International Trade in Services.pdf - DSpace at Khazar University

246 International Trade in Services
Table 7.4. A Checklist of IT Service Questions for Policy Makers (continued)
2. If so, what type of restrictions exist and what purpose do they serve What is their
impact on foreign direct investment Can the policy rationale of restrictions be
addressed through other, less-trade-restrictive means Can full ownership of local
subsidiaries be allowed in high-technology parks for export-oriented activities
3. Are foreign suppliers required to establish locally through a particular legal form If
so, which one(s) Are restrictions to commercial presence compliant with the
country’s prospective WTO commitments
4. Is the local IT service sector controlled by public ownership Do these links give rise
to market distortions at home and hold back expansion abroad If so, what is the
strategic value if the government maintains a stake in the IT service sector
Facilitating the temporary movement of IT professionals
1. What type of restrictions affect labor migration in client countries Do major export
markets impose quotas, economic needs tests, or other impediments to the
movement of project staff
2. Do local consulates of foreign countries provide expedient, fair, and streamlined
application procedures for business visas and work permits If not, what is the scope
for local policy makers to approach these consulates to build trust and seek
facilitated procedures
3. What concerns do foreign consulates have, and what can policy makers and local IT
service companies do to address these concerns Do the country’s IT service professionals
have a poor record in obeying work permit rules in client countries If so,
what can policy makers do to make the IT service sector improve the record in this
area
4. At home, is the application process for business visas and work permits administered
in a reasonably expedient and cost-effective way Or is it opaque, slow, and
cumbersome What can be done to improve administrative efficiency in the local
application process
5. Are there restrictions or other problem issues related to the nonrecognition of qualifications
for IT workers at home or in major export markets
6. Can temporary movement be facilitated through bilateral, regional, or multilateral
negotiations Does the country have a clear vision of what it wants to obtain in the
GATS negotiations How does it communicate this vision
Other issues that can impede or stimulate trade
1. What is the situation in the overall business environment and investment climate in
the country What effort has the government taken to remove binding constraints
and ease the regulatory footprint on businesses If infrastructure is underdeveloped
and improvements in the local business environment are elusive, would private
sector investment in a software and high-technology park be a solution Is there
demand for such a park If so, are there rules or regulations that have impeded the
related investments
2. Does the country have an information technology law that protects the privacy of
data and an intellectual property law that protects IT service companies from
software piracy If so, how are these laws enforced If not, would prospective
increases in the IT service trade warrant the effort to enact such laws Would other
sectors and citizens benefit from such laws
3. Are taxes, tariffs, and customs fees on IT equipment high If so, what impact do
they have on the development of a local IT service sector and the development of
the local use of IT Can the revenue from such products be obtained in a lessgrowth-impeding
manner