The significant increase in cross-border trade and investment flows due to globalization is also fostering global integration of the legal sector. This trend presents both challenges and opportunities for the traditionally conservative sector worldwide, including in India.
Many trade treaties and agreements, in addition to facilitating trade, have begun incorporating provisions for the cross-border movement of legal personnel. The General Agreement on Trade in Services of 1995 includes provisions for the movement of services, including legal. Similarly, several regional agreements have established frameworks to support this, such as the North American Free Trade Agreement (1994), the ASEAN (Association of Southeast Asian Nations) Framework Agreement on Services (1995), the Comprehensive Economic and Trade Agreement between Canada and the European Union (2016), etc.
However, these treaties allow for the cross-border movement of legal personnel only on a temporary basis and under regulatory oversight. Amid the near-total unification of markets, the EU stands out in this regard. The EU introduced the Lawyers' Establishment Directive (Directive 98/5/EC) to encourage greater integration of the union's legal market.
In India, the issue of cross-border movement of legal personnel arose through litigation. It was alleged that certain foreign law firms had established offices in India in an unauthorised manner. This was challenged in the Bombay and Madras High Courts. Ultimately, the case reached the Supreme Court of India, which passed a judgment in 2018 stating that only advocates enrolled under the provisions of the Advocates Act, 1961, are permitted to "practise" law in India.
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