rms and conditions of such authorization; 
(b) the official titles, addresses and contact inform ation of relevant competent authorities; 
(c) applicable licensing requirements and pro cedures (including requirements, criteria 
and procedures for appli cation and/or renewal, and applicable fees);   S/WPDR/W/45 
 Page 21 
 
 
  (d) applicable qualification requirements and pr ocedures (including requirements, criteria 
and procedures for appli cation and/or renewal, and applicable fees); 
(e) applicable technical standards;  
(f) applicable procedures relating to appeal s or reviews of decisions concerning 
applications for licenses and for the verification and assessment of qualifications; 
(g) applicable procedures for monitoring or en forcement of the terms and conditions of 
licenses and for the verification and assessment of qualifications;  
(h) where applicable, opportunity and associated procedures for  public involvement such 
as through hearings and opportunity for comment;  
(i) established timeframe for processing of an application. 
Where publication is not practicable, such information shall be made otherwise publicly available, and 
shall be provided to service suppliers upon request.  Nothing in this paragra ph shall be construed as 
requiring a Member to adopt or maintain any me asure not otherwise required by these disciplines. S/WPDR/W/45 
Page 22  
 
  CHAIR'S MARCH 2009 TEXT  
14. Each Member shall maintain or establish appr opriate mechanisms for responding to enquiries 
from any service suppliers regarding any measures re lating to licensing requirements and procedures, 
qualification requirements and proce dures, and technical standards.  Such enquiries may be addressed 
through the enquiry and contact points established under Articles III and IV of the GATS or any other 
mechanisms as appropriate. 
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
Same as above.  S/WPDR/W/45 
 Page 23 
 
 
  CHAIR'S MARCH 2009 TEXT 
15. Each Member shall endeavour to ensure th at any measures of general application it proposes 
to adopt in relation to matters falling within the sco pe of these disciplines are published in advance.  
Each Member should endeavour to provide reasona ble opportunities for service suppliers to comment 
on such proposed measures.  Each Member should also endeavour to address collectively in writing 
substantive issues raised in comme nts received from service suppliers with respect to the proposed 
measures. 
SINGLE ALTERNATIVE 
15. Each Member shall endeavour to publish in advance any [measures] [r egulations] of general 
application it proposes to adopt in relation to matte rs falling within the scope of these disciplines.  
Each Member [should endeavour to] [shall to the ex tent practicable] provide reasonable opportunities 
for service suppliers [and other interested  parties] to comment on such proposed 
[measures][regulations] [prior to their entry into force].  [Each Member should also endeavour to 
address collectively in writing substantive issues rais ed in comments received from service suppliers 
[and other interested parties] with respec t to the proposed [measures][regulations].] 
 S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
V. LICENSING REQUIREMENTS 
16. Where residency requirements for licensing not subject to scheduling under Article XVII of 
the GATS exist, each Member shall consider whethe r less trade restrictive means could be employed 
to achieve the purposes for w hich these requirements were established.  
VII. QUALIFICATION REQUIREMENTS 
29. Residency requirements, other than those s ubject to scheduling under Article XVII of the 
GATS, shall not be a pre -requisite for assessing and verifying the competence of a servic e supplier of 
another Member.  
AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
It was agreed on an ad referendum bas is to delete paragraphs 16 and 29. 
  S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
VI.  LICENSING PROCEDURES 
17. Each Member shall ensure that licensing pr ocedures, including application procedures and, 
where applicable, renewal procedures, are as simple  as possible and do not in themselves constitute a 
restriction on the supply of services.   
VIII. QUALIFICATION PROCEDURES 
31. Each Member shall ensure that qualification procedures are as simple as possible and do not 
in themselves constitute a restriction on the supply of services.  
MULTIPLE ALTERNATIVES 
Options for a merged paragraph:  Each Member shall ensure that licensing and qua lification procedures for the purpose of obtaining 
authorization to supply a service are [simple,] reas onable, clear and relevant [to the underlying policy 
objectives], [taking into account the nature of th e requirements to be met and the criteria to be 
assessed,] [and do not in themselves constitute a restri ction on the supply of services]. [Members shall 
ensure that such procedures do not in themselve s unduly impede fulfilment of requirements.] 
  Each Member shall ensure that licensing and qualification procedures are:  
(a) [simple] [as simple as possible][taking into  account the nature of the requirements to be 
met and the criteria to be assessed,] [as simple as  the nature of the requirements to be met and 
the criteria to be assessed permit] 
(b) [reasonable and clear] [reasonable, objective and transparent] (c) [based on objective and transparent criteria] [applied in an objective and impartial manner] 
and 
(d) [clearly] related to the objectives of the measu re at issue and to the service being regulated 
[and do not in themselves constitute a restriction on the supply of services.] 
"Necessity test"-related proposals: 
17. Each Member shall ensure that licensing pr ocedures, including application procedures and, 
where applicable, renewal procedures, are as simple  as possible and do not in themselves constitute a 
restriction on the supply of services.  Each Member  shall ensure that no procedures are imposed other 
than necessary to verify the compliance with th e licensing requirements by the applicant.  
31. Each Member shall ensure that qualification procedures are as simple as possible and do not 
in themselves constitute a restriction on the supply of services.  Each Member shall ensure that no 
procedures are imposed other than necessary to ve rify compliance with qualification requirements by 
the applicant. S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
18. Each Member shall ensure that the procedur es used by, and the decisions of, the competent 
authority in the licensing process are impartial with r espect to all applicants.  The competent authority 
should be operationally in dependent of and not accountable to an y supplier of the services for which 
the licence is required. 
SINGLE ALTERNATIVE 
18. Each Member shall ensure that the licensi ng and qualification procedures used by, and the 
related decisions of, any competent authority are im partial.  The competent authority should reach its 
decisions in an independent manner.[1]  
_______________________ 
[1 'Competent authorities' are, for purposes of these di sciplines, the authorities under Article I:3(a)(i) 
and (ii) charged with the establishment or enfo rcement of licensing requirements and procedures, 
qualification requirements and procedures and technical  standards with regard to a particular service 
within the territory of a WTO Member.] 
 
 
     S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
19. An applicant shall, in principle, not be required to approach more than one competent 
authority in connection with an application for a licence.   
32. An applicant shall, in principle, not be required to approach more than one competent 
authority for qualification procedures. 
MULTIPLE ALTERNATIVES  
19. An applicant [shall, to the extent practicable ] [should] [should, in principle,] not be required 
to approach more than one competent authority in  connection with an application for a licence.   
32. An applicant [shall, to the extent practicab le] [should, in principle,] not be required to 
approach more than one competent authority for qualification procedures. 
Option for a merged paragraph: 
 
Each Member shall, to the extent practicable, avoi d requiring an applicant to approach more than one 
competent authority for each application required in order to obtain authorisation for the supply of a 
service. 
 
   S/WPDR/W/45 
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  CHAIR'S MARCH 2009 TEXT 
20. An applicant should be permitted to submit an application at any time, except where licenses 
are limited in numbers, including in public tenderi ng.  Where specific time periods for applications 
exist, an applicant shall be allowed a reasonable period for the submission of an application.  The 
competent authority shall initiate the processing of  an application without undue delay.  Where 
possible, applications should be accepted in electronic format under the same conditions of 
authenticity as paper submissions. 
33.  An applicant should be permitted to submit an application at any time.  The competent 
authority shall initiate the processing of an  application without undue delay.   
MULTIPLE ALTERNATIVES 
20. The competent authority [shall] [should] permit an applicant to submit an application at any 
time.  Where specific time periods for applications exist, an applicant shall be allowed a reasonable 
period for the submission of an application.  The competent authority shall initiate the processing of 
an application without undue delay. The competent au thority [shall, to the extent practicable][should] 
accept applications in electronic format under the equivalent conditions of authenticity as paper 
submissions. 
33. The competent authority [shall] [should] permit an applicant to submit an application at any 
time.  Where specific time periods for applications exist, an applicant shall be allowed a reasonable 
period for the submission of an application.  The competent authority shall initiate the processing of 
an application without undue delay. The competent au thority [shall, to the extent practicable][should] 
accept applications in electronic format under the equivalent conditions of authenticity as paper 
submissions. 
Option for a merged paragraph: 
The competent authority [shall] [should] permit an applicant to submit an application at any time.  
Where specific time periods for applications exist,  an applicant shall be allowed a reasonable period 
for the submission of an application.  The compet ent authority shall initiate the processing of an 
application without undue delay. To the extent  practicable, the competent authority shall accept 
applications in electronic format under the equivale nt conditions of authentic ity as paper submissions. 
 
  S/WPDR/W/45 
 Page 29 
 
 
  CHAIR'S MARCH 2009 TEXT 
21. The competent authority shall, within a reasonable period of time after receipt of an 
application which it considers incomplete, inform th e applicant, to the exte nt feasible identify the 
additional information required to complete the a pplication, and provide the opportunity to correct 
deficiencies.   
35. The competent authority shall, within a reasonable period of time after receipt of an 
application, which it considers incomplete, inform th e applicant, to the exte nt feasible, identify the 
additional information required to complete the a pplication, and provide the opportunity to correct 
deficiencies.  
SINGLE ALTERNATIVE 
Merged paragraph: 
Where the competent authority considers that an app lication is incomplete [and] [or] determines that it 
needs additional information [to reach a decision] [for  the application to be considered complete], it 
shall, within a reasonable period of time:  
 
(a) inform the applicant,  
(b) [to the extent practicable] identify the information required, and 
 (c) [to the extent practicable] provide the opportunity to correct deficiencies. 
  S/WPDR/W/45 
Page 30  
 
  CHAIR'S MARCH 2009 TEXT 
22. Authenticated copies should be accepted, wher e possible, in place of original documents. 
36. Authenticated copies should be accepted, wher e possible, in place of original documents. 
SINGLE ALTERNATIVE 
 Merged paragraph: 
The competent authority shall, to the extent its domestic law permits, accept authenticated copies in 
place of original documents.   S/WPDR/W/45 
 Page 31 
 
 
  CHAIR'S MARCH 2009 TEXT 
23. If an application for a licence is rejected by  the competent authority, the applicant shall be 
informed in writing and without undue delay.  In principle, the applicant shall, upon request, also be 
informed of the reasons for rejection of the applica tion and of the timeframe for an appeal against the 
decision.  An applicant should be permitted, within  reasonable time limits, to resubmit an application. 
37. If an application for verification and assessment  of qualification is rejected by the competent 
authority, the applicant shall be informed in wr iting and without undue delay.  In principle, the 
applicant shall, upon request, also be informed of the reasons for rejection of the application and of 
the timeframe for an appeal agains t the decision.  An applicant should be permitted, within reasonable 
time limits, to resubmit an application. 
MULTIPLE ALTERNATIVES 
23. If an application for a licence is rejected by the competent authority, the applicant [should] be 
informed in writing and without undue delay.  In principle, the applicant shall, upon request, also be informed of the reasons for rejection of the applica tion and of the timeframe for an appeal against the 
decision.  [Where applicable,] [subject to the availability of licences,] an applicant should be 
permitted, within reasonable time li mits, to resubmit an application. 
Option for a merged paragraph: 
 
If the competent authority rejects an application, it shall inform the applicant without undue delay, 
and to the extent practicable in writing.  It [sha ll] [should] inform the applicant, upon request, of the 
reasons for rejection of the application and where [applicable] [possible], any deficiencies that have 
been identified.  It [shall] [should] inform the a pplicant of the timeframe and of the procedures for 
[any available] appeal against the decision.  [It [shall] [should] permit an applicant to resubmit an 
application in accordance with the relevant aut hority's established procedures [, except where the 
relevant authority limits the number of licenses or qualification determinations].] [It shall permit an 
applicant to resubmit an application within reasonabl e time limits subject to fulfilment of prescribed 
requirements and procedures and availability and/or eligibility.]  S/WPDR/W/45 
Page 32  
 
  CHAIR'S MARCH 2009 TEXT 
24. Each Member shall ensure that the pro cessing of an application for a license, including 
reaching a final decision, is completed within a reasonable timeframe from the submission of a 
complete application.  Each Member shall endea vour to establish the normal timeframe for processing 
of an application. 
38. Each Member shall ensure that the processing of an application, including verification and 
assessment of a qualification, is completed within a reasonable timeframe from the submission of a 
complete application.  Each Member shall endea vour to establish the normal timeframe for processing 
of an application. 
MULTIPLE ALTERNATIVES  
24. Each Member shall ensure that the pro cessing of an application for a license, including 
reaching a final decision, is completed within a reasonable timeframe from the submission of a complete application.  Each Member shall [e ndeavour to establish][indicate] the [generally 
applicable] timeframe for processing of an appli cation [or explain why such an estimation of a 
timeframe may not be possible]. 
38. Each Member shall ensure that the processing of an application, including verification and 
assessment of a qualification, is completed within a reasonable timeframe from the submission of a complete application.  Each Member shall [e ndeavour to establish][indicate] the [generally 
applicable] timeframe for processing of an application. 
Option for a merged paragraph: 
Each Member shall ensure that the processing of an application, including reaching a final decision, is 
completed within a reasonable timeframe from the submission of a complete application.  Each 
Member shall [provide an estimation of] [indicat e] [endeavour to establish] the timeframe for 
processing of an application [or, in case of licensing, explain why such an estimation of a timeframe may not be possible].   
  S/WPDR/W/45 
 Page 33 
 
 
  CHAIR'S MARCH 2009 TEXT 
25. Each Member shall ensure that a licence, once granted, enters into effect without undue delay 
in accordance with the terms a nd conditions specified therein. 
30. Once qualification requirements and any app licable licensing requirements have been 
fulfilled, each Member shall ensure that a service supplier is allowed to supply the service without 
undue delay. 
MULTIPLE ALTERNATIVES  
25. Each Member shall ensure that a licence is  granted as soon as the conditions required for 
authorization have been met and, once granted, ente rs into effect without undue delay in accordance 
with [the] [its] terms and conditions specified therein. 
 
25. Each Member shall ensure that a licence, once granted, enters into effect without undue delay 
in accordance with the terms and conditions specifi ed therein. Among the reasons a service supplier 
may not be permitted to provide immediate or continu ous service is the need to comply with measures 
outside the scope of these disci plines. Such measures include inter alia  any requirement, not specified 
in a license itself,1 that relates to:  
(a)   the general conduct of a business, incl uding locations, times of operation and similar 
conditions; 
(b)   the safety or the impact on human, animal  or plant life or health of the service or of 
construction or engineering activities associated with the service;  or 
(c)   government procurement [subject to the out come of negotiations under GATS Article XIII]. 
_______________ 
1 Other than a general requirement of  adherence to applicable law. 
25. Each Member shall ensure that a licence, once granted, enters into effect without undue delay 
in accordance with the terms and c onditions specified therein. This is without prejudice to the need to 
attain permissions not directly related to the competence or abilities of the service provider or the 
quality of the service provided. Examples of such  permissions include: cons truction permits, permits 
related to the time and place of the supply of the service, and health and safety regulations. 
25. Each Member shall ensure that a licence, once granted, enters into effect without undue delay 
in accordance with the terms a nd conditions specified therein.1  
_______________ 
1This is without prejudice to the need  to comply with any other applicable laws and the need to obtain 
any ancillary approvals not directly related to the competence or abilities of the service provider or the 
quality of the service provided. 
30. Once qualification requirements and any applicab le licensing requirements have been fulfilled 
[and the competent authority grants permission to op erate], each Member shall ensure that a service 
supplier is allowed to supply the service without undue  delay in accordance with applicable terms and 
conditions. 
   S/WPDR/W/45 
Page 34  
 
   
Options for a merged paragraph: 
 
Each Member shall ensure that a licence, once granted, enters into effect without undue delay in 
accordance with its terms and conditions.  Each Memb er shall also ensure that, once qualification 
requirements and any applicable licensing requireme nts have been fulfilled, a service supplier is 
allowed to supply the service without undue delay.  Th is is without prejudice to the fulfilment of any 
requirements other than the applicable qualification and licensing requirements. 
 Each Member shall ensure that an authorization to supply a service [is granted] as soon as the 
[conditions required for authorization] [licensing or  qualification requirements] have been met and, 
once granted, enters into effect without undue delay in accordance with its terms and conditions.  
[This is without prejudice to the fulfilment of any requirements other than the applicable qualification 
and licensing requirements.]  
  S/WPDR/W/45 
 Page 35 
 
 
  CHAIR'S MARCH 2009 TEXT 
26. Each Member shall ensure that licensing fees1 are reasonable in terms of the costs incurred by 
the competent authority, including those for activ ities related to regulation and supervision of the 
relevant service, and do not in themselv es restrict the supply of the service. 
_______________ 
1 Licensing fees do not include fees for the use of natural resources, payments for auction, 
tendering or other non-discriminatory means of aw arding concessions, or mandated contributions to 
universal service provision. 
 
39. Each Member shall ensure that any fees relating to qualification procedures are commensurate with the costs incurred by the compet ent authorities and do not in themselves restrict 
the supply of the service. 
SINGLE ALTERNATIVE  
During consultations, an alternative for paragr aph 26 and an alternative for paragraph 39 was 
proposed: 
26.   Each Member shall ensure that fees related to licensing procedures1 charged by the competent 
authority are reasonable [and commensurate with the co st incurred]. Such fees may include the cost of 
activities related to regulation and s upervision of the relevant service,  but [may][do] not in themselves 
restrict the supply of the service. 
_______________ 
1 These fees do not include fees for the use of natural resources, payments for auction, 
[tendering or other non-discriminatory means of awar ding concessions,] or mandated contributions to 
universal service provision. Except in situations described in Article I: 3(a)(ii) of the GATS, such fees 
also do not include fees charged by private entities for assessments in support of applications such as 
fees for privately-administered examinati ons or privately-generated credit reports. 
 
39. Each Member shall ensure that fees related to qualification procedures1 charged by the 
competent authority are reasonable [and commensurate with the cost incurred]. Such fees may include 
the cost of activities related to regulation and superv ision of the relevant service, but [may][do] not in 
themselves restrict the supply of the service. 
_______________ 
1 Except in situations described in Article I:3(a )(ii) of the GATS, such fees do not include fees 
charged by private entities for asse ssments in support of applications such as fees for privately-
administered examinations or privately-generated credit reports. S/WPDR/W/45 
Page 36  
 
  CHAIR'S MARCH 2009 TEXT 
VII.  QUALIFICATION REQUIREMENTS 
27. Where a Member imposes qualification requi rements for the supply of a service, it shall 
ensure that adequate procedures exist for the veri fication and assessment of qualifications held by 
service suppliers of other Members.  In verify ing and assessing qualifications, where the competent 
authority finds it relevant, it shall give due consideration to releva nt professional experience of the 
applicant as a complement to educational qualifica tions.  Where the competent authority considers 
that membership in a relevant professional association in the territory of another Member is indicative 
of the level of competence or extent of experience  of the applicant, such membership shall also be 
given due consideration. 
MULTIPLE ALTERNATIVES  
27.  Where a Member imposes qualification requi rements for the supply of a service, it shall 
ensure that adequate procedures exist for the veri fication and assessment of qualifications held by 
service suppliers of other Members.  In verify ing and assessing qualifications, where the competent 
authority considers it relevant, it shall give due  consideration to professional experience[, as a 
complement to educational qualifications,] and to  membership in a professional association in the 
territory of another Member. 
27. Where a Member imposes licensing or qualifi cation requirements for the supply of a service, 
it shall ensure that adequate procedures exist for assessing an applicant's fulfilment of such 
requirements, including procedures for ve rification and assessment of qualifications. 
 
 
 
 
  S/WPDR/W/45 
 Page 37 
 
 
  CHAIR'S MARCH 2009 TEXT 
28. Provided an applicant has presented all n ecessary supporting evidence of qualifications, the 
competent authority, in verifying and assessing qua lifications, shall identify any deficiency and 
inform the applicant of requirements to meet th e deficiency.  Such requirements may include, inter 
alia, course work, examinations, training, and work experience.  Where appropriate, each Member 
shall allow applicants to fulfil such requirement s in the home, host or any third jurisdiction. 
MULTIPLE ALTERNATIVES  
28. Provided an applicant has presented all necessary supporting evidenc e of qualifications, the 
competent authority, in verifying and assessing qua lifications, shall identify any deficiency and 
inform the applicant of requirements to meet th e deficiency.  Such requirements may include, inter 
alia, course work, examinations, t raining, and work experience.  Where appropriate, each Member 
shall allow applicants to fulfil such requireme nts in the home, host or any third jurisdiction.  
28. Provided an applicant has presented all n ecessary supporting evidence of qualifications, the 
competent authority, in verifying and assessing qua lifications, [shall][may] identify any deficiency 
and inform the applicant of requirements to meet  the deficiency.  Such requirements may include, 
inter alia, course work, examinations, training, and work experience, each of which shall be based on 
criteria relevant for the supply of the service.  The possibility of fulfilling such requirements should not be restricted to host country institutions.  The possibility of meeting these requirements in the 
home country, including through electronic submissi ons, should also be provided for unless there are 
justifiable reasons to the contrary which should be  clearly stated.  Where appropriate, each Member 
shall also allow applicants to fulfil such  requirements in any third jurisdiction. 
 S/WPDR/W/45 
Page 38  
 
  PROPOSAL ON LANGUA GE EXAMINATIONS 
Proposal  to include a paragraph in between par agraph 29 and paragraph 30 of the Chair's March 
2009 text: 
[Members should not require passage of language examinations unless they are based on meeting 
legitimate public policy objectives su ch as the safety of the consumer, ensuring quality of the services 
or where working knowledge of the language is essential for practice.] 
  S/WPDR/W/45 
 Page 39 
 
 
  CHAIR'S MARCH 2009 TEXT 
VIII.  QUALIFICATION PROCEDURES 
34. Where examinations are required, each Member  shall ensure that they are scheduled at 
reasonably frequent intervals.  Applicants for ex aminations shall be allowed a reasonable period to 
submit applications. 
SINGLE ALTERNATIVE 
34. Where examinations are required, each Member  shall [encourage] [to the extent practicable, 
ensure that] the relevant authority [to schedule]  [schedules] examinations at reasonably frequent 
intervals.  Applicants for examinations shall be  allowed a reasonable period to submit applications. 
Each Member [shall][should], [to the extent practi cable], having regard to the costs and administrative 
burden involved, [encourage the competent authorities to] use electronic means for conducting such 
examinations and [to] provide opportunities for c onducting such examinations from the home country 
of the applicant.   S/WPDR/W/45 
Page 40  
 
   AGREEMENT REACHED ON AN AD REFERENDUM BASIS 
Members agreed on an ad referendum basis to in clude the following paragraph in the chapter on 
Qualification Procedures: 
Members note the role which mutual recognition agre ements can play in facilitating the process of 
verification of qualifications and/or in  establishing equivalency of education. 
 
  S/WPDR/W/45 
 Page 41 
 
 
  CHAIR'S MARCH 2009 TEXT 
IX. TECHNICAL STANDARDS 
40. Members are encouraged to ensure maximum transparency of relevant processes relating to 
the development and application of  domestic and international sta ndards by non-governmental bodies. 
MULTIPLE ALTERNATIVES 
40. Members are encouraged to ensure transp arency of relevant processes relating to the 
development and application of domestic and international standa rds by non-governmental bodies. 
40. As a matter of good practice, Members invol ved in the development and application of 
measures relating to prudential sta ndards and standards developed a nd applied by non-governmental 
standardisation bodies, should ensure maximum tran sparency of relevant processes for the benefit of 
other Members. S/WPDR/W/45 
Page 42  
 
  "NECESSITY TEST"-RELATED PROPOSAL 
A group of Members suggested adding under chapter IX a paragraph before Paragraph 40 : 
Each Member shall ensure that any measures rela ting to application, monitoring, compliance and 
enforcement of technical standards are not more bur densome than necessary to ensure that a service 
conforms with the relevant technical standards, ta king into account the risks that non-fulfilment would 
create.   
   S/WPDR/W/45 
 Page 43 
 
 
  CHAIR'S MARCH 2009 TEXT 
41. Where technical standards are required and re levant international standards exist or their 
completion is imminent, Members should take them or the relevant parts of them into account in 
formulating their technical standards, except when such international standards or relevant parts 
would be an ineffective or inappropriate mean s for the fulfilment of national policy objectives. 
MULTIPLE ALTERNATIVES 
41. Where technical standards are require d and relevant inte rnational standards1 exist [or their 
completion is imminent ], Members [are encouraged to] [should] [s hall] take them or the relevant parts 
of them into account in formulating their tec hnical standards, except wh en such international 
standards or relevant parts would be an ineffec tive or inappropriate means for the fulfilment of 
national policy objectives. 
_________________ 
 
1International standards are standards developed by relevant international organizations whose 
membership is open to the relevant bodies of at least all Members of the WTO. 
 
41.  Each Member shall use, as a basis for its t echnical standards, relevant  international standards 
or international standards whose completion is im minent, except where such standards would be an 
ineffective or inappropriate means to fulfil its national policy objectives, for example because of 
fundamental climatic, geographical, technological or infrastructural factors. S/WPDR/W/45 
Page 44  
 
  "NECESSITY TEST"-RELATED PROPOSAL 
One Member proposed to add  the following paragraph to the Chapter on Technical Standards : 
No Member may prepare, adopt, maintain or apply an y technical standards with a view to or with the 
effect of creating an unnecessary obstacle to trade between the Members.  For this purpose, Members 
shall ensure that such measures are not more trade -restrictive than necessary to fulfil a national policy 
objective, taking account of the risks non-fulfilment would create.  Such national policy objectives are, inter alia: the protection of human health or safety, animal or plant life or health;  the protection of 
public morals and the maintenance of public order;   national security requirements; the access to 
essential services; the quality of the service;  professional competence; the integrity of the profession;  
or the prevention of deceptive and fraudulent prac tices.  Requirements should be based on objective 
and transparent criteria.   S/WPDR/W/45 
 Page 45 
 
 
  CHAIR'S MARCH 2009 TEXT 
X. DEVELOPMENT 
42. A developing country Member  shall not be required to apply these disciplines for a period of 
[X] years from their date of entry in to force.  Before the end of th is transitional time period, upon 
request by a developing country Member, the Coun cil for Trade in Services may extend the time 
period to implement these disciplines, based on that  Member's level of development, size of the 
economy, and regulatory and institutional capacity. 
MULTIPLE ALTERNATIVES 
42. A developing country Member shall not be required to apply these disciplines as they pertain 
to qualification requirement, qualification pr ocedures, licensing requirements and licensing 
procedures as set forth in paragraphs [X through XX] for a period of 1 year from the date of entry into 
force of these disciplines.  All other provisions of these disciplines, including general provisions, and provisions relating to transparency, shall apply to a ll Members from their entry into force.  Before the 
end of this transitional time period, upon request by a developing country Member, the Council for 
Trade in Services may extend the time period to im plement these disciplines for up to two additional 
years.  Such request and grant of extension shall be made as follows: 
 
(a) A Member that maintains authorization practices not in compliance with paragraphs 
 [X through XX], and that wishes to make  use of these procedures (the "requesting 
 Member"), shall initiate consultations w ith the Council for Trade in Services in 
 respect of an extension for such authori zation practices, on the basis of documentation 
 to be submitted to the Council not later than  three months after entry into force of 
 these disciplines.  This documentation sha ll consist of (i) an identification by the 
 requesting Member of those authorizations  for which it is seeking an extension under 
 these procedures; (ii) a statement that th e extension is necessary in light of the 
 regulatory and institutional capacity of the requesting Member and the competent 
 authority; and (iii) a statement, for each  authorization for which it is seeking an 
 extension under these procedures, identifying the paragraphs of these disciplines with  which such authorization is not in compliance. 
 (b) Not later than six months after entry in to force of these disciplines, the requesting 
Member shall submit to the Council for Trade in Services a notification providing 
detailed information about the authoriza tion for which extension is being sought, 
including a detailed description of the manner in which that authorization is not in 
conformity with paragraphs [X through XX]. 
 (c) Following receipt of the notifications refe rred to in subparagraph (b), the Council for 
Trade in Services shall consider those notif ications, with an opportunity for Members 
to seek clarification of the notified informa tion and/or additional detail with a view to 
understanding the nature and operation of the notified authorizations.  Not later than 
one year from the date of entry into for ce of these disciplines, the Council for Trade 
in Services shall grant extensions for an additional two year period for those 
authorizations notified pursuant to the se procedures, where the Council concludes 
that the requesting Member has demonstrated a need for such extension in light of the 
regulatory and institutional capacity of the Member and the competent authority. 
 (d) One year following the grant of such extens ion, the requesting Member shall file with 
the Council an updating notification d escribing any changes in the extended S/WPDR/W/45 
Page 46  
 
  authorization, and steps being taken by the requesting Member to bring the 
authorization into full conformity with th ese disciplines.  Failure to file such an 
updating notification shall terminate the extension. 
 
42. (a)  A developing country Member shall not be  required to apply these disciplines for a period 
of [X] [5 to 7] years from their date of entry into force.   
 
[Graduating LDCs shall benefit from this transitiona l time period from the date that their graduation 
becomes effective.]  
 
(b)  A developing country Member may still face particular difficulties which impair its 
ability to implement these disciplines after the expiry of that period due to its special 
financial, trade and development needs, regulator y and institutional capacity or other factors, 
including in circumstances related to the intr oduction of any new, or any changes to existing 
laws or regulations.  
 
Before the end of the period referred to in paragraph (a), a developing country Member may 
notify the existence of those particular difficu lties to the Council for Trade in Services. In 
such cases, that developing country Member sh all be granted extensions of the period to 
implement these disciplines.  S/WPDR/W/45 
 Page 47 
 
 
  CHAIR'S MARCH 2009 TEXT 
43. A Member may accord reduced administrativ e fees to service suppliers from developing 
country Members. 
MULTIPLE ALTERNATIVES 
43. A developed country Member  shall endeavour to accord re duced administrative fees to 
service suppliers from developing country Members. 
43. A Member may accord reduced administrativ e fees to service suppliers from developing 
country Members and in particular from LDCs. 
43. A Member may, to the extent feasible, accord  reduced administrative fees to service suppliers 
from developing country Members. 
43. A Member may accord reduced administrative fees to small and medium sized enterprises or 
natural persons, based on financial hardship. 
43. A Member may accord, to the extent feasible, reduced administrative fees to service suppliers 
from developing country Members and LDCs, in  accordance with Article II of the GATS. 
 
 
  S/WPDR/W/45 
Page 48  
 
  CHAIR'S MARCH 2009 TEXT 
44. Where circumstances allow for the phased introduction of new licensing requirements and 
procedures, qualification requirements and proce dures, and technical standards, Members shall 
consider longer phase-in periods for such measures in service sectors and modes of supply of export 
interest to developing country Members. 
SINGLE ALTERNATIVE 
44. Where [regulatory constraints] [circumsta nces] allow for the phased introduction of new 
licensing requirements and procedures, qualificati on requirements and procedures, and technical 
standards, [and this is in the interest of th e developing country supplier,] [developed country] 
Members shall consider longer phase-in periods fo r such measures in service sectors and modes of 
supply of export interest to developing c ountry Members and in particular from LDCs.  S/WPDR/W/45 
 Page 49 
 
 
  CHAIR'S MARCH 2009 TEXT 
45. Developed country Members, and to the ex tent possible other Members, shall provide 
technical assistance to developing country Memb ers and in particular least-developed country 
Members (LDCs), upon their request and on mutua lly agreed terms and conditions.  Technical 
assistance shall be aimed, inter alia  at: 
(a) developing and strengthening institutional and regulatory capacities to regulate the 
supply of services and to implement these disciplines; 
(b) assisting developing country and in partic ular LDC service suppliers to meet the 
relevant requirements and procedures in export markets; 
(c) facilitating the establishment of technical st andards and participa tion of developing 
country Members and in particular LDCs f acing resource constraints in the relevant 
international organizations; 
(d) assisting, through public or private bodies a nd relevant international organizations, 
service suppliers of developing country Me mbers in building their supply capacity 
and in complying with domestic regulation in their markets.  Such assistance may 
also be provided directly to the respective service suppliers. 
SINGLE ALTERNATIVE 
45. Developed country Members, and to the exte nt possible other Members, [may][shall] provide 
technical assistance to developing country Memb ers and in particular least-developed country 
Members (LDCs), upon their request and on mutua lly agreed terms and conditions.  Technical 
assistance shall be aimed, inter alia  at: 
(a) developing and strengthening institutional and regulatory capacities to regulate the 
supply of services and to implement these disciplines; 
(b) assisting developing country and in partic ular LDC service suppliers to meet the 
relevant requirements and procedures in export markets; 
(c) facilitating the establishment of technical st andards and participa tion of developing 
country Members and in particular LDCs f acing resource constraints in the relevant 
international organizations; 
(d) assisting, through public or private bodies a nd relevant international organizations, 
service suppliers of developing country Me mbers in building their supply capacity 
and in complying with domestic regulation in their markets.  Such assistance may 
also be provided directly to the respective service suppliers. 
 S/WPDR/W/45 
Page 50  
 
  CHAIR'S MARCH 2009 TEXT 
46. LDCs shall not be required to apply these disciplines.  LDCs are nonetheless encouraged to 
apply these disciplines, to the extent compatible with their special economic situation and their 
development, trade and financial needs. 
AGREEMENT REACHED ON AN AD REFERENDUM  BASIS 
Same as above.  S/WPDR/W/45 
 Page 51 
 
 
   PROPOSAL FOR AN AD DITIONAL PARAGRAPH 
During consultations, two Members suggested incl uding the following language in the Chapter on 
Development: 
Nothing in these disciplines shall oblige a Member to take action or refrain from taking action, in a 
manner inconsistent w ith its Constitution. 
   S/WPDR/W/45 
Page 52  
 
  CHAIR'S MARCH 2009 TEXT 
XI.  INSTITUTIONAL PROVISIONS 
47. The Council for Trade in Services shall est ablish a Committee on Domestic Regulation to 
oversee the implementation of these disciplines and the operation of Article VI of the GATS including any further work under Article VI:4 of the GATS. 
  S/WPDR/W/45 
 Page 53 
 
 
  CHAIR'S MARCH 2009 TEXT  
48. The Council for Trade in Services shall, upon request from any Member, review the operation 
of these disciplines and make recommendations as appropriate. 
 
_______________ 
  S/WPDR/W/45 
Page 54  
 
  Attachment: 
R o o m  D o c u m e n t         20 March 2009 
 
Working Party on Domestic Regulation 
 
 
- DRAFT - 
 
 
DISCIPLINES ON DOMESTIC REGULATION  PURSUANT TO GATS ARTICLE VI:4 
 
 Second Revision   
 
Informal Note by the Chairman  
   Please find attached a second revised draft of possible regulatory disciplines pursuant to 
Article VI:4 of the GATS. 
 
 This draft has been prepared, under my responsibility, with a view to registering progress in discussions that have taken place in the Working Party since February 2008.  It is intended to provide 
a point of departure for the work of the WPDR under its incoming Chairperson.   This revision only reflects drafting suggestions  on a few issues which I feel have enjoyed 
wide support by delegations during our discussions.  It does not address other issues on which 
differences persist.  Although, in several instances,  work on these has advanced significantly, I have 
refrained from suggesting any compromise langua ge, as I do not wish to influence future 
consideration of these issues under the guidance of  my successor.  The absence of any drafting 
changes regarding those issues should not be c onstrued to solidify the language as it stands. 
 
 Therefore, the content of my Note on outstanding issues (Room Document of 12 March 2008), as well as the 20 or so issues raised by delegations (Room Document of 25 June 2008), will 
require further negotiation and de bate in the Working Party. 
  
_______________ 
  
 
 
 
  S/WPDR/W/45 
 Page 55 
 
 
  - DRAFT  - 
 
DISCIPLINES ON DOMESTIC REGULATION 
 
 
I. INTRODUCTION 
1. Pursuant to Article VI:4 of the GATS, Member s have agreed to the following disciplines on 
domestic regulation. 
2. The purpose of these disciplines is to facilitate trade in services by ensuring that measures 
relating to licensing requirements and procedures,  qualification requirements and procedures, and 
technical standards are based on objective and transp arent criteria, such as competence and the ability 
to supply the service, and do not constitute di sguised restrictions on trade in services. 
3. Members recognize the right to regulate, and to  introduce new regulations, on the supply of 
services within their territories in order to meet  national policy objectives and, given asymmetries 
existing with respect to the degree of development of services regulations in different countries, the 
particular need of developing countries to exer cise this right.  These disciplines should not be 
construed to prescribe or impose particular regul atory approaches or any particular regulatory 
provisions in domestic regulation. 
4. Members recognize the difficulties which may be faced by individual developing country 
Members in implementing disciplines on domestic regula tion, particularly difficulties relating to level 
of development, size of the economy, and regulat ory and institutional capacity.  Members recognize 
the difficulties which may be faced by service supplie rs, particularly those of developing country 
Members, in complying with measures relating to licensing requirements and procedures, qualification requirements and procedures, a nd technical standards of other Members. 
II. DEFINITIONS 
5. "Licensing requirements" are substantive require ments, other than qualification requirements, 
with which a natural or a juridical person is require d to comply in order to obtain, amend or renew 
authorization to supply a service. 
6. "Licensing procedures" are administrative or procedural rules that a natural or a juridical 
person, seeking authorization to supply a service, including the amendment or renewal of a licence, 
must adhere to in order to demonstrat e compliance with licensing requirements. 
7. "Qualification requirements" are substantive requirements relating to the competence of a 
natural person to supply a service, and which are re quired to be demonstrated for the purpose of 
obtaining authorization to supply a service. 
8. "Qualification procedures" are administrative or procedural rules that a natural person must 
adhere to in order to demonstrate compliance w ith qualification requirements, for the purpose of 
obtaining authorization to supply a service. 
9. "Technical standards" are measures that lay do wn the characteristics of a service or the 
manner in which it is supplied.  Technical standa rds also include the procedures relating to the 
enforcement of such standards. S/WPDR/W/45 
Page 56  
 
  III. GENERAL PROVISIONS 
10. These disciplines apply to measures by Members relating to licensing requirements and 
procedures, qualification requireme nts and procedures, and technical  standards affecting trade in 
services where specific commitments are undertaken.  They do not apply to measures to the extent 
that they constitute limitations subject to  scheduling under Article XVI or XVII. 
11. Measures relating to licensing requirements and procedures, qualification requirements and 
procedures, and technical standards shall be pr e-established, based on objective and transparent 
criteria and relevant to the supply of the services to which they apply. 
12. Nothing in these disciplines prevents Members from exercising the right to introduce or 
maintain regulations in order to ensure provision of  universal service, in a manner consistent with 
their obligations and commitments under the GATS. 
IV. TRANSPARENCY 
13. Each Member shall publish promptly, through printed or electronic means, measures of 
general application relating to licensing requireme nts and procedures, qualification requirements and 
procedures, and technical standards, as well as deta iled information regarding these measures.  This 
information shall include, inter alia : 
(a) whether any authorization, including appli cation and/or renewal where applicable, is 
required for the supply of services; 
(b) the official titles, addresses and contact inform ation of relevant competent authorities; 
(c) applicable licensing requirements and criteria, terms and conditions of licences, and 
licensing procedures and fees;  
(d) applicable qualification requirements, cr iteria and procedures for verification and 
assessment of qualifications including fees; 
(e) applicable technical standards;  
(f) procedures relating to appeals or reviews of applications; 
(g) monitoring, compliance or enforcement pr ocedures including notification procedures 
for non-compliance;  
(h) where applicable, how public involvement in the licensing process, such as hearings 
and opportunity for comment, is provided for;  
(i) exceptions, derogations or changes to measu res relating to licensing requirements and 
procedures, qualification requirements and pr ocedures, and technical standards; and 
(j) the normal timeframe for processing of an application. 
Where publication is not practicable, such informa tion shall be made otherwise publicly available. 
14. Each Member shall maintain or establish approp riate mechanisms for responding to enquiries 
from any service suppliers regarding any measures re lating to licensing requirements and procedures, 
qualification requirements and proce dures, and technical standards.  Such enquiries may be addressed  S/WPDR/W/45 
 Page 57 
 
 
  through the enquiry and contact points established under Articles III and IV of the GATS or any other 
mechanisms as appropriate. 
15. Each Member shall endeavour to ensure that  any measures of general application it proposes 
to adopt in relation to matters falling within the sco pe of these disciplines are published in advance.  
Each Member should endeavour to provide reasona ble opportunities for service suppliers to comment 
on such proposed measures.  Each Member should also endeavour to address collectively in writing 
substantive issues raised in comme nts received from service suppliers with respect to the proposed 
measures. 
V. LICENSING REQUIREMENTS 
16. Where residency requirements for licensing not subject to scheduling under Article XVII of 
the GATS exist, each Member shall consider whethe r less trade restrictive means could be employed 
to achieve the purposes for which these requirements were established. 
VI. LICENSING PROCEDURES 
17. Each Member shall ensure that licensing procedures, including application procedures and, 
where applicable, renewal procedures, are as simple  as possible and do not in themselves constitute a 
restriction on the supply of services.   
18. Each Member shall ensure that the procedures used by, and the decisions of, the competent 
authority in the licensing process are impartial with r espect to all applicants.  The competent authority 
should be operationally in dependent of and not accountable to an y supplier of the services for which 
the licence is required. 
19. An applicant shall, in principle, not be re quired to approach more than one competent 
authority in connection with an application for a licence.   
20. An applicant should be permitted to submit an a pplication at any time, except where licenses 
are limited in numbers, including in public tenderi ng.  Where specific time periods for applications 
exist, an applicant shall be allowed a reasonable period for the submission of an application.  The 
competent authority shall initiate the processing of  an application without undue delay.  Where 
possible, applications should be accepted in electronic format under the same conditions of 
authenticity as paper submissions. 
21. The competent authority shall, within a reasonable period of time after receipt of an 
application which it considers incomplete, inform th e applicant, to the exte nt feasible identify the 
additional information required to complete the a pplication, and provide the opportunity to correct 
deficiencies.   
22. Authenticated copies should be accepted, where possible, in place of original documents. 
23. If an application for a licence is rejected by the competent authority, the applicant shall be 
informed in writing and without undue delay.  In principle, the applicant shall, upon request, also be informed of the reasons for rejection of the applica tion and of the timeframe for an appeal against the 
decision.  An applicant should be permitted, within  reasonable time limits, to resubmit an application. 
24. Each Member shall ensure that the processi ng of an application for a license, including 
reaching a final decision, is completed within a reasonable timeframe from the submission of a complete application.  Each Member shall endea vour to establish the normal timeframe for processing 
of an application. S/WPDR/W/45 
Page 58  
 
  25. Each Member shall ensure that a licence, once gr anted, enters into effect without undue delay 
in accordance with the terms a nd conditions specified therein. 
26. Each Member shall ensure that licensing fees
3 are reasonable in terms of the costs incurred by 
the competent authority, including those for activ ities related to regulation and supervision of the 
relevant service, and do not in themselv es restrict the supply of the service. 
VII. QUALIFICATION REQUIREMENTS 
27. Where a Member imposes qualification require ments for the supply of a service, it shall 
ensure that adequate procedures exist for the veri fication and assessment of qualifications held by 
service suppliers of other Members.  In verify ing and assessing qualifications, where the competent 
authority finds it relevant, it shall give due consideration to releva nt professional experience of the 
applicant as a complement to educational qualifica tions.  Where the competent authority considers 
that membership in a relevant professional association in the territory of another Member is indicative 
of the level of competence or extent of experience  of the applicant, such membership shall also be 
given due consideration. 
28. Provided an applicant has presented all neces sary supporting evidence of qualifications, the 
competent authority, in verifying and assessing qua lifications, shall identify any deficiency and 
inform the applicant of requirements to meet th e deficiency.  Such requirements may include, inter 
alia, course work, examinations, training, and work experience.  Where appropriate, each Member 
shall allow applicants to fulfil such requirement s in the home, host or any third jurisdiction. 
29. Residency requirements, other than those s ubject to scheduling under Article XVII of the 
GATS, shall not be a pre-requisite for assessing and verifying the competence of a service supplier of 
another Member. 
30. Once qualification requirements and any appli cable licensing requirements have been 
fulfilled, each Member shall ensure that a service supplier is allowed to supply the service without 
undue delay. 
VIII.  QUALIFICATION PROCEDURES 
31. Each Member shall ensure that qualification procedures are as simple as possible and do not 
in themselves constitute a restriction on the supply of services.   
32. An applicant shall, in principle, not be re quired to approach more than one competent 
authority for qualification procedures. 
33. An applicant should be permitted to submit an  application at any time.  The competent 
authority shall initiate the processing of an  application without undue delay.   
34. Where examinations are required, each Member shall ensure that they are scheduled at 
reasonably frequent intervals.  Applicants for ex aminations shall be allowed a reasonable period to 
submit applications. 
35. The competent authority shall, within a reasonable period of time after receipt of an 
application, which it considers incomplete, inform th e applicant, to the exte nt feasible, identify the 
                                                      
3 Licensing fees do not include fees for the use of natural resources, payments for auction, tendering or 
other non-discriminatory means of awarding concessions, or mandated contributions to universal service 
provision.  S/WPDR/W/45 
 Page 59 
 
 
  additional information required to complete the a pplication, and provide the opportunity to correct 
deficiencies.  
36. Authenticated copies should be accepted, where possible, in place of original documents. 
37. If an application for verification and assessment of qualification is rejected by the competent 
authority, the applicant shall be informed in wr iting and without undue delay.  In principle, the 
applicant shall, upon request, also be informed of the reasons for rejection of the application and of 
the timeframe for an appeal agains t the decision.  An applicant should be permitted, within reasonable 
time limits, to resubmit an application. 
38. Each Member shall ensure that the processing of  an application, including verification and 
assessment of a qualification, is completed within a reasonable timeframe from the submission of a 
complete application.  Each Member shall endea vour to establish the normal timeframe for processing 
of an application. 
39. Each Member shall ensure that any fees relating to qualification procedures are 
commensurate with the costs incurred by the compet ent authorities and do not in themselves restrict 
the supply of the service. 
IX. TECHNICAL STANDARDS 
40. Members are encouraged to ensure maximum tr ansparency of relevant processes relating to 
the development and application of  domestic and international sta ndards by non-governmental bodies. 
41. Where technical standards are required and rele vant international standards exist or their 
completion is imminent, Members should take them or the relevant parts of them into account in 
formulating their technical standards, except when such international standards or relevant parts 
would be an ineffective or inappropriate mean s for the fulfilment of national policy objectives. 
X. DEVELOPMENT 
42. A developing country Member shall not be re quired to apply these disciplines for a period of 
[X] years from their date of entry in to force.  Before the end of th is transitional time period, upon 
request by a developing country Member, the Coun cil for Trade in Services may extend the time 
period to implement these disciplines, based on that  Member's level of development, size of the 
economy, and regulatory and institutional capacity. 
43. A Member may accord reduced administrative fees to service suppliers from developing 
country Members. 
44. Where circumstances allow for the phased in troduction of new licensing requirements and 
procedures, qualification requirements and proce dures, and technical standards, Members shall 
consider longer phase-in periods for such measures in service sectors and modes of supply of export 
interest to developing country Members. 
45. Developed country Members, and to the exte nt possible other Members, shall provide 
technical assistance to developing country Memb ers and in particular least-developed country 
Members (LDCs), upon their request and on mutua lly agreed terms and conditions.  Technical 
assistance shall be aimed, inter alia  at: 
(a) developing and strengthening institutional and regulatory capacities to regulate the 
supply of services and to implement these disciplines; S/WPDR/W/45 
Page 60  
 
  (b) assisting developing country and in partic ular LDC service suppliers to meet the 
relevant requirements and procedures in export markets; 
(c) facilitating the establishment of technical st andards and participa tion of developing 
country Members and in particular LDCs f acing resource constraints in the relevant 
international organizations; 
(d) assisting, through public or private bodies a nd relevant international organizations, 
service suppliers of developing country Me mbers in building their supply capacity 
and in complying with domestic regulation in their markets.  Such assistance may 
also be provided directly to the respective service suppliers. 
46. LDCs shall not be required to apply these disc iplines.  LDCs are nonetheless encouraged to 
apply these disciplines, to the extent compatible with their special economic situation and their 
development, trade and financial needs. 
XI. INSTITUTIONAL PROVISIONS 
47. The Council for Trade in Services shall estab lish a Committee on Domestic Regulation to 
oversee the implementation of these disciplines and the operation of Article VI of the GATS including 
any further work under Article VI:4 of the GATS. 
48. The Council for Trade in Services shall, upon re quest from any Member, review the operation 
of these disciplines and make recommendations as appropriate. 
 
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