RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/302 
18 September 2009 
 (09-4398) 
Council for Trade in Services  
  
 
CONSTRUCTION AND RELATED ENGINEERING SERVICES 
 
Background Note by the Secretariat
1 
  
1. This Note has been prepared at the request of  the Council for Trade in Services, with a view 
to stimulating substantive technical discussions in the Council on the construction and related 
engineering services sector.  It provides background  information and updates a previous Note on 
Construction and Related Engineering Services (S /C/W/38, dated 8 June 1998).  This Note 
concentrates on developments and issues considered to be most relevant to the GATS, as well as on 
recent trends in the industry that may possibly have implications under the GATS.  It is not  intended 
to provide a comprehensive account of the sector, nor to cover all issues raised by Members to date in 
the negotiations on construction and related engineering services.   
2. Following the introduction, Section II of this Note deals with the definition of the sector 
under the GATS.  Section III then describes its importance for national economies (in terms of GDP and employment) as well as recent market trends and challenges faced by the industry.  Section IV 
focuses on international trade in construction and related engineering services: how it is measured, 
who are the main exporters and importers, and what  opportunities it brings for developing countries.  
Section V presents an overview of existing commitm ents under the GATS.  Section VI examines the 
regulatory environment, identifying the most releva nt or frequent trade restrictions and regulatory 
issues, followed by a conclusion.  A table of cont ents is provided on page 2 of the Note.    
 
 
_______________ 
 
                                                     
 
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/C/W/302 
Page 2  
 
   
I.
 INTRODUCTION ................................................................................................................... .3 
II. SECTOR DESCRIPTION AND GATS COVERAGE..........................................................5  
A. SECTOR DESCRIPTION .................................................................................................................5  
B. NEW WAYS OF DOING BUSINESS FROM A GATS  PERSPECTIVE .................................................7  
III. ECONOMIC PROFILE AND MARKET TRENDS .............................................................9  
A. SHARE IN GDP  AND EMPLOYMENT ............................................................................................9  
B. IMPORTANCE OF THE PUBLIC SECTOR AND MAIN CHALLENGES FACING THE 
INDUSTRY ............................................................................................................................... ...10 
IV. TRADE PROFILE.................................................................................................................. 12 
A. HOW TO MEASURE INTERNATIONAL TRADE IN CONSTRUCTION SERVICES ..............................12  
B. MAJOR EXPORTERS AND IMPORTERS ........................................................................................13  
C. TOP INTERNATIONAL CONTRACTORS .......................................................................................17  
D. PERFORMANCE OF DEVELOPING COUNTRIES ............................................................................21  
V. GATS COMMITMENTS AND MFN EXEMPTIONS .......................................................21  
A. OVERVIEW ............................................................................................................................... .22 
B. MODAL DISTRIBUTION OF COMMITMENTS ...............................................................................22  
C. RESTRICTIONS AFFECTING MODE 3 ..........................................................................................23  
D. RESTRICTIONS AFFECTING MODE 4 ..........................................................................................24  
E. MFN  EXEMPTIONS ....................................................................................................................24  
VI. TRADE AND REGULATORY ENVIRONMENT .............................................................25  
A. TRADE BARRIERS ......................................................................................................................25  
B. REGULATORY ISSUES .................................................................................................................25  
VII. CONCLUDING REMARKS .................................................................................................26  
ANNEX .......................................................................................................................... .......................28  
REFERENCES..................................................................................................................... ................48  
  S/C/W/302 
 Page 3 
 
 
  I. INTRODUCTION 
3. The construction industry accounts for around 5 per cent of world GDP and 7 per cent of 
employment.  These figures, however, capture only part of the significance of this sector.  Beyond the statistics, the construction sector has a profound impact on virtually every aspect of daily life.  It 
provides the facilities needed for the production and consumption of essentially all goods and 
services: from the structures used for primary produ ct extraction and power generation, through to 
manufacturing and services facilities, and finally to the housing used by ultimate consumers.  The 
sector not only provides the buildings that host a wide variety of human activities, but also the 
infrastructure that links them into an increasingly complex network.   
4. As a supplier of physical infrastructures, the sector has links to many different markets and 
activities : mining, petroleum and petrochemicals, pow er generation including renewable energy, 
manufacturing, water and utility distributions  systems, sewer/waste, transportation, 
telecommunications, and public health are just a few.  Some of these key infrastructural (and capital-intensive) sectors have traditionally been subj ect to substantive government involvement and 
intervention. 
5. Construction is intimately related to the pro cess of industrialisation and urbanisation, which 
are themselves related.  Through the investme nt component, there is a strong link between 
construction, economic growth and economic development.  The output  of the construction sector is a 
response to the demand for new investment and, as such, a determinant of growth and economic 
development.
2         
6. As a major purchaser of materials, the sector generates significant feedbacks throughout the 
national economy.  As shown in a study focusing on selected OECD economies, construction has one 
of the highest backward linkages among all sectors, re flecting its importance as a user of inputs from 
other industries.3  Similarly, an export contract for c onstruction services often generates important 
revenues from the associated export of capital equipment,  as well as from the subsequent 
maintenance, repair and replacement thereof.  
7. As reflected in many national stimulus p ackages implemented during economic downturns, 
governments often consider constr uction spending, in particular on public works (infrastructure 
construction programmes), as a stra tegic economic stimulant.  Furthermore, public infrastructure – 
notably transportation infrastructure such as highways, airports, bridges and other facilities that often are the focus of public spending programs – are critical to attract investment generally and, eventually, to ensure the comp etitiveness of user industries.
4 
8. Obtaining reliable data on world construction ou tput is difficult.  Statistics differ widely 
according to the source used: for 2007 for instan ce, figures vary between US$2.9 trillion (United 
Nations Statistics Division) and US$6.7 trillion (Glo bal Insight Inc, a Massachusetts-based economic 
consulting and research firm).  One reason behind these discrepancies is the large informal sector, 
                                                      
2 For a comprehensive discussion of the relationship between construction and economic development, 
see for instance Bon and Crosthwaite (2000), section 2.1. 
3 Pietroforte and Gregory (2003). 
4 One sector-specific aspect thereof is highlight ed in the WTO Secretaria t's Background Note on 
Tourism Services (S/C/W/298 of 8 June 2009), which quotes the UNECA/AU 2008 Economic Report on 
Africa, emphasizing that one of the majo r barriers to tourism investment in th e African countries is the lack of 
essential infrastructure. S/C/W/302 
Page 4  
 
  resulting in underreporting by many countries.  According to a mid-range estimate by an industry 
expert based on national statistics, world cons truction output has reached US$4.8 trillion in 2007.
5   
9. A large proportion of this construction activity re mains local or national – irrespective of the 
level of economic development of individual countries.  Construction is a relatively local/national 
industry around the world, and one which does not lend itself easily to monopolies.  It is characterised 
by a large number of small firms generally speci alising in certain fields or operating in small 
geographic areas.  According to the European Cons truction Industry Federation (FIEC), for example, 
out of the total 3 million construction companies in  the EC-27 in 2008, 95 per cent were SMEs with 
fewer than 20 employees.  In value terms, comp anies with fewer than 50 employees undertake around 
60 per cent of European construction work.6  However, industry sources indicate a recent trend 
towards consolidation and the creation of larger fi rms that provide the whole array of construction-
related activities.  Construction services may be carri ed out by general contractors who complete the 
entire work for the client, or by specialized s ubcontractors who undertake parts of the work.   
10. The international  construction sector consists primarily of multinational contractors who 
compete among themselves and with contractors th at perform work only in the countries in which 
they are based.  Multinational companies tend to specialize in certain types of construction work, 
often also as a result of domestic competitive advant ages.  For instance, US contractors perform well 
in international competitions in the field of pe troleum, chemical and other industrial processing 
plants, and in the treatment of hazardous waste (the  latter alongside with European firms).  Japanese 
and Korean firms can capitalize on technological and project management expertise in the 
manufacturing market (notably auto and electroni c assembly).  European companies fare well in 
international competitions for general building, tr ansport infrastructure (such as airports, roads and 
ports), power generation and sewer/waste treatment.  Chinese firms are particularly active on markets such as general building, power, water, transportation and telecommunications.  Customers  of 
international construction services are generally la rge private corporations and governments.  They 
are usually sophisticated buyers, who participate in  the planning and execution of the projects.   
11. The precise size of the international  construction market is difficult to estimate given data-
shortage as well as conceptual difficulties.  For in stance, there are hardly any reliable statistics on 
government purchases of construction services, even t hough these constitute an important part of the 
international construction market.  According to En gineering News Record (E NR), the world's largest 
225 international contractors, as a group, gene rated revenues of US$310.25 billion from projects 
outside their respective home countries in 2007.  Th is represents a startling 38 per cent increase over 
2006 in nominal US$ terms.
7  The top three international contractors in 2007 were (ranked on the 
 basis of their revenues generated overseas): Ho chtief AG from Germany, Vinci Construction from 
France, and Skanska AB from Sweden.8  For these three companies, the share of revenues generated 
abroad in their total 2007 revenue represented as  much as 89, 35 and 75 per cent respectively.  
Overseas revenues of the world's 225 largest in ternational contractors in 2007 came from the 
following source markets: Europe (US$96.5 billion or  31 per cent), followed by the Middle East (20 
per cent), Asia-Pacific (18 per cent) and the US (12 per cent).  The African continent represented a little over 9 per cent.  North Africa showed the bigg est percentage increase in international work for 
                                                     
 
5 Based on data from Asia Construct, Euroconstruct, and national statistics:  Flanagan, R. (2009), slides 
presented at the OECD Experts Meeti ng on Services Trade Restrictivene ss Indices (STRI), OECD, Paris, 2-3 
July 2009, www.o ecd.org/trade/stri. 
6 Figure reported by the Construction Unit of the European Commission's Directorate-General 
Enterprise and Industry. 
7 Engineering News-Record (ENR), The McGraw Hill Companies,  Inc., 18 August 2008.  
8 The same three companies as the year before, albeit in a different order in 2006: 1. Hochtief AG;  2. 
Skanska AB;  and 3. Vinci Construction.  Engineer ing News-Record, The McGraw Hill Companies,  Inc., 
20 August 2007.  S/C/W/302 
 Page 5 
 
 
  the Top 225 contractors, rising by 75 per cent to US $13.2 billion.  It will be interesting to follow the 
evolution of these patterns once the effects of the fi nancial crisis and of the various fiscal stimulus 
packages unfold.  Section IV of this Note exam ines more closely international trade flows in 
construction services, using both co untry-level and firm-level data. 
12. Regarding the impact of the 2008-09 global fi nancial crisis:  For large contractors the 
economic downturn began slowly in early 2008 in  the wake of the recession in the US housing 
market.  The construction sector usually reacts to ec onomic downturns with a delay, given that most 
contracts are long-term, running for two to three years or more.  In addition, contractors often build up backlogs over several years, allowing them to mitigat e the effect of a crisis in the short run.  But as 
the backlog shrinks and large projects are downsized  or put on hold, the pressure on margins will be 
fully felt.  Especially smaller contractors and subcont ractors may need to bid very aggressively just to 
maintain their volume of business.  According to ENR,  contractors expect the worst of the crisis to 
unfold in 2010.
9  For some contractors, financial liquidity  is an immediate concern for their economic 
survival.      
II. SECTOR DESCRIPTION AND GATS COVERAGE 
A. SECTOR DESCRIPTION  
13. Traditionally,10 and also during the 1990s and at the time of the Uruguay Round, construction 
services were defined as encompassing the design  and implementation  of structures and productive 
facilities.  This definition reflects the two phases of the construction process.  The design phase 
usually entails conceptual assessme nts and feasibility studies, followed by decisions on the site, type 
of structure and sources of financing.  The implementation phase (sometimes characterised as 
'physical construction') starts only once the firm that will design and manage the construction has 
been selected, final plans have been submitted a nd officially approved, general contractors and 
subcontractors selected, and financing arranged.11  During both phases effective planning is essential.  
Both the 'designers' and the 'implementers' of the st ructure or productive facility must consider issues 
such as environmental impact, successful scheduling,  budgeting, site safety, availability of materials, 
logistics, and inconvenience to the public caused by construction delays. 
14. Construction projects generally fall into two distinct categories:  
(i) structures, which comprise residential and non-residential buildings.  The latter 
category is subdivided in industrial build ings (refineries, manufacturing facilities 
etc.), commercial buildings (offices, st ores, shopping malls, etc.) and other non-
residential buildings (hospitals, unive rsities, theatres, cinemas, etc.); 
(ii) civil engineering works and productive facilities,  which include utility facilities 
(pipelines, power plants, etc.), transportati on facilities (roads, bridges, ports, airports, 
etc.), and public works facilities (water and sewage systems, etc.). 
15. In the "Services Sectoral Classification List" (MTN.GNS/W/120), which has been used by 
most Members to define the scope of the specific commitments in their GATS Schedules, the sector is 
classified as "3. Construction and Related Engineer ing Services (CPC 511-518)".  In accordance with 
                                                      
9 ENR, "The Top 400 Contractors", The Construction Weekly , 18 May 2009; pp. 40-54. 
10 U.S. Department of Commerce, "A Competitive A ssessment of the U.S. International Construction 
Industry", Washington, D.C., July 1984; p. 2. 
11 Lee, J. and Walters, D. (1989), "International Trade in Construction, Design, and Engineering 
Services"; pp. 6-7. S/C/W/302 
Page 6  
 
  the UN provisional CPC
12 classification of services, the activities covered under this heading are as 
follows (Box 1):13 
Box 1:   Sector Classification  
3.  CONSTRUCTION AND RELATED ENGINEERING SERVICES 
A. General construction work for buildings  (CPC Prov 512) 
This item includes construction work (including new work, additions, alterations and renovation 
work14) for all types of buildings, residential or non-resi dential, whether privately or publicly owned.   
B. General construction work for civil engineering  (CPC Prov 513) 
This item covers construction work for structures ot her than buildings such as highways and streets, 
railways and airfield runways, bridges and tunne ls, waterways and har bours, dams, pipelines, 
communication and power lines, mining and manufactu ring plants, and stadia and sports grounds. 
C. Installation and assembly work  (CPC Prov 514, 516) 
This item includes such activities as the assembly and erection of prefabricated constructions, 
installation work for heating and air conditioning, wa ter plumbing, gas fitting, electrical wiring, fire 
alarm construction, insulation, fencing and lift construction.  
D. Building completion and finishing work  (CPC Prov 517) 
This item covers special trade construction work fo r the completion and finishing of buildings such as 
glazing, plastering, painting, floor and wall tiling, car peting, carpentry, interior fitting and decoration, 
ornamentation fitting. 
E. Other  (CPC Prov 511, 515, 518)  
This item includes pre-erection work at constructi on sites, as well as special trade construction work 
such as foundation work, water well drilling, roofing,  concrete work, steel bending and erection, and 
masonry work.  It also covers renting services rela ted to equipment for cons truction or demolition of 
buildings or civil engineering works, with operator.   
16. The five subdivisions of "Cons truction and Related Engineering Services", 3.A. to E., appear 
to be somewhat different in nature.  The two fi rst ones (CPC 512 and 513) reflect the previously 
mentioned distinction between structures (reside ntial and non-residential buildings) and civil 
                                                      
12 The W/120 categories are based on the UN provisional CPC of 1991.  Further detail on the 
description of sub-sectors is found in the United Nations, "Provisional Central Product Classification", U.N. 
Statistical Papers, Series M No.771991.  The latest version of the CPC is Version 2.  
13 Not all Members have adopted the CPC classification in making commitments in this sector.  
However, the use of national definitions is rarer than in other sectors such as financial services.  See document 
S/CSC/W/9 for details.  
14 Although repair and maintenance work is not explicitly mentioned in the 1991 provisional UN CPC 
description, it may be assumed that they would normally be included, unless involving services which belong 
elsewhere in the classification.  S/C/W/302 
 Page 7 
 
 
  engineering works.   The two subsequent CPC s ubdivisions – "Installation and assembly work" (CPC 
514, 516) and "Building completion a nd finishing work" (CPC 517) – instead cover distinct activities 
or phases of a given building project.  Finally, the category "Other" (CPC 511, 515, 518) groups 
together building stages (pre-erection and site pr eparation work), special trade construction works 
such as foundation or masonry work, and particular means of supplying the service (renting services 
with operator).   
17. CPC 512 ("Construction work for buildings") and CPC 513 ("Construction work for civil 
engineering") are probably the most important co mponents of international trade in construction 
services.  Yet, activities classified under subdivisions 3.C., 3.D. or 3.E. of the W/120 list may well constitute an essential element for the completion of  a given building or civil engineering work.  
Several negotiating proposals submitted by WTO Me mbers have stressed that construction and 
engineering services consist of a wide range of in terrelated activities and that, therefore, future 
specific commitments should en compass all stages of the cons truction process ranging from "pre-
erection work at construction sites" (CPC 511) to  "building completion and finishing work" (CPC 
517).  This would ensure that service suppliers that are engaged in multi-stage or 'turn-key' 
construction projects obtain the array of commitments required so as to effectively carry out their 
work.
15 
18. Other negotiating proposals have drawn attenti on to the interrelation between the supply of 
construction services and the supply of architectur al (CPC 8671), engineering (CPC 8672), integrated 
engineering (CPC 8673), urban pl anning and landscape architectural  services (CPC 8674), and other 
related consulting services – although these services are classified elsewhere in the Services Sectoral 
Classification List, under professional services.16  Internationally active construction firms in 
particular often provide these services in an integr ated manner, from the pre-investment stage (e.g., 
feasibility studies), through project design and ma nagement, to project implementation (the actual 
physical construction).  
19. As already pointed out in the 1998 Background No te, there appears to be an element of 
ambiguity regarding the respective coverage of "E ngineering services" and "Construction and related 
engineering services" in th e W/120 classifi cation list.17  In the UN provisional CPC, engineering 
services (CPC 8672) do not exclude  construction-related engineering services, while "construction 
work" (CPC 511–518) does not appear to explicitly c over "related engineeri ng services".  In the 
provisional CPC, constructi on-related engineering services are incl uded in "Other engineering services 
during the construction and installation phase" (C PC 86727), a subset of engineering services.18  
B. N EW WAYS OF DOING BUSINESS FROM A GATS  PERSPECTIVE  
20. The construction industry differs from many ot her service industries in that its output is 
physical in nature.  It is the production process  that is exported, the final output is located in the host 
country.  Especially in the final stages, some form of local 'presence' or 'establishment' is therefore 
                                                      
15  See paragraph 8 of New Zealand's negotiating proposal (S/CSS/W/91 of 26 June 2001) as well as 
the negotiating proposal by Japan (S/CSS/W/42 of 22 December 2000). 
16 Negotiating proposals by Brazil (S/CSS/W/113 of 5 October 2001), paragraphs 5-7; by Cuba 
(S/CSS/W/145 of 22 March 2002), paragraphs 10(a) and 11; and by the European Communities (S/CSS/W/36 
of 22 December 2000), paragraph 7. 
 17 See Secretariat Background Note on Architectural  and Engineering Services (S/C/W/44, dated 1 
July 1998), paragraph 8. 
18 Some countries have scheduled construction and engineering services together (e.g., Morocco, 
Venezuela), or have added remarks to clarify the scope of construction and related engineering services (e.g., 
Hong Kong, China). 
 S/C/W/302 
Page 8  
 
  generally necessary.  The type of 'presence' may va ry from sending a crew just for the time span of a 
particular project (which can be as  short as a few weeks or months) to a more or less permanent and 
'duly constituted' commercial presence (Figure 1).  One important difference between more 
permanent and short-term entry is that, in the form er case, firms tend to source staff locally, while in 
short-term entry more expatriates are sent overseas.
19  Reportedly, there has been a tendency from the 
1990s onwards to rely on more permanent forms of  presence in new markets, rather than on what 
might be called 'mobile'  (presence limited to the implementation of a project) types of entry and 
participation.20     
 Figure 1:   Types of Market Entry ('Entry Modes') in International Construction   
                     according to Chen  
 
Number
1 Strategic alliance
- Vertical alliance- Horizontal alliance- Local partner
- Home partner
- International partner
2 Build-Operate-Transfer/equity project
3 Joint venture project
-I n t e g r a t e d- Nonintegrated
4 Representative office
5 Licensing
- Long term- Project based
6 Local agent
- Long term  - Project based  
7 Joint venture company
- Major- Equal- Minor- New establishment
- Mergers & acquisitions
8 Sole venture company
- New establishment
- Mergers & acquisitions
9 Branch office/company
10 Sole venture projectEntry Modes 
 
Source :  Chen, C. (2009), presentation at the OECD Expert s Meeting on Services Trade Restrictiveness Indices 
(STRI), OECD, Paris, 2-3 July 2009.  
 
21. The various types of market entry and particip ation, as shown in Figure 1, represent different 
approaches of doing business.  Depending on the na ture and degree of foreign involvement, 
individual components of any particular project ma y fall under one or more modes of the GATS, in 
                                                      
19 OECD (2009), "Services Trade Restrictiven ess: Construction Services", paragraph 8. 
20 Chen, C. (2008), “Entry mode selection for international construction markets: the influence of host 
country related factors".  S/C/W/302 
 Page 9 
 
 
  particular modes 3 (commercial presence) and 4 (p resence of natural persons).  Eventually, what 
matters for mode 3 commitments is whether or not  the entrant establishes so me form of commercial 
presence which he owns or controls to execute a specif ic project or stream of projects.  Nowadays in 
most of the significant construction markets, foreign contractors are required to incorporate locally, in 
the form of a legal person, in order to execute c onstruction business.  In turn, this seems to render 
temporary forms of entry, possibly related to particular stages of a project, relatively less 
commercially attractive than longer-term forms of project involvement.  The widespread use of 
subcontracting throughout the industry further complicates the picture.  Experts report that in some international construction projects as much as 90 per cent of  the work is subcontracted to local firms.    
22. With a changing global competitive landscape, combined with newly available 
communication technologies and mounting financial challenges, construction firms are constantly 
seeking new ways of doing business.  In a highly co mpetitive and rather low-margin sector (except in 
niche segments), they seek to add more value  to their services.  At the same time, the procurement 
methods of their clients, both public and private, have become more demanding in terms of cost 
effectiveness, quality, health and safety.
21  For construction companies, this implies more partnering 
with the client, assuming responsibility not only for the 'brick and mortar' part but for an entire 
project, and looking at the whole-life costs of a built asset.  For instance, growing emphasis is being placed by private as well as public sector contracts on 'design-build', a project delivery system whereby the design and construction aspects are co ntracted for with a single supplier known as the 
design-builder.  This results in a greater integrati on of design and physical construction.  With the 
emergence of new ways of procuring projects – such as Private-Public-P artnerships (PPP), Build-
Operate-transfer (BOT), Special  Purpose Vehicles (SPV) and Private Finance Initiatives (PFI) –, 
construction firms assume part of the financial risk of a project and, in some cases, even acquire an 
equity stake in it.  They also often deliver infrastructure (for instance a road) together with the 
provision of associated services such as maintenance.   
23. As a result, contractors increasingly become pr oviders of integrated design, engineering, 
construction, project management and consulting services, offering integr ated solutions to the 
client/owner of the project.  They embrace a wide  range of construction-related activities enabling 
them to offer a “one stop shop” for design, fina ncing, operation as well as subsequent maintenance 
and repair.  Members may thus need to assess whether and how these changing business models, 
which involve multiple subsectors, need to be translated into commitments under the GATS.  
III. ECONOMIC PROFILE AND MARKET TRENDS 
A. S
HARE IN GDP  AND EMPLOYMENT  
24. In most developed economies, the share of cons truction value-added in total GDP is in the 
range of 4 to 8 per cent (Annex Table 1).22  Among OECD members, Germany (4.0 per cent), the 
United States (4.8 per cent) and Canada (5.5 per cent) pertained to the lower range, as compared to 
countries like Japan (6.2 per cent), Australia (7.0 per cent), Greece (7 .8 per cent) and Spain (11.5 per 
cent).  For Korea, the share wa s 9.2 per cent in 2007.  Construction continued booming in the GCC 
                                                      
21 Traditional forms of procurement involved tendering for each  key stage in a construction project – 
such as design, selecting the main contractor, appoin ting subcontractors –, and awarding each contract on the 
basis of the lowest price bid.  However, this has proved not to provide the best value for money in the longer 
term.  Indeed, selecting the lowest-price contract may result in a building or road that is more expensive to 
operate and maintain.  For the perspective of the public s ector as a client of construction services see: NAO, UK 
National Audit Office (2000 and 2005).  
22 Source: United Nations Statistics Division, 2007 data .  Definitional differences exist with regard to 
the scope of 'construction' in the national accounts statis tics across countries, but are not taken up in this Note.  
In terms of gross  output, shares would be twice as high. S/C/W/302 
Page 10  
 
  countries, representing 7.3 per cent of the United Ar ab Emirates' GDP – and 6.2 per cent of Qatar's 
where several multi-billion projects are underway, such  as the new Doha international airport, the 
new Doha port, 'Education City' or the Pearl Qata r residential project.  Following the 2008-09 global 
financial crisis, these figures could possibly decline.   The share of construction in total GDP for the 
BRIC countries in 2007 was: Brazil (5.2 per cent), China (5.7 per cent), India (6.8 per cent) and 
Russian Federation (5.7 per cent).      
25. An interesting case in point is Armenia, which tops the list with an astounding 28 per cent 
of GDP.  An ongoing residential and commercial c onstruction boom, post-ea rthquake reconstruction 
of infrastructure and other public projects have ke pt Armenia's economic growth in double digits in 
recent years.  Construction has been the fastest growing sector of the economy.   
26. In lower-income developing countries, cons truction typically accounts for 3-5 per cent 
of GDP.  But in some smaller countries where major projects are underway, construction achieves 
much higher shares.  Examples are Bhutan (17.4 pe r cent) where major hydroelectricity power and 
cement plant projects are underway in cooperation with India (notably the Tala hydroelectric dam), 
and Zambia (15.8 per cent)  whose construction indu stry has maintained doubl e-digit growth over the 
past years thanks notably to the government's Road Sector Investment Programme, a program 
supported by the World Bank.   
27. The labour intensity of the sector is reflected in somewhat higher employment shares as 
compared to GDP shares (Annex Table 2).  In 2007,  construction represented between 6-9 per cent of 
total employment for most OECD countries, except for Ireland (13.4 per cent), Spain (13.3 per cent) 
and Portugal (11 per cent), where residential market s boomed.  In Japan, the share was 8.6 per cent, 
8.4 per cent in Mexico and 7.9 per cent in the Re public of Korea.  In the United States alone, 7.6 
million people were employed in the construc tion industry in 2007 (U.S. Bureau of Economic 
Analysis).  The corresponding figure for EC-27 was 16.9 million people or 7.5 per cent of total employment.  Since the start of the recession howev er, construction employment in several countries 
has fallen sharply.
23  
B. IMPORTANCE OF THE PUBLIC SECTOR AND MAIN CHALLENGES FACING THE INDUSTRY  
28. The construction sector is closely intertwined with government on at least three accounts.  
Firstly, public-sector financing and public proc urement is an important driver of demand for 
construction services, estimated to generate up to one half of it.  In 2005, for example, government 
procurement accounted for around 35 per cent of c onstruction activity in Germany and the UK, and 
almost 50 per cent in the United States.24  Following the national stimulus packages adopted by 
several countries in 2009, this share is likely to  increase in 2009-10.  Procurement practices can thus 
have a significant impact on international trade in  construction and related engineering services.  
Secondly, governments frequently  own construction firms – as in China or Vietnam – or have 
construction departments.  Finally, governments have  a significant role in regulating the industry, 
including overseeing the quality and safety of structures and civil engineering works.       
29. According to Transparency Inte rnational, corruption in the construction sector is higher than 
in any other sector of the economy.  Cases of corruption uncovered in construction are legion.  The 
corruption issue is a major one for many compani es.  Because of construction's central role in 
development, corruption in this sector can be par ticularly harmful as its impact may go much beyond 
                                                      
23 U.S. Bureau of Labour Statistics: "In June [2009], employment in construction [in the U.S.] fell by 
79,000, with losses spread throughout the industry.  Since the start of the recession, construction employment 
has fallen by 1.3 million" (see: http ://www.bls.gov/news.release/empsit.nr0.htm ). 
24 OECD (2009), "Services Trade Restrictiven ess: Construction Services", paragraph 12.  S/C/W/302 
 Page 11 
 
 
  bribe payments.  Indeed, corruption may affect th e quality of construction, steer public spending 
towards environmentally dubious projects, and u ltimately result in poor project selection and 
insufficient maintenance.  Eventually, this could carry high human costs.25 
Challenges faced by the Industry 
30. Except perhaps at the top end, construction is  a very cyclical and relatively low-margin 
industry.  Increased competition has pushed construc tion firms into joint bidding procedures as well 
as mergers and acquisitions to reduce internal costs and gain footholds in new geographical markets.  
Merger and acquisitions are eased by the fact that, in most markets, smaller construction companies are on sale at some point of time. 
31. The industry's main concern in 2009-10 is, of course, the recession and its impact on credit 
markets, jobs and competition, which drives many  bids below costs.  Showing how cyclical the 
industry is, just a year before, in 2008, the key concern was price hikes fo r materials used in the 
industry, notably fuel, steel and cement.  The risk of high prices for materials (and price volatility) is likely to return in the medium run.  A key challenge for construction firms therefore is to create stable 
income streams for the longer term.  In the last te n years, international contractors have striven to 
reduce risks by increasing their sh are of steady revenue generators, such as maintenance work and 
privately financed contracts.  One example is  Hochtief AG from Germany, which is increasingly 
focusing on high-earning markets and segments, main ly outside Germany.  A fifth of Hochtief's 
revenue comes from facility management, airport operations and other services, i.e., not from physical 
construction.  Increasingly, long-te rm operating contracts are won as part of build-operate-transfer 
(BOT) deals.  The French contractor Groupe Vinci, for example, earned half of its profits in 2003 as 
part of build-operate-trans fer and service operations. 
32. Large international construction companies incr easingly focus on network and value-added.  
Their product and service portfolios more and more ex tend to several links in the project value chain 
and stages of the built asset's life cycle.  Developm ent and design, physical  construction, facility 
management, operation and maintenance services become increasingly closely interrelated. 
                                                     
 
25 See Kenny, C. (2007), and Transparency International, Global Corruption Reports 2003 and 2005, 
available at: http://www.transparency.org/publica tions/gcr /gcr_2003, respectively /gcr_2005.   
 S/C/W/302 
Page 12  
 
  IV. TRADE PROFILE 
33. In spite of the importance of c onstruction services to most national  economies, international  
construction constitutes a relatively small percentage of all construction.  For a long time, the costs 
and difficulties of long-distance communication and tr ansportation largely restricted the construction 
industry to domestic and regional projects.  Cons truction services supplied internationally typically 
relate to large-scale, technologically sophisticated projects (so-called 'big-ticket' projects) such as 
airports, harbours, petroleum, chemical or powe r-generation plants, major infrastructure upgrades and 
signature buildings.  Such projects are often undertak en by specialized international contractors with 
local sub-contracting. 
A. H
OW TO MEASURE INTERNATIONAL TRADE IN CONSTRUCTION SERVICES  
34. This Subsection seeks to explain which part of trade in construction services is captured by 
Balance of Payments Statistics and by Foreign Aff iliates Trade in Services, respectively.  As noted 
before, given the predominantly local nature of  the construction business, construction services are 
primarily supplied through the establishment of a commercial presence abroad.26  Furthermore, 
establishment of a local presence in the foreign market often is a necessary  prerequisite for obtaining 
contracts.  Construction thus represents an excep tion in the Extended Balance of Payments Services 
Classification (EBOPS).  In almost all other service sectors, international transactions as measured in the EBOPS can be allocated to modes 1, 2 and 4.   In construction, they are modes 3 and 4.  
Technically, "smaller" project work (e.g. generally  taking less than one year) is covered by BOP 
statistics.  If the project lasts more than one year , separate accounts for this pr oject are available, and 
income tax is payable in the host country, it become s a resident establishment, which is no longer 
captured by BOP statistics, but falls within the purview of Foreign Affiliates Trade in Services 
(FATS).     
35. By definition, FATS statistics capture trade through construction establishments, which are 
considered resident in the economy where the constr uction project is taking place.  Thus, their focus 
is on commercial presence in the form of subsid iaries, branches or other.  FATS statistics are 
conventionally regarded as the closest and best availa ble proxy for mode 3, despite some deficiencies.  
Outward FATS statistics measure the sales abroad of  domestic contractors through their foreign-based 
affiliates.  Inward FATS statistics quantify sales of  foreign contractors through their domestic-based 
affiliates.   
36. As seen above, a substantial part of internati onal trade in construction occurs in mode 3, 
which is partly accounted for by BOP statistics (besides mode 4) and partly by FATS statistics 
(Figure 2).      
                                                     
 
26 The construction industry differs from other service industries in that its output is physical in nature 
and, in the case of an export, in that the final output is  located in the host country (see also Subsection II.B of 
this Note).  S/C/W/302 
 Page 13 
 
 
  Figure 2:   Measuring modes: the Specificity of Construction  
EBOPS 
Ð FATS 
Ð 
"Short-term" commercial presence, usually in the 
form of smaller scale projects (Mode 3), and 
presence of natural persons (Mode 4) "Longer-term" commercial presence  
(mode 3) 
Note:   Distinction according to the standard rules of the Manual on Statistics of International Trade in Services.  
However, Members may appl y these rules flexibly. 
37. To date, unfortunately, sector-specific statis tics on inward and outward sales of foreign 
affiliates (FATS) are very sparse.  All OECD count ries, except Mexico and Switzerland, collect trade 
data on construction services on a Balance of Pa yments basis (EBOPS 249).  But only about 12 
OECD Members report outward sales of foreign aff iliates primarily engaged in construction activities 
(ISIC 45).  Furthermore, the quality of the data  is poor: only very few countries report relatively 
longer time series, and the latest available sta tistics generally date back to 2005.      
B. MAJOR EXPORTERS AND IMPORTERS  
Construction Exports and Imports in Balance of Payments Statistics27 
38. In 2007, world construction exports as defined in EBOPS totalled US$70 billion (including 
intra-EC 27 trade), up 24 per cent in nominal US$ terms from 2006.28  This represented 2 per cent of 
total commercial services exports.  In the period 2000-2007, world construc tion exports have grown 
by an annual average of 14 per cent in nominal te rms, compared to 12 per cent for all commercial 
services.     
39. Tables 1 and 2 show major e xporters and importers of c onstruction in 2006 and 2007 
respectively.29     
                                                      
27  In the Balance of Payments, "construction" covers work performed on construction projects and 
installation of employees of an enterprise in locations outsi de the territory of the enterprise (a one-year rule to 
determine residency is to be applied flexibly). In addition, goods used by construction companies for their 
projects are included, which implies that the "true" services component tends to be overestimated.  The only exception is the United States, which p ublishes exports of construction services net of merchandise exports and 
net of outlays abroad for wages, services, materials, and other expenses.    
28 WTO Secretariat estimates based on national statistics. 
29 Countries that do not collect or report constructio n services separately (e.g., Switzerland, the United 
Arab Emirates) are not  included.  As a result, the ranks – notably on the import side – reflect only part of the 
reality.  The 2007 figures for Iraq were not available at the time of writing. S/C/W/302 
Page 14  
 
  Table 1:   Major Exporters and Importers of Construction, 2006 
 
Rank Exporters ValueShare in 1 5 
economiesAnnual 
percentage 
change Rank Importers ValueShare in 1 5 
economiesAnnual 
percentage 
change
1 European Union (27) 32,1 70 60.4 1 2 1 European Union (27) 20,237 43.0 1 0
       Thereof: Extra-EU (27) exports 1 6,907 31 .7 1 4        Thereof: Extra-EU (27) imports 8,61 2 1 8.3 1 6
2 Japan 8,981 1 6.9 24 2 Japan 6,202 1 3.2 303 Russian Federation 3,050 5.7 38 3 Russian Federation 4,603 9.8 1 44 China 2,753 5.2 6 4 Kazakhstan 3,238 6.9 675 M alaysia 1 ,041 2.0 28 5 Saudi Arabia  a 3,1 54 6.7    ...6 Turkey 936 1 .8 6 6 China 2,050 4.4 277 India  a 789 1 .5    ... 7 Angola 1 ,476 3.1 1 28 United States 663 1 .2    ... 8 M alaysia 1 ,31 4 2.8 219 Singapore 555 1 .0 2 9 Azerbaijan 1 ,300 2.8 -1 3
1 0 Israel 509 1 .0 46 1 0 Indonesia 985 2.1 36
1 1 Indonesia 456 0.9 -6 1 1 India  a 660 1 .4    ...
1 2 Egypt 430 0.8 -1 4 1 2 United States 589 1 .3    ...1 3 Thailand 336 0.6 32 1 3 Thailand 581 1 .2 851 4 Norway 330 0.6 30 1 4 Iraq 330 0.7 -1 61 5 Hong Kong, China 268 0.5 -1 4 1 5 Chinese Taipei 295 0.6 -22
Above 1 5 53,270 1 00.0    - Above 1 5 47,01 5 1 00.0    -(Million dollars and percentage)
a  Secret ariat  est imat e.
Note:  B ased on inf ormat ion available t o t he WTO Secret ariat . A s cert ain economies do not  collect  or report  const ruct ion services sepa rat ely (e.g., Swit zerland, Saudi Arabia, Unit ed A rab Emirat es), 
they do not appear in the list.  Data sources: see WTO, International Trade Statistics 2008, Section IV.2.2 ('Metadata'). 
Table 2:   Major Exporters and Importers of Construction, 2007 
Rank Exporters ValueShare in 1 5 
economiesAnnual 
percentage 
change Rank Importers ValueShare in 1 5 
economiesAnnual 
percentage 
change
1 European Union (27) 38,430 58.4 1 9 1 European Union (27) 26,042 41 .2 29
       Thereof: Extra-EU (27) exports 21 ,649 32.9 28        Thereof: Extra-EU (27) imports 1 0,51 9 1 6.6 22
2 Japan 1 0,322 1 5.7 1 5 2 Japan 7,938 1 2.6 28
3 China 5,377 8.2 95 3 Russian Federation 6,454 1 0.2 404 Russian Federation 3,450 5.2 1 3 4 Saudi Arabia  a 6,31 8 1 0.0    ...
5 M alaysia 1 ,378 2.1 32 5 Kazakhstan 4,352 6.9 34
6 United States 1 ,1 70 1 .8 76 6 China 2,91 0 4.6 427 Egypt 984 1 .5 1 29 7 Angola 2,634 4.2 78
8 Turkey 856 1 .3 -9 8 M alaysia 1 ,699 2.7 29
9 India  a 845 1 .3    ... 9 A zerbaijan 1 ,471 2.3 1 3
1 0 Singapore 698 1 .1 26 1 0 Indonesia 740 1 .2 -25
1 1 Israel 665 1 .0 31 1 1 India  a 691 1 .1    ...
1 2 Thailand 51 8 0.8 54 1 2 Thailand 640 1 .0 1 0
1 3 Indonesia 459 0.7 1 1 3 United States 61 2 1 .0 41 4 Hong Kong, China 346 0.5 29 1 4 Chinese Taipei 371 0.6 26
1 5 Norway 342 0.5 4 1 5 New Caledonia 322 0.5 1 72
Above 1 5 65,840 1 00.0    - Above 1 5 63,1 95 1 00.0    -
a  Secret ariat  est imat e.
Not e:  B ased on inf ormat ion available t o t he WTO Secret ariat . As cert ain economies do not  collect  or report  const ruct ion servic es separately (e.g., Switzerland, Saudi Arabia, United Arab Emirates), 
t hey do not  appear in t he list .  (M illion dollars and percentage)
  
Note:   For the US, BOP exports of construction are published net of merchandise exports,  which are included in 
merchandise trade in the U.S. international trans actions accounts (merchandise exports represented 
US$26 million in 2006 and US$33 million in 2007), and net of outlays abroad for wages, services, materials, 
and other expenses  (US$1,363 million and US$2,256 million for 2006 and 2007 respectively).  Similar input 
data are not collected on construction und ertaken in the US territory by foreig n contractors, and no estimates are 
made because they are believed to be small.  By using this information, gross  data for the US can be estimated, 
which would move the US to become at least the 5th exporter of construction in 2006 (over US$2 billion) and 3rd 
in 2007 (around US$3,5 billion).  On the import side, the US would be in the third position (US$2 and 
US$3 billion for 2006 and 2007).    S/C/W/302 
 Page 15 
 
 
  40. In 2007, EC-27, Japan and the United States jointly accounted for over 70 per cent of world 
construction exports on a BOP basis (including in tra-EC 27 trade).  However, developing and 
emerging economies have achieved a certain competi tive advantage; they represent a growing share 
of world construction exports: notably China (8.2 pe r cent of Top 15), the Russian Federation (5.2 per 
cent), Malaysia (2.1 per cent), Egypt, Turkey, Indi a and Singapore.  There clearly is considerable 
South-South trade taking place in construction and rela ted engineering services.  And this is likely to 
expand in the future (see also Subsection D. he reafter).  Unfortunately, South-South trade flows 
cannot be measured due to the lack of bilateral trade in services statistics. 
41. How successful developing and emerging economies have been in penetrating the markets of 
developed countries is difficult to assess, given the s hortage of bilateral trade in services statistics.  
Mirror statistics – i.e., using import  statistics of developed countries – could provide some indication 
(Annex Tables 3b and 4b displaying imports of EC -27 and Japan respectively).  However, caution 
must be exercised when interpreting these statistics.  Imports, say, of EC-27 from Nigeria also include expenditures on goods and services by EC-27 contractor s in Nigeria in the context of works they 
perform there (local procurement of materials a nd local subcontracting).  For more details on the 
exact composition of bilateral extra-EC 27 impor ts and exports, see Annex Table 3c.      
42. On the import side, non-OECD countries accounted for at least 40 per cent of world 
construction imports in 2007 accordin g to available data.  However, when including construction 
projects funded under multilateral, regional or bila teral development aid (including notably those co-
financed by the World Bank), it is  estimated that over 60 per cent of the international construction 
market lies in developing countries.
30      
Sales Abroad through Foreign Affiliates (FATS) 
43. Table 3 compares exports of construction services on a BOP basis with sales abroad of 
domestic companies active in the construction sector through foreign-based affiliates (outward FATS) 
for three countries for which recent data are availa ble: Germany, Japan and the United States.  Unlike 
Germany and Japan, the United States publishes BOP exports of construction services net of 
merchandise exports and net of outlays abroad for wages, services, materials, and other expenses 
(Note to Tables 1 and 2).   
44. As can be seen from Table 3, in Germany and the United States, total turnover of domestic 
construction firms through foreign-based affiliat es ('mode 3') by far outweighed exports of 
construction on a BOP basis; this is the case even when using the US gross operating revenue 
estimate (as specified in the Note to Tables 1 and 2).  The reverse seems true in Japan, where BOP 
exports exceeded sales abroad of foreign affiliates,  at least in 2001-2004.  Thus, it seems that 
especially US, but also German construction firm s do business abroad mainly though affiliates.  
Japanese construction firms seem to favour more mo bile (project-based) entr y on overseas markets.  
However, this finding must be treated with caution as it may well reflect differences in statistical recording methods.  Indeed Japan records all constr uction projects where an affiliate is not identified 
under the BOP.   
45. In Germany and Japan, the world's leading expor ters of construction, the sector represented a 
sizeable share of total commercial services expor ts: around 6 per cent for Germany and over 9 per 
cent for Japan in 2008 (on a BOP basis).  It has be en reported that the ratio of Japan's construction 
revenue from foreign markets to total construc tion revenue has steadily increased as overseas 
operations of major Japanese construc tion firms have expanded worldwide.
31   
                                                      
30 UNCTAD (2000), pp. 9-10. 
31 Industrial Structure Council, Japan, 1998 Report on the WTO Consistency of Trade Policies by 
Major Trading Partners. S/C/W/302 
Page 16  
 
  Table 3:    Exports of construction (BOP basi s) and outward sales of foreign affiliates engaged 
in construction activity – Germany, Japan and United States, 2000-2008 
Million US$
Germany 2000 2001 2002 2003 2004 2005 2006 2007 2008
Construction 4,244 4,283 5,070 7,109 7,097 10,408 12,255 13,120 14,509
Total commercial services 79,659 84,270 96,785 116,216 138,256 157,342 184,574 216,958 241,590
Share of construction exports in 
total commercial services exports 5.3% 5.1% 5.2% 6.1% 5.1% 6.6% 6.6% 6.0% 6.0%
Construction  [1] 6,181 3,573 10,472 12,590 14,421 16,223 18,608 N.A. N.A.
Total turnover of foreign affiliates 
engaged in services activities 
(including construction) 268,223 293,048 618,006 716,027 850,762 1,060,595 1,143,144 N.A. N.A.
Share of construction turnover in 
total turnover of foreign affiliates 
engaged in services activities 2.3% 1.2% 1.7% 1.8% 1.7% 1.5% 1.6% N.A. N.A.Exports (BoP)Outward FATS            
(turnover)
 
 
Japan 2000 2001 2002 2003 2004 2005 2006 2007 2008
Construction 5,849 4,793 4,625 4,550 6,865 7,224 8,981 10,322 13,814
Total commercial services 69,430 64,769 66,054 71,784 89,668 102,071 115,140 127,060 146,440
Share of construction exports in 
total commercial services exports 8.4% 7.4% 7.0% 6.3% 7.7% 7.1% 7.8% 8.1% 9.4%
Construction  [1] 6,499 3,881 3,728 3,899 4,390 N.A. N.A. N.A. N.A.
Total turnover of foreign affiliate s 
engaged in services activities (including construction) 660,529 539,550 546,382 583,377 692,544 N.A. N.A. N.A. N.A.
Share of construction turnover in 
total turnover of foreign affiliates engaged in services activities 1.0% 0.7% 0.7% 0.7% 0.6% N.A. N.A. N.A. N.A.Exports (BoP) Outward FATS Turnover 
  S/C/W/302 
 Page 17 
 
 
  Million US$
United States 2000 2001 2002 2003 2004 2005 2006 2007 2008
Construction services [2] 673 823 568 557 299 428 663 1,170 N.A.
Total commercial services 278,090 266,661 273,209 284,173 330,185 362,134 408,663 472,680 521,378
Share of construction exports in 
total commercial services exports 0.2% 0.3% 0.2% 0.2% 0.1% 0.1% 0.2% 0.2% N.A.
Construction  [1] 10,805 10,714 10,627 10,324 11,498 15,398 14,764 N.A. N.A.
Total turnover of foreign affiliates 
engaged in services activities 
(including construction) 2,507,433 2,524,459 2,515,641 2,865,226 3,312,531 3,786,867 4,123,547 N.A. N.A.
Share of construction turnover in 
total turnover of foreign affiliates 
engaged in services activities 0.4% 0.4% 0.4% 0.4% 0.3% 0.4% 0.4% N.A. N.A.BoP Exports Outward FATS Turnover 
 
Source:   
• For BOP data: IMF, OECD and WTO estimates;  
• For FATS: Eurostat for Germany, OECD for Japan, and U.S. Bureau of Economic Analysis for the United 
States.              
N o t e s :             
N.A.: Not available  
[1]   This represents the sales (total turnover of goods and services) by foreign affiliates of resident companies. 
i.e., affiliates located abroad primarily enga ged in construction activities (outward FATS). 
[2]   US construction services exports (BOP) are net of merchandise exports and of outlays abroad for wages, services, materials, and other expenses.  
 
C. TOP INTERNATIONAL CONTRACTORS  
46. In 2007 the world's largest 225 international cont ractors, as a group, generated revenue of 
US$310.25 billion from projects outside their respective home countries.  This represented a startling 
38 per cent increase over 2006 in nominal US$ terms.32  The globalisation trend identified in the 
preceding Subsection is confirmed by firm-level data : the major change in the world market is just 
how international it has become.  In 2007, the 'Top 225' included contractors from 35 different 
countries.  A few years ago, the Top 225 international contractors used to be dominated by US, European and Japanese firms.  In recent years, co nstruction groups based in China, Brazil, Turkey, 
Korea, India and the Middle East have increasingly appeared on the list.  In 2007, 68 out of the 
Top 225 international contractors were from non-OECD countries.   
47. Table 4 presents the top 20 international c ontractors based on contracting revenues from 
projects outside their home country.  For each firm, th e ratio of international to total billings (in per 
cent) is specified as an indicator of its reliance on foreign markets for revenue (shaded column).  Out 
of the Top 20 companies, two are from developi ng countries, China and Brazil.  Whereas back 
in 1980, US companies accounted for seven of the Top 10 international contractors, only one US 
company, Bechtel, made it to the top 10 in 2008.   
                                                     
 
32 Top 225 published by Engineer ing News-Record (ENR), The McGraw Hill Companies,  Inc., 
August 18, 2008.  The Top International  Contractors list ranks firms on the basis of revenues they earned doing 
work outside their home countries.  Part of this surge is due to currency fluctuations: namely the rise of the 
Euro, Japanese yen and several other currencies against the dollar in 2007. S/C/W/302 
Page 18  
 
  Table 4:    The Top 20 International Contractors in 2007 
              
(Based on contracting revenue from projects outside the home country) 
2007 2006 Firm International TotalGeneral 
BuildingManu   
facturingPowerWater 
SupplySewer/ 
WastePetroleum 
IndustryTransportHazardous 
WasteTelecoms
1 1 HOCHTIEF AG, Essen, 
German y†21,313 23,861 89.3% 32,436 48 1 2 4 2 2 19 0 5
2 3 VINCI, Rueil-Malmaison, 
France † 14,685 41,716 35.2% 42,688 20 0 5 2 0 6 55 0 3
3 2 SKANSKA AB, Solna, 
Sweden † 13,982 18,547 75.4% 21,705 61 0 1 1 4 4 27 0 1
4 4 STRABAG SE, Vienna, 
Austria †12,689 15,797 80.3% 17,925 35 10 0 3 0 8 40 0 4
5 5 BOUYGUES, Paris, France† 12,090 32,062 37.7% 38,947 25 0 6 1 2 0 63 0 0
6 6 BECHTEL, San Francisco, 
Calif. , U.S.A. † 11,742 17,696 66.4% 17,458 0 0 0 0 0 70 29 0 0
7 ** SAIPEM, San Donato 
Milanese , Italy† 11,339 11,757 96.4% 16,455 0 0 0 0 0 100 0 0 0
8 7 TECHNIP, Paris la Defense, 
France † 9,843 10,004 98.4% 9,865 0 0 0 0 0 100 0 0 0
9 9 BILFINGER BERGER AG, 
Mannheim , German y† 8,475 12,642 67.0% 15,456 22 0 6 0 2 25 45 0 0
10 12 BOVIS LEND LEASE, 
Millers Point, NSW, 
Australia † 8,011 9,649 83.0% 12,752 38 0 0 0 0 2 1 0 0
11 10 FLUOR CORP., Irving, 
Texas , U.S.A. † 7,940 13,332 59.6% 22,590 7 0 2 0 0 88 0 0 3
12 11 ROYAL BAM GROUP NV, 
Bunnik , The Netherlands † 7,007 12,275 57.1% NA 45 0 0 0 0 0 52 0 0
13 22 FCC, FOMENTO DE 
CONSTR. Y CONTRATAS 
SA, Madrid , Spain†6,855 19,047 36.0% NA 32 0 3 3 4 0 55 1 2
14 20 BALFOUR BEATTY PLC, 
London , U.K. † 6,469 14,986 43.2% 11,500 61 0 6 1 1 1 31 0 0
15 8 KBR, Houston, Texas, 
U.S.A. † 6,319 7,159 88.3% 4,469 2 0 0 0 0 17 0 0 0
16 13 CONSOLIDATED 
CONTRACTORS GROUP, 
Athens , Greece † 5,471 5,471 100.0% 6,248 8 0 0 4 2 82 3 0 0
17 16 CHIYODA CORP., 
Yokohama , Japan† 4,606 5,303 86.9% 1,921 0 0 0 0 0 100 0 0 0
18 14 CHINA 
COMMUNICATIONS 
CONSTRUCTION GROUP, 
Beijing, China†4,178 20,005 20.9% 30,859 9 0 1 1 1 2 86 0 0
19 17 GRUPO ACS, Madrid, 
Spain† 3,653 23,130 15.8% N.A. 0 0 32 0 9 34 23 0 2
20 21 CONSTRUTORA 
ODEBRECHT, Sao Paulo, 
Brazil † 3,423 4,950 69.2% 14 0 8 19 6 8 45 0 0 0Markets (Percentage of 2007 international revenue) Rank in 2007 Revenue (US$ Million)Percentage of 
Intl. Revenue 
in Total 
RevenueNew 
Contracts in 
2007 (US$ 
Million)
 
Source:    
Reprinted courtesy of Engineering News-Record, copyright The McGraw Hill Companies,  Inc., August 18, 
2008.  All rights reserved. 
Notes:  
- Companies are ranked according to construction reve nue generated outside of each company's home 
country in 2007 in US$ millions.  Firms not ranked the year before are designated by **.   
- General Building : commercial buildings, offices, stores, ed ucational facilities, government buildings, 
hospitals, medical facilities, hotels, apartments, housing, etc. 
- Manufacturing : auto assembly, electronic assembly, textile plants. 
- Power : thermal and hydroelectric power plants, waste-to-energy plants, transmission lines, substations, 
cogeneration plants, etc. 
- Water supply : dams, reservoirs, transmission pipelines, distribution mains, irrigation canals, desalination 
and drinking water, treatment plants, pumping stations, etc. 
- Industrial process : pulp and paper mills, steel mills, non-ferrou s metal refineries, pharmaceutical plants, 
chemical plants, food and ot her processing plants, etc. 
- Petroleum : refineries, petrochemical plants, offshore facilities, pipelines, etc.  
- Transportation : airports, bridges, roads, cana ls, locks, dredging, marine facilities, piers, railroads, tunnels, 
etc. 
- Hazardous waste : chemical and nuclear waste treatment, asbestos and lead abatement, etc. 
- Telecommunications : Transmission lines and cabling, towe rs and antennae, web hotels, etc.  S/C/W/302 
 Page 19 
 
 
  48. The ranking of construction firms according to their global contracting revenue, both at home 
and abroad, makes it even more obvious that 'mega firms' are no longer the preserve of Europe, the 
United States and Japan.  Among the 20 biggest constr uction companies in the world in 2007, 9 came 
from the EC (France, Germany, Sp ain, Sweden and Austria), 5 from China, 4 from Japan and 2 from 
the US.33  The top global contractors from China were: China Railway Group Ltd (third largest 
construction firm worldwide in 2007) , China Railway Construction Corp. (4th), China State 
Construction Engineering Corp. (7th), China Communications Construction Grp. (8th) and China 
Metallurgical Group Corp.  Among these firms, Beiji ng-based China State Construction Engineering 
Corp. achieved the biggest initial public offering (IP O) so far in 2009, raising US$7.34 billion at the 
Shanghai Stock Exchange with a huge amount of subscriptions in July.34   
49. The Top 225 international contractors' shares of the world market are shown in Table 5.  
Based on the sample at hand, European, Nort h-American, Japanese and Chinese firms together 
accounted for 87 per cent of the international cont racting market.  For each region – Middle East, 
Asia, Africa, Europe, US, Cana da and Latin America/Caribbean – the top three contractor 
nationalities doing work there are indicated in bold.  In the Middle East, for example, European, US 
and Japanese firms seem to do par ticularly well.  In Asia, European, Chinese and US international 
contractors are quite present.  In Africa , European and Chinese firms seem particularly successful.
                                                      
33 ENR's Top Global  Contractors list ranks firms on the basis of their total contracting revenue, both at 
home and abroad.  Source: Engineering News-Record, The McGraw Hill Companies,  Inc., August 18, 2008.   
34 The Wall Street Journal,  24-26 July 2009, p. 21; and Le Temps , 25 July 2009, p. 21.  China State 
Construction built signature buildings such as the 'Water Cube' used for the 2008 summer Olympics.  It also built Disneyland in Hong Kong, and the 492-meter high Shanghai World Financial Centre.    
  S/C/W/302 
Page 20 Table 5:   Top 225 International Contractors' Shares of the World Market, 2007 
 
Contractor 
nationalityNb o f 
firms
Million 
US$% Million 
US$% Million 
US$% Million 
US$% Million 
US$% Million 
US$% Million 
US$% Million 
US$%
AMERICAN 35 42,735 13.8 13,843 22.0 8,186 14.8 1,957 6.8 9,684 10.0 -- 5,526 66.7 3,540 16.7
CANADIAN 3 2,767 0.9 22 0.0 0 0.0 0 0.0 304 0.3 2,401 6.5 -- 40 0.2
EUROPEAN 64 179,577 58.0 26,669 42.4 23,268 42.0 13,660 47.8 75,311 78.0 25,211 68.3 2,562 30.9 12,897 60.7
British 4 11,310 3.6 2,466 3.9 2,519 4.5 139 0.5 2,721 2.8 3,445 9.3 2 0.0 19 0.1
German 5 32,088 10.3 652 1.0 13,383 24.2 933 3.3 6,676 6.9 9,683 26.2 247 3.0 514 2.4
French 5 38,695 12.5 5,409 8.6 2,941 5.3 4,364 15.3 19,288 20.0 3,246 8.8 1,689 20.4 1,758 8.3
Italian 22 25,342 8.2 7,552 12.0 3,115 5.6 5,774 20.2 4,221 4.4 676 1.8 444 5.4 3,559 16.7Dutch 2 6,756 2.3 0 0.0 59 0.1 35 0.1 6,091 6.3 571 1.5 0 0.0 0 0.0
Spanish 11 25,161 8.1 2,681 4.3 519 0.9 886 3.1 13,451 13.9 1,635 4.4 6 0.1 5,984 28.1
Other 15 40,225 13.0 7,909 12.6 733 1.3 1,528 5.3 22,862 23.7 5,955 16.1 173 2.1 1,065 5.0
AUSTRALIAN 4 10,115 3.3 259 0.4 1,963 3.5 0 0.0 2,945 3.1 4,806 13 141 1.7 2 0.0
JAPANESE 16 23,859 7.7 8,575 13.6 7,685 13.9 1,150 4.0 1,960 2.0 3,422 9.3 9 0.1 1,057 5.0
CHINESE 51 22,678 7.3 3,482 5.5 9,177 16.6 7,696 26.9 991 1.0 389 1.1 45 0.5 898 4.2
KOREAN 11 8,016 2.6 4,062 6.5 2,235 4.0 850 3.0 265 0.3 476 1.3 0 0.0 128 0.6
TURKISH 23 8,506 2.7 2,074 3.3 1,377 2.5 956 3.3 4,099 4.3 0 0.0 0 0.0 0 0.0
ALL OTHERS 18 11,532 3.7 3,910 6.2 1,509 2.7 2,327 8.1 891 0.9 201 0.5 0 0.0 2,694 12.7
ALL FIRMS 225 309,783 100.0 62,895 100.0 55,400 100.0 28,596 100.0 96,449 100.0 36,906 100.0 8,281 100.0 21,257 100.0Europe U.S. CanadaLatin Am. 
/CaribbeanInt’l billings Middle East Asia Africa
 
 
Excluding: Antarctic/Arctic - $84.0 million; Unassigned - $380.0 million. 
Source:  Reprinted  courtesy of Engineering News-Record, copyright The McGraw Hill Companies,  Inc., A ugust 18, 2008.  All rights reser ved. 
  S/C/W/302 
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  D. PERFORMANCE OF DEVELOPING COUNTRIES  
50. Several developing and emergi ng economies have developed hi ghly competitive construction 
sectors which have become regional and sometimes ev en global exporters:  e.g. China, Argentina, 
Brazil35,  Colombia, Egypt, Hong Kong, India, Philippines, South Africa, Vietnam, etc.36  Back in 
1965, the Korean Hyundai Engineering and Co nstruction Company began overseas construction 
activities in Southeast Asia.  By the 1970s this firm, as well as other Korean firms, had extended 
overseas construction operations to  other developing countries in the Middle East, Pacific Region and 
Africa.  By the late 1970s, their long experien ce in construction, both in domestic and foreign 
markets, enabled them to further broaden the geographical scope of their activities and bid for 
contracts worldwide, notably in North Amer ica, the Middle East and Southeast Asia.37  
51. Subcontracting has proved to be a major en try point to the international market for 
construction firms from developing countries.  They also have increasingly joined forces under ad-
hoc cooperation agreements with companies of de veloped countries, built around specific projects.  
Equally important are South-South and regional trade,  which tend to offer great potential for 
specialisation and efficiency gains.  South-Sout h inter-firm cooperation/consortia – where both the 
host country firm and the exporting firm are from developing countries – have multiplied to jointly 
tap international project financi ng and implement a given project.38    
V. GATS COMMITMENTS AND MFN EXEMPTIONS39 
52. During the Uruguay Round of trade negotiations , a working group on construction services 
and engineering services was created to discuss the applicability to the construction and engineering 
sector of the basic concepts developed for the services  agreement.  Three meetings were held between 
June and October 1990.40  Some specificities of the sector identified in the meetings were the 
relevance of transparency, movement of pers onnel across borders, moveme nt of equipment and 
material, movement of capital, transfers of tec hnology to developing countries, and the importance of 
government procurement.  Two draft proposals we re made for an annex on this sector by the 
European Communities and Korea.41  It was decided in the end that no sector-specific provisions or 
annotations were necessary for the construction and engineering sector. 
                                                      
35 The negotiating proposal by Brazil (S/CSS/W/113 of  5 October 2001) points out in its paragraph 7 
that "Some developing countries have attained competitive advantage in this sector and have started to export 
construction and related services". 
36 Some least-developed countries also have been able to export construction and related services 
successfully. ATEPA Technologies from Senegal (www.ate pa.com) provides architect ural, engineering, and 
construction services and is the leader in its field in West  Africa.  It gets three quarters of its revenues from 
exports – the first Senegalese architectural firm to have done so – with contracts in Equatorial Guinea, Gabon, and Congo. 
37 Tolentino, P. E. (1993), pp. 357-8. 
38 UNCTAD (2000a), p. 5. 
39 The following analysis of existing commitments un der the GATS is based in part on information 
generated by the electronic database developed by the Secretariat.  Commitments under the GPA are not 
described, but all GPA signatories have made commitments  in construction services, most of them covering all 
construction services belonging to CPC Division 51. 
40 Minutes of these meetings are availa ble in documents MTN.GNS/CON/1 to /3. 
41 These proposals were contained in documents MTN.GNS/CON/W/1 and W/2. S/C/W/302 
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  A. O
VERVIEW  
53. As of August 2009, as a result of the Urugua y Round and subsequent accessions, a total of 
90 governments  (counting EC Member States individually; or 79 schedules counting EC-12 as one) 
have made commitments in at least one of the five  sub-sectors of construction and related engineering 
services (Annex Table 5).  This represents roughly 60 per cent of all WTO Members and includes 
twelve least-developed countries.42  Since the previous Secretaria t Background Note, in June 1998, 21 
recently acceded Members have contributed commitments in this sector, covering in several cases all five sub-sectors.   
54. Forty-two schedules (counting EC-12 as one) co ver all five sub-sectors of construction 
services, while eight schedules are limited to one sub-sector only (two from least-developed countries 
and six from developing countries).  The average is  four sub-sectors per schedule.  The sub-sectors 
most commonly covered are general construction work  for civil engineering (CPC 513, included in 70 
schedules), closely followed by general constructi on work for buildings (CPC 512, 68 schedules) and 
installation and assembly work (CPC 514+516, 67 schedules).  The lowest number of commitments 
concerns 'other services' (53 schedules).  Within  the sub-sectors scheduled, however, coverage is 
sometimes quite limited.   
55. With regard to the level of commitments , a distinction may be made between full 
commitments (no limitations other than minor horizon tal ones, which do not directly affect the supply 
of construction services as such), partial commitme nts (those made with certain limitations), and no 
commitments (unbound).
43  Table 6 in the Annex summarises the findings by sub-sector and mode of 
supply.   
B. MODAL DISTRIBUTION OF COMMITMENTS  
56. Most of the commitments focus on mode 3, in recognition of the need – and often the 
regulatory requirement – for the supplier to establish at  or near the construction site in order to supply 
the service.   
57. By comparison commitments on mode 1 appear to  be negligible, except in the engineering 
design phase.   Table 6 in the Annex reveals some varia tion across WTO Members in handling this 
mode.  Roughly half of the schedules consider mode 1 as technically unfeasible for physical 
construction ("unbound*").  Nonetheless, several  of these schedules take mode 1 commitments on 
related professional services such as design, or on specific sub-sectors such as CPC 5111 or 5114.  A 
number of countries, however, do commit mode 1, in some cases without restrictions.  Others still 
mark mode 1 as "unbound", which might indicate a stronger hesitation to undertake commitments as 
compared to those Members that referred to feasi bility-related constraints.  The latter may change 
over time.  With advanced communications system s, blueprints and designs can be transmitted 
electronically, and possibly certain pre-erection wo rk such as site investigation may be conducted 
cross-border.  Furthermore, given the interrelati onship with architectural, engineering and related 
advisory and project management services, mode  1 commitments in these services could be all the 
more relevant.44   
                                                      
42 Burundi (5 sub-sectors), Cambodi a (5), Democratic Republic of Co ngo (2), Gambia (1), Haiti (4), 
Lesotho (4), Malawi (5), Nepal (29), Sierra Leone (5), Solomon Islands (2), Togo (1), and Zambia (5). 
43 Such a broad categorization of co mmitments is necessarily very crude and, thus, only gives a rough 
indication of the level of commitments made.  In practic e, for example, a "partial"  commitment could be very 
close to a full commitment if the limitation maintained is minor. 
44 Regarding advisory services related to cons truction, see http://www.infrastructureworld.com .  
InfrastructureWorld LLC is an international investment and advisory firm providing strategic and 
implementation advice on the development of major infrastructure projects.  S/C/W/302 
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  58. Finally, given that the supply  of construction services frequently involves large movements of 
workers at different skill levels, including low-skille d workers, it is particularly significant that 
mode 4 usually has a lower level of commitments than the other modes.  Barriers are also related to the lack of recognition of qualifications of professi onally qualified personnel, as well as citizenship or 
residency requirements (see also Subsection D. hereafter).         
C. R
ESTRICTIONS AFFECTING MODE 3 
59. Regarding mode 3, a commonly observed market access restriction affecting the sector are 
measures requiring local incorporation as a particular type of legal entity – thus hampering temporary, 
project-based presence.  Requirements to have a local partner as a condition for the supply of construction services, and limitations on foreign equity  participation also are frequent.  For example, a 
number of schedules allow commercial presence only in  the form of joint-venture companies with a 
local partner, with foreign capital not exceeding 30, 49, 50 or 51 per cent as the case may be; or as a subcontractor of local service suppliers.  In certa in instances, the local incorporation requirement 
applies only to key infrastructural sectors, or only to certain geographical s ub-divisions of a given 
State.  Only one Member has included an explicit commitment on short-term presence by specifying 
in its horizontal section, under market access, that  "Building projects with a duration of less than a 
year are excepted from the requirement of est ablishing a branch or appointing a resident 
representative".   
60. A number of schedules list prior approval requirements by the government or local 
authorities.  Some of these approval requirements are discretionary, rendering the right to supply the 
service uncertain.  Others contain various types of economic needs test: for instance limitations 
stipulating that only projects which cannot be ha ndled by domestic contractors alone can be 
undertaken jointly with foreign suppliers.  In other cases, approval is made subject to local content or 
local use requirement s such as: the preferential use of local ser vices or service suppliers to the extent 
they are available (compulsory subcontract systems), employment of local staff, or local procurement of materials.  Other unspecified prior appr oval requirements may be of a non-discriminatory 
regulatory nature, if they aim to ensure the technical  and/or financial capacity of the contractor, or the 
quality of the service.  For instance, a few schedules list minimum capital outlay and foreign equity 
requirements as licensing or registration/certificat ion criteria under 'market access'.  As regards 
minimum requirements, qualification rating systems constitute an interesting case in point.  They 
restrict the eligibility to bid – usually for capital-inte nsive or technically highly complex contracts – to 
those companies with a given financial and/or techni cal capacity and track record.  It is not always 
clear whether such systems are applied in an obj ective and non-discriminatory manner – in which case 
they may not need to be scheduled at all –, or whether they are applied in a way as to limit foreign 
entry, thus restricting market access. 
61. Another category of common market access probl ems relates to public utilities.  Construction 
services supplied to the public sector or in collabora tion with public sector enterprises are frequently 
subject to concessionary regimes.  In general, the higher the government involvement the more 
stringent market access and national treatment restri ctions become.  Construction links back to a 
number of key infrastructural and capital-intensive sectors that have traditionally been subject to 
significant government involvement and intervention,  such as mining, petrol eum and petrochemicals, 
public highways, railways, public water systems and other utility distributions systems.  Several 
countries restrict market access by granting exclus ive rights for the construction, maintenance and 
management of key infrastructural projects, such as highways and airports.  A couple of countries 
have excluded construction work re lated to mining (or other sub-sectors such as pipelines) from their 
commitments in the sector column.  As seen in S ubsection II.B, construction companies at times like 
to hold an equity stake in a project they undertak e.  This may prove more difficult when the project 
pertains to a public utility sector.  A few schedules stipulate under market access that investments in 
public utilities generally are subject to a concessi on or some other form of unspecified prior 
authorisation.   S/C/W/302 
Page 24  
 
  62. A few schedules subject (foreign) construction companies that supply services to or within the 
public sector to nationality condition for members of the board of directors, or to stricter certification 
and registration requirements.  In case of collaborat ion with public sector enterprises or government 
undertakings, preference in access is sometimes given to service suppliers which offer the best terms 
for technology transfer, research and developm ent programs, or training of local manpower. 
63. In the context of infrastructural facilities a nd services, concessions in the form of Build-
Operate-Transfer (BOT) or Public-Private Partne rship (PPP) contracts between a government entity 
and a commercial enterprise, are often resorted  to.  The question arises whether these types of 
contracts are to be considered a form of governme nt procurement or not.  These issues have been 
discussed by the Working Party on GATS Rules and the Working Group on Transparency in 
Government Procurement.
45  A couple of schedules subject the participation of foreign contractors in 
purchases by governmental entities or in concessions to an economic needs test, prior written permission and/or other conditions such as technolog y transfer and the obligation to employ a given 
percentage of nationals.  
64. Restrictions on the ownership of land by fo reigners are normally applied to all sectors 
(horizontal limitation), but may have a strong e ffect on the construction industry, since property 
developers will not be able to own apartmen ts and houses under construction until completion.  
Finally, subsidies and tax incentives are provided by  a number of countries to promote their domestic 
construction sector including its exports.  Several schedules include national treatment limitations for 
subsidies granted to local suppliers only.   
D. R
ESTRICTIONS AFFECTING MODE 4 
65. A large majority of Members has scheduled th eir mode 4 limitations uniformly across all 
sectors.46  With its extensive use of skilled and unski lled labour, the construction sector is strongly 
affected by restrictions on the movement of natu ral persons, such as labour market tests, nationality 
and residency requirements, training requirements for local staff, and the like.  A few schedules also make reference to licensing, accreditation or prior permit requirements as well as to constraints 
concerning the recognition of (forei gn) technical and professional qualif ications.  The latter, however, 
are less common than in the case of professional services.    
66. Only two schedules include commitments rega rding contractual service suppliers and/or 
independent professionals in relation to the co nstruction sector: EC-12 on contractual service 
suppliers for services contracts obtained in construc tion services or site investigation work, and Saudi 
Arabia regarding contractual service suppliers and independent professionals in the field of 
construction and related engineering services.  In cidentally, the supply of construction services – 
notably in the oil and gas, and chemical process i ndustries – often implies the installation of complex 
and expensive equipment and machinery, which may re quire the presence of specialized experts, such 
as installers and maintainers.      
E. MFN
 EXEMPTIONS  
67. There are very few MFN exemptions specific to the construction sector.  However, some 
Members provide preferential treatment to suppliers  from neighbouring countries, such as preferential 
short-listing in international competitive bidding .  Horizontal MFN exemptions concerning the 
movement of personnel, research a nd development subsidies, and forei gn investment could also affect 
this sector significantly. 
                                                      
45 See for instance Job(00)/5657 of 20 September 2000 and the Background Note by the Secretariat 
entitled "Interpretation of Procurement-Related Provisions  in GATT: Possible Application to Article XIII of 
GATS" of 31 March 1999 (S/WGPR/W/29). 
46 See the Background Note on Presence of Natural Persons (Mode 4).   S/C/W/302 
 Page 25 
 
 
  VI. TRADE AND REGULATORY ENVIRONMENT 
A. TRADE BARRIERS  
68. Given its intensive use of (notably low-to-m edium skilled) labour, materials and capital, the 
construction sector is subject to a wide range of 'm easures by Members', whether in the form of a law, 
regulation, decision, administrative action, or any other form.  Barriers to the movement of any one of 
these factors of production can significantly affect trade in construction services.  Labour , i.e., the 
movement of foreign natural pers ons supplying services, may be subject to labour market tests, 
quotas, nationality, residency or other staffing requi rements, even for project-related work of short 
duration.  In some cases short-term contracts for construction workers are not permitted at all.  As 
regards qualified personnel, non-recognition of thei r qualifications, or overly burdensome/costly 
qualification requirements and procedures to ac hieve such recognition emerge as prominent 
constraints.  Construction equipment and materials  (raw material, finished and semi-finished 
products) often have to comply with a variety of national technical specifications and standards that 
are not always internationally harmonised.  Sometimes they face import restrictions; or goods imported on a temporary basis, such as machinery and specialty equipment, are not released from the 
payment of import duties and taxes.  Finally, capital  may be subject to manifold restrictive measures 
– as already noted in Subsection V.C.  These range from exclusive rights, limitations on the type of 
commercial presence, foreign equity restrictions – either specific to the construction sector or horizontal – to restrictions on currency exchange, tran sfer of funds between projects or repatriation of 
profits.  Economic needs tests, local content requi rements (on either the personnel or materials), 
compulsory subcontracting of a given amount of the contract value, and high registration fees 
complete the picture.       
Government Procurement and Subsidies 
69. In light of the importance of public procur ement for construction services (Subsection III.B), 
regulations and practices adopted in this area are likel y to have a particularly strong impact on trade in 
the sector.  Foreign providers may be affected by a variety of measures: price-based, procedural, 
transparency-related (e.g . with respect to the criteria of awarding contracts), etc.  It is recalled that the 
GATS explicitly exempts laws, regulations or re quirements governing government procurement from 
the application of Articles II, XVI and XVII, and th at government procurement of services is currently 
being negotiated subject to the mandate in Article XIII.
47  This being said, many of the above-
mentioned issues are relevant also for con cession contracts, Build-Operate-Transfer (BOT), 
management or other types of Public-Priva te Partnership (PPP) arrangements.     
70. Subsidies such as direct financial aid, whether for R&D costs or investment, export credits for 
feasibility studies and subsequent project stages, government guarantees for bank loans, tax exemptions and public risk-sharing – if granted only to national providers – can have a bearing on the 
provision of construction and related services.  Tied aid might be added to this list.   
B. 
REGULATORY ISSUES  
Licensing and Qualification Requirements and Procedures, Technical Standards 
                                                      
47 One may recall that the Agreemen t on Government Procurement (GPA) also contains a provision in 
Article III:3 that the national treatment and non-discrimi nation principles shall not apply to measures affecting 
trade in services other than laws, regulations, procedures and practices regarding government procurement 
covered by the GPA. S/C/W/302 
Page 26  
 
  71. Firms attempting to participate in foreign markets for construction services must conform 
with numerous domestic regulations.  These include c ontrols on land use and urban planning; building 
regulations and technical requireme nts; building permits and inspecti ons; registration of proprietors, 
contractors and professionals; regulation of fees a nd remunerations; health, safety and environmental 
regulations; etc.  Licensing is prevalent and, especi ally for more complex projects, construction firms 
have to comply with pre-qualification standards (a lso referred to as qualification rating systems, see 
Subsection V.C) regarding their financial and/or technical capacity and track record.  Domestic 
regulatory measures would normally be applied in  a non-discriminatory manner, based on objective 
criteria. 
72. Difficulties for foreign service suppliers may be created not only by the nature of the 
restriction, but also by the fact that the required permits and licenses are granted by many different 
government authorities at a variety of levels, or even by industry associations.  These may not always welcome foreign competition in the market or may not be sensitive to the trade effects of regulation.  
The lack of transparency concerning the rules that apply, as well as certain informal business practices 
and, possibly, collusion of establis hed suppliers with local authorities, could hamper market access.  
Competition policy is relevant, as the sector has often given rise to anti-competitive behaviour and 
practices in the past. 
VII. CONCLUDING REMARKS 
73. The international construction sector – consisting typically of large-scale, technologically 
sophisticated, so-called 'big ticket' projects, often undertaken by specialized international contractors 
with local sub-contracting – is increasingly global.  In 2007, EC-27, Japan and the United States 
jointly accounted for over 70 per cent of world construction exports on a BOP basis (including intra-
EC trade).  Nonetheless, several developing and emerging economies have built up highly competitive 
construction sectors, which have become regional and even global  exporters, notably China, the 
Russian Federation, Malaysia, Egypt, Turkey, Indi a, Singapore, Argentina, Brazil, Colombia, Hong 
Kong (China), Philippines, South Africa, Vietnam,  etc.  It is thus not surprising that interest among 
both developed and developing  Members for new and better commitm ents on construction and related 
engineering services is a notable feature of the Doha Development Agenda  negotiations.      
74. Subcontracting has proved to be a major en try point to the international market for 
construction firms from developing countries.  Subcontracting, as well as ad hoc  cooperation projects 
with companies from developed countries built around specific projects, offer contractors from developing countries potential for acquiring know-how, further specialisation and productivity gains.  
Furthermore, since the construction sector is a major purchaser of materials from many other 
industries, it potentially generates significant feedbacks throughout the national economy of a host state.  This is evidenced, for instance, in Anne x Table 3c, which shows the expenditures on goods and 
services (local procurement of materials and local  subcontracting) by EC contractors in the host 
economies where they perform work (shaded area "B") .  There clearly is also considerable South-
South trade taking place in construction and related engineering services.   
75. Albeit construction services were considered a relatively open sector as a result of the 
Uruguay Round and subsequent accessions, substantial trade barriers remain, as seen in Sections V 
and VI.  Some may be addressed in market access nego tiations, while other are more closely related to 
the ongoing rule-making agenda.  Relevant topics include:  
(i) The evolution of market access and national treatment conditions.    
• A greater role for mode 1?   As argued in Subsection II.B, design and production are 
becoming increasingly integrated.  Construction services are more and more 
performed as a collaborative process,  requiring permanent communication between  S/C/W/302 
 Page 27 
 
 
  contractor, subcontractor and client/own er.  Information technologies are key to 
making these new procurement and business models work.  With advanced communications systems, more and more design- and conception-related services can be conducted cross-border.
48  
• Improvements under mode 3?  Potentially relevant issues include local 
incorporation requirements (which hamper temporary, project-based presence); 
requirements to have a local partner and/or limitations on foreign e quity participation; 
unspecified prior approval requirements; econo mic needs tests;  local content or local 
use requirements;  references to minimum capital outlay and foreign equity 
requirements as licensing or registration/certification criteria;  market access problems linked to public utilities;  a nd discriminatory subsidies. 
• A particular concern: access under mode 4.  Improved conditions for the movement 
of staff, including for project-related work of short duration, is a widely shared objective of the industry.  Horizontally applicable policies restricting the temporary movement and presence of natural persons , as enshrined in labour and related 
legislation, may have a much stronger impact on this sector than on many other services.  This also raises the question whether and to what extent mode 4-related 
limitations (and, of course, the underlying  policies) ought to be tailored to the 
conditions of particular sectors.  
(ii) Domestic regulation, including the interaction between commitments and possible 
future regulatory disciplines under GATS Article  VI:4.  Large parts of the construction 
process as the well as the final product, which is  physical in nature, are located in the host 
country.  Domestic regulation is thus param ount.  In addition to regulatory content, 
compliance with due-process obligations and transp arency disciplines are key to ensure that 
scheduled access conditions translate into effective opportunities for foreign market 
participation.   
                                                     
 
48 Engineering News-Record, for instance, reports that the oil, gas and chemical process industries have 
been successfully using virtual design  and construction for more than thir ty years to make sure that all 
engineering and procurement specifications  are correct.  This must be ensured before construction begins on the 
enormous, complex and expensive facilities the industry requires.  Source: Engin eering News-Record (ENR) 
Insider, "Virtual Design and Construction: Digita l-Modelling Veterans Want Data For Life Cycles", 
9 August 2009. S/C/W/302 
Page 28  
 
  ANNEX 
 
Table 1:     Share of Construction Value-Added in GDP, 2000-2007  
Percenta ge
2000 2001 2002 2003 2004 2005 2006 2007
World 5.4 5.4 5.4 5.3 5.4 5.5 5.6 5.6
Albania 8.3 10.4 12.0 13.7 13.9 14.3 14.8 14.8
Angola 2.8 3.7 3.5 3.6 3.8 3.2 3.6 3.5Antigua and Barbuda 11.9 12.6 12.9 13.2 12.9 15.1 19.2 15.7Argentina 5.0 4.5 2.6 3.3 4.2 4.9 5.8 4.1A r m e n i a 1 2 . 41 1 . 71 5 . 31 8 . 81 6 . 72 1 . 22 6 . 42 8 . 0Australia 5.4 5.9 6.3 6.8 7.0 7.0 7.4 7.1Austria 7.9 7.5 7.5 7.7 7.6 7.6 7.7 7.6Bahrain 3.2 3.7 3.9 3.5 3.8 4.2 4.4 4.1Bangladesh 7.7 7.9 8.0 7.9 7.9 8.2 8.2 8.1Barbados 5.9 5.2 5.6 5.4 5.6 5.5 5.5 5.6Belgium 5.0 4.9 4.8 4.9 4.8 4.8 5.0 4.9Belize 5.6 5.4 5.3 4.2 4.3 4.1 3.9 4.1
Benin 4.1 4.1 4.2 4.4 4.5 4.5 4.5 4.6
Bolivia 3.3 3.0 3.4 2.6 2.4 2.6 2.9 3.0Botswana 6.0 5.7 5.6 5.7 5.6 5.1 4.7 4.5Brazil 5.5 5.3 5.3 4.7 5.1 4.9 6.1 5.2Brunei Darussalam 3.0 3.6 3.7 3.5 3.2 2.6 2.9 2.9Bulgaria 4.6 4.6 4.4 4.4 4.9 5.4 5.9 8.2Burkina Faso 6.4 4.6 5.5 5.8 6.5 6.5 6.8 7.0Burundi 4.5 4.7 4.6 4.8 4.8 5.4 5.0 5.1Cambodia 5.5 5.1 6.2 6.3 6.4 6.7 7.0 7.2Cameroon 2.7 2.9 2.9 2.9 3.2 3.3 3.4 3.3Canada 5.0 5.3 5.4 5.4 5.6 5.5 5.5 5.5Cape Verde 8.2 8.0 8.8 8.3 8.3 9.7 9.6 9.2Central African Republic 4.5 4.6 5.0 4.9 4.9 4.8 4.8 4.8
Chad 1.6 1.5 1.5 1.6 1.2 1.0 1.0 1.1
Chile 7.5 7.8 7.9 7.3 6.6 6.5 6.5 7.3China 5.6 5.4 5.4 5.5 5.4 5.5 5.6 5.7Colombia 3.8 3.7 4.1 4.6 5.5 6.2 7.3 6.3Congo 2.5 3.8 3.7 4.3 4.1 3.4 4.4 4.0Costa Rica 3.9 4.6 4.5 4.4 4.5 4.3 4.8 5.6Côte d'Ivoire 3.0 3.0 3.1 3.0 3.4 4.2 4.6 4.1Croatia 4.6 4.9 5.3 6.3 6.6 6.5 6.8 6.8Cuba 6.4 6.0 5.6 5.5 5.8 6.2 7.0 6.4Cyprus 6.8 6.9 7.4 7.6 8.0 8.2 8.3 8.4Czech Republic 6.5 6.3 6.2 6.4 6.5 6.7 6.4 6.5Democratic Republic of the Congo 4.3 3.7 4.6 4.2 4.1 4.3 4.7 4.4
Denmark 5.5 5.2 5.1 5.3 5.5 5.6 5.5 5.5
Djibouti 6.6 6.7 6.8 6.9 7.7 8.3 7.6 7.9Dominica 7.7 7.9 6.3 7.3 7.6 8.7 9.2 8.5Dominican Republic 6.6 5.9 6.4 4.8 4.8 6.1 6.8 7.0Ecuador 7.7 8.5 8.9 8.0 8.8 8.8 8.8 8.8Egypt 4.6 4.5 4.2 4.4 3.6 3.8 3.8 3.8El Salvador 4.5 4.8 4.9 4.9 4.3 4.3 4.4 4.2Estonia 5.6 5.6 5.9 5.8 5.7 6.7 7.4 7.9European Communities (EC-27) 5.6 5.7 5.7 5.7 5.8 6.0 6.2 6.4Fiji 4.3 3.9 4.0 4.3 4.1 5.2 5.4 4.9Finland 5.5 5.5 5.2 5.3 5.4 5.9 6.1 5.8Former Yugoslav Republic of Macedonia (FYROM) 6.6 5.9 5.9 6.2 6.3 6.4 6.5 6.4France 5.2 5.3 5.3 5.3 5.5 5.8 6.3 5.9
Gabon 8.2 7.3 7.3 7.4 7.9 8.9 8.9 8.6
The Gambia 6.3 6.4 7.3 7.2 6.6 6.5 6.8 6.6Georgia 3.9 4.1 5.4 6.7 8.8 9.0 7.8 7.7Germany 5.2 4.8 4.6 4.4 4.2 3.9 4.0 4.0
Ghana 9.0 9.2 9.2 9.3 8.8 8.2 7.6 8.2
  S/C/W/302 
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  Table 1:     Continued (2/3) 
Percentage
2000 2001 2002 2003 2004 2005 2006 2007
Greece 7.0 7.8 7.4 7.9 7.7 7.2 8.6 7.8
G r e n a d a 9 . 9 8 . 4 8 . 3 9 . 71 0 . 21 9 . 61 9 . 81 6 . 6
Guatemala 4.3 4.2 5.0 5.1 5.0 4.9 5.5 5.8
Guinea 11.7 10.1 9.9 9.8 9.7 10.8 12.0 10.8
Guinea-Bissau 2.3 2.4 2.5 2.4 3.0 3.0 3.2 3.1
Guyana 4.9 5.0 4.7 5.0 5.2 6.1 6.4 6.8
Haiti 14.5 14.7 14.9 15.1 15.3 15.4 15.1 15.1Honduras 6.2 5.8 5.3 5.8 5.6 5.4 5.6 5.8
Hong Kong, China 5.0 4.6 4.2 3.8 3.2 2.9 2.7 3.0
Hungary 5.0 5.0 5.2 4.8 4.9 4.9 4.8 4.8
Iceland 8.6 7.7 7.3 7.5 8.4 9.4 8.5 8.8
India 5.8 5.8 6.0 6.2 6.5 6.8 6.9 6.8
Indonesia 5.5 5.7 6.1 6.2 6.6 7.0 7.5 7.0
Ireland 7.5 7.7 7.7 8.1 8.9 9.5 9.9 9.4
Israel 5.5 5.3 5.3 5.3 4.8 4.7 4.9 5.1
Italy 5.0 5.3 5.4 5.6 5.8 6.0 6.1 6.0
J a m a i c a 9 . 2 9 . 6 9 . 7 9 . 51 0 . 21 0 . 41 0 . 01 0 . 2
Japan 7.1 6.9 6.6 6.3 6.4 6.1 6.1 6.2
Jordan 3.9 4.1 4.2 4.1 4.4 4.6 4.7 4.4
Kenya 3.2 3.5 3.5 3.7 4.2 4.6 4.8 4.6Korea, Republic of 8.4 8.6 8.6 9.6 9.3 9.2 9.1 9.2
Kuwait 2.1 2.4 2.6 2.4 2.2 1.9 2.2 2.1
Kyrgyzstan 4.5 4.0 3.7 3.2 2.7 3.0 3.0 3.9
Latvia 6.2 5.6 5.5 5.6 5.8 6.1 7.4 8.4
Lebanon 8.0 8.2 7.6 7.4 7.4 8.2 7.7 7.8
L e s o t h o 1 7 . 71 7 . 31 5 . 61 5 . 01 4 . 21 3 . 51 2 . 71 4 . 2
Liechtenstein 5.3 5.4 5.4 5.5 5.4 5.7 5.6 5.6
Lithuania 6.0 6.0 6.3 7.1 7.3 7.6 8.8 7.9
Luxembourg 5.7 6.2 6.7 6.5 6.2 6.1 5.3 5.9
Macao, China 2.5 2.2 2.6 3.9 3.2 5.4 4.1 4.2
Madagascar 1.8 1.9 1.9 2.1 2.5 3.0 3.7 3.9Malawi 4.0 4.1 4.3 4.3 4.1 4.4 4.2 4.2
Malaysia 3.8 3.9 3.7 3.5 3.2 2.9 2.7 2.7
Maldives 3.1 3.4 3.2 3.4 4.2 5.1 5.1 5.7
Mali 5.7 5.4 5.9 5.3 4.9 4.7 5.0 4.8
Malta 4.1 3.7 4.6 3.7 4.0 3.9 3.9 3.9
Mauritania 6.4 7.5 8.2 8.1 9.2 8.7 8.6 8.8
Mauritius 5.3 5.2 5.4 5.7 5.5 5.3 5.3 5.9
Mexico 5.1 5.0 5.0 5.2 5.4 5.3 5.6 5.4
Moldova 3.0 3.4 3.3 3.4 3.9 3.9 4.6 5.6
Mongolia 1.9 2.0 2.5 3.4 2.6 2.3 1.8 2.5
Morocco 4.9 5.2 5.2 5.5 6.1 6.2 5.9 6.1
Mozambique 8.8 8.1 3.8 3.7 3.2 3.2 3.3 3.2
Myanmar 1.8 2.2 3.3 3.9 3.9 3.7 3.9 3.8Namibia 2.2 3.1 2.4 3.3 3.3 3.4 4.0 3.3
Nepal 6.0 6.5 6.5 6.4 6.5 6.5 6.4 6.5
Netherlands 5.6 5.7 5.7 5.5 5.4 5.4 5.5 5.4
Netherlands Antilles 5.3 4.6 5.4 5.5 5.3 5.4 5.4 5.4
New Zealand 4.3 4.4 4.6 5.0 5.5 5.0 5.2 5.2
Nicaragua 6.8 7.0 5.6 5.4 5.9 6.5 6.2 6.8
Niger 2.4 2.5 2.5 2.5 2.7 2.5 2.5 2.5
Nigeria 0.7 0.9 0.7 0.7 1.5 1.5 1.3 1.4
Norway 4.1 4.2 4.5 4.4 4.6 4.4 4.6 5.2
Oman 1.9 2.0 2.1 2.3 2.8 2.4 2.5 3.0
Pakistan 2.4 2.3 2.2 2.2 2.5 2.4 2.5 2.5
Panama 5.1 4.0 3.6 4.8 4.9 4.7 5.1 5.2
 S/C/W/302 
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  Table 1:     Continued (3/3) 
Percentage
2000 2001 2002 2003 2004 2005 2006 2007
Papua New Guinea 5.6 7.0 8.8 9.2 9.6 8.5 8.8 9.0
Paraguay 5.0 5.0 4.9 5.4 5.1 5.1 5.2 5.1
Peru 5.9 5.7 5.9 5.9 5.9 6.0 6.2 6.0
Philippines 6.5 4.9 4.8 4.5 4.4 3.9 3.9 4.4
Poland 7.7 7.0 6.3 5.8 5.5 6.0 6.6 6.0Portugal 7.6 7.8 7.6 7.1 7.1 6.9 6.6 6.8
Qatar 3.5 4.5 5.0 5.3 5.5 5.5 5.7 6.2
Romania 5.5 5.9 6.4 6.5 6.7 7.3 8.4 7.4
Rwanda 8.9 8.5 8.1 6.2 6.9 7.0 6.7 6.9
S a i n t  K i t t s  a n d  N e v i s 1 5 . 11 6 . 61 6 . 01 3 . 61 3 . 41 2 . 41 2 . 71 2 . 8
Saint Lucia 7.5 7.3 6.9 6.3 6.2 7.3 8.5 9.2
Saint Vincent and the Grenadines 10.6 11.1 10.7 11.1 11.8 11.5 13.1 12.1
Saudi Arabia 5.9 6.2 6.3 5.8 5.4 4.6 4.5 4.8
Senegal 4.6 4.0 4.4 4.5 5.0 4.9 5.7 5.2
Sierra Leone 1.8 1.8 2.1 2.0 2.0 1.9 1.9 1.9
Singapore 6.0 5.9 5.0 4.5 3.9 3.8 3.7 4.0Slovak Republic 7.1 6.4 7.2 6.1 6.3 6.8 6.9 6.7
Slovenia 5.9 5.5 5.4 5.5 5.4 5.8 6.2 5.9
Solomon Islands 2.8 2.7 2.7 2.8 2.7 2.7 2.7 2.7
South Africa 2.5 2.4 2.3 2.4 2.4 2.5 2.6 2.9
S p a i n 8 . 3 8 . 9 9 . 4 9 . 91 0 . 61 1 . 61 2 . 21 1 . 5
Sri Lanka 7.1 7.1 6.5 6.5 6.5 7.4 7.8 7.8
Suriname 3.6 4.0 3.1 3.4 3.7 3.9 4.0 3.9
Swaziland 6.5 6.2 6.2 6.2 6.3 6.8 6.8 6.6
Sweden 4.0 4.4 4.4 4.3 4.5 4.6 4.5 4.5Switzerland 5.3 5.4 5.4 5.5 5.4 5.7 5.6 5.6
Tanzania (Mainland) 5.0 5.2 5.3 5.5 5.5 5.6 5.5 5.5
Tanzania (Zanzibar) 3.7 4.5 4.7 5.6 6.8 7.1 8.5 7.5
Thailand 3.1 3.0 3.0 3.0 3.0 3.0 3.0 2.9
Togo 2.5 2.5 2.4 2.5 2.8 2.7 3.5 3.0
Tonga 8.9 8.6 8.6 8.0 7.4 7.5 7.6 7.5
Trinidad and Tobago 7.3 7.8 7.2 7.3 7.7 7.4 7.5 7.5
Tunisia 5.3 5.4 5.9 5.9 6.0 6.0 5.8 5.8
Turkey 5.2 5.0 4.1 3.6 3.6 4.5 5.4 4.5U g a n d a 8 . 8 9 . 2 9 . 91 0 . 01 0 . 51 0 . 51 1 . 11 0 . 7
Ukraine 3.9 4.0 3.7 4.2 4.5 4.1 4.3 4.9
United Arab Emirates 6.4 6.7 7.7 8.0 7.4 7.1 7.4 7.3
United Kingdom 5.3 5.6 5.7 5.8 5.9 5.8 5.5 5.7
United States of America 4.5 4.7 4.6 4.5 4.6 4.9 4.8 4.8
Uruguay 5.6 5.1 4.0 3.3 3.4 3.8 4.2 4.1
Venezuela (Bolivarian Republic of) 8.1 10.0 9.5 6.4 6.9 6.9 7.9 7.5
Viet Nam 5.4 5.8 5.9 6.0 6.2 6.4 6.6 6.4
Zambia 5.2 5.9 6.9 7.8 9.6 11.9 14.3 15.8
Zimbabwe 1.9 1.1 0.8 0.8 1.0 2.1 1.2 1.4
 
 
Source:   United Nations Statistics Division, and Eurostat for EC-27.   
Note:    Construction defined as ISIC 45.   S/C/W/302 
 Page 31 
 
 
  Table 2: Share of Construction in  Employment, 2000-2007, percentage 
Rank [a]Economy 2000 2001 2002 2003 2004 2005 2006 2007
1 United Arab Emirates [b]... ... ... ... ... 28.1 ... ...
2 Qatar ... 19.1 ... ... ... ... 23.7 ...
3 Peru 4.2 4.5 23.7 23.9 23.6 23.8 23.4 22.7
4 Cayman Islands ... ... ... ... ... 19.9 18.1 16.1
5 Ireland 10.0 10.5 10.3 10.6 11.2 12.6 13.1 13.4
6 Spain 11.1 11.6 11.9 12.2 12.5 12.4 12.9 13.3
7 Bahamas ... 11.4 11.0 10.0 10.5 11.8 12.4 12.4
8 Macau, China 8.3 8.3 7.5 8.0 8.3 9.6 11.7 12.8
9 Cyprus 9.6 9.8 9.9 10.7 11.7 11.5 11.2 11.8
10 Saudi Arabia 9.0 10.1 10.6 ... ... ... 11.1 10.2
11 Portugal 11.8 11.3 12.0 11.4 10.7 10.8 10.7 11.0
12 Luxembourg 9.8 9.8 9.8 9.8 9.8 9.9 10.5 10.6
13 Jamaica 8.8 8.5 9.4 9.3 10.3 10.1 10.0 ...
14 Lithuania 6.0 6.3 6.6 7.4 8.1 9.0 9.9 11.1
15 Slovakia 8.0 8.0 8.3 9.0 9.5 9.5 9.8 10.1
16 Estonia 6.9 6.8 6.6 7.2 7.9 8.0 9.7 12.3
17 Latvia 6.0 7.1 6.1 7.4 8.5 8.7 9.6 11.2
18 Venezuela, Bolivarian Rep. of 8.0 8.2 8.0 ... ... ... 9.4 9.7
19 Mauritius 9.3 9.3 9.4 9.6 9.7 9.3 9.4 9.5
20 Czech Republic 9.3 9.1 8.9 9.3 9.3 9.6 9.0 9.1
21 Australia 7.7 7.4 7.6 8.0 8.3 8.6 8.9 9.0
22 Egypt 7.9 7.7 7.4 7.4 7.5 8.5 8.9 ...
23 Malaysia 8.6 8.9 9.5 9.5 8.9 9.0 8.8 8.8
24 Argentina 7.9 7.2 6.2 7.1 7.8 8.5 8.8 ...
25 Japan 10.1 9.9 9.8 9.6 9.2 8.9 8.8 8.6
26 New Zealand 6.7 6.1 6.4 7.2 7.6 7.8 8.7 8.5
27 Iceland 6.7 7.2 7.8 6.9 7.4 7.7 8.7 8.9
28 Kyrgyzstan ... ... 3.3 5.3 7.2 7.4 8.7 ...
29 Panama 7.4 7.2 6.8 7.4 8.0 7.7 8.5 9.7
30 San Marino ... 8.5 8.5 8.7 8.7 8.6 8.4 7.9
31 Croatia 6.4 6.6 6.9 8.1 8.2 8.2 8.4 8.8
32 Chile 7.5 7.7 8.0 7.5 8.1 8.0 8.3 8.3
33 Italy 7.6 7.9 8.0 8.2 8.2 8.5 8.3 8.4
34 Austria 9.0 8.9 8.8 8.9 8.1 8.2 8.2 8.2
35 Chinese Taipei ... ... ... ... ... 8.0 8.2 8.2
36 Hungary 7.0 7.1 7.0 7.6 7.9 8.1 8.2 8.4
37 Mexico 6.4 6.1 6.2 6.7 6.3 7.8 8.2 8.4
38 United Kingdom 7.2 7.3 7.3 7.5 7.7 7.9 8.1 8.2
39 Greece 7.2 7.5 7.6 8.1 8.1 8.4 8.1 8.7
40 Malta 6.9 7.7 8.1 7.6 7.2 8.3 8.0 7.4
41 South Africa 5.6 5.7 5.4 5.8 7.1 7.6 8.0 8.1
42 Morocco ... ... 6.8 6.8 6.7 7.1 8.0 ...
43 Korea, Republic of 7.5 7.3 7.9 8.2 8.1 7.9 7.9 7.9
44 Hong Kong, China 9.4 8.9 8.8 8.1 8.0 7.9 7.9 7.9
45 FYR Macedonia ... ... 5.8 6.6 7.0 6.5 7.6 6.4
46 Netherlands Antilles 7.1 ... 7.3 7.1 6.8 7.1 7.5 7.7
47 Denmark 6.8 6.7 6.7 6.7 6.8 7.0 7.2 6.9
48 Ecuador 7.1 6.4 7.0 6.8 6.4 6.6 7.2 ...
49 Norway 6.5 6.7 6.9 7.0 7.0 6.9 7.1 7.4
50 Switzerland 7.2 7.2 7.1 6.9 6.9 7.0 7.0 7.0
51 Dominican Republic ... ... ... 7.1 6.6 6.5 7.0 7.0
52 Costa Rica 6.8 6.9 6.7 6.7 6.5 6.5 6.9 7.9
53 Belgium 6.4 6.4 6.4 6.4 6.6 6.5 6.9 ...
54 France ... ... ... 6.6 6.6 6.6 6.8 6.9
55 El Salvador 5.1 5.4 5.6 6.5 6.4 5.7 6.7 ...
56 Guatemala ... ... ... ... ... ... 6.6 ...
57 Finland 6.3 6.1 6.2 6.3 6.2 6.5 6.6 6.9Share of construction in total employmentS/C/W/302 
Page 32  
 
  Table 2:     Continued (2/3) 
Rank [a]Economy 2000 2001 2002 2003 2004 2005 2006 2007
58 Germany 8.5 7.9 7.5 7.2 6.8 6.6 6.6 6.6
59 Brazil ... ... 7.1 6.5 6.3 6.5 6.5 ...
60 Uruguay 8.5 8.2 7.5 6.7 6.6 6.7 6.4 6.9
61 Poland 7.0 6.7 6.2 5.9 5.7 6.0 6.3 6.9
62 Sweden 5.4 5.5 5.5 5.6 5.7 5.9 6.2 6.4
63 Netherlands 6.1 6.3 6.2 6.0 6.0 6.1 6.2 6.1
64 Pakistan 5.8 5.8 6.1 6.1 5.8 5.8 6.1 6.6
65 Serbia ... ... ... ... 5.2 6.1 6.1 6.1
66 Romania 3.7 4.0 4.5 4.6 5.2 5.5 6.0 7.3
67 Senegal ... ... ... ... ... ... 5.9 ...
68 United States 5.5 5.5 5.4 5.5 5.6 5.8 5.9 5.8
69 Slovenia 5.4 6.0 5.9 5.8 5.7 6.2 5.9 6.1
70 Turkey 6.3 5.2 4.5 4.6 4.7 5.3 5.7 5.8
71 Albania 1.2 1.2 6.1 6.2 5.6 5.6 5.7 ...
72 Thailand 3.9 4.2 4.7 4.7 5.3 5.1 5.6 5.2
73 Azerbaijan 4.1 4.2 4.8 4.8 5.0 5.0 5.6 5.6
74 Mongolia 2.9 2.5 2.9 3.8 4.1 5.1 5.6 5.9
75 Bulgaria 4.3 4.2 4.1 4.2 4.2 4.9 5.5 ...
76 Ethiopia ... ... ... ... 5.6 ... 5.4 ...
77 Maldives 4.3 ... ... ... ... ... 5.4 ...
78 Moldova, Republic of 2.9 2.9 3.1 3.9 4.0 3.9 5.4 6.1
79 Singapore ... 6.3 6.1 6.1 5.7 ... 5.3 5.6
80 Israel 5.2 5.2 5.2 5.6 5.3 5.1 5.2 5.6
81 Cuba 6.4 5.2 5.2 5.2 5.1 5.2 5.1 5.0
82 Colombia ... 3.9 5.0 4.4 4.4 4.7 5.1 5.1
83 Philippines ... 5.2 5.3 5.3 5.2 4.9 4.9 5.2
84 Indonesia 3.9 4.2 4.7 4.4 4.8 4.9 4.9 5.3
85 Nicaragua ... ... ... 3.8 4.8 4.5 4.8 ...
86 Ukraine ... 4.3 4.2 4.1 4.5 4.6 4.8 4.9
87 Georgia 1.8 1.9 1.9 2.2 2.4 2.5 3.1 4.2
88 Armenia ... ... 3.3 3.4 3.1 3.2 2.7 ...
89 Sri Lanka ... ... 4.5 5.7 ... 0.0 0.0 0.0
90 Algeria ... 10.4 ... 12.0 12.4 ... ... ...
91 Anguilla ... 14.7 ... ... ... ... ... ...
92 Antigua and Barbuda ... 8.6 ... ... ... ... ... ...
93 Bahrain ... 9.1 ... ... ... ... ... ...
94 Bangladesh ... ... ... 3.5 ... 3.2 ... ...
95 Barbados 10.8 11.0 10.3 9.5 10.2 ... ... ...
96 Belize ... ... ... ... ... 7.0 ... ...
97 Bhutan ... ... ... ... ... 12.4 ... ...
98 Botswana 9.3 ... ... 9.1 ... ... ... ...
99 Brunei Darussalam ... 8.4 ... ... ... ... ... ...Share of construction in total employment
  S/C/W/302 
 Page 33 
 
 
  Table 2:     Continued (3/3) 
Rank [a]Economy 2000 2001 2002 2003 2004 2005 2006 2007
100 Cambodia ... ... ... ... 0.1 ... ... ...
101 China 4.9 5.0 5.3 ... ... ... ... ...
102 Guyana ... ... 6.8 ... ... ... ... ...
103 Honduras ... 5.2 ... ... 5.9 5.3 ... ...
104 Iran, Islamic Rep. of ... ... ... ... ... 10.4 ... 12.3
105 Kazakhstan ... 3.9 4.0 4.7 5.3 ... ... ...
106 Madagascar ... ... ... 0.7 ... 0.1 ... ...
107 Mali ... ... ... ... 4.3 ... ... ...
108 Montenegro ... ... ... ... ... 2.9 ... ...
109 Morocco 8.9 8.8 0.0 0.0 ... ... ... ...
110 Namibia 5.0 ... ... ... 5.1 ... ... ...
111 Oman 2.8 ... ... ... ... ... ... ...
112 Paraguay ... ... ... ... ... ... ... 5.7
113 Saint Lucia 9.4 ... 8.2 7.8 7.9 ... ... ...
114 Sierra Leone ... ... ... ... 2.0 ... ... ...
115 Suriname ... ... ... ... 9.0 ... ... ...
116 Syrian Arab Republic ... 11.9 13.2 ... ... ... ... ...
117 Tajikistan ... ... ... ... 12.1 ... ... ...
118 Tanzania (Tanganyika) ... 0.9 ... ... ... ... ... ...
119 Trinidad and Tobago 12.5 13.8 13.1 13.6 14.9 16.5 ... ...
120 Turks and Caicos Islands ... 13.5 12.2 13.3 13.7 13.8 ... ...
121 Uganda ... ... ... 1.3 ... ... ... ...
122 United Arab Emirates 19.1 ... ... ... ... ... ... ...
123 Viet Nam 2.5 3.2 3.7 4.4 4.6 ... ... ...
124 Zambia 1.3 ... ... ... ... ... ... ...Share of construction in total employment
 
Source : ILO 2009 and U.S. Bureau of Economic Analysis.   
Notes:     
[a]  Rankings are based on the 2007 share of constructi on in total employment (latest most complete data set), 
except for the United Arab Emirates wh ere the latest available data was 2 005 and except for those countries 
where no data was available. 
[b]  Source: United Arab Emirates, Ministry of Economy, Centra l Statistic Department (December 2005 
census). S/C/W/302 
Page 34  
 
  Table 3a: Extra-EC 27 Exports of Construction by Partner, 2004-2007 (BOP) 
(Million US$ and percentage)
Rank Destination country 2004 2005 2006 2007
World 22,873   28,707   32,170   38,430   
Extra-EC27 51.5% 51.7% 52.6% 56.4%
Intra-EC27 48.3% 48.3% 47.4% 43.7%
As a percentage of total extra-EC exports:
1 Norway 9.0% 6.6% 5.1% 6.2%
2 Russia 6.5% 7.0% 5.5% 5.7%
3 United States 10.5% 9.0% 7.2% 5.3%4 Nigeria 6.0% 7.2% 8.1% 5.2%
5 Switzerland 5.5% 4.9% 4.8% 3.8%
6 China 4.6% 5.8% 4.6% 3.4%7 Brazil 0.9% 2.0% 2.3% 2.6%
8 India 2.0% 2.1% 1.5% 2.2%
9 South Africa 1.8% 1.2% 1.5% 2.0%
10Venezuela (Bolivarian 
Republic of) 0.7% 1.9% 2.3% 1.3%
11 Canada 1.0% 1.0% 1.5% 1.3%
12 Egypt 1.0% 1.2% 2.2% 1.2%13 Iran 3.7% 2.5% 1.6% 1.2%
14 Turkey 1.4% 1.1% 1.0% 1.1%
15 Malaysia 0.7% 0.9% 0.5% 1.0%
16 Korea, Rep. of 0.9% 2.0% 1.5% 1.0%
17 Australia 0.4% 1.4% 1.1% 0.9%18 Japan 1.1% 0.9% 1.2% 0.8%
19 Singapore 2.2% 1.6% 1.2% 0.7%
20 Mexico 1.4% 1.2% 1.1% 0.7%21 Chinese Taipei 1.6% 1.0% 1.2% 0.7%
22 Croatia 1.5% 1.4% 1.4% 0.6%
23 Chile 1.0% 0.6% 0.4% 0.6%
24 Morocco 0.8% 0.8% 0.5% 0.5%
25 Thailand 0.4% 0.6% 0.4% 0.4%26 Iceland 0.1% 0.2% 0.3% 0.4%
27 Argentina 0.1% 0.2% 0.5% 0.4%
28 Israel 0.5% 0.4% 0.5% 0.2%29 Indonesia 0.4% 0.6% 0.3% 0.2%
30 Hong Kong, China 0.5% 0.7% 0.4% 0.2%
31 Uruguay 0.0% 0.0% 0.1% 0.1%
32 New Zealand 0.0% 0.1% 0.1% 0.1%
33 Philippines 0.5% 0.1% 0.1% 0.1%34 Liechtenstein 0.1% 0.1% 0.1% 0.0%
Total 68.7% 68.2% 62.0% 52.0%
 
  Source:  WTO estimates on the basis of Eurostat data. S/C/W/302 
 Page 35 
 
 
  Table 3b: Extra-EC 27 Imports of Construction by Partner, 2004-2007 (BOP)   
(Million US$ a nd percentage)
Rank Source country 2004 2005 2006 2007
World 17,243   18,422   20,237   26,042   
Extra-EC27 41.1% 40.3% 42.6% 40.5%
Intra-EC27 58.8% 59.8% 57.5% 59.8%
As a percentage of total extra-EC imports
1 United States 12.7% 8.9% 8.3% 10.2%
2 Switzerland 8.6% 7.4% 6.4% 6.6%
3 Russia 7.1% 7.3% 5.9% 6.5%4 Nigeria 1.6% 2.5% 6.6% 5.2%5 China 4.6% 4.0% 5.0% 5.1%6 Canada 1.4% 1.7% 3.6% 4.7%
7 Korea, Rep. of 3.7% 3.2% 4.2% 4.2%
8 Norway 8.1% 5.6% 4.0% 4.0%9 India 1.1% 1.6% 1.3% 1.9%
10 Egypt 1.0% 1.6% 1.4% 1.5%11 Singapore 3.7% 3.9% 2.3% 1.5%
12 Turkey 1.4% 1.4% 1.3% 1.5%
13 Brazil 1.5% 1.4% 1.2% 1.4%14 Mexico 1.9% 1.1% 1.0% 1.3%15 South Africa 1.8% 1.1% 1.4% 1.1%16 Hong Kong, China 1.0% 0.7% 0.8% 1.1%
17 Croatia 1.5% 3.2% 2.1% 1.0%
18 Japan 1.8% 1.3% 1.8% 1.0%19 Malaysia 1.1% 1.0% 0.9% 1.0%20 Australia 0.5% 1.3% 1.0% 0.9%
21 Iran 1.7% 1.8% 1.4% 0.8%
22 Chinese Taipei 0.6% 0.6% 0.4% 0.6%23 Morocco 1.0% 1.0% 0.4% 0.4%24 Thailand 0.2% 0.3% 0.2% 0.4%25 Indonesia 0.3% 0.4% 0.3% 0.3%
26 Argentina 0.1% 0.5% 0.5% 0.3%
27 Liechtenstein 0.4% 0.4% 0.4% 0.3%
28Venezuela (Bolivarian 
Republic of) 0.2% 0.2% 0.8% 0.2%
29 Israel 0.3% 0.4% 0.2% 0.2%30 Uruguay 0.1% 0.0% 0.0% 0.2%31 Philippines 0.1% 0.5% 0.2% 0.1%32 Chile 0.5% 0.2% 0.2% 0.1%
33 New Zealand 0.1% 0.0% 0.0% 0.1%
34 Iceland 0.0% 0.0% 0.1% 0.0%
Total 71.3% 66.5% 65.5% 65.9%
 
  Source:  WTO estimates on the basis of Eurostat data.S/C/W/302 
Page 36  
 
  Table 3c: Extra-EC 27 Exports and Imports of Construction, and Expenditures on Goods 
  and Services in Host Economy, 2004-2007 (BOP)   
  (Million US$ and percentage) 
Construction abroad
2004 2005 2006 2007 2004 2005 2006 2007
World 21,126 26,440 29,326 35,057 12,259 12,862 13,811 17,486
Extra-EC27 11,332 14,215 15,966 20,553 58.6% 5,845 6,377 7,520 9,187 52.5%
Intra-EC27 9,794 12,223 13,360 14,501 41.4% 6,414 6,488 6,290 8,302 47.5%
Norway 1,034 933 777 1,172 496 354 271 361
Russian Federation 746 1,016 883 1,186 478 506 474 642United States 1,151 1,190 1,005 925 674 503 590 873Nigeria 676 1,028 1,308 1,073 75 135 553 536Switzerland 590 655 705 713 350 357 331 411China 543 849 769 735 317 276 373 430Brazil 100 289 371 530 92 98 102 142India 230 298 249 467 65 108 91 182South Africa 208 176 239 425 119 75 111 105
Venezuela (Bolivarian 
Republic of) 86 268 389 282 14 12 69 24
Canada 115 152 256 264 60 106 296 482Egypt 114 171 369 262 63 116 114 152Korea, Rep. of 100 295 257 206 254 234 352 429
Construction in the EC 27
2004 2005 2006 2007 2004 2005 2006 2007
World 1,749 2,267 2,843 3,373 4,983 5,561 6,427 8,556
Extra-EC27 472 632 940 1,094 32.4% 1,244 1,035 1,089 1,334 15.6%
Intra-EC27 1,275 1,635 1,902 2,279 67.6% 3,739 4,525 5,336 7,223 84.4%
Norway 27 48 79 165 76 62 76 58
Russian Federation 19 20 41 39 29 32 32 37United States 89 153 211 231 230 158 126 208
N i g e r i a 3 44 26 24 5 3 94 71 31 4
Switzerland 63 70 111 107 260 187 219 283C h i n a 4 61 4 6 92 15 5 1 1 0Brazil 10 14 22 26 10 3 3 9India 5 10 6 14 10 12 19 20S o u t h  A f r i c a 3289 678 1 3V e n e z u e l a 1852 0011Canada 1 2 2 16 41 18 15 9E g y p t 4332 6669
Korea, Republic of 3 2 3 1 5 6 12 12
Total A+C = EC 27 EXPORTS Total B+D = EC 27 IMPORTSC. Expenditure on goods and services by 
non-resident (foreign) contractorA. Total value of construction abroad by 
European contractorsB. Expenditure on goods and services by 
European contractor in host country
D. Total value of construction by non-
resident contractors  in the EC
 
  Source:  WTO estimates on the basis of Eurostat data. S/C/W/302 
 Page 37 
 
 
  Table 4a: Japan's Exports of Construction by Partner, 2004-2007 (BOP) 
Rank Destination country 2005 2006 2007
World (mio US$) 7,224          8,981          10,322        
1United Arab Emirates 15.8% 16.6% 18.6%
2Saudi Arabia 7.0% 15.2% 14.2%
3Thailand 6.0% 8.1% 5.4%
4Philippines 1.4% 1.5% 4.8%
5Chinese Taipei 11.5% 7.3% 4.2%
6Singapore 2.8% 2.5% 3.4%
7EC 1.6% 2.9% 3.2%
8Indonesia 5.8% 5.7% 3.0%
9Vietnam 3.2% 3.2% 2.7%
10Malaysia 1.7% 1.3% 2.4%
11Russian  Federation 2.7% 2.9% 1.9%
12United States of America 2.4% 2.8% 1.7%
13Iran 4.0% 2.7% 1.7%
14China 3.8% 2.0% 1.2%
15Australia 0.3% 0.4% 1.1%
16Mexico 2.9% 0.8% 0.8%
17India 0.7% 0.7% 0.7%
18South Africa 0.2% 0.0% 0.5%
19New Zealand 1.5% 0.7% 0.5%
20Cayman Islands 0.2% 0.7% 0.4%
21Switzerland 0.0% 0.0% 0.3%
22Korea 0.3% 0.2% 0.3%
23Brazil 0.0% 0.0% 0.2%
24Hong Kong, China 0.3% 0.3% 0.2%
25Canada 0.6% 0.1% 0.1%
Total 76.7% 78.7% 73.6%of which in percent:In million US$ and percentage
 
         Source:  Bank of Japan. 
         Note:  EC 25 for 2005, EC 27 as from 2007.  S/C/W/302 
Page 38  
 
  Table 4b: Japan's Imports of Construction by Partner, 2004-2007 (BOP) 
Rank Source country 2005 2006 2007
In million US$ and percentage
World (mio US$) 4,765          6,202          7,938          
of which in percent:
1 United Arab Emirates 5.9% 11.1% 14.7%
2 Saudi Arabia 2.5% 7.4% 10.3%
3 EC 11.9% 11.3% 9.7%
4 Singapore 6.4% 8.7% 7.9%
5 Thailand 10.0% 9.6% 7.2%
6 Chinese Taipei 15.6% 8.0% 5.4%
7 Australia 0.8% 0.9% 3.9%
8 Philippines 2.2% 3.8% 3.6%
9 Indonesia 4.4% 4.6% 2.7%
10 Malaysia 0.5% 1.1% 2.4%
11 Vietnam 1.6% 2.4% 2.3%
12 Korea 3.5% 2.6% 2.1%
13 Mexico 3.4% 1.5% 2.1%
14 United States of America 6.3% 3.8% 2.0%
15 India 1.0% 1.1% 1.6%
16 Iran 5.2% 3.8% 1.6%
17 China 4.0% 1.4% 0.8%
18 Switzerland 0.1% 0.1% 0.7%
19 New Zealand 1.9% 1.3% 0.5%20 Hong Kong, China 0.5% 0.6% 0.5%
21 Russian Federation 2.4% 2.2% 0.4%
22 Brazil 0.0% 0.2% 0.1%
23 Canada 0.4% 0.1% 0.1%
24 Cayman Islands 0.0% 0.4% 0.0%
25 South Africa 0.0% 0.0% 0.0%
Total 90.5% 88.1% 83.0% 
                   Source:  Bank of Japan. 
                   Note:  EC 25 for 2005, EC 27 as from 2007. 
  S/C/W/302 
 Page 39 
 
 
   
Table 5: Summary of Specific Commitments in Construction and related Engineering 
Services   (as of August 2009) 
WTO Members3.A. General 
construction 
work for 
buildings3.B. General 
construction 
work for civil 
engineering3.C. Installation 
and assembly 
work3.D. Building 
completion and 
finishing work3.E. OtherTOTAL of sub -
sectors with 
commitments (by Member)
1Albania XXXX X 5
2Ar
gentina XX X X 4
3Armeni a XXXX 4
4Australi a XXXX 4
5Austri a XXXX X 5
6Brazil XXX X 4
7Bulgaria XXXX 4
8Burundi XXXX X 5
9Cambodi a XXXX X 5
10Canada XXXX X 5
11Cape Verde XXXX X 5
12China XXXX X 5
13Colombia XXX X 4
14Congo, Democratic Republic of XX 2
15Côte d'Ivoire X1
16Croatia XXXX X 5
17Cuba XX 2
18Czech Republic XXXX X 5
19Dominican Republic XXXX X 5
20Ecuador X1
21Egypt XX X 3
22Estoni a XXXX X 5
23European Communit y (EC-12) [1]XXXX X 5
24Finland XXX 3
25FYR Macedoni a XXXX X 5
26Gabon X1
27Gambi a X1
28Georgia XXXX X 5
29Ghana XXX 3
30Haiti XXXX 4
31Hong Kong XX 2
32Icelan d XXXX 4
33India X1
34Indonesia XXX X 4
35Japan XXXX X 5
36Jordan XXXX X 5
37Korea RP XXXX X 5
38Kuwait XXXX 4
39Kyrgyz Republic XXXX X 5
40Latvia XXXX X 5 S/C/W/302 
Page 40  
 
  WTO Members3.A. General 
construction 
work for 
buildings3.B. General 
construction 
work for civil 
engineering3.C. Installation 
and assembly 
work3.D. Building 
completion and 
finishing work3.E. OtherTOTAL of sub -
sectors with 
commitments 
(by Member)
41Lesotho XXXX 4
42Lithuani a XXXX X 5
43Malawi XXXX X 5
44Mala ysia XXXX X 5
45Mexico XX X X 4
46Moldov a XXXX X 5
47Mongolia XX 2
48Morocc o XXXX X 5
49Nepal XX 2
50New Zealand XXXX X 5
51Norwa y XXXX X 5
52Oman XXXX X 5
53Pakistan X1
54Panam a XXXX 4
55Papua New Guine a XX 2
56Poland XXXX X 5
57Qatar XXXX 4
58Romani a XXXX 4
59Saudi Arabi a XXXX X 5
60Sierra Leone XXXX X 5
61Singapore XXXX X 5
62Slovak Republic XXXX X 5
63Sloveni a XXXX X 5
64Solomon Island s XX 2
65South Afric a XXXX 4
66Swede n XXXX X 5
67Switzerlan d XXXX X 5
68Chinese Taipei XXXX X 5
69Thailand XXX 3
70Togo X1
71Tonga XXXX X 5
72Trinidad and Toba go X 1
73Turke y XXXX 4
74Ukraine XXXX X 5
75United Arab Emirates XXXX X 5
76USA XXXX X 5
77Venezuel a XXXX X 5
78Viet Na m XXXX X 5
79Zambi a XXXX X 5
Total schedules (79) [2]68 70 67 59 53
Source: WTO
Notes:  
 [1] European Communities counted as EC-12 based on schedule in force.
 [2] A total of 79 schedules include a commitment in at least one sub-sector of construction and related engineering services.  The 79 schedules 
represent a total of 90 governments (counting the EC-12 Member States individually).Countries that acceeded to the WTO since June 1998 (date of the previous Secretariat Background Note) are marked in: 
  S/C/W/302 
 Page 41 
 
 
  Table 6: Specific Commitments in Constructi on and related Engineering Services by Sub-
Sector and Mode of Supply (as of August 2009) 
WTO Members3.A. General 
construction 
work for 
buildings        
(CPC 512)3.B. General 
construction 
work for civil 
engineering      
(CPC 513)3.C. Installation 
and assembly 
work           
(CPC 514, 516)3.D. Building 
completion and 
finishing work   
(CPC 517)3.E. Other      
(CPC 511, 515, 
518)Total Modes 1, 
2 and 3 for all 
subsectors 
covered (Mode 
4 excluded)
Mode 1 1111 1 1 5
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 11 1 1 1 2
Mode 2 11 1 1
Mode 3 11 1 1
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 8
Mode 2 1111
Mode 3 1111
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 8
Mode 2 1111
Mode 3 1111
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 5
Mode 2 0.5 0.5 0.5 0.5 0.5
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 000 0 3 . 5
Mode 2 000 0
Mode 3 111 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 4
Mode 2 0.5 0.5 0.5 0.5
Mode 3 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 1 5
Mode 2 1111 1
Mode 3 1111 1
Mode 4 0.5 0.5 0.5 0.5 0.5
Mode 1 0* 0* 0* 0* 0* 7.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1 0.5 1 1 0.5 11.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0000 0 1 0
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 7.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 000 0 6
Mode 2 11 0 . 5 0 . 5
Mode 3 11 0 . 5 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 11 5
Mode 2 11
Mode 3 0.5 0.5
Mode 4  0.5н 0.5н1
2
3
4
5
6
7
89
10
11
12
13
14Colombia [1]
Congo, Democratic 
Republic of [5]Cambodia
Canada
Cape Verde
ChinaAustria
Brazil [8]
Bulgaria
BurundiAlbania
Argentina
Armenia
Australia
 S/C/W/302 
Page 42  
 
  Table 6:     Continued (2/6) 
WTO Members3.A. General 
construction 
work for 
buildin gs        
(CPC 512)3.B. General 
construction 
work for civil 
engineerin g      
(CPC 513)3.C. Installation 
and assembly 
work           
(CPC 514, 516)3.D. Building 
completion and 
finishin g work   
(CPC 517)3.E. Other      
(CPC 511, 515, 
518)Total Modes 1, 
2 and 3 for all 
subsectors 
covered (Mode 
4 excluded)
Mode 1 00 . 5
Mode 2 0
Mode 3 0.5
Mode 4 0.5
Mode 1 0* 0* 0* 0* 0* 9
Mode 2 1111 0 . 5
Mode 3 1111 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 1
Mode 2 00
Mode 3 0.5 0.5
Mode 4  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 4.5
Mode 2 1111 0 . 5
Mode 3 0000 0
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 2.5
Mode 2 0000 0
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0.5 1.5
Mode 2 0.5
Mode 3 0.5
Mode 4  0.5н
Mode 1 0* 0* 0* 1.5
Mode 2 0* 0* 0*
Mode 3 0.5 0.5 0.5
Mode 4 11 1
Mode 1 1111 1 1 2 . 5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0*0* (except 1 for 
CPC 5114) N.A.
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 111 7 . 5
Mode 2 111
Mode 3 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н
Mode 1 0000 0 1 0
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 00 . 5
Mode 2 0
Mode 3 0.5
Mode 4 0.5
Mode 1 0.5 1.5
Mode 2 0.5
Mode 3 0.5
Mode 4  0.5н
Mode 1 0.5 0.5 0.5 0.5 0.5 10
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н 0.5н 0.5н 0.5н  0.5н27
2823
24
25
2615
16
17
18
19
20
21
22
FYR Macedonia
Gabon
The Gambia
GeorgiaEgypt [1]
Estonia
European Communities 
(EC-12)
FinlandCuba
Czech Republic
Dominican Republic
EcuadorCôte d'Ivoire [1]
Croatia
  S/C/W/302 
 Page 43 
 
 
  Table 6:     Continued (3/6) 
WTO Members3.A. General 
construction 
work for 
buildin gs        
(CPC 512)3.B. General 
construction 
work for civil 
engineerin g      
(CPC 513)3.C. Installation 
and assembly 
work           
(CPC 514, 516)3.D. Building 
completion and 
finishin g work   
(CPC 517)3.E. Other      
(CPC 511, 515, 
518)Total Modes 1, 
2 and 3 for all 
subsectors 
covered (Mode 
4 excluded)
Mode 1 111 9
Mode 2 111
Mode 3 111
Mode 4  0.5н  0.5н  0.5н
Mode 1 1111 1 2
Mode 2 1111
Mode 3 1111
Mode 4 0000
Mode 1 00 3
Mode 2 0.5 0.5
Mode 3 11
Mode 4 00
Mode 1 1111 1 2
Mode 2 1111
Mode 3 1111
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0.5
Mode 2 0*
Mode 3 0.5
Mode 4  0.5н
Mode 1 0* 0* 0* 0* 4
Mode 2 0.5 0.5 0.5 0.5
Mode 3 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 7
Mode 2 1111 0 . 5
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 10* (except 1 for 
CPC 5111) 0* 0* 0* 0* 7.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0000 2
Mode 2 0000
Mode 3 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 1 5
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 9
Mode 2 1111 0 . 5
Mode 3 1111 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 8
Mode 2 1111
Mode 3 1111
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н 0.5н 0.5н 0.5н  0.5н39
40
414235
36
37
3831
32
33
3429
30
Lesotho
LithuaniaKorea, Republic of [8]
Kuwait [1], [6], [7]
Kyrgyz Republic
Latvia [5]India
Indonesia
Japan
Jordan [5]Ghana
Haiti
Hong Kong, China [1]
IcelandS/C/W/302 
Page 44  
 
  Table 6:     Continued (4/6) 
WTO Members3.A. General 
construction 
work for 
buildin gs        
(CPC 512)3.B. General 
construction 
work for civil 
engineerin g      
(CPC 513)3.C. Installation 
and assembly 
work           
(CPC 514, 516)3.D. Building 
completion and 
finishin g work   
(CPC 517)3.E. Other      
(CPC 511, 515, 
518)Total Modes 1, 
2 and 3 for all 
subsectors 
covered (Mode 
4 excluded)
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 7
Mode 2 1111 0 . 5
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 00 0 0 2
Mode 2 0* 0* 0* 0*
Mode 3 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 4
Mode 2 11
Mode 3 11
Mode 4  0.5н  0.5н
Mode 1 0000 0 2.5
Mode 2 0000 0
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 11 5
Mode 2 11
Mode 3 0.5 0.5
Mode 4  0.5н  0.5н
Mode 1 0* 1.5
Mode 2 1
Mode 3 0.5
Mode 4 1
Mode 1 0* 0* 0* 0* 0* 9
Mode 2 1111 0 . 5
Mode 3 1111 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 12.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0.5
Mode 2 0*
Mode 3 0.5
Mode 4  0.5н
Mode 1 0* 0* 0* 0* 6
Mode 2 1111
Mode 3 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 3
Mode 2 11
Mode 3 0.5 0.5
Mode 4  0.5н 0.5н55
5651
52
535447
48
49
5043
444546
Oman
Pakistan
Panama
Papua New GuineaNepal [8] 
Netherlands Antilles
New Zealand
Norway [5]Mexico
Moldova
Mongolia [1]
Morocco [9]Malawi [1]
Malaysia
  S/C/W/302 
 Page 45 
 
 
  Table 6:     Continued (5/6) 
WTO Members3.A. General 
construction 
work for 
buildin gs        
(CPC 512)3.B. General 
construction 
work for civil 
engineerin g      
(CPC 513)3.C. Installation 
and assembly 
work           
(CPC 514, 516)3.D. Building 
completion and 
finishin g work   
(CPC 517)3.E. Other      
(CPC 511, 515, 
518)Total Modes 1, 
2 and 3 for all 
subsectors 
covered (Mode 
4 excluded)
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 10
Mode 2 1111
Mode 3 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 8
Mode 2 1111
Mode 3 1111
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 10
Mode 2 1111 1
Mode 3 0000 0
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 4.5
Mode 2 1111 0 . 5
Mode 3 0000 0
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0.5 3.5
Mode 2 11
Mode 3 0.5 0.5
Mode 4  0.5н  0.5н
Mode 1 0* 0* 0* 0* 8
Mode 2 1111
Mode 3 1111
Mode 4  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 9
Mode 2 1111 0 . 5
Mode 3 1111 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 8
Mode 2 10 . 51 1 0 . 5
Mode 3 10 . 51 1 0 . 5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 000 4.5
Mode 2 111
Mode 3 0.5 0.5 0.5
Mode 4  0.5н 0.5н 0.5н7066
67
68
6962
63646557
6158
5960
Chinese Taipei
Thailand [6]Sierra Leone
Singapore [1]
Slovak Republic [5]Poland [5]
Qatar [7]
Romania
Saudi Arabia
Slovenia
Solomon Islands [6]
South Africa
Sweden [2]
Switzerland [3]
 S/C/W/302 
Page 46  
 
  Table 6:     Continued (6/6) 
 
WTO Members3.A. General 
construction 
work for 
buildin gs        
(CPC 512)3.B. General 
construction 
work for civil 
engineerin g      
(CPC 513)3.C. Installation 
and assembly 
work           
(CPC 514, 516)3.D. Building 
completion and 
finishin g work   
(CPC 517)3.E. Other      
(CPC 511, 515, 
518)Total Modes 1, 
2 and 3 for all 
subsectors 
covered (Mode 
4 excluded)
Mode 1 1 2
Mode 2 1
Mode 3 0
Mode 4 0.5
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0.5 1.5
Mode 2 0.5
Mode 3 0.5
Mode 4 0.5
Mode 1 0.5 0.5 0.5 0.5 8
Mode 2 1111
Mode 3 0.5 0.5 0.5 0.5
Mode 4 0.5 0.5 0.5 0.5
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 12.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0000 0 10
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 0* 0* 0* 0* 0* 7.5
Mode 2 1111 1
Mode 3 0.5 0.5 0.5 0.5 0.5
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н
Mode 1 1111 1 15
Mode 2 1111 1
Mode 3 1111 1
Mode 4  0.5н  0.5н  0.5н  0.5н  0.5н78
79
8074
7576
777371
72Togo
Tonga
VenezuelaUnited Arab Emirates 
[6]
United States of 
America [1]
Viet Nam
Zambia [1]Trinidad and Tobago 
[4], [5]
Turkey
Ukraine
 
 
Source:  WTO Secretariat 
 Notes: 
- Countries that acceded to the WTO sinc e June 1998 (date of the previous  Secretariat Back ground Note) are 
marked in:  
- European Communities counted as EC 12 based on schedule in force. 
- 0.5н means that this mode is unbound, except for horizontal commitments. 
- 0 means that no commitment was made ('unbound').  0* means that no commitment was made due to lack 
of technical feasibility. 
- 0.5  indicates a partial commitment either at the sectoral level ( i.e., a limitation in at least one of the 
columns, market access or national treat ment, or a limitation of the scope of the sectoral coverage) or as a 
result of horizontal limitations which affect the construction and related engineering services sector. 
- 1 means a commitment without limitations ('none'). 
[1] Schedule indicates no CPC numbers. 
[2] A founding party of a legal entity shall either reside in Sweden or be a Swedish legal entity. 
[3] Subsector CPC 513 is only partially covered: CPC 5133-5139 (construction work for waterways, pipelines, 
mining and manufacturing) are excluded.  S/C/W/302 
 Page 47 
 
 
  [4] Commitments under Subsector A. General construction work for buildings (CPC 512) cover only 
construction relating to hotel and resort development (CPC 51206). 
[5] Mode 3: acquisition of real estate by foreigners subject to authorisation (or permit, concession, etc.), as per 
entry in the horizontal section of the Schedule. 
[6] Mode 3: the horizontal section provides for substantial limitations on foreign ownership of local companies 
and/or an economic needs test. 
[7] Although the sector-specific section indicates a full market access and national commitment in mode 3, the 
horizontal section provides for substantial limitations on purchases by governmental, semi-governmental 
and public sector departments. 
[8] Phase-in commitment which has entered into force. 
[9] Mode 3: None except that a foreign enterprise established in Morocco must associate Moroccan enterprises 
through some form of association (joint venture, subcontracting or else).  Commitments cover also CPC 
8672 (engineering services). 
 
 S/C/W/302 
Page 48  
 
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