jane drake-brockman eu centre for global affairs...regional integration in services using the stri...

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Regional Integration in Services Using 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 Centres’ Conference RMIT City Campus 16-18 October 2017 Melbourne Acknowledgements: Hildegunn Kyvik Nordas, OECD &Orebro University Hosuk Lee-Makiyama ECIPE

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Page 1: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 2: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 3: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 4: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 5: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 6: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 7: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 8: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 9: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 10: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 11: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 12: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 13: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 14: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 15: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 16: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 17: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 18: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 19: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 20: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 21: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 22: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 23: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 24: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 25: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 26: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 27: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 28: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 29: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 30: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 31: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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

Page 32: Jane Drake-Brockman EU Centre for Global Affairs...Regional Integration in Services Using the STRI to measure progress with the EU Services Directive and the EU Single Digital Market

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