1. « The voice of the European Service Industries for International Trade Negotiations in Services » Séminaire sur les commerce des services Organisé par IsDB Casablanca, 15 – 18 juin 2009 “The Case of the Professional Services" Pascal Kerneis - Managing Director ESF (European Services Forum)

2. « The voice of the European Service Industries for International Trade Negotiations in Services » What are the Professional Services? SERVICES SECTORAL CLASSIFICATION LIST (W120) SECTORS AND SUB-SECTORSCORRESPONDING CPC A.Professional Services a.Legal Services 861 b.Accounting, auditing and bookkeeping services 862 c.Taxation Services 863 d.Architectural services8671 e.Engineering services8672 f.Integrated engineering services8673 g.Urban planning and landscape architectural services 8674 h.Medical and dental services9312 i.Veterinary services932 j.Services provided by midwives, nurses, physiotherapists and para-medical personnel93191 k.Other

3. « The voice of the European Service Industries for International Trade Negotiations in Services » ESF MEMBERS FROM THE PROFESSIONAL SERVICES SECTORS PROFESSIONAL SERVICES - LAWYERS (3) Clifford Chance (www.cliffordchance.com)www.cliffordchance.com Conseil des barreaux de la Communauté Européenne – CCBE (www.ccbe.org)www.ccbe.org The Law Society of England and Wales (www.lawsociety.org.uk)www.lawsociety.org.uk PROFESSIONAL SERVICES – ACCOUNTANTS (3) Ernst & Young (www.ey.com)www.ey.com KPMG (www.kpmg.com)www.kpmg.com Fédération des Experts Comptables Européens – FEE (www.fee.be)www.fee.be PROFESSIONAL SERVICES - ARCHITECTS (1) Architects’ Council of Europe – ACE (www.ace-cae.org)www.ace-cae.org PROFESSIONAL SERVICES - OTHERS (5) Conférence des Notariats de l’Union Européenne – (www.cnue.be)www.cnue.be Bundesverband des Freien Berufe - BFB (German Federation of Liberal Professions) (www.freie-berufe.de)www.freie-berufe.de Confederation Fiscale Européenne (CFE - www.cfe-eutax.org)www.cfe-eutax.org Zenit Tragerverein e. v. (www.zenit.de)www.zenit.de

4. « The voice of the European Service Industries for International Trade Negotiations in Services » State of play of negotiations  To provide Professional services, one need first Market Access!  Very low level of commitments in Professional services in general, in quantity and in quality during the Uruguay Round, as well as in the on-going DDA GATS Negotiations: Legal Services: UR= 38/140, Accession= 21/34 (incl. 4 new EU); incl. 15 ACP and 5 IDB - DDA: 22/153 (or 22/69 Initial & Revised Offers – EU=1). Accounting: UR= 46; Acc.= 24, DDA=29 Architectural: UR=39; Acc.=22; DDA=28 Engineering: UR=45; Acc.= 28; DDA=29

5. « The voice of the European Service Industries for International Trade Negotiations in Services » The current round of GATS Negotiations ought not only improve market access via Commercial Presence Abroad--Mode 3 of the GATS – i.e. joint ventures; subsidiaries; branching, but WTO Members ought to also expect and demand: 1)Commitments for Cross-Border Supply via Mode 1 of the GATS, i.e. selling services without a commercial presence in the consumer’s country—i.e. e-commerce, internet, sending electronic data to call center, fax, back offices, etc. 2)Movement of Natural Persons via Mode 4 of the GATS, i.e. quickly moving skilled business personnel within a company (intra-corporate transferees) and to a company’s clients on a temporary basis, including for qualified professionals. Priorities of European Businesses in Professional Services: IMPROVING CROSS BORDER TRADE AND MOBILITY OF SKILLED PERSONNEL

6. « The voice of the European Service Industries for International Trade Negotiations in Services » The main barriers to Professional services providers in exporting or establishing abroad are: Commercial presence or Residency requirement, preventing Mode 1 (Cross Border) Restriction on the legal forms (preventing partnership) Obligation to incorporate local existing firms (Joint-ventures) Restriction on the scope of services provided, limited to foreign law, international contract, etc. Limitations on capital ownership Long and burdensome administrative procedures Lack of transparency in domestic regulation on: – Licensing requirements, Qualification requirements, etc.

7. « The voice of the European Service Industries for International Trade Negotiations in Services » Mutual Recognition Agreements MRAs (GATS Article VII) are an important additional tool for further development in some services sectors The EU Council recently gave a negotiating mandate to the Commission to negotiate MRAs in the architects sector. EU Services Sector has a very strong interest in MRAs Must be driven by co-operation from the private sector – EU Architects have an MRA with Mexico & will soon complete a deal with Canada and the U.S. – Interested associations may contact European Associations via ESF

8. « The voice of the European Service Industries for International Trade Negotiations in Services » To provide professional services, in addition of the access to the market, one need the recognition of the qualifications The EU has adopted in 2006, in its single market, a directive on the recognition of professional qualifications and diplomas (2005/36/EC into force since Oct. 2007) The Commission/DG Trade has got a mandate to negotiate, on a pilot phase basis, Mutual Recognition Agreement, in the area of architectural services The private sector association (ACE) has already signed agreement between professions with their counterpart in Mexico and USA, and are working with Canada, Korea and India. Official negotiations have now started between EU and Mexico to transform the private sector agreement into an official international treaty. Problem with US constitution. The need of Mutual Recognition Agreements (MRA) on Qualifications & Diplomas

9. « The voice of the European Service Industries for International Trade Negotiations in Services » Movement of Natural Persons A key priority for EU businesses Temporary period only, not permanent migration To get access = only one (necessary) part of the problem: – To obtain fast and expedite procedures for getting visas and working permits – To get Mutual Recognition of Diplomas, Qualifications, licences, etc… or – To be allowed to hire local qualified persons in Partnerships Ltd.

10. « The voice of the European Service Industries for International Trade Negotiations in Services » THANK YOU FOR YOUR ATTENTION! Pascal KERNEIS Managing Director European Services Forum – ESF 168, Avenue de Cortenbergh B – 1000 – BRUSSELS Tel: + 32 2 230 75 14 Fax: + 32 2 320 61 68 Email: esf@esf.be Website : www.esf.be