TRADE: major emerging economies such as China and Brazil need to open to foreign lawyers


Progress on opening up the Indian legal market would transform the Doha Round of world trade talks from 'a so-so outcome to a real success' for solicitors, Peter Mandelson has been told.


In a letter to the European trade commissioner as the World Trade Organisation negotiations reach a critical stage, Law Society Vice-President Fiona Woolf said that India remains one of the most closed legal markets in the world, despite the fact that it could rapidly become a net exporter of legal services, due to the huge interest in outsourcing.


She wrote: 'We are aware of the political difficulties that the Indian government faces in taking on vested interests in the Indian legal community, but the Doha Round offers an unrivalled opportunity for them to do so.'


The Society is particularly seeking the ability for firms to establish a commercial presence in India, although it cautioned against a possible Indian offer to allow joint ventures with local firms. 'The joint venture approach rarely works as a mechanism for the entry of foreign lawyers,' Ms Woolf said.


There also needs to be more movement from other major emerging economies, such as China and Brazil, where European lawyers cannot hire or enter into partnership with local lawyers, to the detriment of both foreign and local firms, she said.


Ms Woolf said more movement was generally needed in south-east Asia. She pointed to the World Bank office in Indonesia, which recently stated that unless the local legal sector develops, then the rest of the country's economic reform process will be put at risk.


With doubts growing over whether a deal will be struck at all, Ms Woolf emphasised that any deal would be better than none, especially as it could lead to 'backsliding' on those offers already made. She highlighted offers on legal services by South Korea and the United Arab Emirates, 'which, although not perfect, do represent a real gain'. There has also been positive news from South Africa and Japan.


The Society is a member of the high-level European Services Forum, which last week met with Mr Mandelson. The Council of the Bars and Law Societies of the EU (CCBE), together with City law firms Clifford Chance and Herbert Smith, are the other legal members of the forum. Its delegation emphasised the importance of progress on services and the need for countries such as China, India, and Brazil to improve market access.


CCBE secretary-general Jonathan Goldsmith, who was part of the delegation, said: 'It was a good opportunity for the legal services sector to put its view directly to the commissioner.'


Following the meeting, Mr Mandelson said: 'The current negotiation's focus on agriculture and industrial goods has pushed services negotiations too far down the Doha agenda. Progress in further opening up international trade in services is not only important for the EU economy, it is an integral part of a development round.'


Neil Rose