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GATS TRAINING MODULE: CHAPTER 3

A Closer Look at Domestic Regulation

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3.1 Purpose and Effects of Regulation

Food for thought:

Could you give examples of sectors where the above policy objectives are relevant? What measures might be used?

Possible reply:

Equitable access
Sectors: transport; education; health; telecommunication services
Measures: cross-subsidization and other financial incentives; universal service obligation as licensing condition

Consumer protection
Sectors: professional services; financial services; health services
Policies: prudential and other technical standards; publication requirements; qualification requirements for professionals; licensing/certification of facilities

Job creation in disadvantaged regions
Sectors: infrastructural services such as railways, maritime transport; long-term health care (rehabilitation centers, etc.)
Policies: twinning requirements relating activities in urban centers to those in remote areas (repair shops, shipyards, health facilities etc.)

Integration of disadvantaged persons
Sectors: potentially all service suppliers beyond certain minimum size
Policies: obligation to employ certain percentage of handicapped persons

Reduction of environmental impacts and other externalities
Sectors: road transport; tourism
Policies: prohibition of weekend or night traffic; zoning laws; environment-related standards

Macroeconomic stability
Sectors: financial services
Policies: minimum equity requirements; diversification of assets; other prudential standards

Avoidance of market dominance and anti-competitive conduct
Sectors: potentially all sectors prone to market concentration (including sectors with strong network effects and interconnection needs (transport, telecom) and previous monopoly areas)
Policies: prohibition of collusive arrangements; monitoring of market developments; price surveillance; harmonization of technical standards; promotion of new market entries

Avoidance of tax evasion, fraud, etc.
Sectors: all
Policies: disclosure requirements; monitoring and policing

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