WTO talks fuel practice moves

The prospect of easier cross-border practice around the world has moved a step closer as countries set out their negotiating positions for the latest round of World Trade Organisation (WTO) talks.

Several major players, such as the US, the European Union and Japan, have identified barriers to cross-border practice that should be examined in the process of liberalisation.

US trade representative Charlene Barshefsky said: 'With the acceleration of world economic integration, law firms have become increasingly important in advising clients on a variety of business matters.' She added: 'In many respects, lawyers and law firms pave the way for international trade and investment and are regarded as part of the infrastructure of commerce.

For the United States, balance of payments receipts for legal services amount to roughly $2.5 billion annually.' The US, which produced a paper specifically on legal services rather than professional services generally as the others did, is highlighting commercial presence, citizenship and residency requirements for licensing, scope of practice, and 'association of foreign-qualified lawyers with local lawyers and association of foreign-partner law firms with local law firms'.

The EU raised similar issues and also noted that the use of firm names is often restricted.

The EU is concentrating on liberalising the regime for lawyers who want to advise on their home country and international public law.

Japan focused on nationality requirements, 'reciprocity on permissions of qualification' and the 'lack of legal framework for accepting professionals with foreign qualifications'.However, Japan has a restrictive regime for foreign lawyers and this is reflected by the absence of issues such as foreign firms employing and going into partnership with local lawyers.

Jonathan Goldsmith, the Law Society's international director, said it was significant that the US had produced a separate paper on legal services and called for liberalisation.

'It's a good sign that the US is taking a bullish attitude,' he said.WTO negotiations under the General Agreement on Trade in Services began last year.

However, services are caught up with wider trade talks on bigger issues and a resolution may be delayed as a result.

Neil Rose