International Trade in Services.pdf - DSpace at Khazar University

Building Empires Overseas 203
require international contractors to form joint ventures with local companies. The
formation of a joint venture with a local company may be the most effective form
of market entry, given the expertise of local companies in local market conditions
and the regulatory environment. However, the requirement to form a joint venture
is often imposed to seek transfers of technology and project management expertise,
as well as to provide business opportunities to local companies.
There are also several restrictions on commercial presence that reflect a
national treatment (WTO 1998). Table 6.5 shows that these include registration
requirements, authorization requirements, performance requirements, and technology
transfer requirements; licensing, standards, and qualifications; and
nationality and residency requirements. Although the types of market access and
Table 6.5. Number of Measures in Construction and Related Engineering Services
Presence of
Crossborder Consumption Commercial natural
supply abroad presence persons
Market Access
Limitations on
Number of suppliers 1 — 5 —
Value of transactions or assets — 11 —
Number of operations — — — —
Number of natural persons — — — 11
Types of legal entity — — 26 —
Participation of foreign capital — 16 —
Other measures n.e.c. 8 3 28 32
National Treatment
Tax measures, subsidies, and
grants — — — 9
Nationality and residency
requirements — — 12 14
Licensing, standards, and
qualifications — 3 7 39
Registration requirements — 3 7 3
Authorization requirements 4 — 5 5
Performance requirements — 3 3 3
Technology transfer
requirements — — 1 —
Other 5 — 8 6
Source: WTO (1998).
Note: — not available; n.e.c. not elsewhere classified. The number of other measures n.e.c. is large
because many entries in the schedules could not be classified into one of the distinct categories of
limitations. In some cases, this is the result of a lack of specificity in the descriptions of the measures,
while, in other cases, it is because the measure itself does not correspond to any of the categories.