woca trade in accountancy services 2 son

8/3/2019 WOCA Trade in Accountancy Services 2 Son

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The Institute of

Chartered Accountantsof India1

Trade inTrade inAccountancyAccountancyServicesServices

Dr. Ashok Haldia

Secretary, ICAI, New Delhi


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Scope of PresentationScope of Presentation

Drivers for Trade in AccountancyServices

Limitations to International Trade

Trade Restrictions A GlobalPhenomena

GATS and Opening-up of Markets

Growth amidst restrictions a galore Strategies to promote International

Trade


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Information Technology

Convergence Code &

Standards

Drivers for Trade in Accountancy ServicesDrivers for Trade in Accountancy Services

Growth in Developing Economy

6.3

4.2

Trade Growth Enablers

Trade in Goods & Services

802490897937

11007

Foreign Direct Investment

916

711558618

InternationalTrade in

AccountancyService

Global Economic Integration

Increased by 10% to 30%

In Billion US$

% Growth

In Billion US$


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Limitations to International TradeLimitations to International Trade

Asymmetry in qualification requirements

Absence of a transparent mechanism forMRAs

Lack of Transparency in LicensingRequirements

Non-professional barriers like Visarestrictions, wage parity

Arbitrary Economic Need Tests Differences in Technical Standards

Limitations on supply side


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15

25

12

11

13

36

29

38

Nationality

Residency

Liccencing,

Standards, Qual

Registration

Authorization

Transaction/

Assets Value

No of Natural

Persons

Type ofLegal

Entity

LimitationsunderDifferent

Mode

NumberofEnt

riesunder

GATSComm

itments


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Trade ImpedimentsTrade Impediments A Global PhenomenonA Global Phenomenon

0.475

0.6250.675

0.475

0.608 0.633

Ind

ia

EU

US

A

Au

stralia

Sin

gapore

H

o

ng

Ko

ng

Trade Impediments IndexBasis for calculation of Index*

Barriers to entry/ Market Access Weight

Movement of independentprofessional

0.1

Nationality / citizenship 0.1

Licensing and accreditation 0.3

Residency 0.1

Foreign partnership or joint venture 0.1

Quotas/ ENTs 0.1

Movement of people as ICTs/ BVs 0.1

Form of Establishment 0.1

Total 1.0

*Inputs from Commitments/offer list


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GATS and Opening up of MarketsGATS and Opening up of Markets

Only 56 out of 149 Members madecommitments in one or more subservices

Achievements not significant, andprogress somewhat tepid

Commitments made are subject to

number of limitations, and lacksobjectivity and transparency


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41%

9%

2%

41%

89%86%

29%

45%

30%

14%

2%

13%

Mode 1 Mode 2 Mode 3 Mode 4

Full Partial No.

50%

32%

4%

64%

80%

34%

36%

36%30%

14%

4%

16%

Mode 1 Mode 2 Mode 3 Mode 4

Full Partial No.

Market Access National Treatment

Nature of Commitments


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GATS and Opening up of MarketsGATS and Opening up of Markets -- 22

Hardly any commitment made forIndependent Professionals (Mode 4) ofinterest to developing nations

Quality of revised offers do not showimprovement

Disciplines on Domestic Regulations

provide a very loose framework forMRA


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Growth Amidst Restrictions GaloreGrowth Amidst Restrictions Galore

International Trade in AccountancyServices has grown. Further Growthis inevitable irrespective of

impediments However, the impediments would

restrict the pace of growth and

potential for export for profession atlarge


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The Institute of

Chartered Accountantsof India11

Strategies to PromoteStrategies to Promote

International TradeInternational Trade


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At International Forums / WTO LevelAt International Forums / WTO Level

Rationalize the impediments

Evolve a transparent framework for MRA

Promote objective and transparent licensingrequirements and procedures at national level

Introduce GATS Visa

Make opening up of Mode 1 and 4 effective

Develop synergy in definition of accountancyservices under GATS regime

Pursue adoption of a benchmark educationalcurriculum

Pursue convergence of Technical Standards


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At National Governments/At National Governments/Accounting Body LevelAccounting Body Level Strategise and plan progressive liberalization

Adopt a pragmatic approach, and develop negotiatingcapacity

Review domestic regulations to rationalize impedimentsas a measure

Promote bilateral trade

Harmonize Educational and Technical standards withInternational Standards

Capacity building measures for domestic serviceproviders

Promote import of knowledge to develop domesticcapacity for exports

Develop and promote domestic brand as an alternativeto MRA


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[email protected]

ICAI

Thank YouThank You

woca trade in accountancy services 2 son

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