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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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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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ICAI
Thank YouThank You
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