Transparency and Domestic Regulation

1. Transparency and Domestic Regulation Mina Mashayekhi Division on International Trade UNCTAD

2. Why transparency is important? • Regulatory transparency is key to good governance • Basic principle underlying the trading system • Enhanced predictability of the trading environment • Making specific commitments more effective • Removing bureaucratic impediments &ensuring economic efficiency • An area where progress could be achieved horizontally • Element of regulatory impact analysis &Tool for assessing necessity • Particularly important for Modes 4 & 3

3. Transparency in the GATS • GATS is a “…framework for …trade in services…under conditions of transparency” • Transparency in Article III: • Publication of all measures of general application • Notification: prompt/annually of new and changes • Enquiry points: for specific information • Article IV : Contact points for developing countries • Commercial & technical aspects , recognition of professional qualifications& availability of technology • Mandate under Article VI:4 (a) for development of disciplines to ensure: • Transparent criteria for qualification requirements & procedures, technical standards, licensing requirements • Specific commitments

4. Transparency in specific services sectors: telecommunications Annex on Telecommunications • Public availability of information on access and use of public telecom transport networks and services: • Tariffs • Technical information • Institutions • Notification, registration or licensing requirements Telecommunication Reference Paper • Transparency of interconnection arrangements • Public availability of existing agreements or of a reference interconnection offer-procedures for interconnection

5. Transparency in the disciplines on DR in the accountancy sector • Make publicly available information on: • competent authorities for licensing • regulated activities, requirements to obtain licence, technical standards, firms licensed in the jurisdiction • Upon request, provide rationale in relation to legitimate objectives behind regulatory measures • Best endeavor clause to allow for comments and consider them before adopting a measure • Make public procedures for review of administrative decisions, including time-limits

6. Transparency in SPS Concerning measures: • Include legislative, and subordinate, also procedural • Publishing information at an early stage on all measures • Prior notification and prior comment of measures: • Where there are no international standards, guidelines, recommendations • Where difference may be substantial between domestic and international standard • Notification include objective and rationale for regulations • Time given for comments and they are taken into account • Local and non-government bodies expected to comply

7. Transparency in SPS Concerning procedures to check fulfillment of SPS • Undertaken without undue delay • National treatment guaranteed • Public availability of information on established or anticipated processing time • Applicant is fully informed about the process & requirements, deficiencies & corrective action - delays justified • Fees are based on the cost of services • Requirements for information are limited to what is necessary and reasonable • Procedure for reviewing complaints

8. Transparency in TBT • Related to technical regulations and procedures for assessment of conformity • Similar provisions on prior notification and prior comment to SPS Agreement Differences include: • Notification of regulations of local governments • Code of good practice for standardizing bodies-notification of work programmes so interested parties could comment

9. Transparency in specific GATS modes of supply: Mode 4 • Economic Needs Tests: • Defining criteria, procedures for application,guidelines for administration, providing information, establishing duration & review • Transparent and objective implementation of visa (transparent&streamlined process) and work permit regimes; • Classification in categories and occupations • National treatment • Requirements for procedures for recognition of qualifications

10. Transparency provisions in some regional agreements include: • Contact points • Advance publication and prior comment: • Responding to inquiries of interested persons on regulations • To extent possible, address in writing to prior comments from interested persons on draft regulations • Administrative procedures • Review and appeal

11. Transparency in the Sectoral Proposals & Requests • Transparency elements in specific sectoral proposals:financial services • deadlines for processing of applications. • procedures for license and authorizations; • respond to inquiries on regulations to services suppliers • mechanism for appeal and review • opportunity for prior comment & inquiries • national treatment in procedures • Transparency elements have been included in some requests

12. Examples: transparency • Inability of interested parties (non-government) of other Members to communicate with government officials and obtain complete information • Inadequate prior notice • Non-transparent regulatory environment • Unclear laws, unfair administration, ambiguous criteria • Lack of information on subsides • Non-transparent zoning regulations with impact on location • Delays in approval • Non-transparent regulations/standards for risk management

13. What is the optimal level of transparency ? • Are GATS existing provisions not enough? • Could Accountancy Disciplines apply horizontally? • Cost and benefit of increased transparency? • Administrative burden • Prior comment-incompatible with regulatory and legislative systems of many countries • Importance of Transparency for professional services and Mode 4 ? • Allowing for differences in development? • Key regulatory challenges need to be addressed nationally

14. Thank you