[ Document: Trade: GATS @ WTO (Document Archive) ]

liberated: http://www.wto.org/english/tratop_e/serv_e/w44.doc

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RESTRICTED

World Trade S/C/W/44

1 July 1998

Organization

(98-2629)

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Council for Trade in Services

ARCHITECTURAL AND ENGINEERING SERVICES

Background Note by the Secretariat

I. INTRODUCTION

1. The Secretariat has prepared this note at the request of the Council for Trade in Services. The note is intended to provide background information for sectoral discussions to be conducted by the Council as part of the information exchange programme. As with previous sectoral notes by the Secretariat, this note contains basic and general information on trade in services of the sector concerned, in order to facilitate the discussion of relevant issues by the Members, and therefore should not be considered exhaustive. It is expected that further information will become available in due course. In accordance with suggestions made at the meeting of the Council held on 24–25 June, a list of issues for discussion has been added as an Annex to this note. Those questions are intended solely to facilitate the preparation of Members for the discussions in the meeting of the Council, and are not meant to be exhaustive. They should not be interpreted as indications of any particular views or interpretations of the GATS held by the Secretariat or delegations.

2. In the course of the Uruguay Round negotiations, the Secretariat had produced a note "Trade in Professional Services" in document MTN.GNS/W/67 of 25 August 1989. This earlier note provided an overview of the various activities comprising professional services, described the forms of trade in those services, and discussed the objectives and the content of measures affecting such trade. Architectural and engineering services were briefly discussed in the note, although the focus was on accountancy, legal services, management consulting and advertising. Delegations are invited to refer to this earlier note, which is now being re-circulated, as necessary.

3. Documents distributed in the Working Party on Professional Services are relevant to the architectural and engineering subsectors. In the following, reference is only made to a small number of those documents, but Delegations are reminded that many of the questions raised and the information provided in the course of the work of this Working Party are very much relevant to discussions on these subsectors. [1 ] It needs to be mentioned, however, that detailed country-specific information on trade volumes, regulatory regimes and trade restrictions could only be provided by Members. The Secretariat would greatly appreciate any comments or additional information from Members on these subsectors or on any related matters.

4. A certain overlap exists between the scope of this note and the sectoral note on construction and related engineering services (S/C/W/38 of 8 June 1998). The focus of this note is on architectural and engineering services as professional services, or services provided by qualified architects and engineers, and not on the economic activities of physical construction and related engineering works, although they are obviously closely inter-related. The reader is invited to refer to the note on construction and related engineering services (S/C/W/38) for an overview of construction activities, measures applied thereto, and for sources of information, in addition to those indicated below.

II. DESCRIPTION OF THE SECTOR

5. In the "Services Sectoral Classification List" (MTN.GNS/W/120), architectural and engineering services are listed as subsectors of professional services under four headings; they are briefly discussed below in the order they appear in the list. Each of the four subsectors correspond to the UNCPC classification [2 ] at the four-digit level.

- Architectural services (CPC 8671)

This item covers all types of architectural services except those classified below under urban planning and landscape architectural services, which are: (i) advisory and pre-design architectural services (86711), (ii) architectural design services (86712), (iii) contract administration services (86713), (iv) combined architectural design and contract administration services (86714), and (v) other architectural services (86719).

- Engineering services (CPC 8672)

This item covers all engineering activities except integrated engineering services, which are: (i) advisory and consultative engineering services (86721), (ii) engineering design services for the construction of foundations and building structures (86722), (iii) engineering design services for mechanical and electrical installations for buildings (86723), (iv) engineering design services for the construction of civil engineering works (86724), (v) engineering design services for industrial processes and production (86725), (vi) engineering design services n.e.c. (86726), (vii) other engineering services during the construction and installation phase (86727), and (viii) other engineering services (86729).

- Integrated engineering services (CPC 8673)

This item covers engineering services related to turnkey projects, which are: (i) integrated engineering services for transportation infrastructure turnkey projects (86731), (ii) integrated engineering and project management services for water supply and sanitation works turnkey projects (86732), (iii) integrated engineering services for the construction of manufacturing turnkey projects (86733), and (iv) integrated engineering services for other turnkey projects.

- Urban planning and landscape architectural services (CPC 8674)

This item covers (i) urban planning services (86741) and (ii) landscape architectural services (86742).

6. The above does not explicitly cover services provided by surveyors or topographical engineers. In the CPC classification, such services would seem to belong to either or several of: "site investigation work" (5111, a subsector of construction services), "advisory and pre-design architectural services" (86711, a subsector of architectural services), "advisory and consultative engineering services" (86721, a subsector of engineering services), or, "surface surveying services" and "map-making services" (86753 and 86754, included in "related scientific and technical consulting services"). Since the functions of a surveyor or a topographical engineer differ from country to country, one would need to look at the content of the service provided in order to determine where those services belong in the classification.

7. Services provided by construction economists (a profession most common in some European countries, such as Spain, Italy and the U.K.), i.e. development and management of construction projects, conducting feasibility studies and risk analyses, providing advice on design and construction procurement etc. appear to belong to architectural, engineering, or urban planning and landscape architectural services above, as the services are most often provided by either architects or engineers, depending on the country. [3 ]

8. One question arising from the classification list in the W/120 document is whether there is an apparent inconsistency between the coverage of the subsectors indicated in the title ("engineering services" on the one hand, and "construction and related engineering services" on the other), and the corresponding CPC sections shown (CPC 8672 for the former and CPC 511 – 518 for the latter). [4 ] In the CPC classification, section 8672 (engineering services) does not exclude construction-related engineering services, while sections 511 – 518 (construction services) do not appear to cover "related engineering services". Construction-related engineering services are included in "Other engineering services during the construction and installation phase (86727)", a subset of engineering services. If this is indeed an ambiguity in the classification, it could have certain implications for the existence and degree of commitment of Members in construction-related engineering services. [5 ]

III. ECONOMIC IMPORTANCE OF THE SECTOR AND ITS MAIN ECONOMIC FEATURES

9. Architectural firms provide blueprints and designs for buildings and other structures, while engineering firms provide planning, design, construction and management services for building structures, installations, civil engineering works and industrial processes etc. Consulting engineers are involved in all stages of a project, and thus their services overlap substantially with those of other professionals. Thus, architectural and engineering services are strongly integrated or inter-related with physical construction activity and/or other business services. Due to this specific nature, measurement of the economic importance of architectural and engineering services output is not straightforward to the extent that, in official statistics, it is most often absorbed in the broader categories of services output such as business services, or construction activity. Statistics on the number of professionals, or employment statistics are available for many countries, but are missing or unreliable for countries in which there are no systems of compulsory registration or accreditation. In the United States, engineering is one of the largest and most diverse of professions, while architecture is comparatively much smaller. In Europe, the situation appears to be different, where there may be more architects while the engineering profession appears to be relatively smaller. [6 ]

10. With advanced communications systems, blueprints and designs can be transmitted electronically, and consulting can be performed on-line. Such a development would tend to raise the importance of cross-border supply in those services. It is also observed that cross-border trade in architectural and engineering services tends to rise along with the complexity and specialisation of the service involved. [7 ] High-skill services that go with the construction of complex installations and specialised plants, often in connection with direct foreign investment, typically enter into export contracts without similar local expertise. It will probably remain true, however, that the bulk of supply of architectural and engineering services would still take place through commercial presence or the presence of natural persons.

11. Looking at available figures for international trade in those services, one can see that industrialized countries appear to be net exporters of those services, but in most cases this can be said only in combination with other service categories, such as construction services or other technical services. (Table 1) Although exports and imports of architectural services are generally considered to be fairly insignificant, [8 ] one would expect that cross-border trade in architectural and engineering services would be more important than that in construction services, as the supply of design and other output by architects and engineers would seem to be more easily traded cross-border than construction work. On the basis of the existing fragmented data, this seems to be true for Canada, but not necessarily applicable to Europe, where cross-border construction services appear as important as cross-border architectural and engineering services. Data on sales of architectural and engineering services by domestic affiliates of foreign companies or foreign affiliates of domestic companies could be found for the United States only. Moreover, these data were partial, due to suppression of certain figures to avoid disclosure of individual companies. [9 ] Despite the incompleteness of the data, however, both sales of "engineering, architectural, and surveying services" by foreign affiliates of U.S. companies and sales of services to U.S. persons by U.S. affiliates of foreign companies appear to have grown in the 1994-5 period. (Table  2)

12. Architectural and engineering service suppliers may be characterized by the dominance of small businesses, especially for architects, although often architectural and engineering functions are combined in one company or group with the physical implementation facilities for construction. [10 ] Approximately 80 per cent of the costs of architectural and engineering firms are composed of fixed overheads. Salaries of personnel, most of them highly qualified people, form the bulk of the costs. [11 ] It is often stated that architectural services remain predominantly local or regional. International success is relatively rare and is related either to the top international artistic and intellectual cultures or to "historic" patterns of international trade. Even the global architectural firms remain dependent upon the international activities of their clients. [12 ] The annexed Table 3 shows available data for the revenues of the top 200 international design firms.

13. Architects and engineers occupy a position upstream of the building and construction process. Therefore, demand for architectural and engineering services is closely related to that of construction and overall industrial investment, both of which are in turn linked to the economic cycle. [13 ] Demand for those services may be medium-term leading indicators for the construction industry. [14 ]

IV. REGULATORY STRUCTURE AND RELEVANT TRADE RESTRICTIONS

14. Architectural and engineering services belong to the group of "accredited" professional services, as opposed to non-accredited business services such as marketing, advertising and consultancy. [ 15 ] The same market access and national treatment limitations often apply to accredited professional services across-the-board. Regarding issues concerning domestic regulation, although the discussion in the Working Party on Professional Services centered on the accountancy sector, similar issues arise in architectural and engineering services as well. However, compared to some other accredited professional services such as accountancy and legal services, architectural and engineering services appear to be subject to fewer restrictive regulations. Mutual recognition between countries of education or professional experience, or licenses and certifications granted in a particular country has become more and more popular in recent years, especially in architectural and engineering services.

15. Regulations applied in the professional services have as their primary objective the need to ensure and maintain a certain quality of the service, and hence to protect consumers. Such discussions generally apply to architectural and engineering services as well. The potential impact of regulatory measures on competition and hence on market access and national treatment of foreign professionals under the GATS would need to be assessed carefully against this regulatory objective. Typical market access limitations would include restrictions on the form of commercial presence (only natural persons or partnerships allowed), often in joint operation or joint venture with local professionals. For natural persons, entry may be subject to economic needs tests, or nationality requirements. Access of foreign suppliers may be limited to projects of above a certain amount, or to smaller building plans. National treatment limitations would include residency requirements and requirements to use local services or to employ local professionals.

16. The OECD has conducted a survey of regulations on access to professional services in the OECD area as part of its work in preparation for the Second Workshop on Professional Services which took place on 16 and 17 October 1996. A categorized inventory of measures affecting trade in professional services has been compiled. The OECD Secretariat presented the methodology and preliminary results of the work in a meeting of the Working Party on Professional Services held on 19 October 1995. Additional information from sample countries concerning regulations governing the establishment of firms and nationality and local presence requirements was collected for the Third Workshop held on 20–21 February 1997. The following paragraphs draw heavily on the information obtained from the work by the OECD, which was subsequently made available to the Working Party on Professional Services. Delegations are invited to refer to those documents, as necessary. On the other hand, it has not been possible in the time available to find comparable information on regulatory regimes in architecture and engineering of non-OECD countries, and contributions from Members are welcomed. [16 ]

17. According to the OECD, architectural and engineering services are often not regulated by law or reserved to specific practitioners in OECD countries. Regulation seems to affect foreign suppliers to a much lower degree in architecture and engineering, compared to accountancy and legal services, with engineering probably being the sector where access for foreign professionals and firms is least difficult. Several OECD countries reported that no legal provisions applied with regard to access to the provision of architectural services (Denmark, Finland, Norway) or engineering services (Australia, Denmark, Finland, Switzerland, United Kingdom). This is in sharp contrast to accountancy and legal services for which virtually all countries reported the existence of some regulation on access to the profession. However, it should be noted that the title "architect" is protected in some countries (Finland, Norway, United Kingdom). It is also observed that control of professional standards in the architectural and engineering professions probably tends to take place more through object-related regulations, norms and standards such as building regulations, safety norms, etc.

18. Also in OECD countries, certain architectural services, such as "requests for construction permits" and "technical control of certification" are frequently reserved to architects, while "design and planning" and "obtention of permits" are often reserved to certain engineers. Such measures are imposed to guarantee the accuracy and the quality of the services provided, and would normally be applied on a non-discriminatory basis. Consumer protection, public health and safety are legitimate concerns in regulating architecture and engineering. However, such regulation may still constitute barriers to entry in those services, if they are applied in a restrictive manner, making it difficult for foreign professionals to access the market. Measures which affect the establishment of firms and the mobility of natural persons directly affect market access in those services.

19. Some specific observations which could be made from the survey results may be the following:

- Regulation on access to the profession or the professional title

It appears that the engineering profession is in general less regulated than architecture. In those countries in which architectural and engineering services are regulated, national governments often regulate the professions, but in some countries, subnational governments or self-regulatory bodies exercise regulatory authority.

- Main qualifications or licensing requirements

For architects, it appears normal to require 4–5 years of University education plus 2–3 years or more of practice. A number of countries also apply professional examinations. The requirement for engineers seems to be similar, but somewhat lighter than for architects in some countries.

- Membership in professional associations

In those countries which regulate the architectural and engineering professions, compulsory membership in professional associations is quite commonly required. In the small number of countries applying self-regulation by the profession, membership in professional associations are normally obligatory.

- Scope of activities

As mentioned briefly above, certain architectural services, such as "requests for construction permits" and "technical control of certification" are frequently reserved to architects or special categories of architects, while "design and planning" and "obtention of permits" are often reserved to specific practitioners in engineering services. "Topographic determination, demarcation, and surveying" is generally reserved to surveyors.

20. Some observations which could be made from the OECD categorized inventory of measures affecting trade in architectural and engineering services, as compared to other professional services, may be summarized as follows:

- Measures limiting or excluding the right to incorporate for professionals are relatively less frequent for architects and virtually non-existent for engineers.

- Recognition of foreign qualifications is most advanced in engineering and to a lesser extent in architecture, where in a number of countries licensing requirements are lifted for foreign professionals having obtained practice authorization in their home country.

- Local presence requirements are frequent for architects and engineers.

- Measures to facilitate temporary or occasional practice, such as temporary licensing procedures can be found for architectural and engineering services.

- Requirements for in-house provision of architectural and engineering services have been identified as one of the obstacles affecting international competition in government procurement.

- Fee-setting regulations, sometimes only indicative, occur in the architectural and engineering services sectors.

21. It has been pointed out that difficulties for foreign professionals would normally arise from non-recognition or limited acknowledgement of home country education, qualification or accreditation/licenses; nationality and residency requirements; restrictions on incorporation; restricted eligibility for contracts including government procurement contracts; and prohibition of advertising etc. for ethical reasons. [17 ] Compulsory partnership with local professionals is sometimes required. The reasoning behind such regulations would be the need to maintain the quality and standard of the service provided, and to ensure a good understanding of cultural and other factors peculiar to the market in exercising the profession.

22. On the other hand, a majority of architects work as independent professionals, and the very small scale of businesses, lack of adequate training in international matters, unfamiliarity with foreign markets, as well as cultural and regional impediments may already cause difficulties for those hoping to enter foreign markets. Overly burdensome regulation could have a disproportionately large impact on foreign professionals in such circumstances. Even when countries recognize or acknowledge foreign qualifications or licenses, case-by-case judgement may be applied, which could give rise to uncertainty or be time-consuming. Professional associations could, in certain circumstances, behave in an anti-competitive manner and attempt to protect the interests of incumbent professionals from outside competition.

23. For firms, restrictions on foreign direct investment and ownership, requirement of a minimum number/percentage of local directors/managers/staff, restrictions on the international relationship of locally established firms, and restrictive government procurement policies have been raised as impediments. [18 ]

24. As a means to address those difficulties, regional and bilateral efforts to facilitate access for foreign architects and engineers have made substantial progress in recent years. Within the context of regional economic integration, the European Union and the European Economic Area introduced the principle of free movement of professionals and the mutual recognition of diplomas. Directive 85/384/EC of 10 June 1985, the "architects" directive, implements this principle. Under this Directive, as subsequently amended, each EU Member State recognises the diplomas, certificates and other evidence of formal qualifications awarded in the field of architecture by other Member States to nationals of Member States.

25. The NAFTA (North American Free Trade Agreement) (Chapter 12) does not provide for automatic recognition of professional titles obtained in other NAFTA parties. However, it contains certain disciplines, such as objectivity and transparency, pertaining to the licensing and certification of professionals, and a commitment to eliminate any citizenship or permanent residency requirement that a party maintains for the licensing or certification of professional service providers of another party. If a party does not comply with this obligation, any other party may maintain an equivalent requirement. [19 ] The NAFTA also encourages the relevant bodies in their respective countries to develop mutually acceptable standards and criteria for licensing and certification of professional service providers. [20 ] In this context, a mutual recognition agreement for temporary and permanent licensing of engineers, recognizing equivalent professional qualifications, was signed in 1995 between the professional representatives of the NAFTA Parties, which mutually recognizes professional qualifications of these countries for engineers. [21 ]

26. A large number of countries have notified mutual recognition agreements under the GATS Article VII:4 which requires notification of existing recognition measures. Most of these agreements pertain to mutual recognition of diplomas between governments, [22 ] but a number of them relate to mutual recognition of professional qualifications in accountancy and other areas between non-governmental professional bodies. Concerning architecture and engineering, the inter-recognition agreement between the U.S. and Canada (S/C/N/52) in architecture, and the Washington Accord in engineering (S/C/N/53) described below have been notified, which are both agreements between non-governmental professional bodies.

27. Based on the United States – Canada Free Trade Agreement, the U.S. architectural profession concluded an agreement with their Canadian counterparts on a series of requirements for certification applicable to U.S. and Canadian architects in 1994. It is an agreement between the National Council of Architectural Registration Boards (NCARB – a non-governmental, national federation of the official registration boards in 55 U.S. jurisdictions) and the Committee of Canadian Architectural Councils (CCAC – a committee comprising all of the Canadian Provincial Architectural Associations). It is implemented by those states and provinces that ratify the agreement, and is implemented in a majority of them. At the UIA (Union Internationale des Architectes), the second edition of the Accord on Recommended International Standards of Professionalism in Architectural Practice is currently being developed, and is scheduled to be presented for adoption by its members in 1999. [23 ] It comprises guidelines on 1) accreditation policy, 2) practical experience/training/internship policy, 3) practical examination (demonstration of professional competence) policy, 4) registration/licensing/certification policy, 5) ethics and conduct policy, and 6) continuing education policy. [24 ]

28. In engineering, the Washington Accord was signed in 1989 by professional bodies of six countries (Australia, Canada, Ireland, New Zealand, United Kingdom, and United States). Since then, two more bodies have become signatories (Hong Kong, China, and South Africa). Signatories to the agreement recognize the substantial equivalency or comparability of engineering education courses leading to the first professional degree or basic education in engineering (the "Accredited Engineering Degree"). It does not, however, address the mutual recognition of professional credentials, such as the Professional Engineer, or Chartered Engineer. [25 ] In Europe, FEANI (Fédération Européene d'Associations Nationales d'Ingénieurs) has established the title of EurIng, and has determined a process of assessment of individual engineer's qualifications and practice experience. The model for EurIng is based upon a minimum of seven years of qualifications, training and experience (the latter having to be of at least two years). Such developments in self-regulatory initiatives could lead to more rapid international recognition of qualifications and practice competency.

29. In the APEC, work has started on the preparation of a directory on the requirements for provision of professional services, with priority on accountancy, engineering, and architecture. [26 ] A large number of bilateral agreements on recognition of practice standards in engineering have also been concluded in the region. [27 ]

V. NEGOTIATIONS ON ARCHITECTURAL AND ENGINEERING SERVICES AND EXISTING COMMITMENTS UNDER THE GATS [28 ]

30. During the Uruguay Round of trade negotiations, a working group on professional services was created to discuss the applicability to the professional services sector of the basic concepts developed for the services agreement. Two meetings were held in August and November 1990. [29 ] To assist the discussions, an illustrative list of accredited and non-accredited professional services was prepared by the Secretariat. [30 ] The purpose of the list was to help delegations to have a better idea of the professional services where liberalization might take place by means of mutual recognition, and those of non-accredited services where liberalization might take place without recognition of qualifications. It was also pointed out that delegations should look at the question of labour mobility in professional services agreements and how the recognition of qualifications could help with cross-border movement of personnel. It was also pointed out that it was necessary to deal with the differences in the scope of various practices between countries. It was agreed that, subject to further clarification and/or elaboration of particular provisions of the framework relating to harmonization and mutual recognition of regulations, standards or qualifications, there seemed to be no need for any specific annex/annotation with regard to professional services. [31 ]

31. As a result of the Uruguay Round and subsequent accessions, 70 WTO Members [32 ] made commitments in at least one of the four subsectors covered by this note. The largest number of members made commitments in engineering services (69 Members), followed by architectural services (61 Members). The other two subsectors, integrated engineering services, and urban planning and landscape architectural services were committed by 43 - 44 Members.

32. With regard to the level of commitments, an analysis can be done by making three distinctions; full commitments (no limitations, implying total liberalization), partial commitments (those made with certain limitations), and no commitments (unbound). [33 ] Looking at market access commitments of countries in this sector, full commitments were made in 48 - 66 per cent of all commitments made for the supply of services through commercial presence (mode 3) (Table 4). These figures decline substantially to 24-31 per cent when horizontal commitments are taken into account. For the presence of natural persons (mode 4), which is important for those services, no Member had full commitment when horizontal measures are taken into account. These figures compare favourably with other professional service subsectors, however, and indicate that relatively liberal commitments were undertaken for architecture and engineering compared to legal or accounting services. [34 ]

33. Concerning the types of measures applied, the most commonly observed market access limitations specific to the sector were limitations on the type of legal entity allowed for commercial presence (mode 3) of service suppliers, followed by limitations on the participation of foreign capital (Table 5a). Restrictions on the number of natural persons to be employed were also common (mode 4). With regard to national treatment limitations, the most prevalent were references to licensing, standards and qualifications across all modes of supply. Nationality and residency requirements were also abundant (Table 5b), with the latter being more numerous than the former. [ 35 ]

34. There are only a few MFN exemptions specific to the architectural and engineering sectors, or those which apply to professional services including those sectors, but a number of Members apply reciprocity in allowing foreign professionals to perform those services in their countries. [36 ]

35. Additional commitments were made by Republic of Korea and Malaysia in architectural and engineering services. They concern simplified examination procedures for foreign architects (Korea), qualifying examination in English for architects and engineers (Malaysia), and a future commitment to allow joint contracts between domestic and foreign architects (Korea).

VI. SOURCES OF INFORMATION

36. Professional associations are the main sources of information for the sector, including the aforementioned UIA, ACE and FIEC (Fédération de l'Industrie Européene de la Construction). [37 ] Apart from national associations in Member countries, several regional and federal professional associations represented on the UIA Professional Practice Commission would also appear to be important sources of information, such as the African Union of Architects, Architects Council of Europe, Architects Regional Council of Asia, Pan-American Federation of Architects Associations, and the National Council of Architectural Registration Boards of the U.S.A. [38 ] As with construction services, a useful guide to information sources is contained in a publication, "Information Sources in Architecture and Construction". [39 ] Chapter Two of this publication is a guide to associations, organizations and libraries which can be used as information sources in the area of architecture and construction.

37. As referred to above, the Organization for Economic Cooperation and Development (OECD) has done extensive work in its Workshop on Professional Services concerning international trade in professional services including architecture and engineering.

TABLES

Table 1: International Trade in Architectural and Engineering Services

Sources: U.S. Department of Commerce, Survey of Current Business, October 1997; Statistics Canada, Canada's International Trade in Services, 1996; Eurostat, International Trade in Services, EU, 1986-95.

Table 2a: Sales to Foreign Persons by Foreign Affiliates of U.S. Companies (1994-5)

[*] Sum of affiliates in Europe and Australia, due to suppression of other data.

Source: U.S. Department of Commerce, Survey of Current Business, October 1997.

Table 2b: Sales to U.S. Persons by U.S. Affiliates of Foreign Companies (1994-5)

Source: U.S. Department of Commerce, Survey of Current Business, October 1997.

Table 3: Billings of the Top 200 International Design Firms in 1996, by Regional Market ($ millions)

Note: The figures in brackets show the annual growth rates in percentage points.

Source: Engineering News - Record, The 1997 International Construction Sourcebook and http://www.enr.com

Table 4: Analysis of Commitments made by Members in Architectural

and Engineering Services

(Percentages of full, partial and no commitments by sub-sector and by mode of supply)

Notes:

1. F: Full commitment (indicated by "none" in the market access column of the Schedule)

P: Partial commitment (limitations inscribed in the market access column of the Schedule)

N: No commitment (indicated by "unbound" in the market access column of the Schedule)

2. The figures in italics indicate the percentages taking into account horizontal commitments applicable to all sectors in the schedule.

Table 5a: Analysis of the Types of Measures (Number of Measures in Architectural and Engineering Services, Market Access)

Table 5b: Analysis of the Types of Measures (Number of Measures in Architectural and Engineering Services, National Treatment)

Note: The number in "Other Measures n.e.c." is very large in these tables because a large number of entries in the Schedules could not be classified into one or the other of the distinct categories of limitations. In some cases, this was due to a lack of specificity in the description of the measure, while in others, it was because the measure itself did not correspond to any of the categories.

Annex

Issues for Discussion

1. Description of the Sector

- Is the existing classification of architectural and engineering services adequate?

- For engineering services, is there a need to clarify the distinction between construction-related engineering services and other engineering services?

- Where do the services provided by surveyors, topographical engineers, construction economists or similar professions belong?

2. Economic Importance of the Sector and its Main Economic Features

- Are there other or better sources of information regarding international trade in architectural and engineering services, and the size and importance of the architectural and engineering professions in national economies?

- Is there any data on the industry structure, such as the average size and revenue of business undertakings etc. for those subsectors?

- How important is the movement of professionals providing those services?

- Would it be correct to assume that mode 3 and mode 4 will still constitute the bulk of supply of those services in the years to come?

- Given the high content of skilled labour in the supply of those services, would developing countries have comparative advantage in those services, now or in the future?

3. Regulatory Structure and Relevant Trade Restrictions

- What are the measures which are likely to have restrictive effects on trade in architectural and engineering services?

- What are the stated objectives of those measures? What recent reforms have been undertaken in Member countries in relation to such measures?

- What is the rôle of professional associations or other bodies for these subsectors? Is there a self-regulatory rôle for these bodies? If yes, what are they? Is there any potential for conflicts of interest between the rôle of those bodies as regulators and the rôle as industry representatives?

- Are there any issues of competition policy pertaining to these subsectors?

- Are there any other issues such as transparency, government procurement, subsidies which are relevant to trade in those services?

4. Mutual Recognition

- Is there more information on mutual recognition agreements or arrangements in architecture and/or engineering, or in professional services including architecture and/or engineering?

- Is mutual recognition more common in the context of regional economic integration, or as individual agreements or arrangements? Which are becoming more common, agreements between governments or between non-governmental bodies such as professional associations?

5. Negotiations on Architectural and Engineering Services and Existing Commitments under the GATS

- What were the principal interests of negotiators during the Uruguay Round concerning those subsectors?

- What are the main issues in domestic regulation pertaining to these subsectors of professional services?

- What are the measures which limit market access or national treatment in Members' schedules? For which modes of supply are those measures scheduled?

- Are there any other measures which could have trade-restrictive effects?

6. Sources of Information

- What other useful sources of information are available, especially for non-OECD countries?

__________