Trade in Services
Australian negotiating interests in selected services sectors
This section contains information about Australia's negotiating interests in a number of key services sectors. The first sector to be reviewed is accountancy services. We will provide snapshots on education, tourism, architecture, engineering, and legal services, amongst others in due course.
Accounting services
Background
The accounting sector is one of the most global services sectors. In international trade, the industry is dominated by a number of large accounting firms. In addition, there are many small and medium-sized firms engaged in providing accounting services. The international nature of the sector is reflected by the fact many countries adopt international accounting standards.
A strong accounting profession can underpin an economy's international competitiveness. However, it is a sensitive sector for some trading partners with barriers remaining in regional markets. For example, the profession is characterised by local qualification and licensing requirements, both in relation to individual accountants and as conditions of ownership and management of firms.
Australian accounting services providers are recognised as world-class. In Australia there are three professional organisations: CPA Australia with 117,000 members; the Institute of Chartered Accountants in Australia, 43,000 members; and the National Institute of Accountants, 20,000 members. In 2007, accounting services exports reached $475 million.
How sector is defined in the GATS
Services in the GATS are defined by reference to the WTO services sectoral classification list (W/120). Accounting, auditing and bookkeeping services are professional services falling within a broader classification of business services. They are sub-divided as follows:
Accounting and auditing services
- financial auditing services
- accounting review services
- compilation of financial statements services
- other accounting services
Bookkeeping services, except tax returns
Australia's priority markets
Key markets for Australia are located primarily in our immediate region: ASEAN (Indonesia, Malaysia, Philippines and Thailand), Japan, Korea, China, Chinese Taipei and India.
Market access barriers
Key barriers facing Australian accounting service providers include:
- the right to form partnerships or other forms of commercial association with domestic accounting firms
- the right for Australian accounting firms to hold majority ownership
- the right to use of name
- nationality and/or residency requirements for accountants
- the right to provide cross-border (Mode 1) trade of accounting services without requiring commercial presence
Sectoral/Modal WTO negotiations
In 1998, the WTO's Council for Trade in Services adopted disciplines for the accounting sector. These disciplines attempt to ensure that rules on qualification requirements, technical standards and licensing requirements do not constitute barriers to trade in services. Accounting is the only professional service where the WTO has adopted disciplines. These disciplines will be legally binding following conclusion of the Doha Round.