International Trade in Services.pdf - DSpace at Khazar University
International Trade in Services.pdf - DSpace at Khazar University
International Trade in Services.pdf - DSpace at Khazar University
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294 <strong>Intern<strong>at</strong>ional</strong> <strong>Trade</strong> <strong>in</strong> <strong>Services</strong><br />
Box 9.1: Def<strong>in</strong>ition of Eng<strong>in</strong>eer<strong>in</strong>g <strong>Services</strong><br />
The United N<strong>at</strong>ions Provisional Central Product Classific<strong>at</strong>ion list covers two relevant<br />
items on the four-digit level for eng<strong>in</strong>eer<strong>in</strong>g services (UN 1991):<br />
Eng<strong>in</strong>eer<strong>in</strong>g services (CPC 8672): cover<strong>in</strong>g (1) advisory and consult<strong>at</strong>ive eng<strong>in</strong>eer<strong>in</strong>g<br />
services, (2) eng<strong>in</strong>eer<strong>in</strong>g design services for the construction of found<strong>at</strong>ions and<br />
build<strong>in</strong>g structures, (3) eng<strong>in</strong>eer<strong>in</strong>g design services for mechanical and electrical<br />
<strong>in</strong>stall<strong>at</strong>ions for build<strong>in</strong>gs, (4) eng<strong>in</strong>eer<strong>in</strong>g design services for the construction of civil<br />
eng<strong>in</strong>eer<strong>in</strong>g works, (5) eng<strong>in</strong>eer<strong>in</strong>g design services for <strong>in</strong>dustrial processes and<br />
production, (6) eng<strong>in</strong>eer<strong>in</strong>g design services not elsewhere classified, (7) other<br />
eng<strong>in</strong>eer<strong>in</strong>g services dur<strong>in</strong>g the construction and <strong>in</strong>stall<strong>at</strong>ion phase, and (8) other<br />
eng<strong>in</strong>eer<strong>in</strong>g services.<br />
Integr<strong>at</strong>ed eng<strong>in</strong>eer<strong>in</strong>g services (CPC 8673): cover<strong>in</strong>g (1) <strong>in</strong>tegr<strong>at</strong>ed eng<strong>in</strong>eer<strong>in</strong>g<br />
services for turnkey transport<strong>at</strong>ion <strong>in</strong>frastructure projects, (2) <strong>in</strong>tegr<strong>at</strong>ed eng<strong>in</strong>eer<strong>in</strong>g<br />
and project management services for turnkey w<strong>at</strong>er supply and sanit<strong>at</strong>ion works<br />
projects, (3) <strong>in</strong>tegr<strong>at</strong>ed eng<strong>in</strong>eer<strong>in</strong>g services for the construction of turnkey manufactur<strong>in</strong>g<br />
projects, and (4) <strong>in</strong>tegr<strong>at</strong>ed eng<strong>in</strong>eer<strong>in</strong>g services for other turnkey projects.<br />
• Electrical eng<strong>in</strong>eer<strong>in</strong>g is fundamental to the oper<strong>at</strong>ion of public works, such as<br />
utilities, as well as commercial facilities and communic<strong>at</strong>ion systems.<br />
• Petroleum eng<strong>in</strong>eer<strong>in</strong>g is a primary <strong>in</strong>put <strong>in</strong> some of the most productive sectors<br />
<strong>in</strong> oil-produc<strong>in</strong>g develop<strong>in</strong>g countries. These sectors account for up to 98 percent<br />
of exports <strong>in</strong> some develop<strong>in</strong>g countries (Saw<strong>in</strong>ski and Mason 2007).<br />
• Industrial eng<strong>in</strong>eer<strong>in</strong>g focuses on methods of production and efficiency and<br />
contributes to the overall productivity <strong>in</strong> the agriculture, manufactur<strong>in</strong>g, and<br />
service sectors.<br />
Consequently, for their welfare, citizens <strong>in</strong> develop<strong>in</strong>g countries have a significant<br />
<strong>in</strong>terest <strong>in</strong> ensur<strong>in</strong>g access to cost-competitive and high-quality eng<strong>in</strong>eer<strong>in</strong>g services.<br />
<strong>Trade</strong> openness abroad is necessary so th<strong>at</strong> eng<strong>in</strong>eer<strong>in</strong>g companies <strong>in</strong> develop<strong>in</strong>g<br />
countries may access foreign markets. Develop<strong>in</strong>g-country exports of eng<strong>in</strong>eer<strong>in</strong>g<br />
services are currently on the rise because new channels of electronic<br />
supply are cre<strong>at</strong><strong>in</strong>g new bus<strong>in</strong>ess opportunities and because the <strong>in</strong>tern<strong>at</strong>ional<br />
sourc<strong>in</strong>g of eng<strong>in</strong>eer<strong>in</strong>g services is becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly common. Several develop<strong>in</strong>g<br />
countries are large exporters of complementary services, such as construction<br />
services, and the provision of eng<strong>in</strong>eer<strong>in</strong>g services often represents a n<strong>at</strong>ural<br />
expansion for these companies <strong>in</strong> mov<strong>in</strong>g up the value cha<strong>in</strong>. Eng<strong>in</strong>eer<strong>in</strong>g service<br />
exports may therefore provide many high-pay<strong>in</strong>g jobs to technicians and eng<strong>in</strong>eers<br />
<strong>in</strong> those develop<strong>in</strong>g countries th<strong>at</strong> offer decent tra<strong>in</strong><strong>in</strong>g opportunities.<br />
In sum, trade liberaliz<strong>at</strong>ion <strong>in</strong> the eng<strong>in</strong>eer<strong>in</strong>g sector is <strong>in</strong> the <strong>in</strong>terest of develop<strong>in</strong>g<br />
countries both <strong>at</strong> home and abroad. The next section addresses the issue of<br />
wh<strong>at</strong> can be done to harness trade opportunities by pursu<strong>in</strong>g reforms <strong>in</strong> home