International News

Legal Profession Set to Gain From Latest WTO Negotiations
Current World Trade Organization (WTO) negotiations will benefit legal professionals more than any other profession, according to the Deputy Director-General of the WTO, Rufus Yerxa. 

Liberalizing the provision of legal services around the globe is moving up the international agenda, with intensive negotiations set to free up lawyers more than any other profession, the Deputy Director-General of the World Trade Organization (WTO) predicted last week.

In a speech in early September to the international legal organization Union Internationale des Avocats’ (UIA) annual conference in Geneva, Mr. Yerxa remarked that while few concessions had been made by countries in the first round of liberalization offers, more extensive activity had taken place away from the spotlight. “Like in many other sectors, little of substance has been offered in legal services,” he noted before adding “however, many members have been negotiating this sector intensively in bilateral and plurilateral settings, probably more than any other profession.” He added that “there is a trend towards greater openness in the legal profession.” Carlos Gimeno-Verdejo, a senior official in the European Commission’s trade directorate concurred with this assessment, saying legal services “are higher on the agenda than many people think.”

Mr. Yerxa said the likely outcome of the negotiations will be more countries accepting foreign law firms and professionals establishing a presence in territories where previously this was either impossible or discouraged. Of particular interest to European firms and professionals are offers from India, Korea, Japan, and China where restricted access has resulted in limited foreign presence.

Underway since 2000, the Doha round of talks under the General Agreement on Trade in Services (GATS) aims to achieve further liberalization. Members made initial offers in 2003 which form the basis for negotiations until revised offers are made in May 2005.

To date, 44 WTO members have made offers on legal services with Korea, Guatemala, and Fiji doing so for the first time. Despite widespread reluctance to open local professions during the previous (Uruguay) round of negotiations, Mr. Gimeno-Verdejo contends, "now most of those restrictions are being targeted," with Switzerland (a non-EU member of the WTO), for example, pushing for a regime similar to that within the EU.

Additional Resources:
World Trade Organization Services Gateway - http://www.wto.org/english/tratop_e/serv_e/serv_e.htm  

General Agreement in Trade in Services (GATS) - http://www.wto.org/english/docs_e/legal_e/26-gats.pdf; Summary - http://www.wto.org/english/docs_e/legal_e/ursum_e.htm#mAgreement  

Union Internationale des Avocats’ (UIA) - http://www.uianet.org/index.jsp
 

Australian Competition Policy May Encourage Mutual Recognition
Many credit Australia’s recent successful economic performance on the country’s competition policy and reform process undertaken by successive governments. The country’s National Competition Policy is now being reviewed by federal and state governments, with the outcome likely to be finalized early in 2005. The Chairman of the Australian Competition and Consumer Commission, Graeme Samuels, remarked in a recent speech that some professionals still practice in highly regulated environments and indicated that if anti-competitive measures remain in place over time, they have to be justified in the public interest. These remarks highlight the Commission’s concern that inconsistencies between state regulations may limit competition and may herald a drive towards greater harmonization of professional and occupational regulation across Australia’s states and territories.

Supporters of national practice for the professions point to the work being undertaken by the legal profession which is moving towards national practice legislation. The Law Council, which regulates the profession, has shaped the founding principles on which model laws for each state and territory are based. Commonwealth, State, and Territory Attorneys-General have agreed to endorse comprehensive model provisions as a basis for consistent laws to remove barriers to the national practice of law.

No plans for national regulatory bodies are currently being discussed.

Australian Law Council - www.lawcouncil.asn.au;

National Practice - http://www.lawcouncil.asn.au/natpractice/home.html

Australian Competition and Consumer Council - http://www.accc.gov.au/content/index.phtml/itemId/142

EU Provides Overview of Recognition of Qualifications for New Member States  
As was reported in the last edition of CLEAR News, European Union Member States have instituted temporary regulations to address professional mobility to and from the ten new member states (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia) that joined the EU on May 1, 2004.

An overview of the new regulations can be found on the EU website at http://europa.eu.int/comm/internal_market/qualifications/docs/specific-sectors/overview_en.pdf and profession-specific measures for architects, dentists, doctors, lawyers, midwives, nurses, pharmacists, and veterinarians can be found at http://europa.eu.int/comm/internal_market/qualifications/specific-sectors_en.htm  

Legislation Update:

The Australia US Free Trade Agreement (AUSFTA) was approved by the United States Congress in July and will come into force on 1 January 2005.  More information on the Agreement can be found at http://www.dfat.gov.au/trade/negotiations/us.html

Despite opposition from Germany and Greece, the European Council has reached political agreement on the proposal for a Directive on the recognition of professional qualifications. The next step in the passage of the bill is for it to be submitted to the European Parliament for second reading. Further information about this latest development can be found at http://europa.eu.int/rapid/pressReleasesAction.do?reference=MEMO/04/117&format=HTML&aged=0&language=EN&guiLanguage=en

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