Developing the OECD Services Trade Restrictiveness Index for ASEAN

Executive summary

• Services play a crucial role in the ASEAN region’s economy, contributing close to half of its GDP. ASEAN leaders have long recognised the importance of promoting trade in services that also contributes towards the ASEAN Community Vision 2025. Promoting further economic integration and boosting trade, investment and competitiveness in the region requires access to better data and measurement tools for policy makers.

• In 2019, the ASEAN Coordinating Committee on Services, in collaboration with the OECD, commenced work to improve existing measurement of services trade regulations through developing the Services Trade Restrictiveness Index (STRI) for ASEAN Member States (AMS) in four priority sectors: logistics services, telecommunications services, construction and computer services

• The outcomes of the exercise demonstrate that trade in these services remain subject to divergent regulations across AMS, with highest levels of restrictiveness identified in telecommunications services while computer services are the most liberal for trade on average.

• The STRI demonstrates that AMS have introduced important reforms across all services sectors covered. Most reforms were identified in logistics services, followed by computer services and construction services.

• Across sectors, there is scope to further improve the regulatory environment affecting ASEAN businesses, particularly through further easing conditions on investment, especially in sectors that are relevant for the entire economy, such as telecommunications services. Moreover, further easing conditions affecting the movement of professionals (e.g., for computer or construction engineers) as well as strengthening efforts to promote regulatory transparency (especially for activities affecting logistics services providers) would further contribute to creating a more competitive and integrated regional economy.

• Ambitious efforts to ease services trade barriers could yield substantial benefits for ASEAN economies by reducing trade costs for ASEAN businesses and services providers. On average across sectors, services trade costs could decline by 6% to 14% in the medium term if ASEAN members closed their regulatory gaps with regional best performers in the STRI by half

1. Global trade in services has been growing fast in recent years, including through the development of new technologies that increasingly facilitate cross-border supply of services. This is also visible across the ASEAN region, where growth strategies across economies have placed services at the forefront of the policy agenda.

2. Services play an important role in fostering economic growth in the region, contributing close to half of ASEAN economies’ GDP on average (Figure 1.1). ASEAN leaders have long recognised the importance of trade, and trade in services in particular, to promote deeper economic integration in the region. The ASEAN Community Vision 2025 sets out to achieve, among others, a “highly integrated and cohesive regional economy that supports sustained high economic growth by increasing trade, investment, and job creation; improving regional capacity to respond to global challenges and mega trends; advancing a single market agenda through enhanced commitments in trade in goods, and through an effective resolution of non-tariff barriers; deeper integration in trade in services; and a more seamless movement of investment, skilled labour, business persons, and capital.”1

3. Impediments to services trade, however, remain significant as domestic trade and regulatory policies in individual services sectors are often made with limited regard for economy-wide impacts. Comparable and reliable information on regulations affecting services is key to inform policy discussions on services reforms and demonstrate progress achieved. It also fosters regulatory transparency and boosts competitiveness among market players

Source: World Development Indicators (2020).

1 See: https://www.asean.org/wp-content/uploads/images/2015/November/aec-page/ASEAN-Community-Vision2025.pdf

Figure 1.1. Services are key economic drivers across the ASEAN region Services value added as percentage of GDP, 2020

4. The Organisation for Economic Co-operation and Development (OECD) has been developing tools to improve the evidence base and measurement of services trade barriers through the OECD Services Trade Restrictiveness Index (STRI) (Box 1)

Box 1. The OECD Services Trade Restrictiveness Index (STRI)

The OECD STRI is a unique tool that provides up-to-date information on regulatory changes that affect trade in services in 50 countries across 22 sectors, accounting for over 80% of global services trade. Launched in 2014 and updated annually, the STRI offers a comprehensive and transparent overview of global trends in services trade regulations, while facilitating deeper analysis into the effects that such regulations have on trade in services. The STRI indices are derived by aggregating regulations that are trade restricting into a composite measure of restrictiveness. The information in the STRI is standardised so that users can easily find and compare specific policy measures across countries. The STRI covers regulations that apply on a most favoured nation (MFN) basis and preferential agreements or other similar frameworks are not covered.

This evidence-based tool allows policymakers to assess reform options, benchmark them relative to global best practice, and assess their likely impact; helps trade negotiators identify restrictions that most impede trade; and is a source of regulatory transparency for businesses seeking to enter foreign markets.

The STRI is updated each year to incorporate changes that have been introduced through new or amended laws and regulations. Results from the most recent STRI update (February 2022) indicate that global services trade regulations showed signs of liberalisation in 2021, slowing the steady buildup of trade barriers identified in previous years. The 2021 STRI shows that services liberalisation outpaced new restrictions during 2021, as the erection of new barriers to services trade slowed across almost all of the 22 major sectors covered

Services trade reforms across some ASEAN members, such as Indonesia or Viet Nam, were among the highest identified by the OECD STRI in 2021.

The OECD STRI project provides:

• An easily accessible STRI database of laws and regulations in force, updated annually (currently covering 2014-2021) and verified and peer-reviewed by regulators and trade officials. The regulatory database provides information for about 16 000 country laws and regulations; it is maintained online, updated frequently, and is the foundation for the STRI suite of tools.

• Composite STRI indices that quantify restrictions on foreign entry and the movement of people, barriers to competition, regulatory transparency and other discriminatory measures that impact the ease of doing business. The indices take values between zero and one, where complete openness to trade and investment gives a score of zero, while being completely closed to foreign services providers yields a score of one.

• Empirical analysis assessing the impact of services trade policies on economic performance and trade costs.

• STRI online tools allowing users to compare regulatory regimes across countries and to simulate the impact of policy reforms.

Source: http://oe.cd/stri

Developing the tools to measure the regulatory environment for services trade in the region - the ASEAN STRI

Building the ASEAN STRI regulatory databases

5. At its 92nd meeting held in February 2019, the ASEAN Coordinating Committee on Services (CCS) invited the OECD to support the ASEAN Member States (AMS) in undertaking the OECD Services Trade Restrictiveness Index (STRI) exercise for logistics services, telecommunications services, construction and computer services sectors, and in so doing promoting services trade and policy as a source of inclusive economic growth in ASEAN.

6. Subsequently, the OECD Secretariat undertook the regulatory data collection between in 20192021. Some AMS, such as Malaysia, Indonesia or Thailand, were already included in the OECD STRI, and thus had their regulatory database completed before.

7. In December 2020, discussions were initiated with AMS to undertake the verification of the STRI regulatory databases. Data verification with Thailand, Malaysia, Indonesia, and Singapore have been completed in the context of the STRI update exercise. The databases for the other ASEAN economies were shared AMS in September 2021.

8. At the October 2021 meeting of the ASEAN CCS, AMS were again invite to provide feedback on the STRI databases and organise verification workshops with the OECD. Building on that discussion, in November 2021, the Philippines’ Department of Trade and Industry (DTI), in collaboration with the OECD, organised a virtual verification workshop involving several ministries and regulators in the Philippines to validate the STRI regulatory information for all four sectors covered.

9. Preliminary indices for Indonesia, Malaysia, Thailand, Singapore and Viet Nam were presented to the ASEAN CCS meeting in March 2020, while further updates were provided in subsequent meetings of the ASEAN CCS. Indices covering all ASEAN economies were presented to the CCS in December 2020 and revised indices were presented in October 2021

Measures included in the STRI database

10. The policy measures in the regulatory database are organised under five policy areas (Annex A provides a complete list of measures covered in each sector):

• Restrictions on foreign entry include information on foreign equity limitations, requirements that management or board of directors must be citizens or residents, foreign investment screening, restrictions on cross-border mergers and acquisitions, capital controls, regulations on cross-border data flows and a number of sector-specific measures.

• Restrictions on movement of people include information on entry visa quotas, economic needs tests and duration of stay for foreign natural persons providing services as intra-corporate transferees, contractual services suppliers or independent service providers. These categories are covered by the GATS and have in common that the natural persons are not supposed to seek employment in the host economy. This policy area also contains information on recognition of foreign qualifications and licensing in regulated professions.

• Other discriminatory measures include discrimination of foreign services suppliers as far as taxes, subsidies and public procurement are concerned, and instances where domestic standards differ from international standards where relevant.

• Barriers to competition include information on anti-trust policy, government ownership of major firms and the extent to which government-owned enterprises enjoy privileges and are exempt from competition laws and regulations. Sector-specific pro-competitive regulation in network industries also falls in this category.

• Regulatory transparency includes information on consultations and dissemination prior to laws and regulations entering into force. It also records information on administrative procedures related to establishing a company, obtaining a license or a visa.

11. The regulatory database collects information on policy measures that relate to market access and national treatment applied on a most favoured nation basis and does not take into account preferential treatment through free trade agreements

12. Data was collected using publicly available regulatory information from official law repositories and government sources. Regulatory information was collected retrospectively for every year until 2014 in order to generate a longer time series in the data that can provide more nuanced insights on the development of regulatory policies over time.

13. In line with the OECD STRI approach, a scoring and weighting scheme was used to calculate the STRI indices for ASEAN members based on the regulatory information collected. Scoring entails the transformation of qualitative information into quantitative data using a binary system where a score of 0 (not restrictive) or 1 (restrictive) is assigned to individual measures in the database. The scoring also takes into account specific regulatory and market characteristics as well as linkages and hierarchies between measures. Weighting, in turn, helps to balance the relative importance of these measures in each sector.

3 Outcomes

The STRIs for ASEAN members

14. This section presents the STRIs for AMS for the sectors covered, namely logistics services, telecommunications services, construction, and computer services.

15. Logistics services complement transport and distribution services, and play a fundamental role in keeping global supply chains operational. In international trade in goods, the process of bringing goods from factory gates across borders and to markets relies heavily on the efficiency of auxiliary services and the speed of carrying out border procedures. Given the complexity of logistics supply chains, the STRI distinguishes four different activities for which different STRI indicators are developed: cargo handling, storage and warehousing, freight forwarding, and customs brokerage (Figures 3.1 to 3.4)

16. Among the four logistics services, cargo handling is the sector with the highest level of restrictiveness in ASEAN averaging 0.42 out of 1, followed by storage and warehousing (0.37), storage and warehousing (0.35) and customs brokerage (0.34).

17. Barriers to foreign entry, which include also barriers to foreign investment, contribute substantially across all logistics activities, indicating further room to improve conditions related to foreign investments in ASEAN economies. Barriers to competition are also relevant particularly in cargo-handling services, while barriers to regulatory transparency remains an issue across all logistics activities. Competitive logistics services depend on efficient and transparent entry procedures for transport crew, whether aircrew, seamen, or truck drivers. This contributes to raising the contribution of barriers related to regulatory transparency in logistics services.

18. Customs procedures and trade facilitation measures play a significant role in the STRI for logistics services. These measures are key for the fast delivery of goods and, hence, for the efficient provision of logistics services. A positive development in this area in recent years has been the creation of a singlewindow regime, which is found in most AMS. The deployment of the single window is valuable for internationally oriented businesses, especially for SMEs. Another important regulation relates to the requirement by different regulatory agencies for an individual license to carry out the different logistics services. This requirement, present in many AMS, constrains the provision of integrated, seamless logistics services, which is increasingly the business model nowadays

Figure 3.1. ASEAN STRI for logistics (cargo-handling) services, 2020

ASEAN STRI for logistics (storage and warehousing) services, 2020

Figure 3.3. ASEAN STRI for logistics (freight forwarding) services, 2020

Figure 3.4. ASEAN STRI for logistics (customs brokerage) services, 2020

19. Figures 3.5 and 3.6 below present the ASEAN STRIs for computer and telecommunications services. Both sectors are key enablers of the digital economy, providing both the physical and software infrastructures that empower it Telecommunications services provide the networks over which content is delivered, and computer services offer a host of services including information storage and processing, network management systems and over-the-top (OTT) services complementing and sometimes competing with telecommunications services.

20. In computer services, the STRIs for AMS range between 0.21 (Singapore) and 0.39 (Lao PDR) with an average of 0.32. Restrictions that apply horizontally to all services, including computer services, contribute most to the indices. Nonetheless, certain horizontal restrictions, for instance, those related to cross-border transfers of data, may have a higher degree of implication for the tradability of computer services.

21. While computer services can easily be traded across borders through digital networks, crossborder trade needs to be supported by visits to the premises of the customer, both through business travel for technical support and for longer visits to work with clients, for instance, to install ICT equipment or undertake repair and maintenance. Yet, many AMS maintain relatively strict conditions related to the temporary movement of computer professionals as well as intra-corporate transferees including through applying labour market tests and short permitted durations of stay.

22. In telecommunications services, the indices range between 0.27 (Singapore) and 0.72 (Viet Nam), with an average of 0.52 This makes telecommunications services the sector with the highest levels of restrictiveness among the sectors studied. Given the strategic importance of this sector, foreign entry restrictions, including limitations on foreign ownership and operation, are more common in this sector. However, in addition to restrictions on foreign entry, barriers to competition also play a key role. This reflects the special nature of this sector as well as the policy environment in which it operates. Competition in network industries like telecommunications, depend on access to essential facilities and high market entry costs for new competitors may favour incumbent firms. Such market imperfections may constitute a substantial entry barrier, even in the absence of explicit foreign entry restrictions. Hence, pro-competitive regulation is considered a trade policy issue, which is addressed in the WTO Telecommunications Services Reference Paper as well as in a number of regional trade agreements.

23. Overall, barriers to competition account for more than half (54%) of the total STRIs across AMS in telecommunications, indicating scope for better pro-competitive regulations across all economies, particularly with respect to access essential facilitates, price regulation and transparency in telecommunications market segments where the incumbent provider has significant market power.

Restrictions on foreign entry

Restrictions

Figure 3.5. ASEAN STRI for telecommunications services, 2020

3.6. ASEAN STRI for computer services, 2020

24. Construction services have historically been considered strategic for providing the infrastructure for other industries as well as due to its close links to public works and the allocation of fiscal resources. Figure 3.7 shows the STRIs in construction services for the AMS. The indices range between 0.22 (Singapore) and 0.46 (Indonesia) with an average of 0.36 out of 1.

25. In the construction sector, the more elevated levels of restrictiveness can largely be attributed to general measures affecting all sectors of the economy. This includes impediments on acquiring land and real estate, which typically have a direct bearing on the provision of construction services.

26. Construction services are a relatively labour-intensive sector (both skilled and unskilled), which is typically reflected in a higher share in employment than in GDP for most countries. Given the nature of construction activities, the potential for mechanisation and automation, and therefore capital-intensive production, remains limited. Restrictions on the movement of people thus have a significant impact on the indices for the sector. Apart from labour market tests and other horizontal restrictions, the movement of qualified construction personnel may be affected by licensing and related issues, including lack of recognition of foreign qualifications. In most countries covered in the STRI database, at least one engineer must be locally licensed for the issuance of construction permits.

27. In light of the importance of government demand for these services, restrictions in public procurement have a particular bearing on the construction sector. A large number of countries limit nondiscriminatory access to public procurement to free trade agreements or to WTO Government Procurement Agreement (GPA) partners. Explicit preferences to local suppliers in procurement markets, particularly through price preferences or the use of offsets, are also common.

Figure 3.7. ASEAN STRI for construction services, 2020

Using the STRI to demonstrate progress in ASEAN on services liberalisation

28. Regulatory information on services policies was collected retrospectively until 2014, data between 2014 and 2020. This facilitates the monitoring of policy changes that have been introduced through new or amended laws each year. This makes the ASEAN STRI a unique instrument to monitor services reforms, identify trends and emerging issues, as well as inform ongoing policy discussions. It is also a source of regulatory transparency and up to date regulatory information for businesses.

29. The STRI demonstrates that AMS have progressively introduced measures to reform services trade across all services sectors covered (Figure 3.8) The figure shows the net changes across the ten AMS in each sector accumulated in the period between 2014 and 2020. Most significant reforms were identified in logistics services, followed by computer services and construction services. The degree of liberalisation was less in telecommunications but this comes as no surprise given the highly regulated and strategic importance of this sector.

30. Almost all AMS have introduced key reforms identified in the STRI with certain economies such as Thailand, Brunei Darussalam or Myanmar have demonstrated reforms across most sectors. Others, such as Indonesia and Viet Nam showed reforms particularly in logistics services.

Figure 3.8. Services trade barriers in key sectors eased across ASEAN in recent years

Net changes in the STRI sectoral values across all AMS between 2014 and 2020

Source: OECD STRI.

Using the STRI to quantify the gains from liberalising services trade

31. The STRI indices provide a unique information source to assess the impact of policy reforms. OECD research using the STRI demonstrates that ambitious efforts to ease barriers to trade in services could yield substantial benefits in reducing trade costs for firms that provide services across borders.

32. Using the new ASEAN STRIs, similar estimations could be undertaken for ASEAN economies in the sectors covered by the project. Consequently, on average across sectors, services trade costs could decline by 6% to 14% in the medium term in the region if ASEAN members closed their regulatory gaps with best performers in the STRI by half (Figure 3.9). Highest potential for trade cost reductions are in Myanmar, Indonesia and Lao PDR where trade costs could fall by between 17% and 15, but substantial gains would be observed across all ASEAN economies.

Figure 3.9. Trade cost effects of services liberalisation by AMS

Trade cost implications of policy reforms in the STRI, 2021 (% of export values)

Note: The figure presents the trade cost implications of closing 50% of the gap to the best performing countries. The following sectors were not covered in the estimations due to lack of data: broadcasting services, construction services, distribution services, motion pictures and sound recording services. 90% confidence intervals are computed using the standard errors of the trade elasticity estimated from a gravity model.

Source: Calculations based on methodology in Benz and Jaax (2020).

Considerations for next steps

33. Developing STRIs for ASEAN Member States provides a unique new resources for ASEAN policy makers to boost regional growth and competitiveness through services trade. The indices bring together comparable information on trade-relevant services regulation across AMS, providing a new tool to gain granular insight into this complex field and demonstrate collective progress on services liberalisation in the region.

34. Potential applications of the new ASEAN STRIs include aiding policy makers in their efforts to design reform options, align these with global best practice, and assess their likely effects. The indices could help identify existing regulatory bottlenecks that impede services trade in ASEAN, and offer a new means to understand their impact, for instance, by quantifying the economic burden these represent in terms of trade costs for businesses (see the previous section in this report) It also opens up new ways to scope targeted reforms that aim at facilitating SMEs’ further integration in regional value chains.

35. Transparent and easily accessible information on services regulations help also ASEAN businesses stay informed about market entry requirements, while regular update of the ASEAN STRI could ensure that it remains relevant for future policy discussions

36. In that sense, next steps could focus on suitable dissemination and communication strategies for the new ASEAN STRIs. One possibility would be to develop a dedicated website for the ASEAN STRIs which could provide easy access to the indices as well as the regulatory information that supports them. The OECD could provide support in setting up such as website.

37. Other existing STRI online tools could also be adopted to the ASEAN STRI, including an interactive policy simulator that provides all information by economy and by sector in an easy to understand manner.2 This tool can be used to understand how the STRI indices are calculated, to analyse the contribution of each policy measure to the index, and to simulate the impact of a policy change on the index value. The focus view option provides links to legal sources. Finally, simulations can be saved and shared with other users, and the relevant data can be downloaded

38. In going forward, ASEAN Member States could also consider the expansion of the current coverage to all other services sectors covered in the STRI, that could increase the coverage to 22 major services sectors in total. This would substantially improve the existing evidence base and provide a more comprehensive basis for identifying reform priorities in ASEAN. Expansion to new sectors could also be undertaken progressively where AMS could sequence the sectoral expansion identifying sectors that could of a higher priority in the near term.

2 See the OECD STRI Policy Simulator here: https://sim.oecd.org/

Annex A - List of measures per sector

Table 1. List of measures in computer services

Policy_area Measure

Restrictions on foreign entry

Computer services

Foreign equity restrictions: maximum foreign equity share allowed (%)

There are limits to the proportion of shares that can be acquired by foreign investors in publicly-controlled firms

Legal form: only joint ventures are allowed

Legal form: other restrictions

Board of directors: majority must be citizens

Board of directors: majority must be residents

Board of directors: at least one must be citizen

Board of directors: at least one must be resident Managers must be citizen Managers must be resident

Screening explicitly considers economic interests

Screening exists without exclusion of economic interests

Memo: thresholds for screening projects

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A)

Performance requirements

Commercial presence is required in order to provide cross-border services

Local presence is required for cross-border supply

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to economies with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Other discriminatory measures

Laws or regulations establish a process for recognising qualifications gained abroad

Memo: Licence or authorisation is required to practice

Other restrictions to movement of people

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: The procurement process affects the conditions of competition in favour of local firms

Memo: thresholds above which tender is mandated

Memo: The procurement process below the value thresholds affects the conditions of competition in favour of local firms

Other restrictions in other discriminatory measures

Barriers to competition

Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market State or provincial government control at least one major firm in the sector

Publicly-controlled firms are exempted from the application of the general competition law

Prices or fees are regulated

Restrictions on advertising

Minimum capital requirements

Other restrictions in barriers to competition

There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Number of working days to complete all mandatory procedures to register a company

Total cost to complete all official procedures required to register a company (in % of income per capita)

Number of mandatory procedures to register a company

Other restrictions in regulatory transparency

Table 2. List of measures in telecommunications Telecommunications

Policy_area Measure

Restrictions on foreign entry

Foreign equity restrictions: maximum foreign equity share allowed (%) (fixed)

Foreign equity restrictions: maximum foreign equity share allowed (%) (mobile)

There are limits to the proportion of shares that can be acquired by foreign investors in publicly-controlled firms

Legal form: only joint ventures are allowed (fixed)

Legal form: only joint ventures are allowed (mobile)

Legal form: other restrictions

Board of directors: majority must be citizens

Board of directors: majority must be residents

Board of directors: at least one must be citizen

Board of directors: at least one must be resident

Managers must be citizen

Managers must be resident

Screening explicitly considers economic interests (fixed)

Screening explicitly considers economic interests (mobile)

Screening exists without exclusion of economic interests (fixed)

Screening exists without exclusion of economic interests (mobile)

Memo: thresholds for screening projects (fixed)

Memo: thresholds for screening projects (mobile)

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A) (fixed)

Restrictions on cross-border mergers and acquisitions (M&A) (mobile)

Performance requirements (fixed)

Performance requirements (mobile)

Commercial presence is required in order to provide cross-border services (fixed)

Commercial presence is required in order to provide cross-border services (mobile)

Local presence is required for cross-border supply (fixed)

Local presence is required for cross-border supply (mobile)

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to economies with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Laws or regulations establish a process for recognising qualifications gained abroad

Other discriminatory measures

Memo: Licence or authorisation is required to practice

Other restrictions to movement of people

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: The procurement process affects the conditions of competition in favour of local firms

Memo: thresholds above which tender is mandated

Memo: The procurement process below the value thresholds affects the conditions of competition in favour of local firms

Foreign operators seeking interconnection benefit from regulated termination rates on a nondiscriminatory basis (fixed)

Foreign operators seeking interconnection benefit from regulated termination rates on a nondiscriminatory basis (mobile)

Foreign suppliers have non-discriminatory access to regulated rates and conditions for wholesale international mobile roaming services

Foreign suppliers have non-discriminatory access to regulated rates and conditions for retail international mobile roaming services

Other restrictions in other discriminatory measures

Barriers to competition

Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market State or provincial government control at least one major firm in the sector State or provincial government have special voting rights (e.g. golden shares) in any firms in the sector

Publicly-controlled firms are exempted from the application of the general competition law

Minimum capital requirements

Restrictions on advertising

The government can overrule the decision of the regulator

Contracts for universal services obligations are assigned on a competitive basis (fixed)

Contracts for universal services obligations are assigned on a competitive basis (mobile)

Number portability is required (fixed)

Time and conditions for porting are regulated (fixed)

Number portability is required (mobile)

Time and conditions for porting are regulated (mobile)

Resale of public telecommunications services is allowed (fixed)

Resale of public telecommunications services is allowed (mobile)

"Use it or loose it" applies to spectrum

Secondary spectrum trading is allowed

Interconnection is mandated (fixed)

Interconnection is mandated (mobile)

Access to passive wholesale products is mandated

Wholesale access prices are regulated, passive products

A reference offer is mandated for wholesale access to passive products

Access to active wholesale products is mandated

Wholesale access prices are regulated, active products

A reference offer is mandated for wholesale access to active products

Access to wholesale leased lines is mandated

Wholesale access prices are regulated, leased lines

A reference offer is mandated for wholesale access to leased lines

Fixed termination rates are regulated

A reference offer is mandated for termination and interconnection

Mobile termination rates are regulated

A reference offer is mandated for termination and interconnection

Fixed call origination rates are regulated

Regulatory transparency

A reference offer is mandated for fixed call origination

Access to mobile networks is mandated

Mobile call origination rates are regulated

A reference offer is mandated for mobile call origination

Retail prices are regulated (fixed)

Retail prices are regulated (mobile)

Vertical separation is required (fixed)

Vertical separation is required (mobile)

Memo: There is at least one dominant firm in the fixed wholesale access market, copper

Memo: There is at least one dominant firm in the fixed wholesale access market, fiber

Memo: There is at least one dominant firm in the wholesale fixed call termination market

Memo: There is at least one dominant firm in the market for wholesale fixed call origination

Memo: There is at least one dominant firm in the fixed retail market

Memo: There is at least one dominant firm in the mobile termination market

Memo: There is at least one dominant firm in the mobile origination market

Memo: There is at least one dominant firm in the mobile retail market

Other restrictions in barriers to competition

Licensing agreements are publicly available

Information on spectrum (regulations, spectrum management table, spectrum fees etc.) are publicly available

There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Number of working days to complete all mandatory procedures to register a company

Total cost to complete all official procedures required to register a company (in % of income per capita)

Number of mandatory procedures to register a company

Other restrictions in regulatory transparency

Table 3. List of measures in construction services

Construction services

Policy_area Measure

Restrictions on foreign entry

Foreign equity restrictions: maximum foreign equity share allowed (%)

There are limits to the proportion of shares that can be acquired by foreign investors in publiclycontrolled firms

Legal form: only joint ventures are allowed

Legal form: foreign branches are prohibited

Legal form: other restrictions

Board of directors: majority must be nationals

Board of directors: majority must be residents

Board of directors: at least one must be national

Board of directors: at least one must be resident Managers must be national Managers must be resident

Screening explicitly considers economic interests

Screening exists without exclusion of economic interests

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A)

Performance requirements

Discriminatory qualification requirements for building permits to undertake construction work

Commercial presence is required in order to provide cross-border services

Local presence is required for cross-border supply

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to countries with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Nationality or citizenship required for construction engineers

Residency is required to practice

Laws or regulations establish a process for recognising qualifications in engineering gained abroad

Foreign construction engineers are required to take a local examination

Foreign construction engineers are required to practice locally for at least 1 year

At least one engineer must be licensed for the issuance of construction permits

Memo: Licence or authorisation is required to practice

Other discriminatory measures

Other restrictions to movement of people

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: Technical specifications affect the conditions of competition in favour of local providers

Public procurement: Discriminatory qualification processes and procedures

Public procurement: Contract award on the basis of non-objective/discriminatory criteria

Public procurement: Procurement laws, regulations and procedures are transparent

Public procurement: Foreign suppliers are provided the opportunity to challenge the consistency of the conduct of procurement with the laws and regulations.

Memo: The procurement process below the value thresholds affects the conditions of competition in favour of local firms

Laws or regulations impose national standards that deviate from international standards: building design code standards

Laws or regulations impose national standards that deviate from international standards: construction product standards

Other restrictions in other discriminatory measures

Barriers to competition

Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market

Publicly-controlled firms are exempted from the application of the general competition law

National, state or provincial government control at least one major firm in the sector

Prices or fees are regulated

Restrictions on advertising

Minimum capital requirements

Other restrictions in barriers to competition

Regulatory transparency There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Other restrictions in regulatory transparency

Table 4. List of measures in logistics services (storage and warehousing)

Logistics services (storage and warehousing)

Policy_area Measure

Restrictions on foreign entry

Foreign equity restrictions: maximum foreign equity share allowed (%)

There are limits to the proportion of shares that can be acquired by foreign investors in publicly-controlled firms

Legal form: only joint ventures are allowed

Legal form: other restrictions

Board of directors: majority must be citizens

Board of directors: majority must be residents

Board of directors: at least one must be citizen

Board of directors: at least one must be resident

Managers must be citizen

Managers must be resident

Screening explicitly considers economic interests

Screening exists without exclusion of economic interests

Memo: thresholds for screening projects

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A)

Performance requirements

Memo: Market share under monopoly in the sector

Service provision is reserved for statutory monopoly or granted on an exclusive basis

Licences are subject to quotas or economic needs test

Memo: Licence/authorisation is required to enter the market

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to economies with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Other restrictions to movement of people

Other discriminatory measures

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: The procurement process affects the conditions of competition in favour of local firms

Memo: thresholds above which tender is mandated

Memo: The procurement process below the value thresholds affects the conditions of

Barriers to competition

competition in favour of local firms

Discriminatory access to storage and warehouse facilities

Domestic standards on transport packages deviate from international standards

Other restrictions in other discriminatory measures

Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market State or provincial government control at least one major firm in the sector

Publicly-controlled firms are exempted from the application of the general competition law

Prices or fees are regulated

Minimum capital requirements

Restrictions on advertising

Contracts for service provision are awarded through competitive bidding

Memo: Absence of an airport facility

Memo: Absence of a port facility

Memo: Absence of a road facility

Memo: Absence of a rail facility

Limitations on working hours of operation for storage and warehouse facilities

Other restrictions in barriers to competition

Regulatory transparency There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Duration of visa for crew: number of months allowed by the visa: aircrew

Duration of visa for crew: number of months allowed by the visa: seamen

Duration of visa for crew: number of months allowed by the visa: truck drivers

Visas on arrival or visa exemption are available for temporary entry/transit of crew: aircrew

Visas on arrival or visa exemption are available for temporary entry/transit of crew: seamen

Visas on arrival or visa exemption are available for temporary entry/transit of crew: truck drivers

Multiple entry visas are allowed for crew: aircrew

Multiple entry visas are allowed for crew: seamen

Multiple entry visas are allowed for crew: truck drivers

Number of working days to complete all mandatory procedures to register a company

Total cost to complete all official procedures required to register a company (in % of income per capita)

Number of mandatory procedures to register a company

Individual licensing/registration requirements are imposed on warehousing, freight forwarding and customs brokerage services

Time taken for customs clearance (days)

An advance ruling system is available

A single window for customs procedures is available

Pre-arrival processing is possible

A de minimis regime is in place: Import duties (USD)

Memo: a de minimis regime is in place: Internal tax (USD)

The release of goods is possible before determination and payment of duties

Other restrictions in regulatory transparency

Table 5. List of measures in logistics services (cargo-handling)

Policy_area Measure

Restrictions on foreign entry

Logistics services (cargo-handling)

Foreign equity restrictions: maximum foreign equity share allowed (%)

There are limits to the proportion of shares that can be acquired by foreign investors in publicly-controlled firms

Legal form: only joint ventures are allowed

Legal form: other restrictions

Board of directors: majority must be nationals

Board of directors: majority must be residents

Board of directors: at least one must be national

Board of directors: at least one must be resident

Managers must be national

Managers must be resident

Screening explicitly considers economic interests

Screening exists without exclusion of economic interests

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A)

Performance requirements

Memo: Market share under monopoly in the sector

Licences are subject to quotas or economic needs test

Memo: Licence/authorisation is required to enter the market

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to countries with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Other restrictions to movement of people

Other discriminatory measures

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: The procurement process affects the conditions of competition in favour of local firms

Memo: The procurement process below the value thresholds affects the conditions of competition in favour of local firms

National standards on transport packages deviate from international standards

Other restrictions in other discriminatory measures

Barriers to competition

Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market

National, state or provincial government control at least one major firm in the sector

Publicly-controlled firms are exempted from the application of the general competition law

Prices or fees are regulated

Minimum capital requirements

Restrictions on advertising

Separation of accounts is required

Cross-subsidisation is prohibited

Self-handling is prohibited

Service provision to third parties is prohibited

Contracts for service provision are awarded through competitive bidding

Memo: Absence of a port facility

Other restrictions in barriers to competition

Regulatory transparency

There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Duration of visa for crew: number of months allowed by the visa: aircrew

Duration of visa for crew: number of months allowed by the visa: seamen

Duration of visa for crew: number of months allowed by the visa: truck drivers

Visas on arrival or visa exemption are available for temporary entry/transit of crew: aircrew

Visas on arrival or visa exemption are available for temporary entry/transit of crew: seamen

Visas on arrival or visa exemption are available for temporary entry/transit of crew: truck drivers

Multiple entry visas are allowed for crew: aircrew

Multiple entry visas are allowed for crew: seamen

Multiple entry visas are allowed for crew: truck drivers

Individual licensing/registration requirements are imposed on warehousing, freight forwarding and customs brokerage services

An advance ruling system is available

A single window for customs procedures is available

Pre-arrival processing is possible

A de minimis regime is in place: Import duties (USD)

The release of goods is possible before determination and payment of duties

Other restrictions in regulatory transparency

Table 6. List of measures in logistics services (freight forwarding)

Logistics services (freight forwarding)

Policy_area Measure

Restrictions on foreign entry

Foreign equity restrictions: maximum foreign equity share allowed (%)

There are limits to the proportion of shares that can be acquired by foreign investors in publicly-controlled firms

Legal form: only joint ventures are allowed

Legal form: other restrictions

Board of directors: majority must be nationals

Board of directors: majority must be residents

Board of directors: at least one must be national

Board of directors: at least one must be resident Managers must be national

Managers must be resident

Screening explicitly considers economic interests

Screening exists without exclusion of economic interests

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A)

Performance requirements

Commercial presence is required in order to provide cross-border services

Local presence is required for cross-border supply

Memo: Market share under monopoly in the sector

Service provision is reserved for statutory monopoly or granted on an exclusive basis

Licences are subject to quotas or economic needs test

Memo: Licence/authorisation is required to enter the market

Foreign freight forwarders are restricted from undertaking business in the domestic market

Foreign freight forwarders are only allowed to provide services in limited geographical areas

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to countries with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Other restrictions to movement of people

Other discriminatory measures

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: The procurement process affects the conditions of competition in favour

of local firms

Memo: The procurement process below the value thresholds affects the conditions of competition in favour of local firms

National standards on transport packages deviate from international standards

Other restrictions in other discriminatory measures

Barriers to competition Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market

National, state or provincial government control at least one major firm in the sector

Publicly-controlled firms are exempted from the application of the general competition law

Prices or fees are regulated

Minimum capital requirements

Restrictions on advertising

Other restrictions in barriers to competition

Regulatory transparency There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Duration of visa for crew: number of months allowed by the visa: aircrew

Duration of visa for crew: number of months allowed by the visa: seamen

Duration of visa for crew: number of months allowed by the visa: truck drivers

Visas on arrival or visa exemption are available for temporary entry/transit of crew: aircrew

Visas on arrival or visa exemption are available for temporary entry/transit of crew: seamen

Visas on arrival or visa exemption are available for temporary entry/transit of crew: truck drivers

Multiple entry visas are allowed for crew: aircrew

Multiple entry visas are allowed for crew: seamen

Multiple entry visas are allowed for crew: truck drivers

Individual licensing/registration requirements are imposed on warehousing, freight forwarding and customs brokerage services

An advance ruling system is available

A single window for customs procedures is available

Pre-arrival processing is possible

A de minimis regime is in place: Import duties (USD)

The release of goods is possible before determination and payment of duties

Other restrictions in regulatory transparency

Table 7. List of measures in logistics services (customs brokerage)

Logistics services (customs brokerage)

Policy_area Measure

Restrictions on foreign entry

Foreign equity restrictions: maximum foreign equity share allowed (%)

There are limits to the proportion of shares that can be acquired by foreign investors in publicly-controlled firms

Legal form: only joint ventures are allowed

Legal form: other restrictions

Board of directors: majority must be nationals

Board of directors: majority must be residents

Board of directors: at least one must be national

Board of directors: at least one must be resident Managers must be national

Managers must be resident

Screening explicitly considers economic interests

Screening exists without exclusion of economic interests

Acquisition and use of land and real estate by foreigners is restricted

Restrictions on the type of shares or bonds held by foreign investors

Conditions on subsequent transfer of capital and investments

Restrictions on cross-border mergers and acquisitions (M&A)

Performance requirements

Commercial presence is required in order to provide cross-border services

Local presence is required for cross-border supply

Memo: Market share under monopoly in the sector

Service provision is reserved for statutory monopoly or granted on an exclusive basis

Licences are subject to quotas or economic needs test

Memo: Licence/authorisation is required to enter the market

Memo: Free cross-border transfer of personal data or application of the accountability principle

Cross-border transfer of personal data is possible when certain private sector safeguards are in place

Cross-border data flows: cross-border transfer of personal data is possible to countries with substantially similar privacy protection laws

Cross-border data flows: cross-border transfer is subject to approval on a case-by-case basis

Cross-border data flows: certain data must be stored locally

Cross-border data flows: transfer of data is prohibited

Other restrictions on foreign entry

Restrictions to movement of people

Quotas: intra-corporate transferees

Quotas: contractual services suppliers

Quotas: independent services suppliers

Labour market tests: intra-corporate transferees

Labour market tests: contractual services suppliers

Labour market tests: independent services suppliers

Limitation on duration of stay for intra-corporate transferees (months)

Limitation on duration of stay for contractual services suppliers (months)

Limitation on duration of stay for independent services suppliers (months)

Nationality or citizenship required for Licence to practice

Residency is required to practice

Memo: Licence or authorisation is required to practice

Other restrictions to movement of people

Other discriminatory measures

Foreign suppliers are treated less favourably regarding taxes and eligibility to subsidies

Public procurement: Explicit preferences for local suppliers

Public procurement: Procurement regulation explicitly prohibits discrimination of foreign suppliers

Public procurement: The procurement process affects the conditions of competition in favour of local firms

Memo: The procurement process below the value thresholds affects the conditions of competition in favour of local firms

Foreign firms are eligible for Authorised Economic Operators Schemes

National standards on transport packages deviate from international standards

Other restrictions in other discriminatory measures

Barriers to competition

Decisions by the regulatory body can be appealed

Firms have redress when business practices restrict competition in a given market

National, state or provincial government control at least one major firm in the sector

Publicly-controlled firms are exempted from the application of the general competition law

Prices or fees are regulated

Minimum capital requirements

Restrictions on advertising

Geographical restrictions

Other restrictions in barriers to competition

Regulatory transparency

There is a legal obligation to communicate regulations to the public within a reasonable time prior to entry into force

There is an adequate public comment procedure open to interested persons, including foreign suppliers

Range of visa processing time (days)

Multiple entry visa for business visitors

Cost to obtain a business visa (USD)

Number of documents needed to obtain a business visa

Duration of visa for crew: number of months allowed by the visa: aircrew

Duration of visa for crew: number of months allowed by the visa: seamen

Duration of visa for crew: number of months allowed by the visa: truck drivers

Visas on arrival or visa exemption are available for temporary entry/transit of crew: aircrew

Visas on arrival or visa exemption are available for temporary entry/transit of crew: seamen

Visas on arrival or visa exemption are available for temporary entry/transit of crew: truck drivers

Multiple entry visas are allowed for crew: aircrew

Multiple entry visas are allowed for crew: seamen

Multiple entry visas are allowed for crew: truck drivers

Individual licensing/registration requirements are imposed on warehousing, freight forwarding and customs brokerage services

Appeal/review procedures against decisions by customs are available

An advance ruling system is available

A single window for customs procedures is available

Pre-arrival processing is possible

A de minimis regime is in place: Import duties (USD)

The release of goods is possible before determination and payment of duties

Other restrictions in regulatory transparency