jane drake-brockman eu centre for global affairs...regional integration in services using the stri...
TRANSCRIPT
Regional Integration in ServicesUsing the STRI to measure progress with the EU Services
Directive and the EU Single Digital Market
Jane Drake-Brockman
EU Centre for Global Affairs
Joint EU Centresrsquo Conference
RMIT City Campus
16-18 October 2017
Melbourne
Acknowledgements
Hildegunn Kyvik Nordas OECD ampOrebro UniversityHosuk Lee-Makiyama ECIPE
Why look at internal EU services market integrationbull The sheer size of the intra-EU market for services and the
scale of the integration project
bull Comparisons of experience in regulatory convergence and ldquobest practicerdquo or ldquoearly moverrdquo lessons for the Asia Pacific region Eg ASEAN APEC
ndash The EU approach to harmonisation
ndash Experience with implementation
ndash Persistent heterogeneity and its implications
ndash joint future policy research agenda in services market integration
bull Digitisation of the economy and the new challenges of the digital single market new questions arising for regulators everywhere
THE SHEER SIZE AND SCALE OF INTRA-EU TRADE IN SERVICES
2000
915
690
285158155139108104 97 76 60 56 51 48 46 40 40 35 35 33
0
500
1000
1500
2000
25002015
Source WTO Trade Statistical Review 2016 ndash Figures for 2015
If we take intra (1085) and extra EU (915)
together EU export of services represent 42
of global exports of services
EU is by far the biggest
exporter of services nearly 25
of world exports of services
Services Exports in Billion $US ndash 2015
Australia 14th ndash
1
Slide provided by Pascal Kerneis Managing Director European Services Forum
Services and regulatory coherence
4
Given our joint research interest in digitisation in looking at implementation of the services directive we take 2 examplesTelecommunications(providing the essential digital infrastructure and enabling backbone for digitisation)Professional Services (Engineering) (undergoing deep digital transformation with the application of professional services automation software)
Source Research Presentation in The UniAdelaide Trade and Investment in Services Network Hildegunn Kyvik Nordas OECD Trade and Agriculture Directorate and Orebro University Sweden
kye GouldTech InsiderA well-dressed humanoid not named Ross
Lawyers can get a bad reputation for being slimy and conniving but ROSS has neither of those qualities
Ask ROSS to look up an obscure court ruling from 13 years ago and ROSS will not only search for the case in an instant mdash
or complaint mdash but it will offer opinions in plain language about the old rulingrsquos relevance to the case at hand
Just about the only thing it canrsquot do is fetch coffee
Not that anyone should blame it seeing as ROSS is a piece of artificial intelligence software It uses the supercomputing po
Watson to comb through huge batches of data and over time learn how to best serve its users
ldquoJudgesrsquo decisions are written in everyday language and not issued in columns and rows which is what current computer system
bestrdquo Andrew Arruda the CEO and co-founder of ROSS Intelligence tells Tech Insider
The challenge in building ROSS he says was finding a way to make it as intuitive as an actual colleague That meant program
respond to peoplersquos normal manner of speaking not just keyword-loaded fragments
But the hard work seems to have paid off as ROSS was just unveiled as a ldquonew hirerdquo at the law firm Baker amp Hostetler which handles
bankruptcy cases Arruda says several other firms have signed licenses to employ ROSSrsquo services and their announcements will
the coming weeks
In Arrudarsquos perfect world all law firms would harness the power of AI in order to serve justice Right now about 80 of Americans who need
a lawyer canrsquot afford one he says This is despite the country having a surplus of attorneys on tap
ldquoWith ROSS lawyers can scale their abilities and start to service this very large untapped market of Americans in needrdquo Arr
In other words by using AI lawyers like ROSS law firms could charge lower fees since they wouldnrsquot be paying humans (who ge
prefer to get paid for their work) to handle clientsrsquo cases In addition those lawyers currently out of work could use AI services like ROSS
which offer a lower barrier of entry into the market to create more affordable options for clients
And when it comes time for opposing law firms to battle it out in court itrsquod be in everyonersquos best interest to have a computing
partiesrsquo disposal Arruda says
Tagged Inibm watson innovation law lawyers robotics sai-contributor ti graphics
Women in New South Wales are Flocking to New Shopping SiteTophatter
11 Rules for Building Wealth After 50The Motley Fool Australia
Sponsored Links
Why People in Mcgraths Hill are going crazy for Marley SpoonMarley Spoon
Sponsored Links
Revealed Australias 7 Best Home Loans of 2017Mozo
Australian Business Owners - Must-attend Marketing WorkshopBasicbananascom Seminar
Dockless bicycles are trashing Sydney and Melbourne streets and rivers
Two bicycle sharing startups are making waves in Australiarsquos two largest cities but it seems some users are taking the freed
cycling too far
COUNTDOWN IS ON Elon Musks 100-day promise to Australia starts now
Tesla founder Elon Musk just hosted a party in Australia to mark the start of the 100 days that Tesla has to build the worldrsquos l
battery storage system
by Taboola
Sponsored Links
Trending on The Web
End of Life Insurance in Australia - Just Months AwayLISA Group
Play this for 1 minute and see why everyone is addictedVikings play now for free
Partner Content
Why you should always get a corporate program with your corporate carPromoted Links
You May Like
Got Life Insurance and Over 50 You Need to Read This NowLife Insurance Comparison
The owner of Sydneys new $500 million luxury Sofitel hotel just did something really cool for charity
Homeowners Need to Know About This Mortgage Savings TrickHomeLoansAustraliacom
VIDEO Lockheed Martins incredible plan to send humans to Mars within 10 yearsby Taboola
Business Insider Video
6 airline industry secrets
that will help you fly like a
pro
Solve one of these 5
problems to become a
billionaire
Popular on Facebook
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
Millennial super fund Spaceship has raised
$195 million - and tackled the biggest
criticisms it faced
Popular on LinkedIn
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
This 27-year-old is facing 3 years in a Dubai
prison after touching a man in a bar to avoid
spilling his drink
Fallout 4 Looks Really Pretty With 100+ Mods
Profess
PUBG Is About To Break 2 Million Peak PlayersP
Glitch Upends Aussies GTA 5 World Record Attempt
Satanists Say Video Games Help Them Practice Their Religion
The Top Ten Best Selling Albums Of All
Is It Legal To Swap Your Annual Leave For Sick Leave
New Star Wars Trailer When To Watch In Australia
Are Two Day Internet Outages Acceptable
bullcopy 2007-2017 Allure MediabullBI IntelligencebullAbout
bullAdvertise
bullContact
bullTerms of Use
Meet
ROSS
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Why look at internal EU services market integrationbull The sheer size of the intra-EU market for services and the
scale of the integration project
bull Comparisons of experience in regulatory convergence and ldquobest practicerdquo or ldquoearly moverrdquo lessons for the Asia Pacific region Eg ASEAN APEC
ndash The EU approach to harmonisation
ndash Experience with implementation
ndash Persistent heterogeneity and its implications
ndash joint future policy research agenda in services market integration
bull Digitisation of the economy and the new challenges of the digital single market new questions arising for regulators everywhere
THE SHEER SIZE AND SCALE OF INTRA-EU TRADE IN SERVICES
2000
915
690
285158155139108104 97 76 60 56 51 48 46 40 40 35 35 33
0
500
1000
1500
2000
25002015
Source WTO Trade Statistical Review 2016 ndash Figures for 2015
If we take intra (1085) and extra EU (915)
together EU export of services represent 42
of global exports of services
EU is by far the biggest
exporter of services nearly 25
of world exports of services
Services Exports in Billion $US ndash 2015
Australia 14th ndash
1
Slide provided by Pascal Kerneis Managing Director European Services Forum
Services and regulatory coherence
4
Given our joint research interest in digitisation in looking at implementation of the services directive we take 2 examplesTelecommunications(providing the essential digital infrastructure and enabling backbone for digitisation)Professional Services (Engineering) (undergoing deep digital transformation with the application of professional services automation software)
Source Research Presentation in The UniAdelaide Trade and Investment in Services Network Hildegunn Kyvik Nordas OECD Trade and Agriculture Directorate and Orebro University Sweden
kye GouldTech InsiderA well-dressed humanoid not named Ross
Lawyers can get a bad reputation for being slimy and conniving but ROSS has neither of those qualities
Ask ROSS to look up an obscure court ruling from 13 years ago and ROSS will not only search for the case in an instant mdash
or complaint mdash but it will offer opinions in plain language about the old rulingrsquos relevance to the case at hand
Just about the only thing it canrsquot do is fetch coffee
Not that anyone should blame it seeing as ROSS is a piece of artificial intelligence software It uses the supercomputing po
Watson to comb through huge batches of data and over time learn how to best serve its users
ldquoJudgesrsquo decisions are written in everyday language and not issued in columns and rows which is what current computer system
bestrdquo Andrew Arruda the CEO and co-founder of ROSS Intelligence tells Tech Insider
The challenge in building ROSS he says was finding a way to make it as intuitive as an actual colleague That meant program
respond to peoplersquos normal manner of speaking not just keyword-loaded fragments
But the hard work seems to have paid off as ROSS was just unveiled as a ldquonew hirerdquo at the law firm Baker amp Hostetler which handles
bankruptcy cases Arruda says several other firms have signed licenses to employ ROSSrsquo services and their announcements will
the coming weeks
In Arrudarsquos perfect world all law firms would harness the power of AI in order to serve justice Right now about 80 of Americans who need
a lawyer canrsquot afford one he says This is despite the country having a surplus of attorneys on tap
ldquoWith ROSS lawyers can scale their abilities and start to service this very large untapped market of Americans in needrdquo Arr
In other words by using AI lawyers like ROSS law firms could charge lower fees since they wouldnrsquot be paying humans (who ge
prefer to get paid for their work) to handle clientsrsquo cases In addition those lawyers currently out of work could use AI services like ROSS
which offer a lower barrier of entry into the market to create more affordable options for clients
And when it comes time for opposing law firms to battle it out in court itrsquod be in everyonersquos best interest to have a computing
partiesrsquo disposal Arruda says
Tagged Inibm watson innovation law lawyers robotics sai-contributor ti graphics
Women in New South Wales are Flocking to New Shopping SiteTophatter
11 Rules for Building Wealth After 50The Motley Fool Australia
Sponsored Links
Why People in Mcgraths Hill are going crazy for Marley SpoonMarley Spoon
Sponsored Links
Revealed Australias 7 Best Home Loans of 2017Mozo
Australian Business Owners - Must-attend Marketing WorkshopBasicbananascom Seminar
Dockless bicycles are trashing Sydney and Melbourne streets and rivers
Two bicycle sharing startups are making waves in Australiarsquos two largest cities but it seems some users are taking the freed
cycling too far
COUNTDOWN IS ON Elon Musks 100-day promise to Australia starts now
Tesla founder Elon Musk just hosted a party in Australia to mark the start of the 100 days that Tesla has to build the worldrsquos l
battery storage system
by Taboola
Sponsored Links
Trending on The Web
End of Life Insurance in Australia - Just Months AwayLISA Group
Play this for 1 minute and see why everyone is addictedVikings play now for free
Partner Content
Why you should always get a corporate program with your corporate carPromoted Links
You May Like
Got Life Insurance and Over 50 You Need to Read This NowLife Insurance Comparison
The owner of Sydneys new $500 million luxury Sofitel hotel just did something really cool for charity
Homeowners Need to Know About This Mortgage Savings TrickHomeLoansAustraliacom
VIDEO Lockheed Martins incredible plan to send humans to Mars within 10 yearsby Taboola
Business Insider Video
6 airline industry secrets
that will help you fly like a
pro
Solve one of these 5
problems to become a
billionaire
Popular on Facebook
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
Millennial super fund Spaceship has raised
$195 million - and tackled the biggest
criticisms it faced
Popular on LinkedIn
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
This 27-year-old is facing 3 years in a Dubai
prison after touching a man in a bar to avoid
spilling his drink
Fallout 4 Looks Really Pretty With 100+ Mods
Profess
PUBG Is About To Break 2 Million Peak PlayersP
Glitch Upends Aussies GTA 5 World Record Attempt
Satanists Say Video Games Help Them Practice Their Religion
The Top Ten Best Selling Albums Of All
Is It Legal To Swap Your Annual Leave For Sick Leave
New Star Wars Trailer When To Watch In Australia
Are Two Day Internet Outages Acceptable
bullcopy 2007-2017 Allure MediabullBI IntelligencebullAbout
bullAdvertise
bullContact
bullTerms of Use
Meet
ROSS
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
THE SHEER SIZE AND SCALE OF INTRA-EU TRADE IN SERVICES
2000
915
690
285158155139108104 97 76 60 56 51 48 46 40 40 35 35 33
0
500
1000
1500
2000
25002015
Source WTO Trade Statistical Review 2016 ndash Figures for 2015
If we take intra (1085) and extra EU (915)
together EU export of services represent 42
of global exports of services
EU is by far the biggest
exporter of services nearly 25
of world exports of services
Services Exports in Billion $US ndash 2015
Australia 14th ndash
1
Slide provided by Pascal Kerneis Managing Director European Services Forum
Services and regulatory coherence
4
Given our joint research interest in digitisation in looking at implementation of the services directive we take 2 examplesTelecommunications(providing the essential digital infrastructure and enabling backbone for digitisation)Professional Services (Engineering) (undergoing deep digital transformation with the application of professional services automation software)
Source Research Presentation in The UniAdelaide Trade and Investment in Services Network Hildegunn Kyvik Nordas OECD Trade and Agriculture Directorate and Orebro University Sweden
kye GouldTech InsiderA well-dressed humanoid not named Ross
Lawyers can get a bad reputation for being slimy and conniving but ROSS has neither of those qualities
Ask ROSS to look up an obscure court ruling from 13 years ago and ROSS will not only search for the case in an instant mdash
or complaint mdash but it will offer opinions in plain language about the old rulingrsquos relevance to the case at hand
Just about the only thing it canrsquot do is fetch coffee
Not that anyone should blame it seeing as ROSS is a piece of artificial intelligence software It uses the supercomputing po
Watson to comb through huge batches of data and over time learn how to best serve its users
ldquoJudgesrsquo decisions are written in everyday language and not issued in columns and rows which is what current computer system
bestrdquo Andrew Arruda the CEO and co-founder of ROSS Intelligence tells Tech Insider
The challenge in building ROSS he says was finding a way to make it as intuitive as an actual colleague That meant program
respond to peoplersquos normal manner of speaking not just keyword-loaded fragments
But the hard work seems to have paid off as ROSS was just unveiled as a ldquonew hirerdquo at the law firm Baker amp Hostetler which handles
bankruptcy cases Arruda says several other firms have signed licenses to employ ROSSrsquo services and their announcements will
the coming weeks
In Arrudarsquos perfect world all law firms would harness the power of AI in order to serve justice Right now about 80 of Americans who need
a lawyer canrsquot afford one he says This is despite the country having a surplus of attorneys on tap
ldquoWith ROSS lawyers can scale their abilities and start to service this very large untapped market of Americans in needrdquo Arr
In other words by using AI lawyers like ROSS law firms could charge lower fees since they wouldnrsquot be paying humans (who ge
prefer to get paid for their work) to handle clientsrsquo cases In addition those lawyers currently out of work could use AI services like ROSS
which offer a lower barrier of entry into the market to create more affordable options for clients
And when it comes time for opposing law firms to battle it out in court itrsquod be in everyonersquos best interest to have a computing
partiesrsquo disposal Arruda says
Tagged Inibm watson innovation law lawyers robotics sai-contributor ti graphics
Women in New South Wales are Flocking to New Shopping SiteTophatter
11 Rules for Building Wealth After 50The Motley Fool Australia
Sponsored Links
Why People in Mcgraths Hill are going crazy for Marley SpoonMarley Spoon
Sponsored Links
Revealed Australias 7 Best Home Loans of 2017Mozo
Australian Business Owners - Must-attend Marketing WorkshopBasicbananascom Seminar
Dockless bicycles are trashing Sydney and Melbourne streets and rivers
Two bicycle sharing startups are making waves in Australiarsquos two largest cities but it seems some users are taking the freed
cycling too far
COUNTDOWN IS ON Elon Musks 100-day promise to Australia starts now
Tesla founder Elon Musk just hosted a party in Australia to mark the start of the 100 days that Tesla has to build the worldrsquos l
battery storage system
by Taboola
Sponsored Links
Trending on The Web
End of Life Insurance in Australia - Just Months AwayLISA Group
Play this for 1 minute and see why everyone is addictedVikings play now for free
Partner Content
Why you should always get a corporate program with your corporate carPromoted Links
You May Like
Got Life Insurance and Over 50 You Need to Read This NowLife Insurance Comparison
The owner of Sydneys new $500 million luxury Sofitel hotel just did something really cool for charity
Homeowners Need to Know About This Mortgage Savings TrickHomeLoansAustraliacom
VIDEO Lockheed Martins incredible plan to send humans to Mars within 10 yearsby Taboola
Business Insider Video
6 airline industry secrets
that will help you fly like a
pro
Solve one of these 5
problems to become a
billionaire
Popular on Facebook
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
Millennial super fund Spaceship has raised
$195 million - and tackled the biggest
criticisms it faced
Popular on LinkedIn
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
This 27-year-old is facing 3 years in a Dubai
prison after touching a man in a bar to avoid
spilling his drink
Fallout 4 Looks Really Pretty With 100+ Mods
Profess
PUBG Is About To Break 2 Million Peak PlayersP
Glitch Upends Aussies GTA 5 World Record Attempt
Satanists Say Video Games Help Them Practice Their Religion
The Top Ten Best Selling Albums Of All
Is It Legal To Swap Your Annual Leave For Sick Leave
New Star Wars Trailer When To Watch In Australia
Are Two Day Internet Outages Acceptable
bullcopy 2007-2017 Allure MediabullBI IntelligencebullAbout
bullAdvertise
bullContact
bullTerms of Use
Meet
ROSS
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Services and regulatory coherence
4
Given our joint research interest in digitisation in looking at implementation of the services directive we take 2 examplesTelecommunications(providing the essential digital infrastructure and enabling backbone for digitisation)Professional Services (Engineering) (undergoing deep digital transformation with the application of professional services automation software)
Source Research Presentation in The UniAdelaide Trade and Investment in Services Network Hildegunn Kyvik Nordas OECD Trade and Agriculture Directorate and Orebro University Sweden
kye GouldTech InsiderA well-dressed humanoid not named Ross
Lawyers can get a bad reputation for being slimy and conniving but ROSS has neither of those qualities
Ask ROSS to look up an obscure court ruling from 13 years ago and ROSS will not only search for the case in an instant mdash
or complaint mdash but it will offer opinions in plain language about the old rulingrsquos relevance to the case at hand
Just about the only thing it canrsquot do is fetch coffee
Not that anyone should blame it seeing as ROSS is a piece of artificial intelligence software It uses the supercomputing po
Watson to comb through huge batches of data and over time learn how to best serve its users
ldquoJudgesrsquo decisions are written in everyday language and not issued in columns and rows which is what current computer system
bestrdquo Andrew Arruda the CEO and co-founder of ROSS Intelligence tells Tech Insider
The challenge in building ROSS he says was finding a way to make it as intuitive as an actual colleague That meant program
respond to peoplersquos normal manner of speaking not just keyword-loaded fragments
But the hard work seems to have paid off as ROSS was just unveiled as a ldquonew hirerdquo at the law firm Baker amp Hostetler which handles
bankruptcy cases Arruda says several other firms have signed licenses to employ ROSSrsquo services and their announcements will
the coming weeks
In Arrudarsquos perfect world all law firms would harness the power of AI in order to serve justice Right now about 80 of Americans who need
a lawyer canrsquot afford one he says This is despite the country having a surplus of attorneys on tap
ldquoWith ROSS lawyers can scale their abilities and start to service this very large untapped market of Americans in needrdquo Arr
In other words by using AI lawyers like ROSS law firms could charge lower fees since they wouldnrsquot be paying humans (who ge
prefer to get paid for their work) to handle clientsrsquo cases In addition those lawyers currently out of work could use AI services like ROSS
which offer a lower barrier of entry into the market to create more affordable options for clients
And when it comes time for opposing law firms to battle it out in court itrsquod be in everyonersquos best interest to have a computing
partiesrsquo disposal Arruda says
Tagged Inibm watson innovation law lawyers robotics sai-contributor ti graphics
Women in New South Wales are Flocking to New Shopping SiteTophatter
11 Rules for Building Wealth After 50The Motley Fool Australia
Sponsored Links
Why People in Mcgraths Hill are going crazy for Marley SpoonMarley Spoon
Sponsored Links
Revealed Australias 7 Best Home Loans of 2017Mozo
Australian Business Owners - Must-attend Marketing WorkshopBasicbananascom Seminar
Dockless bicycles are trashing Sydney and Melbourne streets and rivers
Two bicycle sharing startups are making waves in Australiarsquos two largest cities but it seems some users are taking the freed
cycling too far
COUNTDOWN IS ON Elon Musks 100-day promise to Australia starts now
Tesla founder Elon Musk just hosted a party in Australia to mark the start of the 100 days that Tesla has to build the worldrsquos l
battery storage system
by Taboola
Sponsored Links
Trending on The Web
End of Life Insurance in Australia - Just Months AwayLISA Group
Play this for 1 minute and see why everyone is addictedVikings play now for free
Partner Content
Why you should always get a corporate program with your corporate carPromoted Links
You May Like
Got Life Insurance and Over 50 You Need to Read This NowLife Insurance Comparison
The owner of Sydneys new $500 million luxury Sofitel hotel just did something really cool for charity
Homeowners Need to Know About This Mortgage Savings TrickHomeLoansAustraliacom
VIDEO Lockheed Martins incredible plan to send humans to Mars within 10 yearsby Taboola
Business Insider Video
6 airline industry secrets
that will help you fly like a
pro
Solve one of these 5
problems to become a
billionaire
Popular on Facebook
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
Millennial super fund Spaceship has raised
$195 million - and tackled the biggest
criticisms it faced
Popular on LinkedIn
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
This 27-year-old is facing 3 years in a Dubai
prison after touching a man in a bar to avoid
spilling his drink
Fallout 4 Looks Really Pretty With 100+ Mods
Profess
PUBG Is About To Break 2 Million Peak PlayersP
Glitch Upends Aussies GTA 5 World Record Attempt
Satanists Say Video Games Help Them Practice Their Religion
The Top Ten Best Selling Albums Of All
Is It Legal To Swap Your Annual Leave For Sick Leave
New Star Wars Trailer When To Watch In Australia
Are Two Day Internet Outages Acceptable
bullcopy 2007-2017 Allure MediabullBI IntelligencebullAbout
bullAdvertise
bullContact
bullTerms of Use
Meet
ROSS
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Given our joint research interest in digitisation in looking at implementation of the services directive we take 2 examplesTelecommunications(providing the essential digital infrastructure and enabling backbone for digitisation)Professional Services (Engineering) (undergoing deep digital transformation with the application of professional services automation software)
Source Research Presentation in The UniAdelaide Trade and Investment in Services Network Hildegunn Kyvik Nordas OECD Trade and Agriculture Directorate and Orebro University Sweden
kye GouldTech InsiderA well-dressed humanoid not named Ross
Lawyers can get a bad reputation for being slimy and conniving but ROSS has neither of those qualities
Ask ROSS to look up an obscure court ruling from 13 years ago and ROSS will not only search for the case in an instant mdash
or complaint mdash but it will offer opinions in plain language about the old rulingrsquos relevance to the case at hand
Just about the only thing it canrsquot do is fetch coffee
Not that anyone should blame it seeing as ROSS is a piece of artificial intelligence software It uses the supercomputing po
Watson to comb through huge batches of data and over time learn how to best serve its users
ldquoJudgesrsquo decisions are written in everyday language and not issued in columns and rows which is what current computer system
bestrdquo Andrew Arruda the CEO and co-founder of ROSS Intelligence tells Tech Insider
The challenge in building ROSS he says was finding a way to make it as intuitive as an actual colleague That meant program
respond to peoplersquos normal manner of speaking not just keyword-loaded fragments
But the hard work seems to have paid off as ROSS was just unveiled as a ldquonew hirerdquo at the law firm Baker amp Hostetler which handles
bankruptcy cases Arruda says several other firms have signed licenses to employ ROSSrsquo services and their announcements will
the coming weeks
In Arrudarsquos perfect world all law firms would harness the power of AI in order to serve justice Right now about 80 of Americans who need
a lawyer canrsquot afford one he says This is despite the country having a surplus of attorneys on tap
ldquoWith ROSS lawyers can scale their abilities and start to service this very large untapped market of Americans in needrdquo Arr
In other words by using AI lawyers like ROSS law firms could charge lower fees since they wouldnrsquot be paying humans (who ge
prefer to get paid for their work) to handle clientsrsquo cases In addition those lawyers currently out of work could use AI services like ROSS
which offer a lower barrier of entry into the market to create more affordable options for clients
And when it comes time for opposing law firms to battle it out in court itrsquod be in everyonersquos best interest to have a computing
partiesrsquo disposal Arruda says
Tagged Inibm watson innovation law lawyers robotics sai-contributor ti graphics
Women in New South Wales are Flocking to New Shopping SiteTophatter
11 Rules for Building Wealth After 50The Motley Fool Australia
Sponsored Links
Why People in Mcgraths Hill are going crazy for Marley SpoonMarley Spoon
Sponsored Links
Revealed Australias 7 Best Home Loans of 2017Mozo
Australian Business Owners - Must-attend Marketing WorkshopBasicbananascom Seminar
Dockless bicycles are trashing Sydney and Melbourne streets and rivers
Two bicycle sharing startups are making waves in Australiarsquos two largest cities but it seems some users are taking the freed
cycling too far
COUNTDOWN IS ON Elon Musks 100-day promise to Australia starts now
Tesla founder Elon Musk just hosted a party in Australia to mark the start of the 100 days that Tesla has to build the worldrsquos l
battery storage system
by Taboola
Sponsored Links
Trending on The Web
End of Life Insurance in Australia - Just Months AwayLISA Group
Play this for 1 minute and see why everyone is addictedVikings play now for free
Partner Content
Why you should always get a corporate program with your corporate carPromoted Links
You May Like
Got Life Insurance and Over 50 You Need to Read This NowLife Insurance Comparison
The owner of Sydneys new $500 million luxury Sofitel hotel just did something really cool for charity
Homeowners Need to Know About This Mortgage Savings TrickHomeLoansAustraliacom
VIDEO Lockheed Martins incredible plan to send humans to Mars within 10 yearsby Taboola
Business Insider Video
6 airline industry secrets
that will help you fly like a
pro
Solve one of these 5
problems to become a
billionaire
Popular on Facebook
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
Millennial super fund Spaceship has raised
$195 million - and tackled the biggest
criticisms it faced
Popular on LinkedIn
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
This 27-year-old is facing 3 years in a Dubai
prison after touching a man in a bar to avoid
spilling his drink
Fallout 4 Looks Really Pretty With 100+ Mods
Profess
PUBG Is About To Break 2 Million Peak PlayersP
Glitch Upends Aussies GTA 5 World Record Attempt
Satanists Say Video Games Help Them Practice Their Religion
The Top Ten Best Selling Albums Of All
Is It Legal To Swap Your Annual Leave For Sick Leave
New Star Wars Trailer When To Watch In Australia
Are Two Day Internet Outages Acceptable
bullcopy 2007-2017 Allure MediabullBI IntelligencebullAbout
bullAdvertise
bullContact
bullTerms of Use
Meet
ROSS
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
kye GouldTech InsiderA well-dressed humanoid not named Ross
Lawyers can get a bad reputation for being slimy and conniving but ROSS has neither of those qualities
Ask ROSS to look up an obscure court ruling from 13 years ago and ROSS will not only search for the case in an instant mdash
or complaint mdash but it will offer opinions in plain language about the old rulingrsquos relevance to the case at hand
Just about the only thing it canrsquot do is fetch coffee
Not that anyone should blame it seeing as ROSS is a piece of artificial intelligence software It uses the supercomputing po
Watson to comb through huge batches of data and over time learn how to best serve its users
ldquoJudgesrsquo decisions are written in everyday language and not issued in columns and rows which is what current computer system
bestrdquo Andrew Arruda the CEO and co-founder of ROSS Intelligence tells Tech Insider
The challenge in building ROSS he says was finding a way to make it as intuitive as an actual colleague That meant program
respond to peoplersquos normal manner of speaking not just keyword-loaded fragments
But the hard work seems to have paid off as ROSS was just unveiled as a ldquonew hirerdquo at the law firm Baker amp Hostetler which handles
bankruptcy cases Arruda says several other firms have signed licenses to employ ROSSrsquo services and their announcements will
the coming weeks
In Arrudarsquos perfect world all law firms would harness the power of AI in order to serve justice Right now about 80 of Americans who need
a lawyer canrsquot afford one he says This is despite the country having a surplus of attorneys on tap
ldquoWith ROSS lawyers can scale their abilities and start to service this very large untapped market of Americans in needrdquo Arr
In other words by using AI lawyers like ROSS law firms could charge lower fees since they wouldnrsquot be paying humans (who ge
prefer to get paid for their work) to handle clientsrsquo cases In addition those lawyers currently out of work could use AI services like ROSS
which offer a lower barrier of entry into the market to create more affordable options for clients
And when it comes time for opposing law firms to battle it out in court itrsquod be in everyonersquos best interest to have a computing
partiesrsquo disposal Arruda says
Tagged Inibm watson innovation law lawyers robotics sai-contributor ti graphics
Women in New South Wales are Flocking to New Shopping SiteTophatter
11 Rules for Building Wealth After 50The Motley Fool Australia
Sponsored Links
Why People in Mcgraths Hill are going crazy for Marley SpoonMarley Spoon
Sponsored Links
Revealed Australias 7 Best Home Loans of 2017Mozo
Australian Business Owners - Must-attend Marketing WorkshopBasicbananascom Seminar
Dockless bicycles are trashing Sydney and Melbourne streets and rivers
Two bicycle sharing startups are making waves in Australiarsquos two largest cities but it seems some users are taking the freed
cycling too far
COUNTDOWN IS ON Elon Musks 100-day promise to Australia starts now
Tesla founder Elon Musk just hosted a party in Australia to mark the start of the 100 days that Tesla has to build the worldrsquos l
battery storage system
by Taboola
Sponsored Links
Trending on The Web
End of Life Insurance in Australia - Just Months AwayLISA Group
Play this for 1 minute and see why everyone is addictedVikings play now for free
Partner Content
Why you should always get a corporate program with your corporate carPromoted Links
You May Like
Got Life Insurance and Over 50 You Need to Read This NowLife Insurance Comparison
The owner of Sydneys new $500 million luxury Sofitel hotel just did something really cool for charity
Homeowners Need to Know About This Mortgage Savings TrickHomeLoansAustraliacom
VIDEO Lockheed Martins incredible plan to send humans to Mars within 10 yearsby Taboola
Business Insider Video
6 airline industry secrets
that will help you fly like a
pro
Solve one of these 5
problems to become a
billionaire
Popular on Facebook
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
Millennial super fund Spaceship has raised
$195 million - and tackled the biggest
criticisms it faced
Popular on LinkedIn
A former Goldman Sachs VP who founded a
crypto hedge fund says betting on bitcoin is
like betting on the internet in the 90s
This 27-year-old is facing 3 years in a Dubai
prison after touching a man in a bar to avoid
spilling his drink
Fallout 4 Looks Really Pretty With 100+ Mods
Profess
PUBG Is About To Break 2 Million Peak PlayersP
Glitch Upends Aussies GTA 5 World Record Attempt
Satanists Say Video Games Help Them Practice Their Religion
The Top Ten Best Selling Albums Of All
Is It Legal To Swap Your Annual Leave For Sick Leave
New Star Wars Trailer When To Watch In Australia
Are Two Day Internet Outages Acceptable
bullcopy 2007-2017 Allure MediabullBI IntelligencebullAbout
bullAdvertise
bullContact
bullTerms of Use
Meet
ROSS
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
EU approach to services integration Directives amp Regulations
Directive A legislative act that sets out a goal that
all EU countries must achieve It is up to the
individual countries to devise their own laws on how
to reach these goals
Examples
ndash Telecommunications
bull Governance framework (a set of directives as well
as regulations and decisions)
eg Broadband cost reduction Directive
ndash Engineering
bull Mutual recognition Directive
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Regulation A binding legislative act that must
be applied in its entirety across the EU
Examples
ndash Telecommunications
bull Roaming (20152120) access to the internet
without paying retail roaming surcharges
bull Cross-border portability of digital content (for
temporary visits in another EU country)
ndash Engineering
bull No EU regulation (falls entirely under the
responsibility of individual members)
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
TelecommunicationsThe new European Electronic Communications Code is a Directive
designed to update and replace the existing pro-competitive governance
structure of 4 Directives (Framework Directive 200221EC Access Directive
200219EC Authorisation Directive 200220EC Services Directive
2006123EC) It puts more emphasis on competition in the long run ndash and
provides more incentives for investment in high-speed networks
bull Role of National Regulatory Authorities (NRAs)
o Undertake market analysis to identify suppliers with significant market
power (SMP) about every three years
o Impose obligations (eg access interconnection non-discrimination price
caps transparency) on entities with SMP
bull Role of Body of European Regulators for Electronic Communications
(BEREC)
o review and comment on national regulatorsrsquo analyses and decisions
o It happens relatively often that BEREC has comments and requests better
documentation or changes to NRA analyses and decisions
o Existing practice strong emphasis on competition in the short run
Since NRArsquos analyses and market conditions differ across member
states regulation differs as well
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Progress towards a single services marketThe OECD Services Trade Restrictiveness Index
(STRI) helps to measure progress as well as to identify
persistent heterogeneity of preferential services trade
policies across EU member states across services
sectors and across modes of supply
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
bull By five policy areas
ndash Restrictions on foreign entry
ndash Restrictions to movement of people
ndash Other discriminatory measures
ndash Barriers to competition
ndash Regulatory transparency
bull By mode of supply
bull Barriers to entrylimitations on operation
bull Discriminatorynon-discriminatory
The STRI catalogues regulatory information and assigns a scoring system between 0(open) and 1 (closed)
11
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
OECD STRI sector profiles 2016
0
01
02
03
04
05
06
07
08
09
1
minimum
maximum
average
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
0
5
10
15
20
25
Tightening
Liberalisation
OECD STRI policy changes 2014-2016
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Telecommunications Scoring depends on market structure
Barriers to competition
Dominant supplier
Regulation is good
Competitive markets
Price regulation is
bad
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Example of regulatory package
Regulation of a
dominant supplier
Complementary measures
Access to the network is mandated
Access prices are regulated
Vertical separation is required or
Model contract is required or similar
All YES
At least one NO
0 1
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
STRI Telecommunications EU member states 2016 (slide provided by Nordas)
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Barriers to competition
What is
covered
How
Typically behind-the-border measures that
apply to domestic and foreign suppliers
equally
Firms have redress when business
practices restrict competition in a given
market
Decisions by the regulatory body can be
appealed
Restrictions on advertising
Public ownership
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Restrictions on foreign entry
What is
covered
How
Restrictions to market access and commercial
establishment abroad
Foreign equity restrictions
Restrictions on establishments ndash legal forms
Screening of investments
Restrictions on acquisition and use of land and real
estate
Citizenship and residency requirements for board of
directors and managers
Commercial presence requirements
Performance requirement
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
STRI Telecommunications 2016 APEC economies
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Monitoring reform telecommunications
0
01
02
03
04
05
06
07
08
09
1
AU
S
AU
T
BE
L
BR
A
CA
N
CH
E
CH
L
CH
N
CO
L
CR
I
CZ
E
DE
U
DN
K
ES
P
ES
T
FIN
FR
A
GB
R
GR
C
HU
N
IDN
IND
IRL
ISL
ISR
ITA
JP
N
KO
R
LT
U
LU
X
LV
A
ME
X
MY
S
NL
D
NO
R
NZ
L
PO
L
PR
T
RU
S
SV
K
SV
N
SW
E
TU
R
US
A
ZA
F
Restrictions on foreign entry Restrictions on the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency Average
STRI 2014
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
21
Services and the digital economy
Slide provided by John Drummond Head OECD Trade in Services Division
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Restrictions to movement of people
bull Labour market tests and limitations to duration of stay
bull Citizenship and residency requirements to practice
bull Recognition of foreign qualifications
ndash Revalidation of foreign degrees
ndash Need to take local examinations
ndash Need to practice locally for at least one year
bull No temporary license system in place
Other common restrictions
bull Ownership limited to locally-qualified professionals
bull Local qualification requirements for members of the board of directors
bull Fee-setting mandatory and recommended min andor max
Engineering common sector-specific restrictions
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
23
Professional eg Engineering ServicesCombination of restrictions
Citizenship required for a full license
to practice as a professional or
foreigners must completely redo
education and training
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
STRI Engineering Services APEC economies2016 (slide provided by Nordas)
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Barriers to the movement of people
What is
covered
How
Regulation on temporary movement of natural
persons
bull Intra-corporate transferees (ICT)
bull Contractual services suppliers (CSS)
bull Independent services suppliers (ISS)
bull Quotas
bull Labour market test
bull Duration of stay
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
STRI Engineering services 2016
0
01
02
03
04
05
06
07
08
09
1
AUS CAN CHL CHN IDN JPN KOR MEX NZL RUS USA
Restrictions on foreign entry Restrictions to the movement of people
Other discriminatory measures Barriers to competition
Regulatory transparency STRI 2014
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
27
Services and manufacturing
Slide provided by John Drummond OECD
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Examples of remaining intra-EU barriers
Telecoms
bull Data localisation requirements for purposes other than protecting
privacy (eg accounting tax company records) is common
bull Geo-blocking is rampant
Engineering
bull Recognition of professional qualifications
ndash Each professional needs to apply for recognition in each country in
which she wants to provide engineering services
ndash Recognition is not automatic
ndash 12 of the OECD EU countries (out of 23) regulate engineering in the
sense that a license is required and licensed engineers have exclusive
rights to provide a given set of engineering services (which differs
across countries)
bull Territorial intellectual property rights
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Data localisation
A rise in performance requirements to store or process data locally causing estimated global loss of 05 to 17 of GDP (ECIPE-Lee-Makiyama 2017)
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Increasing data dependency of modern services economies (Lee-Makiyama 2017)
4 ~31 of services inputs are lsquodatarsquo related (ECIPE 2014)
mdashDigital inputs from software internet platforms telecoms data processing hosting system consulting
mdashExceeding input share of energy labour in some sectors
Digital (data) inputs account for 21 of GDP growth in OECD countries (MGI2011)
Digital inputs are a main driver of productivity
mdashDirectly and indirectly via the manufacturing sector eg banking retail logistics communications
Global turnover of e-commerce is $1tn equivalent to GDP of Australia but with 3 times growth rate of China
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
EU-Australia trade relationsIntensity of digital trade
Cross-border data flows are the main carrier of services trade
mdashApproximately 50-55 of services trade carried by the internet
(Lee-Makiyama 2016)
mdashMainly B2B mostly intra-firm data
bull The intensity of digitalisation in Australia-EU trade flows is
relatively low
mdashRate of data dependency between Australia-EU relatively low
approximately 39
mdashMost ICT and internet services supplied domestically (approx
90)
mdashWhere EU is the largest foreign supplier of ICT services in Australia
(38) Australia in the EU is mere 01
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used
Joint research agendaThe regulatory regime for telecommunications post internet
ndash Given the structural changes following internetOTT services how
should suppliers with Significant Market Power be identified and
regulated to ensure competitive markets in the short and long run
With what trade competition and privacy policy implications
Digitisation of professional services Knowledge-intensive
professional services are being digitised (and can be stored and used
repeatedly at close to zero marginal cost)
ndash How do qualifications and licensing regimes for professional
services providers affect the take up and use of professional services
automation (PSA) software ndash and cross-border trade in professional
services
ndash To what extent is cross-border trade in professional services
complementary to other modes of supply (eg movement of people)
ndash To what extent and how might regulation affect how PSAs are used