Three years of work experience in Ukraine is required. Applicants must also pass an examination. Legal services (mode 4) in Georgia and Russia are completely closed as there is a nationality requirement. In Armenia, accounting and auditing services under mode 1 are not allowed. Barriers in Belarus are mainly applied to accounting and auditing services under mode 1 and 4. Mode 1 is allowed, but the person who signs off on financial statements must be locally licensed. Firms may set up a representative office (mode 3), but not a branch. No license is required, but registration is necessary to set up a legal entity.

Eurasia’s trading partners considered in this note have intermediate levels of restrictiveness, with Indonesia registering the highest overall STRI (Table 18). Restrictions are significant in categories such as professional services, transportation, and retail. In the case of professional services, barriers appear in the supply of services through commercial presence (mode 3), which is not allowed. In the case of transportation, restrictions are high (STRI=100) in rail and road freights, which are also closed under mode 3. In retail, the country presents middle levels of openness. There is no limit on foreign ownership under mode 3. Entry of foreign suppliers is subject to the following conditions: 1) be a large scale retailer, 2) located in the regency/city, with a minimum land area of 2,000 m<sup>2</sup> , and 3) cooperate with local small-scale businesses. Trade policy barriers in telecommunications and financial services are low. In the case of telecommunications, applicants must form a joint venture. The limit on foreign ownership is 95%, which may be reduced to 35%. The number of licenses is not fixed, but allocated at the discretion of the regulator. The highest level of protection in the financial sector is associated to insurance services under mode 3 (STRI=41.67). Entry is allowed only through subsidiary and acquisition. If the local firm is private, the foreign ownership limit is 80%. Subsidiaries must form joint ventures with local partners and meet minimum capital requirements. One member of the Board of Directors must be Indonesian.

Table 16. Services Trade Restrictions Indexes of East Asia and the Pacific and the European Union

||Overall|Financial|Telecomm.|Retail|Transportation|Professional|
|---|---|---|---|---|---|---|
|Indonesia|50|23.4|25|50|66.4|76|
|Malaysia|46.1|44.6|25|25|55.4|73|
|China|36.6|34.8|50|25|19.3|66|
|Europe|26.1|4.2|0|25|37.1|54|
|Japan|23.4|1.9|25|25|15.6|56|
|Korea Rep.|23|2.3|50|0|20.8|66|
|Not|e: Europe in|clude 20 coun|tries for which t|here is da|ta. Source: The World|Bank.|

Source: World Bank’s Services Trade Restrictions Database (2012).

Malaysia is the second most restrictive destination considered in this note according to trade policy barriers in services. As in the case of Indonesia, constrains are mainly observed in the professional and transportation sectors. Contrary to the Indonesian case, trade policy barriers in the financial sector are not minor. In the case of professional services, auditing activities under modes 1 and 4 are not allowed. Ownership by foreign nationals (accounting and auditing services) is limited to 30%. Ownership by nonlocally-licensed professionals is not permitted. There must be at least one Malaysian partner in the firm. Malaysia is completely closed in rail freight services as rail transport is wholly owned by the state. However, there are no restrictions on legal form of entry for international airlines to operate international services into Malaysia. In maritime shipping, entry is allowed only through a representative office, regional office, or locally incorporated joint venture subsidiary, with Malaysian individuals or Malaysian-controlled corporations or both. The limit on aggregate foreign ownership in the joint venture and state-owned entity (merger and acquisition) is 30%. Regarding road freight services, several types of licenses are available. License A is given to companies with a foreign ownership limit of 49% and equity of 30%. The license is also given to companies with full foreign ownership if services rendered, including renting and hiring for activity, technology, vehicles, and expertise, are not available in Malaysia. License 22