2. GREETINGS TO CHARTERED ACCOUNTANTS FOR ICAIS POST QUALIFICATION COURSE VIDEO CONFERENCE FROM HYDERABAD 31 AUGUST 2005

3. Copyright - Dr. S. Chakravarthy2 WTO, COMPETITION LAW AND PROFESSIONAL OPPORTUNITIES PRESENTATION BY Dr.S.CHAKRAVARTHY (Profession : Civil Servant) Member, High Level Committee on Competition Policy and Law And Member of Committee for Drafting the Law. PRESENTLY, ADVISER/CONSULTANT ON COMPETITION POLICY AND LAW HYDERABAD, INDIA

4. Copyright - Dr. S. Chakravarthy3 WHAT IS WTO? | IT IS THE ONLY INTERNATIONAL BODY DEALING WITH RULES OF TRADE BETWEEN NATIONS | AT ITS HEART ARE THE AGREEMENTS NEGOTIATED AND SIGNED BY THE MEMBER COUNTRIES | AGREEMENTS ARE CONTRACTS BINDING GOVERNMENTS TO KEEP THEIR TRADE POLICIES WITHIN AGREED LIMITS KEY: TRADE IS GOVERNED BY BINDING ACTIONABLE RULES KEY: TRADE IS GOVERNED BY BINDING ACTIONABLE RULES

5. Copyright - Dr. S. Chakravarthy4 WTOS 3 MAIN PURPOSES HELP TRADE FLOW AS FREELY AS POSSIBLE (REMOVE OBSTACLES, NO SUDDEN CHANGE OF POLICY, TRANSPARENT AND PREDICTABLE RULES) SERVE AS A FORUM FOR TRADE NEGOTIATIONS SETTLE DISPUTES (NEUTRAL PROCEDURE BASED ON AGREED LEGAL FOUNDATION)

6. Copyright - Dr. S. Chakravarthy5 MAIN LEGAL INSTRUMENTS ALL AGREEMENTS ARE CONTAINED IN THREE MAIN LEGAL INSTRUMENTS: 1.GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND ITS ASSOCIATE AGREEMENTS. THESE APPLY TO TRADE IN GOODS. 2.GENERAL AGREEMENT ON TRADE IN SERVICES (GATS). THIS APPLIES TO TRADE IN SERVICES. 3.AGREEMENT ON TRADE – RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS).

7. Copyright - Dr. S. Chakravarthy6 TRADE IN GOODS GATT 1994 ASSOCIATE AGREEMENTS: ã AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF GATT ã AGREEMENT ON PRESHIPMENT INSPECTION ã AGREEMENT ON TECHNICAL BARRIERS TO TRADE ã AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY MEASURES ã AGREEMENT ON IMPORTANT LICENSING PROCEDURES ã AGREEMENT ON SAFEGUARDS ã AGREEMENTS ON SUBSIDIES AND COUNTERVAILING MEASURES ã AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF GATT ã AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES (TRIMS) ã AGREEMENT ON TEXTILES AND CLOTHING ã AGREEMENT ON AGRICULTURE ã AGREEMENT ON RULES OF ORIGIN

8. Copyright - Dr. S. Chakravarthy7 TRADE IN SERVICES GENERAL AGREEMENT ON TRADE ON TRADE IN SERVICES (GATS)

9. Copyright - Dr. S. Chakravarthy8 INTELLECTUAL PROPERTY RIGHTS AGREEMENT ON TRADE – RELATED ASPECTSOF INTELLECTUAL PROPERTY RIGHTS (TRIPS)

10. Copyright - Dr. S. Chakravarthy9 INDIAN COMPETITION LAW OUTGOING COMPETITION LAW – MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 NEW LAW – COMPETITION ACT, 2002 YET TO BE FULLY ENFORCED

11. Copyright - Dr. S. Chakravarthy10 RELEVANT ASPECTS FOR DEVELOPING COUNTRIES MULTILATERAL TRADING SYSTEM DEMANDS A COMPREHENSIVE UNDERSTANDING OF THE WTO AGREEMENTS, KEY EXPRESSIONS AND NUANCES. INPUTS OF CHARTERED ACCOUNTANTS ARE REQUIRED TO DEFEND THE DEVELOPING COUNTRIES INTERESTS (EG: AGGREGATE MEASUREMENT OF SUPPORT WHEN DEALING WITH SUBSIDIES AND CALCULATION OF CONSTRUCTED VALUE AND THE EXTENT OF MATERIAL INJURY TO DOMESTIC INDUSTRIES IN ANTI-DUMPING CASES ETC). PARTICIPATION IN TRADE NEGOTIATIONS BUTTRESSING ARGUMENTS WITH RATIONALE. INDIAN CHARTERED ACCOUNTANTS NEED TO READY THEMSELVES ON THE ABOVE

12. Copyright - Dr. S. Chakravarthy11 ROLE OF CHARTERED ACCOUNTANTS ORGANISE AND SENSITISE THEMSELVES TO BECOMING VOCAL ON GLOBALISATION AND LIBERALISATION ISSUES THEY NEED TO OFFER INPUTS AND ADVICE IN WTO RELATED ANALYSES THEY COULD APPEAR AND PARTICIPATE IN HEARINGS BEFORE WTO DISPUTE SETTLEMENT BODIES RELATING TO CASES IN WHICH INDIA IS A PARTY THEY COULD ALSO APPEAR AND PARTICIPATE IN HEARINGS ON BEHALF OF PARTIES OTHER THAN INDIA (WHERE INDIA IS NOT A PARTY) THEY COULD APPEAR AND PARTICIPATE IN HEARINGS IN INDIA (EG: BEFORE THE COMPETITION COMMISSION OF INDIA, ANTI - DUMPING AUTHORITIES ETC.) PREPARE BACKGROUND PAPERS AND NEGOTIATION PAPERS FOR THE INDIAN GOVERNMENT IN ALL WTO RELATED MATTERS ENLIST SUPPORT OF OTHER STAKE HOLDERS OF INDIAN ECONOMY AND NETWORK THEMSELVES WITH OTHER PROFESSIONALS

13. Copyright - Dr. S. Chakravarthy12 CHARTERED ACCOUNTANTS AND GATS «GATS LISTS FOUR MODES OF SUPPLY, NAMELY, CROSS BORDER SUPPLY (INTERNATIONAL TELEPHONE CALLS), CONSUMPTION ABROAD (TOURISM), COMMERCIAL PRESENCE (BRANCH OF A BANK) AND MOVEMENT OF NATURAL PERSONS ( PROVIDING SERVICE IN A FOREIGN COUNTRY THROUGH CONSULTANTS, CHARTERED ACCOUNTANTS) «INDIA HAS A LARGE RESERVOIR OF HIGHLY SKILLED AND EXPERIENCED CHARTERED ACCOUNTANTS «DOMINANT MODE OF SUPPLY FOR ACCOUNTANCY SERVICES IS THROUGH COMMERCIAL PRESENCE. FOR INDIA THE MOST IMPORTANT MODE IS MOVEMENT OF NATURAL PERSONS «CHARTERED ACCOUNTANTS ARE NEEDED TO ANALYSE M & A, PRIVATISATION, FINANCIAL LENDING DECISIONS, VALUATION OF ASSETS, STOCK MARKET DEVELOPMENTS, ISSUES RELATING TO FDI ETC.

14. Copyright - Dr. S. Chakravarthy13 CHARTERED ACCOUNTANTS AND COMPETITION LAW O SECTION 35 OF COMPETITION ACT, 2002 SPECIFICALLY ALLOWS CHARTERED ACCOUNTANTS TO REPRESENT A COMPLAINANT, DEFENDANT OR THE DIRECTOR GENERAL TO PRESENT A CASE BEFORE THE COMPETITION COMMISSION OF INDIA O THIS IMPLIES THAT THE CHARTERED ACCOUNTANTS CAN REPRESENT A PARTY IN CASES RELATING TO ANTI- COMPETITIVE AGREEMENTS, ABUSE OF DOMINANCE AND COMBINATION (MERGERS ETC.) REGULATION CASES CHARTERED ACCOUNTANTS REQUIRE TO BRACE THEMSELVES ON COMPETITION ACT, 2002

15. Copyright - Dr. S. Chakravarthy14 RUBRIC OF THE NEW COMPETITION LAW THE NEW LAW, COMPETITION ACT, 2002 WILL REPEAL THE MRTP ACT FOUR COMPARTMENTS OF NEW LAW: ã ANTI-COMPETITION AGREEMENTS ã ABUSE OF DOMINANCE ã MERGERS, AMALGAMATIONS, ACQUISITIONS AND TAKE-OVERS ã FOSTERING COMPETITION

16. Copyright - Dr. S. Chakravarthy15 HONE THYSELF ! C.A. TO COVET C.A. n CHARTERED ACCOUNTANTS COULD BE THE EARLY BIRDS FOR THE WORMS CALLED COMPETITION CASES n FOR THIS THEY NEED TO HONE THEMSELVES ON THE FEATURES AND NUANCES OF COMPETITION ACT, 2002 n FOR HONING SKILLS, NEXT THREE SLIDES ARE INDICATORS CHARTERED ACCOUNTANTS MAY COVET COMPETITION ACT

17. Copyright - Dr. S. Chakravarthy16 C.A AND C.A ANTI - COMPETITIVE AGREEMENTS n CHARTERED ACCOUNTANTS MAY APPEAR FOR PARTIES BEFORE THE CCI IN CASES RELATING TO ANTI – COMPETITIVE AGREEMENTS LIKE CARTELS, BID - RIGGING, RESALE PRICE MAINTENANCE ETC. n PRICE PARALLELISM, PRODUCTION AND SUPPLY LEVELS, TECHNICAL DEVELOPMENT IN TERMS OF PRODUCTIVITY, INVESTMENT AND PROFITABILITY, BID ANALYSIS ETC ARE UP THE CHARTERED ACCOUNTANTS ALLEY

18. Copyright - Dr. S. Chakravarthy17 C.A. AND C.A. ABUSE OF DOMINANCE n CHARTERED ACCOUNTANTS MAY APPEAR FOR PARTIES BEFORE THE CCI IN CASES RELATING TO ABUSE OF DOMINANCE n UNFAIR AND DISCRIMINATORY PURCHASE AND PRICE LEVELS, PREDATORY PRICING, CONCLUSION OF CONTRACTS WITH OBLIGATIONS HAVING NO CONNECTION WITH THE SUBJECT OF CONTRACTS ETC HAVE HIGH TECHNICALITIES REQUIRING PROFESSIONAL EXPERTISE n CONTRIBUTION OF CHARTERED ACCOUNTANTS COULD BE SUBSTANTIAL

19. Copyright - Dr. S. Chakravarthy18 C.A. AND C.A. COMBINATIONS REGULATION n CHARTERED ACCOUNTANTS MAY APPEAR FOR PARTIES BEFORE THE CCI IN CASES RELATING TO COMBINATIONS REGULATION n KNOWLEDGE AND EXPERTISE OF CHARTERED ACCOUNTANTS ARE NEEDED FOR – THRESHOLD ANALYSIS – VALUE OF ASSETS DETERMINATION – VALUE OF TURNOVER DETERMINATION – MARKET SHARE ANALYSIS – LEVEL OF COMPETITION ANALYSIS – GROUP IMPACT – CONTROL IMPACT – FAILING BUSINESS COSTING AND IMPACT – WEIGHING BENEFITS OF COMBINATION AGAINST ADVERSE IMPACT OF COMBINATION

20. Copyright - Dr. S. Chakravarthy19 RECIPROCITY O INDIAN CHARTERED ACCOUNTANTS ARE NOT RECOGNISED UNDER THE LAWS OF MOST OF THE DEVELOPED COUNTRIES O LIKEWISE, ICAI DOES NOT RECOGNISE ANY FOREIGN QUALIFICATION OR A FOREIGN CHARTERED ACCOUNTANT O BECAUSE OF THIS NON – RECOGNITION, THEY COULD BE OBSTACLES IN AVAILING OF MODE 3 OR MODE 4 OF GATS O WHILE APPRECIATING THE NEED FOR GOOD STANDARDS IN THE PROFESSION, RECIPROCAL RECOGNITION WILL BE A STEP CODUCIVE TO GAINFUL AVAILMENT OF GATS PROVISIONS INDIAN CHARTERED ACCOUNTANTS ARE VERY SKILLED AND HAVE PROVEN THEIR ABILITIES. THEY NEED NOT APPREHEND THAT THEIR FUTURE MAY BE JEOPARDISED BECAUSE OF RECIPROCITY.

21. Copyright - Dr. S. Chakravarthy20 INDIA FIRST THE CHARTERED ACCOUNTANTS ACTION COMMITTEE FOR LEVEL PLAYING FIELD HAS ADOPTED AS ITS MANTRA INDIA FIRST THIS MANTRA SHOULD NOT BE CONSTRUED TO MEAN INDIAN CHARTERED ACCOUNTANTS TO THE EXCLUSION OF FOREIGN ACCOUNTANTS. IT SHOULD BE CONSTRUED TO MEAN THE INTEREST OF CHARTERED ACCOUNTANTS IN THE GLOBAL CONTEXT. THIS NEEDS A LEVEL PLAYING FIELD FOR INDIAN ACCOUNTANTS VIS – A – VIS FOREIGN ACCOUNTANTS

22. THANK YOU FOR YOUR KIND ATTENTION Copy right Dr. S. Chakravarthy