greetings to chartered accountants for icais post qualification course video conference from...

GREETINGS

TO

CHARTERED ACCOUNTANTS

FOR

ICAI’S POST QUALIFICATION COURSE

VIDEO CONFERENCE FROM HYDERABAD

31 AUGUST 2005

2Copyright - Dr. S. Chakravarthy

WTO, COMPETITION LAW AND PROFESSIONAL OPPORTUNITIES

PRESENTATION BY

Dr.S.CHAKRAVARTHY

(Profession : Civil Servant)

Member, High Level Committee on Competition Policy and Law And Member of Committee for Drafting the Law.

PRESENTLY, ADVISER/CONSULTANT ON COMPETITION POLICY AND LAW

HYDERABAD, INDIA

Copyright - Dr. S. Chakravarthy 3

WHAT IS WTO?WHAT IS WTO?

IT IS THE ONLY INTERNATIONAL BODY DEALING WITH IT IS THE ONLY INTERNATIONAL BODY DEALING WITH RULES OF TRADE BETWEEN NATIONSRULES OF TRADE BETWEEN NATIONS

AT ITS HEART ARE THE AGREEMENTS NEGOTIATED AT ITS HEART ARE THE AGREEMENTS NEGOTIATED AND SIGNED BY THE MEMBER COUNTRIESAND SIGNED BY THE MEMBER COUNTRIES

AGREEMENTS ARE CONTRACTS BINDING AGREEMENTS ARE CONTRACTS BINDING GOVERNMENTS TO KEEP THEIR TRADE GOVERNMENTS TO KEEP THEIR TRADE

POLICIES WITHIN AGREED LIMITSPOLICIES WITHIN AGREED LIMITS

KEY: TRADE IS GOVERNED BY BINDING KEY: TRADE IS GOVERNED BY BINDING ACTIONABLE RULESACTIONABLE RULES


WTO’S 3 MAIN PURPOSES

• HELP TRADE FLOW AS FREELY AS POSSIBLE (REMOVE OBSTACLES, NO SUDDEN CHANGE OF POLICY, TRANSPARENT AND PREDICTABLE RULES)

• SERVE AS A FORUM FOR TRADE NEGOTIATIONS

• SETTLE DISPUTES (NEUTRAL PROCEDURE BASED ON AGREED LEGAL FOUNDATION)


MAIN LEGAL INSTRUMENTSMAIN LEGAL INSTRUMENTS

ALL AGREEMENTS ARE CONTAINED IN THREE MAIN LEGAL INSTRUMENTS:

1. GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND ITS ASSOCIATE AGREEMENTS. THESE APPLY TO TRADE IN GOODS.

2. GENERAL AGREEMENT ON TRADE IN SERVICES (GATS). THIS APPLIES TO TRADE IN SERVICES.

3. AGREEMENT ON TRADE – RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS).


TRADE IN GOODSTRADE IN GOODS

GATT 1994

ASSOCIATE AGREEMENTS:

AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF GATT

AGREEMENT ON PRESHIPMENT INSPECTION

AGREEMENT ON TECHNICAL BARRIERS TO TRADE

AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY MEASURES

AGREEMENT ON IMPORTANT LICENSING PROCEDURES

AGREEMENT ON SAFEGUARDS

AGREEMENTS ON SUBSIDIES AND COUNTERVAILING MEASURES

AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF GATT

AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES (TRIMS)

AGREEMENT ON TEXTILES AND CLOTHING

AGREEMENT ON AGRICULTURE

AGREEMENT ON RULES OF ORIGIN


TRADE IN SERVICES

GENERAL AGREEMENTGENERAL AGREEMENT

ON TRADE ON TRADE

IN SERVICES IN SERVICES

(GATS)(GATS)


INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTSRIGHTS

AGREEMENT ONAGREEMENT ON

TRADE – RELATEDTRADE – RELATED

ASPECTS ASPECTS

OF OF

INTELLECTUAL PROPERTY RIGHTS INTELLECTUAL PROPERTY RIGHTS

(TRIPS)(TRIPS)


INDIAN COMPETITION LAW

OUTGOING COMPETITION LAW – MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969

NEW LAW – COMPETITION ACT, 2002 YET TO BE FULLY ENFORCED


RELEVANT ASPECTS FOR DEVELOPING COUNTRIES

MULTILATERAL TRADING SYSTEM DEMANDS A COMPREHENSIVE UNDERSTANDING OF THE WTO AGREEMENTS, KEY EXPRESSIONS AND NUANCES.

INPUTS OF CHARTERED ACCOUNTANTS ARE REQUIRED TO DEFEND THE DEVELOPING COUNTRIES’ INTERESTS (EG: AGGREGATE MEASUREMENT OF SUPPORT WHEN DEALING WITH SUBSIDIES AND CALCULATION OF CONSTRUCTED VALUE AND THE EXTENT OF MATERIAL INJURY TO DOMESTIC INDUSTRIES IN ANTI-DUMPING CASES ETC).

PARTICIPATION IN TRADE NEGOTIATIONS BUTTRESSING ARGUMENTS WITH RATIONALE .

INDIAN CHARTERED ACCOUNTANTS NEED TO READY THEMSELVES ON THE ABOVE


ROLE OF CHARTERED ACCOUNTANTS

ORGANISE AND SENSITISE THEMSELVES TO BECOMING VOCAL ON GLOBALISATION AND LIBERALISATION ISSUES

THEY NEED TO OFFER INPUTS AND ADVICE IN WTO RELATED ANALYSES

THEY COULD APPEAR AND PARTICIPATE IN HEARINGS BEFORE WTO DISPUTE SETTLEMENT BODIES RELATING TO CASES IN WHICH INDIA IS A PARTY

THEY COULD ALSO APPEAR AND PARTICIPATE IN HEARINGS ON BEHALF OF PARTIES OTHER THAN INDIA (WHERE INDIA IS NOT A PARTY)

THEY COULD APPEAR AND PARTICIPATE IN HEARINGS IN INDIA (EG: BEFORE THE COMPETITION COMMISSION OF INDIA, ANTI - DUMPING AUTHORITIES ETC.)

PREPARE BACKGROUND PAPERS AND NEGOTIATION PAPERS FOR THE INDIAN GOVERNMENT IN ALL WTO RELATED MATTERS

ENLIST SUPPORT OF OTHER STAKE HOLDERS OF INDIAN ECONOMY AND NETWORK THEMSELVES WITH OTHER PROFESSIONALS


CHARTERED ACCOUNTANTS AND GATS

GATS LISTS FOUR MODES OF SUPPLY, NAMELY, CROSS BORDER SUPPLY (INTERNATIONAL TELEPHONE CALLS), CONSUMPTION ABROAD (TOURISM), COMMERCIAL PRESENCE (BRANCH OF A BANK) AND MOVEMENT OF NATURAL PERSONS ( PROVIDING SERVICE IN A FOREIGN COUNTRY THROUGH CONSULTANTS, CHARTERED ACCOUNTANTS)

INDIA HAS A LARGE RESERVOIR OF HIGHLY SKILLED AND EXPERIENCED CHARTERED ACCOUNTANTS

DOMINANT MODE OF SUPPLY FOR ACCOUNTANCY SERVICES IS THROUGH COMMERCIAL PRESENCE. FOR INDIA THE MOST IMPORTANT MODE IS MOVEMENT OF NATURAL PERSONS

CHARTERED ACCOUNTANTS ARE NEEDED TO ANALYSE M & A, PRIVATISATION, FINANCIAL LENDING DECISIONS, VALUATION OF ASSETS, STOCK MARKET DEVELOPMENTS, ISSUES RELATING TO FDI ETC.


CHARTERED ACCOUNTANTS AND COMPETITION LAW

SECTION 35 OF COMPETITION ACT, 2002 SPECIFICALLY ALLOWS CHARTERED ACCOUNTANTS TO REPRESENT A COMPLAINANT, DEFENDANT OR THE DIRECTOR GENERAL TO PRESENT A CASE BEFORE THE COMPETITION COMMISSION OF INDIA

THIS IMPLIES THAT THE CHARTERED ACCOUNTANTS CAN REPRESENT A PARTY IN CASES RELATING TO ANTI-COMPETITIVE AGREEMENTS, ABUSE OF DOMINANCE AND COMBINATION (MERGERS ETC.) REGULATION CASES

CHARTERED ACCOUNTANTS REQUIRE TO BRACE THEMSELVES ON COMPETITION ACT, 2002


RUBRIC OF THE NEW RUBRIC OF THE NEW COMPETITION LAWCOMPETITION LAW

THE NEW LAW, COMPETITION ACT, 2002 WILL REPEAL THE MRTP ACT

FOUR COMPARTMENTS OF NEW LAW:

ANTI-COMPETITION AGREEMENTS

ABUSE OF DOMINANCE

MERGERS, AMALGAMATIONS, ACQUISITIONS AND TAKE-OVERS

FOSTERING COMPETITION


HONE THYSELF !C.A. TO COVET C.A.

CHARTERED ACCOUNTANTS COULD BE THE EARLY BIRDS FOR THE WORMS CALLED COMPETITION CASES

FOR THIS THEY NEED TO HONE THEMSELVES ON THE FEATURES AND NUANCES OF COMPETITION ACT, 2002

FOR HONING SKILLS, NEXT THREE SLIDES ARE INDICATORS

CHARTERED ACCOUNTANTS MAY COVET COMPETITION ACT


C.A AND C.A ANTI - COMPETITIVE AGREEMENTS

CHARTERED ACCOUNTANTS MAY APPEAR FOR PARTIES BEFORE THE CCI IN CASES RELATING TO ANTI – COMPETITIVE AGREEMENTS LIKE CARTELS, BID - RIGGING, RESALE PRICE MAINTENANCE ETC.

PRICE PARALLELISM, PRODUCTION AND SUPPLY LEVELS, TECHNICAL DEVELOPMENT IN TERMS OF PRODUCTIVITY, INVESTMENT AND PROFITABILITY, BID ANALYSIS ETC ARE UP THE CHARTERED ACCOUNTANTS’ ALLEY


C.A. AND C.A.ABUSE OF DOMINANCE

CHARTERED ACCOUNTANTS MAY APPEAR FOR PARTIES BEFORE THE CCI IN CASES RELATING TO ABUSE OF DOMINANCE

UNFAIR AND DISCRIMINATORY PURCHASE AND PRICE LEVELS, PREDATORY PRICING, CONCLUSION OF CONTRACTS WITH OBLIGATIONS HAVING NO CONNECTION WITH THE SUBJECT OF CONTRACTS ETC HAVE HIGH TECHNICALITIES REQUIRING PROFESSIONAL EXPERTISE

CONTRIBUTION OF CHARTERED ACCOUNTANTS COULD BE SUBSTANTIAL


C.A. AND C.A.COMBINATIONS REGULATION

CHARTERED ACCOUNTANTS MAY APPEAR FOR PARTIES BEFORE THE CCI IN CASES RELATING TO COMBINATIONS REGULATION

KNOWLEDGE AND EXPERTISE OF CHARTERED ACCOUNTANTS ARE NEEDED FOR

– THRESHOLD ANALYSIS – VALUE OF ASSETS DETERMINATION – VALUE OF TURNOVER DETERMINATION– MARKET SHARE ANALYSIS – LEVEL OF COMPETITION ANALYSIS – GROUP IMPACT – CONTROL IMPACT – FAILING BUSINESS COSTING AND IMPACT – WEIGHING BENEFITS OF COMBINATION AGAINST ADVERSE

IMPACT OF COMBINATION


RECIPROCITY

INDIAN CHARTERED ACCOUNTANTS ARE NOT RECOGNISED UNDER THE LAWS OF MOST OF THE DEVELOPED COUNTRIES

LIKEWISE, ICAI DOES NOT RECOGNISE ANY FOREIGN QUALIFICATION OR A FOREIGN CHARTERED ACCOUNTANT

BECAUSE OF THIS NON – RECOGNITION, THEY COULD BE OBSTACLES IN AVAILING OF MODE 3 OR MODE 4 OF GATS

WHILE APPRECIATING THE NEED FOR GOOD STANDARDS IN THE PROFESSION, RECIPROCAL RECOGNITION WILL BE A STEP CODUCIVE TO GAINFUL AVAILMENT OF GATS PROVISIONS

INDIAN CHARTERED ACCOUNTANTS ARE VERY SKILLED AND HAVE PROVEN THEIR ABILITIES. THEY NEED NOT APPREHEND THAT THEIR FUTURE MAY BE JEOPARDISED BECAUSE OF RECIPROCITY.


INDIA FIRST

THE CHARTERED ACCOUNTANTS’ ACTION COMMITTEE FOR LEVEL PLAYING FIELD HAS ADOPTED AS ITS MANTRA

“INDIA FIRST”

THIS MANTRA SHOULD NOT BE CONSTRUED TO MEAN INDIAN CHARTERED ACCOUNTANTS TO THE EXCLUSION OF FOREIGN ACCOUNTANTS. IT SHOULD BE CONSTRUED TO MEAN THE INTEREST OF CHARTERED ACCOUNTANTS IN THE GLOBAL CONTEXT.

THIS NEEDS A LEVEL PLAYING FIELD FOR INDIAN ACCOUNTANTS VIS – A – VIS FOREIGN ACCOUNTANTS

THANK YOU

FOR YOUR

KIND ATTENTIONCopy right Dr. S. Chakravarthy

greetings to chartered accountants for icais post qualification course video conference from...

Documents

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rules of trade

trade gatt

india slide

trade policies

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chakravarthy6 trade

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