Domestic regulation in services

Several WTO members reported on regulatory barriers faced by their service suppliers abroad. They identified their negotiating priorities in this area and made substantive suggestions regarding future disciplines for domestic regulation. Some proposals included basing domestic services regulations on objective and transparent criteria and ensuring that these regulations are not unnecessarily burdensome, in line with Article VI:4 of the WTO’s General Agreement on Trade in Services (GATS).

Areas of particular interest to WTO members include developing requirements that authorities need to follow in designing and implementing their authorization processes for the licensing and qualification of services suppliers, the timeframes for applications, the review of decisions, the frequency of examinations, and the reasonableness of fees. Several members called for continued engagement in these areas, with discussion based on concrete proposals by members. 

Several developing countries re-emphasized the need for flexibilities in negotiating future disciplines to help them participate more actively in world services trade. In addition, some members (both developed and developing) underscored that these disciplines should continue to guarantee the right of WTO members to regulate the supply of services in line with national policy objectives.

 

Members’ concerns

India — barriers to entry via mode 4

India reiterated claims that some trade measures in the United States, the United Kingdom and Canada are restricting access of its services suppliers to these members’ markets through so-called mode 4 (cross-border movement of professionals and other persons supplying services) of the GATS. The concerns include the UK government’s potential implementation of recommendations by the Migration Advisory Committee (MAC), and an alleged hike in visa fees and lack of transparency in Canada’s application procedures for India’s suppliers of computer services and other related services.

Several WTO members supported holding a discussion on easing the movement of services suppliers through mode 4, but some warned against pinpointing specific measures by certain members.

The UK restated that the MAC is an independent body and said that its reply to the recommendations is available online. Canada reiterated that India’s assessment of the Canadian market is incorrect.

Russia — gas transportation system

Russia — supported by Armenia, Cuba and Nicaragua– reiterated claims that measures related to the reform of Ukraine’s unified gas transportation system continue to violate Ukraine’s obligations under the GATS regarding non-discrimination (most-favoured-nation treatment principle) and its specific commitments under the GATS. Ukraine restated that its measures comply with its WTO commitments and obligations.

Future work on e-commerce

Several WTO members suggested reviving negotiations on e-commerce. Up until now, WTO members have renewed their commitment not to impose customs duties on e-commerce transmissions at each Ministerial Conference. Ministers last extended the moratorium at the Nairobi Ministerial Conference in December 2015. Some members suggested that future negotiations focus on making the moratorium permanent.

Implementing LDC services waiver

The least-developed countries (LDC) group reported on the preferences notified last year by the EU and South Africa, highlighting the sectors and modes of supply for which these members will be granting preferential access to services and services suppliers from LDCs. The current number of notifications under the LDC Services Waiver is available here. Further background information can be found here.

In line with the LDC Services Decision taken at the Nairobi Ministerial Conference, the EU, China, Australia and India shared information on the technical assistance measures they had implemented or intended to undertake to promote the increasing participation of LDCs in services trade.