N ovember  8, 2000

A  F

RAM EWO RK  FO R 

T

RANSPARENCY I N 

S 

ERVICES

This paper  pr oposes a f ramew or k f or  tr ans parency in government regulation of 

s er vices .

A tran spar ent an d fair regulatory s ystem is  a pr econdition  f or th e liberaliz ation  of

s er vices .  The impor tance of trans par ency is  recognized in the P r eamble to the G ener al

A gr eement on Tr ade in S er vices  (G ATS ) which s tates  that Parties  w ish  to es tablis h a

multilater al fr amewor k of  pr inciples  and rules  f or  tr ade in s er vices  w ith a view  to the

expans ion of such tr ade under conditions  of  tr ansparency and pr ogr es sive liber alization . . .

. ." To pr omote that goal, the GA TS  contains a number  of  important r ules regar ding

trans par ency.  These rules  benefit all countr ies , but es pecially the countr y promulgating the

r ule, since a tr ansparent and f air r egulatory system is  es sential to continued expans ion of 

the countr y's  s ervice s ector s.

The n ew negotiations  pr ovide an  opportun ity to build on  th e trans par en cy

dis ciplines  obtain ed du rin g th e U ru guay Rou nd negotiations .  A review of pr ior 

achievements suggests  that the best negotiating approach w ill be to for tify the G ATS r ules 

r egar ding trans par ency for  all sectors  and, as  needed, to supplement thes e gener al rules 

w ith additional and/or special rules  to gover n par ticular sectors .

CSI  h as pr oposed a f r amework f or ach ievin g tr ans par en cy in  s ervices.  Trade

agr eemen t s hould con tain s tr on ger  disciplin es  to pr omote greater trans par en cy acr os s

the boar d f or  all ser vices .  I n  par ticular ser vice sectors , s pecial sectoral agr eemen ts or 

s ch edu ling can be us ed to lay out additional trans par en cy requiremen ts  for that s ector ,

inclu din g broader regulatory r eform as  n ecess ary an d appropr iate.  S ome s ector s may

n eed little s upplemen tation, wh ile oth er  sectors  may need man y special ru les  tailor ed to

that s ector .  Th is  s u gges ted appr oach will allow n egotiators  to r espon d f lexibly to th e

par ticular  needs  of each s ector  while at th e s ame time building on  the tr an s paren cy

dis ciplines  that apply acr os s all s ector s .

The purpos e of this paper  is  to provide mor e s pecif ic r ecommendations f or  how

gover nments  s hould purs ue tr ans parency is sues  in f orthcoming negotiations .   S ection I 

brief ly reviews  exis ting dis ciplines  on s er vices  tr ansparency.  S ection I I presents  an outline

f or  disciplines  for all s ervices.  S ection II I  explains  how these gener al disciplines  can be

s upplemented, as  needed, w ith s pecial rules  designed for  par ticular sectors .

I .  Exis tin g Dis ciplines

The main disciplines  for a trans par ent and fair  regulator y s ys tem ar e in GA TS 

A rticles  I I I and V I.  A rticle I II : 1 provides  for the pr ompt publication of  meas ures aff ecting

trade in s ervices.  A rticles  I I I: 3 and I II : 4 provide f or  notification to the G A TS  Council and

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