International Trade in Services.pdf - DSpace at Khazar University

Engineering Services: How to Compete in the Most Global of the Professions 315
the implementation of mutual recognition agreements and improved access to
information and communication technology infrastructure, as well as cooperation
with trading partners to ameliorate the administration of the rules and regulations
that affect trade in engineering.
Finally, policy makers, in collaboration with professional bodies and leading
engineering firms, can define work programs to identify domestic regulatory
reforms, improve professional qualifications, and pursue international cooperation,
including international negotiations at the regional, bilateral, and multilateral
levels. The aim would be to reduce the regulatory burden faced by service
providers and eliminate trade barriers, such as nationality and residency requirements
that affect the establishment of commercial presence.
This chapter covers several issues that merit the attention of policy makers as
they advance a trade-integration agenda in engineering services. To address these
issues, a public-private partnership that includes all relevant stakeholders is necessary.
This partnership can build a work program that reflects the issues identified
in this chapter. Table 9.4 contains a list of possible items that could be included in
this work program and that aim at improving the regulatory environment and
creating trade opportunities for the engineering profession. The checklist of questions
may not be exhaustive, but still helps provide structure to the issues and
ensures a comprehensive approach to reform.
Table 9.4. A Checklist of Questions on Trade-Related Aspects of Engineering
Service Reform
Facilitating commercial presence
1. Are there legal restrictions on market entry through commercial presence for foreign
engineering firms If so, what type of restrictions are there, and what is their impact on
flows of foreign direct investment Are they discriminatory relative to the restrictions
imposed on domestic firms, and are they compliant with prospective commitments of
the World Trade Organization What is the rationale for imposing the restrictions
2. If there is a requirement for foreign engineering firms to form joint ventures with local
contractors, have such joint ventures been successful and fulfilled the prospective
motivations of transferring technology and management knowledge Have they helped
build local expertise
3. Do foreign engineering firms need to register and obtain licenses that are different (for
example, in terms of cost) from the licenses domestic firms need Are there any capital
control requirements that may have a negative impact on trade
4. Are there any particular staffing requirements for the establishment of branch offices
Do foreign branches need to hire local executives or board members Are there
residency requirements To what extent does this impact the investment and business
decisions of firms
5. Can the policy rationale of restrictions be addressed through other, less-trade-restrictive means
(Table continues on the following page.)