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182 QUANTIFICATION OF BENEFITS FROM ECONOMIC COOPERATION IN SOUTH ASIA Development of disciplines for professional services, • Effective operationalisation of Article VI: 6 of GATS by establishing guidelines for recognition of qualification, and • Possibility of undertaking additional commitments under Article XVIII of GATS for verifying a foreign service provider’s competence to provide the service with a view to laying out a transparent procedure for recognition and to reduce the burdensomeness of domestic regulation on this score. Once again, India along with Pakistan and others suggested elements for disciplines on qualification requirements and procedures (India and others 2005). The paper discusses five types of problems arising on qualification requirements and procedures: • Equivalence and recognition of qualification requirements – in the absence of any mechanism to establish the equivalence of foreign qualifications, education, training, and experience to these requirements, market access could be impaired. • Different levels of governments – in view of multiple and varying sets of such requirements at different levels of governments, meeting requirements in one jurisdiction does not in any way guarantee that the service supplier is entitled to practice in other jurisdictions within the territory of the member. • Examination requirements – various preconditions may exist for sitting for such examinations including host country language, residency and experience in host country. Further scope and frequency of such examinations can be of some concern. • Education, training and experience requirements – these requirements could become unduly complex and burdensome including by being tied only to host country systems and institutions, thus impairing a service supplier’s capacity to meet them. • Lack of international standards – in most services, there are no internationally accepted benchmarks of qualifications required to practice a particular profession. Even where such standards exist, some members may insist on much higher standards without adequate justification thereof. As regards the issue of equivalence, the study suggests that apart from providing transparency to any qualification requirements, mechanisms for taking account of foreign qualifications should be established. Equivalent criteria/standards as applied to domestic recognition of qualifications may be applied to recognition of foreign qualifications. This does not imply harmonisation of standards but that unduly burdensome requirements should not be applied to verify foreign qualifications which could result in impaired market access. Where educational systems are found to be practically comparable, either the foreign qualifications could be recognised or a procedure should be established, for example, through an examination to verify whether the educational qualifications prescribed have been met. Further, a mechanism for verification of professional competence must be established containing features like work experience; holding a common professional examination to test educational qualifications, work experience, training; membership of professional associations/institutions in the home country to check the bona fides of the service supplier and his registration in home country. However, approaches to mutual recognition and MRAs’ coverage may vary to a great extent. Zarrilli suggests that two basic approaches have been singled out as the basis for mutual recognition. According to the so-called vertical approach, recognition is provided on a profession-by-profession basis, and as a result of the harmonisation or coordination among the parties to an MRA of the education and training required by each profession (harmonisation-based approach) (Zarrilli 2005). In the case of a horizontal approach, on the other hand, mutual recognition is provided without prior harmonisation of curricula and training requirements, on the basis of a broad equivalence of qualifications (equivalence-based approach). While the vertical approach normally leads to unconditional market access, Zarrilli argues that the process is a long and laborious one and usually requires significant time and efforts. On the other hand, the horizontal approach leads to much faster and concrete results than the vertical approach and is the main reason why countries are relying on it as the basis for their MRAs. As the establishment of equivalence with respect to qualification, licensing and standard requirements vary from country to country, in the South Asian context it would be a wise idea to follow the horizontal approach which is also the essence of the Indian proposal. Chanda suggests that any progress on the issue of recognition requires initiatives to be taken simultaneously at three levels (Chanda 2005). The first is to improve the framework for MRAs. The second is to address more broadly the entire concept of recognition, such as the assessment of competence and
CROSS-CUTTING ISSUES AND CONCLUSION 183 determination of equivalence. The third is to address the operational difficulties facing the South Asian countries in negotiating recognition agreements, given institutional, technical, and financial constraints and Mode 4 interests that tend to fall outside the purview of most MRAs. Regarding the first step it is noted that India has requested the members to meet the notification obligations thereby providing opportunities to interested members to actually participate in such negotiations before they enter a substantive phase. Further, members have been requested to improve the content of all such notifications by clearly stating the services sectors/sub sectors they address, making available the full text of the agreement for the benefit of other members. Finally, India suggested the secretariat to have a mechanism for information exchange with a view to specific information on the use of multilaterally agreed criteria for recognition purposes. Under the GATS the development of the Guidelines for Domestic Regulation and Guidelines for Mutual Recognition Agreements in Accountancy Services have been a positive development which are also likely to facilitate the recognition process. Efforts are on to have such guidelines for other services sectors as well. However, the most common way to achieve recognition has been through bilateral agreements. Article VII of the GATS recognises this as permissible. There are differences in education and examination standards, experience requirements, regulatory influence and various other matters, all of which make implementing recognition on a multilateral basis extremely difficult. In this regard, it has been suggested that bilateral negotiations will enable those involved to focus on the key issues related to their two environments (WTO 1997). WTO further suggests, once bilateral agreements have been achieved, however, this can lead to other bilateral agreements, which will ultimately extend mutual recognition more broadly (WTO 1997). In view of the above, it could be suggested that in the South Asian context horizontal approach to arriving at MRAs would be easier, simpler and less time consuming. In addition, even if only some of the South Asian countries agree to such mechanism the exercise could be fruitful without waiting for others to join. India and Sri Lanka are already working on it hence other likely candidates could be invited to join. It may also be noted that soon an MRA will be entered into, which will allow doctors, accountants and architects trained in India to practice in Singapore and vice-versa (Suryaprakash 2005). Thus by having an MRA with Singapore, India will set a good example for other countries from the region to follow in line. As already discussed, all five services – construction, tourism, health, telecommunications and education services should be covered by MRAs. However, MRAs are most needed in construction services because the sector is heavily dependent on professionals and other workers at various skill levels for delivery of services. In construction services, professionals such as engineers, architects, town planners, etc. can be discussed for developing MRAs. Similarly, wherever possible other workers could also be covered. In addition, service providers in tourism and education too will be covered by the discussion on MRAs. Professions of architecture and town planning are largely regulated in various countries in South Asia and regulatory bodies are in place. Therefore, developing MRAs would be easier for these services. Unlike architecture, engineering profession comprises a broad range of many different engineers and in many South Asian countries does not have regulatory bodies. The absence of regulatory body in engineering services seems to have prevented South Asian engineers from gaining market access within and outside the region. In semi-skilled professions and trades, such as carpentry, repair work, plumbing, it has been suggested that the lack of occupational guilds for apprenticeship and training and for certifying competence and quality affects exports of such manpower (Chanda 2005). Regulatory Professional Bodies in SAFTA Countries In India, the Council of Architecture (COA) has been constituted under the Architects Act, 1972 (COA 2007). The CAO is charged with the responsibility to regulate the education and practice of profession throughout India. Any person desirous of carrying on the profession of ‘Architect’ must have registered him/herself with the COA. There are 108 institutions, which impart architectural education in India leading to recognised qualifications. The standards of education being imparted in these institutions are governed by the council of architecture (minimum standards of architectural education) regulations, 1983. The COA grants license to practice if the applicant is resident in India, has qualified from one of the institutes listed in the schedule to the Architect Act, and has obtained permission for further residency in India (Kumar 2005). By 2005, over 30,000 Indian and
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QUANTIFICATION OF BENEFITS FROM ECO
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QUANTIFICATION OF BENEFITS FROM ECO
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Preface Our consultations with seni
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viii CONTENTS 7. Revenue and Welfar
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Executive Summary OBJECTIVE This st
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EXECUTIVE SUMMARY xiii Table 1 EAMA
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EXECUTIVE SUMMARY xv India A full S
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EXECUTIVE SUMMARY xvii indicates th
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EXECUTIVE SUMMARY xix ments on basi
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Part I BENEFITS FROM TRADE, INVESTM
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4 QUANTIFICATION OF BENEFITS FROM E
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10 QUANTIFICATION OF BENEFITS FROM
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2 Literature Review and Rationale f
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4 Effective Additional Market Acces
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6 Impact of SAFTA on Member Countri
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7 Revenue and Welfare Implications
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8 Impact of SAFTA on Inward and Out
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9 Quantification of Benefits from T
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Part II BENEFITS FROM DEEPENING INT
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11 Construction and Related Enginee
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12 Tourism and Travel Related Servi
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Appendix 15 REFERENCE PAPER Scope T
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Bibliography Abelson, P. (1996),
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BIBLIOGRAPHY 241 Cuba (2002), Negot
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BIBLIOGRAPHY 243 (2004), Impacts of
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BIBLIOGRAPHY 245 Silva, Patricia an
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BIBLIOGRAPHY 247 (1998), Tourism Se
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