International Trade in Services.pdf - DSpace at Khazar University

Engineering Services: How to Compete in the Most Global of the Professions 307
legislative, regulatory, and administrative changes at home. Stakeholders can
support negotiations and the consequent tasks associated with implementing
trade commitments. 1
Using international negotiations to advance engineering
export interests
Trade negotiations can achieve national treatment and market access for engineering
firms. For example, in regional markets, engineering firms reportedly
encounter discriminatory treatment relative to national firms. In Europe, foreign
engineering firms reportedly are subject to requirements that they establish
local offices to practice, and they encounter discriminatory treatment relative to
national and third-country firms (World Bank 2007). Tunisian engineering
firms face double taxation because of a lack of bilateral and regional tax treaties
(World Bank 2008). The absence of bilateral tax arrangements can reduce the
returns on exports and make export prospects untenable.
Trade agreements at the bilateral, regional, or multilateral level can effectively
improve the market environment at home. For example, Morocco has engaged in
bilateral arrangements with provisions to facilitate trade in engineering. A recent
free trade agreement contains substantial transparency provisions that require the
establishment of contact points, the prompt publication of rules, and opportunity
for comment on the rules. Crossborder trade provisions enable the parties to the
agreement to pursue the mutual recognition of professional qualifications. Parties
allow for the temporary admission of goods with regard to specialized equipment
frequently used in engineering. Government procurement provisions require
open procurement processes (Bennett 2004). Implementation requires investment
in public policy procedures.
Engagement in service negotiations under the General Agreement on Trade in
Services of the World Trade Organization also offers a vehicle to address barriers
to trade in engineering services at a multilateral level. A review of the plurilateral
requests on engineering services can help policy makers understand the parameters
of negotiations. For example, the requests highlight the removal of nationality
requirements, residency requirements, rules that restrict a particular type of legal
entity, limitations on the participation of foreign capital, and joint ventures
(International Trade Canada 2006). Engagement in negotiations can also expose
World Trade Organization members to market concerns across the spectrum of
economies. Engagement requires a comprehensive approach and an understanding
of the potential trade-offs involved in each aspect of the Doha Round. Regional
arrangements can also foster integration in the engineering service trade
(box 9.4).