General Agreement on Trade in Services Construction and related engineering services 2457

constr - mc 2 Description of the sector (1) zGeneral construction work for buildings (CPC 512) yNew work, additions and renovation work for all types of buildings, residential or non-residential, whether privately or publicly owned zGeneral construction work for civil engineering (CPC 513) yConstruction work for structures other than buildings, such as highways and streets, railways and airfield runways, bridges and tunnels, waterways and harbours, pipelines, communication and power lines, mining and manufacturing plants, and stadia and sports grounds

constr - mc 3 Description of the sector (2) zInstallation and assembly work (CPC 514 and 516) yAssembly and erection of prefabricated constructions, installation work for heating and air conditioning, water plumbing, gas fitting, electrical wiring, fire alarm construction, insulation and lift construction zBuilding completion and finishing work (CPC 517) ySpecial trade construction work for the completion and finishing of buildings (glazing, painting, tiling, carpentry and decoration)

constr - mc 4 Description of the sector (3) zOther (CPC 511, 515 and 518) yPre-erection work and special work (foundation work, water well drilling, roofing, concrete work, etc.) yRenting services related to equipment for construction or demolition of buildings

constr - mc 5 Importance of the sector zDual role yprovides the infrastructure for all other industries yconstitutes one of the largest single sectors of the economy zMajor source of employment zClose links to public works yrole of government procurement

constr - mc 6 Features of the sector (1) zFirms range in size and level of specialisation yimportance of local operators zServices are supplied internationally z=> large-scale projects yairports, harbours, etc.

constr - mc 7 Features of the sector (2) zSector is subject to different aspects of domestic regulation yObjectives: safety, urban planning, public interest zA range of levels of skill is required yskilled and unskilled labour

constr - mc 8 Construction and development zLiberalisation of construction services can promote: yDevelopment of basic infrastructure yTraining of local personnel yTransfer of technical knowledge zCompetitive advantages of developing countries in this sector

constr - mc 9 Specific commitments z71 Members made specific commitments in this sector: yBuildings ⇒ 62 yCivil engineering ⇒ 63 yInstallation and assembly ⇒ 61 yCompletion and finishing ⇒ 53 yOther ⇒ 46 zFew MFN exemptions

constr - mc 10 Specific Commitments WHAT ABOUT EGYPT? z Egypt has substantial commitments in civil engineering zAnd one General MFN exemption applicable to construction

constr - mc 11 Sector or Sub-sectorLimitations on Market Access Limitations on National Treatment Additional Commitments B.Construction Work for Civil Engineering -Bridges, elevated highways, tunnels and subways -Waterways, harbours, dams and other water work -Long distance pipelines, communication and power lines (cables) -Construction for mining and manufacturing 1) Unbound** 2) Unbound** 3) - Commercial presence is only allowed for joint- venture companies - Foreign capital equity shall not exceed 49 per cent of the total capital required for the project 4) None 1)Unbound* 2)Unbound* 3)None Egypt’s Commitments

constr - mc 12 Egypt’s Commitments Sector or Sub-sectorLimitations on Market Access Limitations on National Treatment Additional Commitments Special Trade Construction Work: - Steel bending and erection (including welding) - Other special trade construction work Installation Work: - Gas fitting construction work - Other electrical construction work - Other installation work - Lift and escalator construction work - Renting services related to equipment for construction or demolition of buildings or civil engineering works, with operator

constr - mc 13 MFN Exemption Sector or Subsector Description of measure indicating its inconsistency with Article II Countries to which the measure applies Intended duration Conditions creating the need for the exemption ALL SECTORSFull national treatment is extended to foreign personnel of the countries indicated in column 3 Greece Iraq Jordan Libya Qatar Sudan United Arab Emirates Yemen and possibly: other countries This measure shall be maintained as long as the agreements referred to in column 2 remain in force or are extended To ensure opening of the markets in the countries referred to in column 3, as the major trading partners do not accord the Egyptian nationals satisfactory opportunities.

constr - mc 14 Modes of supply zCommercial presence yimportance of local presence ylimited or unlimited duration zMovement of natural persons yskilled and unskilled labour zCross-border supply ynot technically feasible, except in the design phase yhowever, technological advances...

constr - mc 15 Most common limitations zLimitations in mode 3 ytype of legal entity; participation of foreign capital; transfer of funds zLimitations in mode 4 ynationality and residency requirements; recognition of qualifications zHorizontal limitations ysubsidies, land acquisition

constr - mc 16 8 negotiating proposals zEuropean Communities zAustralia zJapan zKorea z Chile z New Zealand z Brazil z Kenya z Cuba

constr - mc 17 Main issues zIncrease the number and quality of specific commitments zEmphasis on mode 3 restrictions zFacilitate the movement of natural persons zImprove mutual recognition yimplement Article VII of the GATS zAddress the issue of subsidies zIncreasing participation of developing countries

constr - mc 18 Main issues zSubsectors are interrelated yneed for specific commitments in each and every one zCase of “multi-stage construction projects” y“turnkey” plants zAttention should, however, be paid to national specializations

constr - mc 19 Ongoing Negotiations z Out of 40 offers received, 12 mention construction z No Egyptian offer yet