Australia-United States Free Trade Agreement
August 2008
Dear
I am writing to update you on the Australia-United States Free Trade Agreement (AUSFTA) Working Group on Professional Services (WGPS). As you would be aware, the WGPS was established to facilitate profession-led initiatives aimed at developing mutually acceptable standards and criteria for the licensing and certification of professional services suppliers. Profession-led initiatives have been supported by the WGPS in accounting, engineering and law. Over the last year we have had good results in each of the professions.
The WGPS held a constructive meeting in Washington DC in May 2008 and agreed on a number of specific recommendations to Ministers which will inform the forward work program. During their meeting, Ministers accepted the recommendations outlined in the report, noting the ongoing positive developments in professional services. The joint report to Ministers is attached to this letter.
Accounting Profession Initiative
The WGPS has worked to increase the number of US states which recognise the Mutual Recognition Agreements (MRAs), CPA Australia and the Institute of Chartered Accountants have with US national accounting bodies
Information gained following approaches to US states and territories that we understood did not recognise the MRAs revealed that at most only two US states do not have provisions that allow an Australian CPA or Chartered Accountant to be licensed. The WGPS has asked the National Association of State Boards of Accountancy (NASBA) if they can confirm this information and we expect to receive a response when NASBA publishes its annual publication in August 2008.
Engineering Profession Initiative
All US states and territories require engineers to be licensed in order to work as Professional Engineers. In nearly all US jurisdictions, an applicant for licensure needs to hold recognised qualifications, have undertaken a minimum period of supervised experience and have passed the National Council of Examiners for Engineering and Surveying's Fundamentals of Engineering Exam (FE) and Principles and Practice of Engineering Exam (PE).
Following several visits by Engineers Australia, with support from DFAT, to the United States in recent years, Texas was identified as most interested in pursuing discussions on a MRA, the aim of which is to seek an exemption for Australian engineers from the FE and PE exams as requirements for licensure in Texas. The Texas Engineering Board visited Australia 5-7 March 2008 for further discussions on the MRA. These discussions were fruitful and a draft has been approved by Australian and Texan professional bodies. We hope the MRA will be signed in late 2008.
The MRA will provide for temporary licensure for three years renewable provided the engineer retains Australian registration or Texas licensure and meets necessary requirements. We hope the MRA with Texas will be a basis for discussions with other US states.
Legal Profession Initiative
The WGPS continues to strive to increase market access for Australian legal practitioners in the United States. Currently, Australian lawyers are only able to practise foreign law in 27 US jurisdictions, and most Foreign Legal Consultant (FLC) rules in these jurisdictions are more onerous than those for foreign lawyers seeking to practise foreign law in Australia. Only 14 US jurisdictions recognise Australian legal qualifications for sitting US bar exams.
The Australia-United States Legal Services Initiative, created under the WGPS, has approached individual states with proposals that seek to improve professional mobility for lawyers in six areas: the temporary practise of foreign law; the registered practise of foreign law (through FLC Rules); in-house counsel; ad hoc appearances before courts; recognition of Australian legal qualifications; and the exchange of disciplinary information. Tailored proposals have been forwarded to Delaware, Georgia and California. Following Australia's representations, Delaware introduce a FLC Rule in October 2007, allowing Australian lawyers to practise Australian and foreign law in its jurisdiction for the first time. Georgia and California have both indicated a willingness to consider amending existing FLC rules in the future. A submission was made to the Supreme Court of Georgia Committee on Legal Education in February 2008 on the recognition of Australian legal qualifications.
The Legal Services Initiative has also sought to promote its objectives at the US national level. Representations to the American Bar Association (ABA), National Organization of Bar Counsel, National Conference of Bar Examiners, and Conference of Chief Justices (CCJ) have received active support. The CCJ passed two resolutions in 2007, urging US states and territories to consider recognising Australian law degrees for the purpose of being admitted to practice in the United States, and encouraging the ABA to establish a mechanism for assessing the quality of law degrees in other common law countries. These resolutions have considerably increased the profile of the Australian initiative in the United States.
Please do not hesitate to contact Angela Pickett on angela.pickett@dfat.gov.au or 6261 1811 should you require any further information.
Yours sincerely
Trudy Witbreuk
Assistant Secretary
Trade Commitments Branch
Office of Trade Negotiations