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GATS TRAINING MODULE: CHAPTER 3

A Closer Look at Domestic Regulation

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3.4 Developing New Regulations — How to Proceed

In the process of regulatory review and development, the ministries and agencies involved may need to address four categories of issues:

1. Purpose of the regulation? The national policy objective and the requirement for new regulation should be clear.
    
2. How to ensure effectiveness? Check the principles listed in Section 3.3.
    
3. Criteria for implementation and administration
• Transparent and impartial procedures.
• Timely information of applicants on status of processing.
• Proper training and supervision of officials involved.
• Permanent monitoring for compliance with underlying objectives.
   
4. Recourse possibilities for adversely affected suppliers The relevant process should be clearly delineated, reasonably timely and not unduly burdensome.
    

One of the barriers to trade expansion for service suppliers is multiple licensing and certification requirements in export markets. Such requirements may prove costly not only from both the suppliers’ perspective, but could unnecessarily restrict competition — and, thus, have unwarranted price effects — for potential users. To help solve such problems, Members have concluded mutual recognition agreements (MRAs) in appropriate cases or autonomously recognized education and training obtained in other jurisdictions. While potentially in conflict with the MFN obligation under Article II, GATS Article VII allows for such measures as long as there are adequate provisions for other Members to negotiate accession and/or achieve recognition of their requirements and certificates, and the measures do not constitute a means of discrimination or a disguised restriction on trade.

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