metadata: authors: 0: author: Jafari,Yaghoob
1: author: Tarr, David G.
count: World
docna: 0: docna: Estimates of ad valorem equivalents of
            barriers against foreign suppliers of services in eleven
            services sectors and 103 countries
docty: Policy Research Working Paper
subtopic: Telecommunications Infrastructure,Trade Policy,International Trade and Trade Rules,Rules of Origin,Trade and Services,Transport Services,Trade and Multilateral Issues
teratopic: International Economics and Trade
abstracts: cdata!: A new database on the barriers faced by
            foreign suppliers of services has been produced by the World
            Bank. Data for 103 countries are available on 11 of the most
            important services sectors in international trade. Based on
            these data and building on the methodology and publications
            supported by the Australian Productivity Commission, this
            paper produces estimates of the ad valorem equivalents of
            the barriers for all these sectors and countries. Compared
            with estimates available in the literature that are based on
            assessments of country- and sector-specific barriers to
            services providers, the estimates expand the set of sectors
            and more than triple the set of countries for which
            estimates of the ad valorem equivalents of the services
            barriers are available.
repnme: repnme: Estimates of ad valorem equivalents of
            barriers against foreign suppliers of services in eleven
            services sectors and 103 countries
display_title: Estimates of ad valorem equivalents
            of barriers against foreign suppliers of services in eleven
            services sectors and 103 countries
listing_relative_url: /research/2014/11/20365710/estimates-ad-valorem-equivalents-barriers-against-foreign-suppliers-services-eleven-services-sectors-103-countries
topicv3: Transport m1326661 135,Trade m1326924 698,Trade in Services m1326928 780,Telecommunications and Broadband Access
            m1327340 286,Trade Policy m1327640 776
publishtoextweb_dt: 2014-11-01T00:00:00Z
historic_topic: International Economics and Trade
no_of_pages: 77
author_keys: 0: author_key: 1196486
model_extractions: WPS7096 Policy Research Working Paper 7096 Estimates of Ad Valorem Equivalents of Barriers Against Foreign Suppliers of Services in Eleven Services Sectors and 103 Countries _Yaghoob Jafari David G. Tarr_ Development Research Group Trade and International Integration Team November 2014
Policy Research Working Paper 7096

# **Abstract**

A new database on the barriers faced by foreign suppliers of services has been produced by the World Bank. Data for 103 countries are available on 11 of the most important services sectors in international trade. Based on these data and building on the methodology and publications supported by the Australian Productivity Commission, this paper produces estimates of the ad valorem equivalents of the barriers for all these sectors and countries. Compared with estimates available in the literature that are based on assessments of country- and sector-specific barriers to services providers, the estimates expand the set of sectors and more than triple the set of countries for which estimates of the ad valorem equivalents of the services barriers are available.

This paper is a product of the Trade and International Integration Team, Development Research Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at dtarr@worldbank.org.

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent._ Produced by the Research Support Team
# **Estimates of Ad Valorem Equivalents of Barriers Against Foreign Suppliers of Services in Eleven Services Sectors and 103 Countries**

**Yaghoob Jafari and David G. Tarr***

**Keywords** : services barriers; ad valorem equivalents; tariff equivalents; World Bank services database; Services Trade Restrictiveness Index; Australian Productivity Commission.

JEL classification: F23; F13; F16 ; F19.

*Corresponding author: David G. Tarr. David Tarr is Consultant and former Lead Economist at the World Bank. Yaghoob Jafari is a consultant at the World Bank. The authors wish to thank Ana M. Fernandes (who led the project), Aaditya Mattoo, Ingo Borchert, Batshur Gootiiz, Georgi Idrisov, an anonymous referee of this Working Paper Series and Michelle Chester for their comments and contributions. We thank the Government of the Netherlands for financial support to the Bank-Netherlands Partnership Program under the project TF012466 “Reducing Trade Costs in East Africa: Analytical Development and Capacity Building.”
# Contents

## **ESTIMATES OF AD VALOREM EQUIVALENTS OF BARRIERS AGAINST FOREIGN SUPPLIERS OF SERVICES IN ELEVEN SERVICES SECTORS AND 103 COUNTRIES ... 1**

|**YAGHOOB JAFARI AND DAVID G. TARR ................................................................................ 1**|
|---|
|**1.**<br>**INTRODUCTION .............................................................................................................. 1**|
|**2. METHODOLOGY ......................................................................................................................... 4**|
|2.1 BASIC CONCEPTS......................................................................................................................... 4|
|2.1.1 The Ad Valorem Equivalent. .......................................................................................... 4|
|2.1.2 Discriminatory versus Non-Discriminatory Barriers. ..................................................... 5|
|2.2 DATASOURCES. ......................................................................................................................... 5|
|2.3 CALCULATION OFSERVICESTRADERESTRICTIVENESSINDICES FROM THEWORLDBANK<br>DATABASEACCORDING THEMETHODOLOGY OF THEAUSTRALIANPRODUCTIVITY<br>COMMISSION............................................................................................................................. 6|
|2.4 TRANSFORMING OURSERVICESTRADERESTRICTIVENESSINDICES INTOADVALOREM<br>EQUIVALENTS. ......................................................................................................................... 10|
|2.4.1 Banking and Insurance. ................................................................................................. 11|
|2.4.2 Transportation Services. ................................................................................................ 11|
|2.4.3 Fixed Line and Mobile Telephone Services. ................................................................. 12|
|2.4.4 Professional Services. .................................................................................................... 13|
|2.4.5 Distribution Services. .................................................................................................... 13|
|**3. RESULTS AND CAVEATS ........................................................................................................ 14**|
|3.1 RESULTS................................................................................................................................... 14|
|3.2 CAVEATS.................................................................................................................................. 15|
|**REFERENCES ................................................................................................................................. 16**|
|**TABLES ......................................................................................................21**|
|**APPENDICES .................................................................................................................................. 56**|
|APPENDIXA: THEADVALOREMEQUIVALENCE OFTRADE INSERVICESBARRIERS IN<br>DIFFERENTMODES OFTRANSPORT......................................................................................... 56|
|APPENDIXB: THEADVALOREMEQUIVALENCE OFTRADE INSERVICESBARRIERS IN IN<br>TELECOMSERVICESSECTORS................................................................................................. 67|

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Estimates of Ad Valorem Equivalents of Barriers Against Foreign Suppliers of Services in Eleven Services Sectors and 103 Countries

# Yaghoob Jafari and David G. Tarr

# 1. Introduction

Interest in estimates of the impact of services barriers has significantly increased since the early 1980s. In part this is due to the recognition of the growing importance of services as a share of national value added and as a share of global trade. By 2007, services as a share of national value-added ranged from 74 percent in high income OECD countries to 48 percent in low income countries.<sup>1</sup> Escaith (2008) estimated that cross-border trade in services accounted for almost 50 percent of total goods and services trade when trade is measured on a value-added basis; and when we include the value of sales by foreign affiliates, the share of services trade in total trade rises further. In addition, with the inclusion of the General Agreement on Trade in Services (GATS) as a major pillar of the WTO agenda and the inclusion of services in regional trade agreements, services commitments have become an important aspect of international trade negotiations. Estimates of what is at stake in these services trade negotiations depend in the first instance on estimates of the ad valorem equivalents (AVEs) of the barriers faced by foreign suppliers of services.

In this paper, we present our estimates of the ad valorem equivalents of the discriminatory barriers against foreign suppliers of services in 11 services sectors in 103 countries. The estimates are based on a recently available data set on the discriminatory regulatory barriers against foreign suppliers of services in these sectors and countries that was produced by the World Bank. The database contains significantly greater coverage of the regulatory regimes in services in developing countries than what has been available heretofore.<sup>2</sup> The database provides data on the

> 1 From the World Development Indicators database. See Francois and Hoekman (2010, table 1).

> 2 The OECD provides a database of regulatory barriers in services and services trade restrictiveness indices for 40 - countries focusing on the OECD and BRICS countries. The data are available at <u>http://www.oecd.org/tad/services trade/services-trade-restrictiveness-index.htm. See also Golub (2009) for a measures over time of restrictions on FDI</u> in services in 50 developing and 23 developed countries.

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following services sectors: (1) accounting; (2) legal; (3) air transport; (4) rail transport; (5) road transport; (6) maritime transport; (7) insurance; (8) banking; (9) fixed line telecommunications; (10) mobile telecommunications; and (11) retail distribution. These sectors are well-chosen among the many services sectors since they are among the most important in international trade. Further, these sectors are important inputs into manufacturing production, and evidence has shown that greater access to business services that are inputs into manufacturing has significant productivity impacts on the manufacturing sector.<sup>3</sup> Although Borchert, Gootiiz and Mattoo (2012) have produced services trade restrictiveness indices from this database, this paper is the first to produce ad valorem equivalents based on this database. As a result, we are able to provide much wider coverage of ad valorem equivalents of the barriers than previous efforts that were based on assessments of the regulatory regimes in the services sectors.

Following the initial work of Hoekman (1995), estimates of the ad valorem equivalents of barriers against foreign service suppliers can be grouped into two methodological categories: (i) gravity model estimates; and (ii) estimates that rely on the collection of information on the regulatory barriers against foreign suppliers of services, typically convert that information into indices of restrictiveness and then use the restrictiveness index in econometric regressions to get AVEs.<sup>4</sup> The gravity approach has been employed by Francois (1999), Walsh (2006), Francois et al., (2007) and Kimura and Lee (2004). These authors regress the total bilateral cross-border trade in services on the national incomes of the two countries, distance between them, and dummy variables to reflect common border, common language or other variables. For example, Francois (1999) assumes that the difference between the actual and predicted trade flows reflects trade barriers. Assuming a demand elasticity allows a conversion of the quantity differences into a price impact or AVE of the inferred barriers to services trade. One limitation of this approach is that the estimates are based on cross-border trade in services; but in services it is often sales through foreign direct investment that are more important.<sup>5</sup> As Francois and Hoekman (2010)

> 3 Several studies using firm level data have established a link between increased access to services and increases in productivity. Using panel level data and controlling for FDI endogeneity, Arnold, Mattoo and Javorcik (2011) for the Czech Republic, Fernandes and Paunov (2012) for Chile, Shepotylo and Vakhitov (2012) for Ukraine and Arnold, Javorcik, Lipscomb and Mattoo (forthcming) for India find a significant positive relationship between FDI in services following liberalization (especially allowing foreign entry) and the performance of downstream domestic firms in manufacturing. See Francois and Hoekman (2010) for a review of the evidence from other sources.

> 4 See Deardorff and Stern (2006) and Dee (2005) for comprehensive reviews of the literature on estimates of the ad valorem equivalents of the barriers faced by foreign suppliers of services. See also Francois and Hoekman (2010). Walsh (2006) has an extensive review of the gravity approach.

> 5 Francois, Hoekman and Woerz (2007) bring foreign direct investment data into the approach.

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note, a well-known limitation of this approach is that the AVE is not related to any specific regulatory barrier. In our experience in estimating these AVEs in business services sectors in Russia, Armenia, Georgia, Kenya, Tanzania, Kazakhstan, Belarus and Malaysia,<sup>6</sup> we find that incountry officials are often deeply skeptical or unconvinced of such estimates unless the researcher can point to specific regulatory barriers that explain the ad valorem equivalent in particular sectors; but when specific barriers can be referenced, the story typically becomes convincing. Further, without tying the AVEs and the costs of the barriers to specific regulatory barriers, the analyst is not able to recommend potential policy reforms.

Consequently, we prefer the second approach and our methodology is firmly rooted in it. In addition to the single country studies of many sectors mentioned above, the second approach has been employed in single sectors for many countries by Nguyen-Hong (2000), Warren (2000), Kalirajan et al., (2000), Kang (2000) and Kalirajan (2000).<sup>7</sup> Doove et al., (2001), Dihel and Shephard (2007) and Copenhagen Economics (2005) have estimated AVEs employing this approach for many countries and in multiple sectors. This approach collects information on the regulatory regime in a particular services sector in a country and typically converts that information into an index of restrictiveness.<sup>8</sup> Then the impact of services restrictiveness on a measure of price or cost is estimated econometrically, where a vector of independent variables that impact the price or cost of the service is included in the estimation to control for their impact. This approach is necessarily done on a sector by sector basis. The Australian Productivity Commission has pioneered work along these lines, and many of the studies it supported were collected in Findlay and Warren (2000). Although data on the full vector of variables impacting price or cost may not be known for many countries, if the restrictiveness index is known, estimates of the AVE of services barriers may be obtained using this approach assuming that the estimated coefficient on the restrictiveness index applies in these countries.

Lacking information on the regulatory regimes in services for most countries, the authors above were generally able to estimate ad valorem equivalents of the services barriers in less than

> 6 The first five of these country studies are available at https://drive.google.com/?pli=1#folders/0B0V-t-Bs4- <u>hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2</u>

> 7 Bottini et al., (2011) estimate the impact of barriers in banking and telecommunications on performance variables in four Middle Eastern countries.

> 8 Deardorff and Stern (2006) discuss alternate, but less common, ways to use the information on the regulatory barriers in subsequent regressions. See Dihel and Shephard (2007) for one variation of this approach.

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30 countries.<sup>9</sup> Consequently, our country coverage is considerably broader, especially for developing countries, and also widens the available sector coverage.

In the next section, we explain the methodology and data sources. We present our results in section 3.

# 2. Methodology

## **2.1 Basic concepts**

**2.1.1 The Ad Valorem Equivalent.** Consider a simple partial equilibrium model of a service sector under perfect competition.  Without loss of generality for the calculation of the ad valorem equivalent (AVE), we assume that the country concerned is small so that the supply curve by foreign services providers is perfectly elastic.<sup>10</sup> The foreign supply curve could apply to either the case of cross border supply of services or to sales by foreign affiliates from foreign direct investment. We illustrate the case below where we assume that only discriminatory restrictions exist. Then the ad valorem equivalent is shown in figure 1.  When services provided by foreigners and those provided by domestic suppliers are perfect substitutes, the upper diagram of figure 1 applies.  When services provided by foreigners and those provided by domestic suppliers are imperfect substitutes, the lower diagram of figure 1 applies.  In either case, the AVE is measured as

> 9 Kalirajan et al., (2000) produced estimates for 27 countries (mostly Asia-Pacific) in banking; Nguyen-Hong (2000) produces estimates for 20 economies in engineering services; Kang (2000) produces estimates for 23 countries in transportation services; Warren (2000) produces estimates for 20 countries in communications; Dihel and Shephard (2007) produce estimates for 26-28 countries in banking, insurance, telecommunications and engineering services; Copenhagen Economics (2005) estimates the barriers for 19 European Union countries. Doove et al. (2001) produce estimates for 35 economies in air transport services, 47 countries in telecommunications, and 51 economies in electricity prices.

> 10 If the foreign supply curve is upward-sloping, the reduction in the barriers against foreign suppliers will lead to a smaller decrease in the price of foreign services than shown in figure 1. But the difference between the foreign supply prices with and without discriminatory restrictions will still be the ad valorem equivalent.

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> where _Pf_ 1 is the price of services provided by foreign suppliers with restrictions and _Pf_ 0 is the price of services provided by foreign suppliers without discriminatory restrictions.<sup>11</sup>

# **2.1.2 Discriminatory versus Non-Discriminatory Barriers.** Many restrictions affect

both foreign and domestic suppliers of services. For example, a ban on entry for all firms could be non-discriminatory. Even if these barriers have a relatively more adverse effect on the costs of foreign firms, we call these non-discriminatory restrictions. If the non-discriminatory restrictions are also removed or reduced, the foreign supply price would fall further. In this case, the AVE of all the barriers that foreign suppliers of services confront can be decomposed into two parts: AVEs of discriminatory restrictions and those of non-discriminatory restrictions. An issue in the literature has been the disentangling of the impact on price of a service of the discriminatory and non-discriminatory components of services regulations. The data set we use in this paper provides information on discriminatory barriers only. Consequently, we only provide estimates of the AVE of discriminatory barriers.<sup>12</sup>

# **2.2 Data Sources**

With two exceptions mentioned below, the data for the estimates of the discriminatory barriers faced by foreign suppliers of services come from the recently released World Bank database of survey information on 11 services sectors mentioned above in 103 countries. See Borchert, Gootiiz and Mattoo (2014; 2012) for a guide to the database.

The World Bank survey employed a 169 page questionnaire of the regulatory regimes of these 11 sectors that was completed by law firms resident in each of the non-OECD 103 countries. For OECD countries, the questionnaire was completed based on a variety of available reports. The database focuses exclusively on the discriminatory barriers faced by foreign suppliers of services and, except for the European Union countries, ignores preferential

> 11 In some model applications, the AVE cannot be greater than one (e.g., Balistreri et al., 2009; Jensen et al., 2010), so these researchers may use the domestic price with restrictions in the denominator; then the AVE is less than or equal to one. It is straightforward to convert the ad valorem equivalent (AVE) with the domestic price with restrictions to one with an unrestricted domestic price in the denominator. In particular, if AVE is the ad valorem equivalent with restricted prices in the denominator and AVE* is the ad valorem equivalent with unrestricted prices in the denominator, then AVE* may be derived from AVE as AVE* = AVE/[1-AVE]; and  AVE = AVE*/[1+ AVE*].

> 12 In work in Armenia, Georgia, Russia, Kenya, Tanzania, Belarus and Malaysia, our colleagues have supplemented the data from the World Bank questionnaire with other sources which then allowed them to estimate the AVE of the non-discriminatory barriers as well. The first five of these papers are available at https://drive.google.com/?pli=1#folders/0B0V-t-Bs4-

hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2.

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commitments and focuses exclusively on MFN barriers. For European Union countries, however, they took a weighted average of MFN and intra-EU policies.<sup>13</sup> Based on these data and the methodology they developed, Borchert, Gootiiz and Mattoo produced “Services Trade Restrictiveness Indices,” for all 11 sectors in all of the 103 countries.<sup>14</sup> Information on two questions came from additional sources. Regarding barriers to maritime transport services, information on participation in a “United Nations Liner Code,” came from the <mark>Convention on a Code of Conduct for Liner Conferences.</mark><sup>15</sup> <mark>Information related to</mark> intellectual property rights in retail services was based on whether the country is on the priority 301 watch list of the United States Trade Representative (USTR).<sup>16</sup>

# **2.3 Calculation of Services Trade Restrictiveness Indices from the World Bank Database According to the Methodology of the Australian Productivity Commission**

Although Borchert, Gootiiz and Mattoo calculated Services Trade Restrictiveness Indices (STRIs) based on the World Bank database and a methodology they developed, to date, the World Bank database of discriminatory services barriers has not been transformed into ad valorem equivalents. We use the data of the World Bank and transform it by building on a series of studies supported by the Australian Productivity Commission. First, these authors developed a methodology for calculating STRIs in several business services sectors. This included studies by McGuire, Schuele and Smith (2000), McGuire and Schuele (2000), Kalirajan (2000) and Nguyen-Hong (2000). STRIs were calculated and, crucially, ad valorem equivalents were also estimated (usually in separate studies). Since we need to use the regressions of the Australian authors for the ad valorem equivalents estimates, we first need to score the data on discriminatory regulatory barriers of the World Bank database consistent with the STRI methodology employed by the Australian authors.<sup>17</sup> In the case of the European Union countries, transformation of the World Bank database includes weighting the intra-EU and extra-EU services regulatory regimes. We ignored preferential arrangements other than for the EU.

> 13 The decision to account for preferential services policies within EU countries is in contrast with the OECD Services Trade Restrictiveness Indices which ignore preferential liberalization throughout. See: http://www.oecd.org/tad/services-trade/methodology-services-trade-restrictiveness-index.htm

> 14 Landlocked countries were not included in the maritime sector survey, so the database is for less than 103 countries in this sector. The underlying data and the Services Trade Restrictiveness Indices of these authors are available at http://iresearch.worldbank.org/servicetrade/.

> 15 See: http://treaties.un.org/pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XII-6&chapter=12&lang=en)

> 16 See http://www.ustr.gov/about-us/press-office/reports-and-publications/2011/2011-special-301-report.

> 17 The scoring methodology of Borchert, Gootiiz and Mattoo differs in significant ways from that of the Australian authors.

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For the STRIs in each of these service sectors, the authors first developed a set of regulatory categories of potential restrictions and listed possible regulatory outcomes within each category. Typically, separate categories were defined for foreign supply of services by foreign direct investment and commercial presence or by cross-border supply from abroad. They collected data and assessed the regulatory regimes of many countries. Predetermined weights were assigned to each category based on the researchers’ a priori assessment of the importance of each category to performance outcomes of the sector.

These indices are subject to criticisms of various kinds as a determinant of the price impact of the restraints. It would have been better to estimate the weights assigned to different categories, rather than assign them on an a priori basis. But limitations on the size of the sample prevented this. Related to this, although cross-border supply of services generally is an inferior substitute for supply of services with a commercial presence, for some sectors, or at least services within a sector, cross-border supply might substitute well for supply with a commercial presence. For example, some insurance or re-insurance services might compete well through on-line sales or cross-border negotiations in re-insurance. Then if the market is open to cross-border supply, restrictions in the commercial presence area would have a smaller impact on the price of the service. Conversely, if firms can enter easily with a commercial presence, restrictions on crossborder supply would likely have less of a price impact. It is difficult to construct an index that could capture all these nuances, and our indices fail to capture them. Other limitations are mentioned in the caveats section.

The sum of the weights is equal to one in all cases. Regulatory outcomes within each category in each sector were developed and scored, with a score of 1 being the most restrictive and zero implying no restriction. The estimated score for each category is obtained by multiplying the selected score by the weight that is assigned to each restriction category. The STRI for the sector in a country is obtained by summing the weighted score for each category across all restriction categories. In this manner, their evaluations of each restriction category were transformed into a services trade restrictiveness index that ranged from zero to one, with one being completely blocked to foreign services suppliers and zero implying no discriminatory barriers against foreign services suppliers.

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In this study, for several sectors the list of restrictions and weights in our STRIs are identical to those of the Australian authors. In particular, the restrictions and weights are the same as those of: McGuire, Schuele and Smith (2000) in maritime services; McGuire and Schuele (2000) in banking services; Kalirajan (2000) in distribution services; and Nguyen-Hong (2000) in professional services. In the absence of explicit matrices of restrictions for the other sectors, it was necessary to develop STRIs with weights and restrictions based on those of the Australian authors. In particular, in air transport, rail transport and road transport, they were developed by Kimura et al., (2004a), based on categories of restrictions on maritime services in McGuire Schuele, and Smith (2000). In insurance services, Kimura et al., (2004b) developed the restriction list and weights based on banking services in McGuire and Schuele (2000). In fixed and mobile line services, Kimura et al., (2004c) developed a list based on categories in Warren (2000a) in telecommunications supplemented by categories in financial sectors and transport sectors in McGuire and Schuele (2000) and McGuire, Schuele and Smith (2000).

Finally, but crucially, for our STRIs we define a mapping from the World Bank database to the list of restrictions (or matrices) of the Australian authors. In the case of the European Union countries, a case by case assessment was required to assess the notes on the intra-EU policies in the World Bank database. In this manner, we score the regulatory regimes of the 11 sectors in the 103 countries according to the Australian authors’ criteria, i.e., we calculate services trade restrictiveness indices according to the methodology of the Australian authors.

There is considerable overlap in the categories of services restrictiveness in the World Bank database and the Australian authors scoring matrices, but the mapping is not one to one. Defining the mapping from the World Bank database to the criteria of the various Australian authors involved judgments in many cases. When there was not a clear one to one mapping, we used the closest proxy from the World Bank database. We attempted to use all the information in the World Bank database, but in a few cases, no reasonable proxy was available. In these cases, we deleted the category from the matrix of the Australian authors and rescaled the remaining categories so that the sum of the category weights equaled one. The mapping for the banking sector is included as table 1 to illustrate the procedure. The detailed mappings for all sectors are 8
shown in tables 1 through 11. Complete documentation of the scoring and data are provided in Excel spreadsheets online.<sup>18</sup> Although tables 1-11 in this paper should be self-explanatory, we discuss a few examples to clarify the mapping procedure. First consider the mapping for regulation of banking services. The first category in the McGuire and Schuele matrix for banking is licensing of banks. The category has a weight in the McGuire and Schuele matrix of 0.1, and there are five possible scores for the category. If no new license is allowed, the score is 1, for a weighted score of 0.1. If licenses up to three licenses are issued through a complicated, discriminatory and costly procedure, the McGuire and Schuele score is 0.75, for a weighted score of .075. If up to six licenses are issue with an application fee and several requirements, the McGuire and Schuele score is 0.2, for a weighted score of .02. If up to ten licenses are issued with only prudential requirements and an application fee, the McGuire and Schuele score is 0.1, for a weighted score of .01. If licenses are issued with only prudential requirements and an application fee, the McGuire and Schuele score is 0, for a weighted score of 0. If the World Bank database indicates that “market entry is not allowed,” we score this category in the McGuire and Schuele matrix at 1. The World Bank database notes three possible restrictions on the issuance of licenses: (i) there is a limit on the licenses available; (ii) the license is issued at the discretion of the regulatory body; and (iii) the license may be denied despite fulfillment of all publicly available criteria. If the World Bank database indicates all three categories of restrictions apply, we score this category of the McGuire and Schuele matrix at 0.75. If two of these restrictions apply, we score this category at 0.2. If one of these restrictions apply, we score the category at 0.1. If none apply in the World Bank database, we score this McGuire and Schuele category at zero.

There is a category “equity participation permitted,” which has a weight of 0.2 in the McGuire and Schuele matrix for banking. The score in the McGuire and Schuele matrix is 1-s, where s is the maximum equity share in a bank that is permitted for foreign firms. The World Bank database produces this information precisely, so the mapping from the World Bank database to McGuire and Schuele is one to one and very clear in this case.

To give examples where the mapping is more problematical, consider accounting services, where the list of regulatory categories is adapted from Nguyen-Hong. (We call this list

> 18 See the folders: “STRI mapping of data,” “STRI scoring 103 countries,” and “Intra-EU STRI scoring and Calculations” at the link: https://drive.google.com/?pli=1&authuser=0#folders/0B0V-t-Bs4hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2

9
and similar lists by the other Australian authors on whose work we build as the “Australian categories.”) We had to take proxies in the case of the category “Activities reserved by law to the profession,” which has a weight of 0.05. This category in the Australian list is scored at one if four or more activities are reserved to the profession. If there are two categories reserved to the profession, the Australian score is 0.5; for one or zero categories reserved to the profession the score is 0.25 and zero, respectively. In this case, we took the closest relevant proxy in the World Bank database, which was: for how many of the following actions is an economic needs test required: intra-corporate transfer (ICT), Independent Professionals as Employee of a local firm (IPC), and Service-Supplying Employee (SSE) of a firm based abroad. If an economic needs test is required for three (two, one, zero), we score the Australian matrix at 1, 0.5, 0.25 and 0, respectively.

Another example of no clear mapping is the case of restrictions on advertising, marketing and solicitation in the Australian matrix for accounting. We want to use all the information available in the World Bank database, so from the World Bank database we use the information on “minimum wage is required for IPC, ICT or SSE,” as our proxy for this category in the Australian matrix.

# **2.4 Transforming Our Services Trade Restrictiveness Indices into Ad Valorem Equivalents**

We rely on the papers by Warren (2000) in telecommunications (for both fixed line and mobile), Kalirajan et al., (2000) in financial services (for both banking and insurance), Kang (2000) in transportation services (for all four transportation sectors), Nguyen-Hong (2000) in professional services (for both accounting and auditing, and legal services) and Kalirajan (2000) for retail distribution services. Except for Warren, in all studies the authors regressed a measure of the price or costs of services against their STRIs and other relevant variables in a cross-country regression at a point in time to determine the impact of the regulatory barriers on the price of services.<sup>19</sup> Through these regressions, the authors estimated the ad valorem equivalents of the regulatory barriers in the countries of their sample.

Our methodology, which is explained in detail in Jafari (2014), assumes that the average of the international regressions of the price or cost impact estimated by the Australian authors

> 19Warren estimated quantity impacts and then, using elasticity estimates, was able to obtain price impacts and ad valorem equivalents.

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mentioned in the previous paragraph applies to our 103 countries and 11 sectors. Based on those estimates, we calculate AVEs. Here we provide a brief overview of the estimating equations used by these authors.

**2.4.1 Banking and Insurance.** For banking services, Kalirajan et al., (2000) use the net interest margin of banks as their price performance variable. From their estimation, the ad valorem equivalent (in percentage terms) of the STRI in banking services may be calculated from the following relationship:

where NIMi is the net interest margin in banking in country i, NIMi0 is the net interest margin when all restrictions in banking are removed in country i, and STRIi is the services trade restrictiveness index in banking in country i. In equation 1, the denominator is a price measure without any restrictions. This implies that the ad valorem equivalent may exceed 100 percent. We employ the same equation for insurance services.

**2.4.2 Transportation Services.** In the case of the four transportation services sectors, we used the econometric estimates of Kang (2000) for maritime services. But given the expanded set of countries in our data set, it was necessary to adapt the calculation of the ad valorem equivalents.  Kang uses shipping margins as the proxy for shipping price. The shipping margins from country _i_ (exporter) to country _j_ (importer), Mij, are defined as

Mij = IMij/EXij , where IMij represents the observed CIF value reported by importing country _j_ for all products imported from country _i_ , and EXij represents the observed FOB value of all exports reported by the _i_ th country as exported to the _j_ th country. The shipping margins are estimated as functions of a set of variables, the most important of which are bilateral restrictions (our STRIs), the distance between the trading partners and the scale of bilateral trade. Given that Singapore typically ranks number one on the World Bank Doing Business measure of “Trading Across Borders,” we assume that STRIs in transportation services that are less than or equal to the value for Singapore imply an AVE equal to zero. Further, assuming that variables other than the restrictiveness index do not change, we obtain differences in the expected shipping margin of 11
country _i_ and the average expected shipping margin of countries in the same development category, as a function of differences in the STRIs. Then we calculate the AVEs as: (2) AVEi = [(E(Mi) – 1) – (E(MSingapore) – 1)]/ (E(Mi) – 1) In the case of transportation services, unlike all other cases, we took the percentage price change as a percent of the domestic price with restrictions. Thus, in the case of our four transportation services sectors only, the maximum ad valorem equivalent is 100 percent.<sup>20</sup>

# **2.4.3 Fixed Line and Mobile Telephone Services.** In the case of telecommunications,

Warren estimated the quantity impacts of policy restrictions and other variables including per capita income and population density, and then used an estimate of the price elasticity of demand to get the price impact of policy restrictions. Define b<sup>f</sup> and b<sup>m</sup> as the estimated coefficients of the STRIs on the change in quantities in fixed line and mobile, respectively, and<sup>_e_</sup> _i_<sup>as the elasticity</sup> of demand. Warren defines _f m_ where _Qi_ and _Qi_ are the quantity of fixed lines and mobile phone subscribers per 100 inhabitants, respectively; the same variable with an asterisk is the estimated quantity assuming no policy restrictions. P is a price variable defined analogously to the quantity variable. Warren estimates that

> 20 As explained above, it is straightforward to calculate the AVE with the unrestricted price in the denominator from the data provided on the AVE with the restricted price in the denominator.

12
Since the price without restrictions must be non-negative, we impose the following constraint: _PI if_ > -1, and _PI im_ > -1.

**2.4.4 Professional Services.** In professional services, as the only available study on professional services, we use the study by Nguyen-Hong (2000) on engineering firms as our proxy for legal and accounting services. Nguyen-Hong used a cross-sectional data set of 84 engineering firms in 20 countries. He used price- cost margins as his dependent variable, which he regressed against the firm’s market share, cost of capital, sales growth, diversification index, three types of Trade Restrictiveness indices and some other variables. Based on his methodology, the price raising or rent creating impact of the foreign discriminatory restrictions in country i can be estimated from the following equation<sup>21</sup> : (5) Price Impact(i)= [p <u>p0</u> ~~]~~ (i) = (p)(βe+βo) (1-m) STRI(i) = 1.33 * (0.37+0.26) * 0.94 * STRI(i) 0 p− where  p and p0 refer to prices with and without restrictions, respectively, c is variable costs pp cc

(assumed constant), βe and βo are the estimated coefficients of the impact of the indices of market access and operations barriers on foreign firms, respectively, and m is the sample mean of firms’ market shares. We have only one STRI that combines both types of barriers of NguyenHong, so we use our STRI for both coefficients, and we use sample means of Nguyen-Hong for <u>p</u> m and . Since equation 5 ignores the cost-raising impact of policy restrictions, in principle, it is a biased down measure of the AVEs of the impacts. Nonetheless, table 15 shows that the AVEs cc in professional services are among the highest of all the sectors.

**2.4.5 Distribution Services.** Kalirajan (2000) employed a methodology very similar to Nguyen-Hong, starting with his estimation of price-cost margins based on many variables. The principle methodological differences were that Kalirajan estimated the cost raising impacts of the barriers and developed a single STRI. Based on his estimating equation, we may calculate the AVE of the discriminatory restrictions from the the cost raising impact, that is, as:

> 21 This methodology underestimates the costs of the barriers since it ignores the impact of the barriers on costs of the service.

13
where c and co are variable costs with and without restrictions, respectively, P and Q are price and quantity with restrictions, β is the estimated coefficient for the impact of a change in the STRI.

# 3. Results and Caveats

## **3.1 Results**

The results for the 103 countries and 11 sectors of the Services Trade Restrictiveness Indices that we have calculated based on the World Bank database and the Australian methodology are presented in table 12. Our AVEs are presented in table 13. To assist with interpretation, in table 14, we present the STRIs and AVEs by sector, but aggregated to three levels of development. In table 15, we show our STRIs and AVEs by sector, aggregated by geographic region. Full details of the calculations are available online.<sup>22</sup> Focusing on high income countries, table 14 shows that professional services are among the sectors with the highest AVEs in high income countries. But high income countries have uniformly lower estimated AVEs than transition countries, developing countries or least developing countries.

From table 15, we see that fixed line telephone services in South Asia and especially in Sub-Saharan Africa stand out as the sector and regions with the highest AVEs. There are 13 countries with AVEs of 915 percent, with 12 of them in Sub-Saharan Africa. Given that our calculated STRIs in fixed line do not appear dramatically higher than in mobile telephone services, the very high AVEs in fixed line may appear puzzling. The explanation is that the AVE is calculated based on an estimate of the quantity impacts of the barriers. In particular, it depends on the number of subscribers per 100 inhabitants (see equations 3 and 4). Given much higher penetration of mobile telephone subscribers than fixed line in many developing countries, especially in many Sub-Saharan countries, we will often get much higher AVEs in fixed line for comparable STRIs in fixed line and mobile telephone services. State owned telecom monopolies traditionally have typically done an extremely poor job of providing telephone service in SubSaharan Africa. For example, in Kenya and Tanzania, which are two of the countries with an estimated 915 percent AVE in fixed line, there is less than one fixed line subscriber per 200

> 22 Links for the STRI calculations are provided above. For the ad valorem equivalent calculations, see the folder “Ad Valorem Equivalents Calculations” at https://drive.google.com/?pli=1#folders/0B0V-t-Bs4hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2

14
inhabitants.<sup>23</sup> But mobile telephone services have been a game changer in Sub-Saharan Africa in terms of widening access to telephone service. In 2014, in Kenya, there were 70 mobile telephone subscribers per 100 inhabitants, while in Tanzania there were 57 per 100 inhabitants.

Table 14 shows that mobile telephone and retail distribution services have the lowest AVEs, in part explained by the penetration rates of mobile telephones. We generally see high estimates of AVEs in developing and least developed countries in transport services, especially rail transportation services. All the transportation AVEs are highly volatile if the price without restrictions is in denominator. We present the transport AVEs, unlike the others, as a percent of the price of service with restrictions, but they are easily converted to AVEs as a percent of the price of services without restrictions.<sup>24</sup> Finally, an issue in the literature is whether the barriers to foreign providers of services raise costs or create rents. In the event of the latter, for the welfare analysis of liberalization, it would also be important to know if the rents are captured by domestic agents or foreign agents. In order to decompose the AVEs into cost increasing or rent creating shares, it would be necessary to have better information on the regulatory regimes. Our estimates do not provide information on this issue.

# **3.2 Caveats**

Some of the more important caveats are the following.

- (i) The weights for the categories of limitations are assumed based on the judgment of the researchers as to their importance. With a larger sample, it would be possible to estimate the impact of separate categories of restrictions on the performance variable rather than make an a priori judgment.

- (ii) The additive nature of our STRIs fails to fully take into account nuances of the substitution possibilities between cross-border supply and supply by commercial presence regarding their impacts on the price of the service.

> 23 If the initial fixed line penetration rate is extremely low and there is a a high STRI equation 3a yields a value of that is less than negative one. Since this implies a negative price of telecom services without restrictions, we cannot use equation 3a in these cases. Since it occurs only in cases of very high effective barriers, we assign an AVE in these cases equal to the highest AVE for countries in our sample for which we can calculate an AVE. That value is: 915%, based on the estimate for Cambodia.

> 24 If AVE is the ad valorem equivalent with restricted prices in the denominator and AVE* is the ad valorem equivalent with unrestricted prices in the denominator, then AVE* may be derived from AVE as AVE* = AVE/[1AVE]

15
- (iii) We had to map the data in the World Bank database to the Australian based list of restrictions. In many cases this is not a one to one mapping and we have had to take the closest proxies available or modify the subcategories of the Australian list of restrictions.

- (iv) The impacts could change over time, but we are relying on cross-country econometric estimates of the impact of a change in our STRIs on the price or cost of the service that were done about 14 years ago.

- (v) Differences from the average that are not explained by the econometric model are ignored.

- (vi) For some sectors, such as road transportation and communications, no list of restrictions or estimated AVEs was developed by the Australian authors. In these cases, we developed lists of restrictions based on the closest categories from comparable sectors of the Australian authors. These estimates in these sectors are subject to an additional level of skepticism, since we must make a further assumption that the regression results apply for comparable sectors, e.g., the results for banking apply to insurance.

# References

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- Arnold, Jens M., Beata S. Javorcik, Mary Lipscomb and Aaditya Matoo (forthcoming), “Services Reform and Manufacturing Performance: Evidence from India,” _Economic Journal_ .

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- Borchert, Ingo, Batshur Gootiiz and Aaditya Mattoo (2012), “Guide to the Services Restrictions Database,” World Bank Policy and Research Working Paper Number 6108, June.

16
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Francois, Joseph (1999), “Estimates of Barriers to Trade in Services,” Erasmus University, mimeo.

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17
Hoekman, Bernard and Carlos A. Primo Braga. 1997. “Protection and Trade in Services: A survey,” _Open Economies Review_ , 8, 285-308.

- Idrisov, Georgi (2010), “Ad Valorem Equivalence to FDI Restrictiveness in Russia,” mimeo. Available at: https://drive.google.com/?usp=folder&authuser=0#folders/0B0V-t-Bs4hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2.

- International telecommunication Union, Time series by country, available at http://www.itu.int/ITUD/ict/statistics/.

- Jafari, Yaghoob (2014), “Foreign Discriminatory Barriers to Services Providers and Estimates of the Ad Valorem Equivalents (AVEs) of the Regulatory Barriers in the 11 Services Sectors for 103 countries,” mimeo, October 2.  Available at: <u>https://drive.google.com/folderview?id=0B0V-t-Bs4hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2&usp=sharing</u>

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Kalirajan, Kaleeswaran (2000), “Restrictions on Trade in Distribution Services,” Productivity Commission Staff Research Paper, AusInfo, Canberra, August. Available at: http://pc.gov.au/__data/assets/pdf_file/0018/8073/rotids.pdf

- Kalirajan, Kaleeswaran, Greg McGuire, Duc Nguyen-Hong and Michael Schuele (2000), “The Price Impact of Restrictions on Banking Services,” in Findlay, Christopher  and Tony Warren eds., _Impediments to Trade in Services: Measurement and  Policy Implications_ , London; Routledge, 215-230.

- Kang, Joog-Soon (2000), “Price Impact of Restrictiveness on Maritime Transportation Services,” in Findlay, Christopher and Tony Warren (eds.), _Impediments to Trade in Services: Measurement and Policy Implications_ , London: Routledge.

- Kimura, F. and H. Lee (2004), “The Gravity Equation in International Trade in Services,” Paper presented at the European Trade Study Group Conference, September 9-11, Nottingham.

- Kimura F., M. Ando and T. Fujii (2004a), “Estimating the Ad Valorem Equivalent of Barriers in the Maritime and Air Transportation Service Sectors in Russia,” mimeo. Available at: https://drive.google.com/?pli=1#folders/0B0V-t-Bs4hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2.

- Kimura F., M. Ando and T. Fujii, (2004b), “Estimating the Ad Valorem Equivalent of Barriers to Foreign Direct Investment in Financial Services Sectors in Russia,” mimeo. Available at: <u>https://drive.google.com/?pli=1#folders/0B0V-t-Bs4hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2.</u>

- Kimura F., M. Ando and T. Fujii (2004c), “Estimating the Ad Valorem Equivalent of Barriers to Foreign

- Direct Investment in the Telecommunication Services Sectors in Russia,” mimeo. Available at: https://drive.google.com/?pli=1#folders/0B0V-t-Bs4-

hXYjA3MTQ5MDctNTAxYy00M2I4LWI3NDAtZGRiNDI3NmYwOGU2.

18
- McGuire, Greg and Michael Schuele (2000), “Restrictiveness of International Trade in Banking Services,” in Findlay, Christopher and Tony Warren eds., _Impediments to Trade in Services: Measurement and Policy Implications_ , London; Routledge, 201-214.

- McGuire, Greg, Michael Schuele, and Tina Smith (2000), “Restrictiveness of International Trade in Maritime Services”, in Findlay, Christopher and Tony Warren eds., _Impediments to Trade in Services: Measurement and Policy Implications_ , London; Routledge.

- Nordhus, Hildegunn Kyvik, Massimo Geloso Grosso and Enrico Pinali (2008), “Market Structure in the Distribution Sector and Merchandise Trade,” OECD Trade Policy Working Paper No. 68.

- Nguyen- Hong, Duc (2000), “Restriction on trade in professional services,” Productivity Commission Staff Research Paper, AusInfo, Canberra, August. Available at: <u>http://www.pc.gov.au/__data/assets/pdf_file/0016/8080/rotips.pdf</u>

- Shepotylo, Oleksandr and Volodymyr Vakitov (2012), "Impact of services liberalization on productivity of manufacturing firms: evidence from the Ukrainian firm-level data," World Bank Policy and Research Working Paper Number 5944, January.

- Stern, Robert (2002). “Quantifying Barriers to Trade in Services,” in Bernard. Hoekman, Aaditya Mattoo and Philip English (eds.), _Development, Trade and the WTO_ , Washington D.C.: The World Bank, 247-258.

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- Warren, Tony (2000a), “The identification of impediments to trade and investment in telecommunications services”, in Findlay, Christopher and Tony Warren (eds.), _Impediments to Trade in Services: Measurement and Policy Implications_ , London: Routledge.

- Warren, Tony (2000b), “The impact on output of impediments to trade and investment in telecommunications services,” in Findlay, Christopher and Tony Warren (eds.), _Impediments to Trade in Services: Measurement and Policy Implications_ , London: Routledge.

- Whalley, John (2004), “Assessing the Benefits to Developing Countries of Liberalization of Services Trade,” _The World Economy_ , Vol. 27(8), 1123-1153.

19
Figure 1: Ad Valorem Equivalent (TE) of Barriers (Discriminatory Restrictions) (a) Small country: the case of perfect substitutes <!-- Start of picture text --> P<br>S<br>d<br>Pf 1 S 1 f Pf 1 = Pd 1<br>TE<br>0 0<br>0 S 0 Pf = Pd<br>Pf f<br>D<br>d<br>X<br> if<br>(b) Small country: the case of imperfect substitutes<br>P<br>Foreign Services d Domestic Services<br>P S<br>f d<br>P 1 Pd 1<br>f<br>Pd 0<br>TE<br>Pf 0 D f ( p f ; p 1 d ) Dd ( pd ; p 1 f )<br>D f ( p f ; pd 0 ) Dd ( pd ; p 0 f )<br>X X<br>f d<br><!-- End of picture text --> 20
# Tables

## **Table 1. Mapping** **_: Banking Sector_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|<br>**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Restrictions on Commercial Presence**||||**Restrictions on Commercial Presence**||||
|**Licensing of banks**|**_0.1_**|||**Licensing of banks**|**_0.1_**|||
|Issues no new license / No new license is allowed|**_0.1_**|**_1_**||Market entry is not allowed (mode 3)|**_0.1_**|**_1_**||
|Issues up to 3 new licenses with only prudential requirements /<br>Licenses are issued through complicated (discriminately) and<br>costly procedure.|**_0.1_**|**_0.75_**||Market entry is allowed but three of the following restrictions apply: (a) There<br>is a limit on the number of licenses available, (b) License is allocated at the<br>discretion of regulatory body (c) license is not granted if publicly available<br>criteria fulfilled.|**_0.1_**|**_0.75_**||
|Issues up to 6 new licenses with only prudential requirements. /<br>Licenses are generally issued with application fee and several<br>requirements.|**_0.1_**|**_0.2_**||Market entry is allowed but two of the following restriction apply: (a) There<br>is a limit on the number of licenses available, (b) License is allocated at the<br>discretion of regulatory body, (c) license is not granted if publicly available<br>criteria fulfilled.|**_0.1_**|**_0.2_**||
|Issues up to 10 new licenses with only prudential requirements.<br>/ Licenses are generally issued with application fee.|**_0.1_**|**_0.1_**||Market entry is allowed but one of the following restriction apply : (a) There<br>is a limit on the number of licenses available, (b) License is allocated at the<br>discretion of regulatory body, (c) license is not granted if publicly available<br>criteria fulfilled.|**_0.1_**|**_0.1_**||
|Issues new licenses with only prudential requirements. /<br>Licenses are generally issued with application fee.|**_0.1_**|**_0_**||Market entry is allowed but none of the following restriction apply: (a) There<br>is a limit on the number of licenses available, (b) License is allocated at the<br>discretion of regulatory body, (c) license is not granted if publicly available<br>criteria fulfilled.|**_0.1_**|**_0_**||
|**Form of commercial presence**|**_0.1_**|||**Form of commercial presence**|**_0.1_**|||
|Measures which restrict or require a specific type of<br>establishments|**_0.1_**|**_1_**||One of the following form of establishment is restricted : (a) Green field<br>branch , (b) Joint venture ,( c) Greenfield Subsidiary, (d) Acquisition|**_0.1_**|**_1_**||
|No restriction on establishment|**_0.1_**|**_0_**||None of the following form of establishment is restricted : (a) Green field<br>branch , (b) Joint venture ,( c) Greenfield Subsidiary, (d) Acquisition|**_0.1_**|**_0_**||
|**Direct investment: equity participation permitted**|**_0.2_**|||**Direct investment: equity participation permitted**|**_0.2_**|||
|The score is inversely proportional to the maximum equity<br>participation permitted in an existing domestic bank.|**_0.2_**|**_1-s_**||The score is inversely proportional to the maximum foreign equity<br>participation permitted in a professional firm. If s = maximum foreign equity<br>participation permitted in a professional firm|**_0.2_**|**_1-s_**||
|**Joint-venture arrangements**|**_0.1_**|||**Joint-venture arrangements**|**_0.1_**|||
|Issues no new banking licenses and no entry is allowed through<br>a joint venture with a domestic bank|**_0.1_**|**_1_**||No entry is allowed through a joint venture with a domestic bank|**_0.1_**|**_1_**||
|<br>Bank entry is only through a joint venture with a domestic<br>bank.|**_0.1_**|**_0.5_**||There are specific requirements for foreign firms to enter the local market<br>through a joint venture ( none of the following forms of establishment is<br>allowed: (a) Green field branch, (b) Greenfield Subsidiary, (c) Acquisition<br>(d) there is a maximum foreign equity permitted which imposes a de facto<br>joint venture requirement)|**_0.1_**|**_0.5_**||
|No requirement for a bank to enter through a joint venture with<br>a domestic bank.|**_0.1_**|**_0_**||.<br>No restriction|**_0.1_**|**_0_**||
|**Permanent movement of people**|**_0.02_**|||**Permanent movement of people**|**_0.02_**|||
|No entry of executives, senior management and/or specialists|**_0.02_**|**_1_**||Percentage of domestic residents/citizens on the board of directors required is<br>100%|**_0.02_**|**_1_**||
|Executives, specialists and/or senior management can stay up<br>to 1 year.|**_0.02_**|**_0.8_**||Percentage of domestic residents/citizens on the board of directors required is<br>above 75% and below 100%|**_0.02_**|**_0.8_**||
|Executives, specialists and/or senior management can stay up<br>to 2 years.<br>|**_0.02_**|**_0.6_**||Percentage of domestic residents/citizens on the board of directors required is<br>above 50% and below 75%|**_0.02_**|**_0.6_**||
|Executives, specialists and/or senior management can stay up<br>to 3 years.|**_0.02_**|**_0.4_**||Percentage of domestic residents/citizens on the board of directors required is<br>above 25% and below 50%|**_0.02_**|**_0.4_**||
|Executives, specialists and/or senior management can stay up<br>to 4 years.<br>|**_0.02_**|**_0.2_**||Percentage of domestic residents/citizens on the board of directors required is<br>above 0% and below 25%|**_0.02_**|**_0.2_**||
|Executives, specialists and/or senior management can stay a<br>period of 5 years or more.|**_0.02_**|**_0_**||Percentage of domestic residents/citizens on the board of directors required is<br>0%|**_0.02_**|**_0_**||

21
# **Table 1 Continued. Mapping** **_: Banking Sector_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Cross border trade**||||**Cross border trade**||||
|**Raising funds by foreign banks**|**_0.1_**|||**Raising funds by foreign banks**|**_0.1_**|||
|Banks are not permitted to raise funds in the domestic market. /<br>Foreign banks are not permitted to have cross-border deposits<br>of the host country banks, corporations, and households.|**_0.1_**|**_1_**||restrictions on raising capital domestically|**_0.2_**|**_1_**||
|Banks are restricted from raising funds from domestic capital<br>market. / Foreign banks are permitted to have cross-border<br>deposits of only some types of the host country residents or any<br>type of the host country residents with specific ceiling amount.|**_0.1_**|**_NA_**||||||
|Banks are restricted in accepting deposits from the public. /<br>Foreign banks are permitted to have cross-border deposits of<br>the host country banks, corporations, and households with<br>licenses.|**_0.1_**|**_NA_**||||||
|Banks can raise funds from any source with only prudential<br>requirements. / Foreign banks are permitted to have cross-<br>border deposits of any type of residents without restrictions.|**_0.1_**|**_0_**||no restrictions on raising capital domestically|**_0.2_**|**_0_**||
|**Lending funds by foreign banks.**|**_0.1_**|||**Proxy for Lending funds by foreign banks.**|**_0.1_**|||
|Banks are not permitted to lend to domestic clients. / Foreign<br>banks are not permitted to have cross-border lending to the host<br>country banks, corporations and households.|**_0.1_**|**_1_**||Restrictions on all 4 categories: repatriation of earnings, transactions in local<br>currencies licensing discrimination and "other" discrimination|**_0.1_**|1||
|Banks restricted to a specified lending size or lending to<br>||||,||||
|government projects. Foreign banks are permitted to have<br>cross-border lending to only some types of the host country<br>residents or any type of the host country residents with specific<br>ceiling amount.|**_0.1_**|**_0.75_**||Restrictions on 3 of the 4 categories|**_0.1_**|**_0.75_**||
|Banks are restricted in providing certain services such as credit<br>cards, leasing and consumer finance. / Foreign banks are<br>permitted to have cross-border lending to the host country<br>banks, corporations, and households with licenses.|**_0.1_**|**_0.5_**||Restrictions on 2 of the 4 categories|**_0.1_**|**_0.5_**||
|Banks are directed to lend to housing and small business.|**_0.1_**|**_0.25_**||Restriction on 1 of the 4 categories|**_0.1_**|**_0.25_**||
|Banks can lend to any source with only prudential restrictions.<br>/ Foreign banks are permitted to have cross-border lending to<br>any type fo the host country residents without restrictions.|**_0.1_**|**_0_**||No restrictions|**_0.1_**|**_0_**||
|**Other Restrictions**||||**Other Restrictions**||||
|**Other business of banks - insurance and securities -**|**_0.1_**|||**Restriction on banking services**|**_0.1_**|||
|Banks can only provide banking services.|**_0.1_**|**_1_**||Access denied to both deposit insurance and the central bank discount<br>window|0.1|1||
|Banks can provide banking services plus one other line of<br>business - insurance or security services.|**_0.1_**|**_0.5_**||Access denied to either deposit insurance or the central bank discount window|**_0.1_**|**_0.5_**||
|Banks have no restriction on conducting other lines of<br>business.|**_0.1_**|**_0_**||Access provided to both deposit insurance and the central bank discount<br>window|**_0.1_**|**_0_**||
|**Direct investment: restrictions on certain types of services.**|**_0.1_**|||**Direct investment: restrictions on certain types of services.**|**_0.1_**|||
|Restrictions on providing some types of banking services.|**_0.1_**|**_1_**||Access denied to the main payment system|**_0.1_**|**_1_**||
|No restriction on providing any type of banking services.|**_0.1_**|**_0_**||Access provided to the main payment system|**_0.1_**|**_0_**||

22
# **Table 1 Continued. Mapping** **_:  Banking Sector_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|<br>**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Expanding the number of banking outlets**|**_0.05_**|||**Expanding the number of banking outlets**|**_0.05_**|||
|One banking outlet with no new banking outlet permitted.|**_0.05_**|**_1_**||Both branches (outlets) and ATMs are restricted|0.05|1||
|Number of banking outlets is limited in number and location.|**_0.05_**|**_0.75_**||Restriction on either branches (outlets) or ATMs|**_0.05_**|**_0.75_**||
|Expansion of banking outlets is subject to non-prudential<br>regulatory approval.|**_0.05_**|**_0.25_**|NA|||||
|No restrictions on banks expanding operations.|**_0.05_**|**_0_**||No restriction on number of outlets or number of ATMs|**_0.05_**|**_0_**||
|**Composition of the board of directors**|**_0.02_**|||**Composition of the board of directors**|**_0.02_**|||
|The score is inversely proportional to the percentage of the<br>board that can comprise foreigners.|**_0.02_**|**_1-b_**||The score is inversely proportionately to the percentage of the board that can<br>comprise foreigners. If b = maximum percentage of the board that can<br>comprise foreigners.|_0.02_|_1-b_||
|**Temporary movement of people**|**_0.01_**|||**Temporary movement of people ( we used information on temporary**<br>**movement ofpeople for accounting services)**|**_0.01_**|||
|No temporary entry of executives, senior managers and/or<br>specialists.|**_0.01_**|**_1_**||No limitation on the duration of stay initially allowed for IPC|0.01|1||
|Temporary entry of executives, senior managers and/or<br>specialists up to 30 days.|**_0.01_**|**_0.75_**||Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75||
|Temporary entry of executives, senior managers and/or<br>specialists up to 60 days.|**_0.01_**|**_0.5_**||Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5||
|Temporary entry of executives, senior managers and/or<br>specialists up to 90 days.|**_0.01_**|**_0.25_**||Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25||
|Temporary entry of executives, senior managers and/or<br>specialists over 90 days.|**_0.01_**|**_0_**||Duration of stay initially allowed for IPC is over 3 month|0.01|0||
|**Total**|1||||1|||

23
# **Table 2. Mapping:** **_Accounting Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**BARRIERS TO ESTABLISHMENT**||||||||
|**Formof establishment**|**0.08**|||**Formof establishment**|**0.08**|||
|Prohibition on incorporation|0.08|1||Prohibition of separate legal entity|0.08|1||
|Some form of incorporation permitted|0.08|0.5|**NA**|||||
|No restrictions|0.08|0||Separate legal entity allowed|0.08|0||
|**Foreign partnership or joint**<br>**venture**|**0.08**||||**0.08**|||
|Prohibition on partnership with foreign<br>professionals<br>hi i ih ll|0.08|1||Limit on ownership or control by<br>foreign national is not allowed|0.08|1||
|Partnersp or jont venture wt oca<br>professionals required|0.08|0.5|NA|hi l b fi||||
|No restrictions|0.08|0||ownersp or contro y oregn<br>national is allowed|0.08|0||
|**Investment and ownership by**<br>**foreign professionals**|**0.05**|||**Investment and ownership by**<br>**foreign professionals**|**0.05**|||
|Firms must be owned or controlled by<br>_local_professionals. The score is||||The score is inversely proportional to<br>the maximum foreign equity<br>participation permitted in a||||
|<br>inversely proportional to the maximum<br>||||<br>professional firm. If s = maximum<br>||||
|foreign equity participation permitted in<br>a professional firm|0.05|||foreign equity participation permitted<br>in a professional firm|0.05|1-s||
|**Investment and ownership by non-**<br>**professional investors**|**0.05**|||**Investment and ownership by non-**<br>**professional investors**<br>|**0.05**|||
|||||The score is inversely proportional to<br>||||
|Firms must be owned or controlled by<br>||||the maximum equity participation<br>||||
|professionals. The score is proportional<br>to the non- rofessional euit||||permitted for non- locally licensed<br>rofessionals in a rofessional firm||||
|p qy<br>permitted in a professional firm. For<br>||||p p .<br>Let p = the maximum equity<br>||||
|example , equity participation to<br>maximum of 75 percent in existing firm||||participation permitted for non- locally<br>licensed professionals in a professional||||
|<br>receives a score of 0.25|0.05|||<br>firm|0.05|1-p||
|**Nationality or citizenship**<br>**requirements**|**0.135**|||**Nationality or citizenship**<br>**requirements**|**0.135**|||
|Nationality required to qualify or to<br>||||Market closed nationality of host<br>||||
|practice|0.135|1||country is required|0.135|1||
|Nationality required for use of<br>||||||||
|professional title, but practice is<br>relatively free|0.135|0.25|**NA**|||||
|**No restrictions**|0.135|0||No restriction|0.135|0||
|**Residency and localpresence**|**0.135**|||**Residency and localpresence**|**0.135**|||
|Permanent or prior residency (more<br>than 12 months)|0.135|1||Residency in host country is required|0.135|1||
|Less than 12 months prior residency|0.135|0.75|**NA**|||||
|Prior residency required for local<br>training|0.135|0.5|**NA**|||||
|Domicile or representative office only|0.135|0.25|**NA**|||||
|No restrictions|0.135|0||No restriction|0.135|0||

24
**Table 2 Continued. Mapping:** **_Accounting Services_**

|**Australian categories**|**Weight**||**Score**|**Weighted score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|---|
|**Quotas or economic needs tests on**<br>**the number of foreign professionals**<br>**and firms**|**0.1**||||**Quotas or economic needs tests on**<br>**the number of foreign professionals**<br>**and firms**|**0.1**|||
|Quotas or economic needs tests|0.1||1||Quotas or economic needs tests|0.1|1||
|Some restrictions apply|0.1||0.5||Labor market test required<br>Nith t i d tt|0.1|0.5||
|No restrictions|0.1||0||eer quoa or economc nees ess,<br>nor labor market test required|0.1|0||
|**Licensing and accreditation of**<br>**_foreign _professionals**|**0.1**||||**Licensing and accreditation of**<br>**_foreign _professionals**|**0.1**|||
|Local retraining required for a full<br>license|0.1||1||Foreign training or experience is not<br>recognized<br>|0.1|1||
|Local examination required in all cases|0.1||0.75||Passing a professional exam in the host<br>country is required|0.1|0.75||
|Case-by-case assessment of foreign<br>license and qualifications|0.1||0.5||Automatic recognition of foreign<br>licensee is not granted<br>Foreign licensee professionals are<br>|0.1|0.5||
|Aptitude tests|0.1||0.25||eligible to practice subject to<br>conditions|0.1|0.25||
|Foreign license and qualifications<br>sufficient to practice|0.1||0||No restrictions|0.1|0||
|**Licensing and accreditation of****_local_**<br>**professionals**|**0.05**||||**Licensing and accreditation of****_local_**<br>**professionals**|**0.05**|||
|Compulsory membership of<br>professional association|0.05||0.33||Passing the exam is required|0.05|0.33||
|Professional examination|0.05||NA|**NA**|Tii k i i||||
|Practical experience|0.05||0.33||ranng or wor experence s<br>required|0.05|0.33||
|Higher education|0.05||0.33||Higher education is required|0.05|0.33||
|**Permanent movement ofpeople**|**0.02**||||**Permanent movement of people**|**0.02**|||
|No entry of executives, senior<br>managers or specialists|0.02||1||Intra Cooperate transfer (ICT) is not<br>allowed<br>|0.02|1||
|Entry of up to 1 year|0.02||0.8||Intra Cooperate transfer (ICT) is<br>allowed up to 1 year<br>I C f ICT i|0.02|0.8||
|Entry of up to 2 years|0.02||0.6||ntra ooperate transer () s<br>allowed up to 2 years<br>It Ct tf ICT i|0.02|0.6||
|Entry of up to 3 years|0.02||0.4||nra ooperae ranser () s<br>allowed up to 3 years<br>|0.02|0.4||
|Entry of up to 4 years|0.02||0.2||Intra Cooperate transfer (ICT) is<br>allowed up to 4 years<br>Intra Cooerate transfer (ICT) is|0.02|0.2||
|Entry of up to 5 years or more|0.02||0||p<br>allowed over 4 years|0.02|0||
|**BARRIERS TO ONGOING OPERATI**<br>|**ONS**||||||||
|**Activities reserved by law to the**<br>**profession**|**0.05**||||**Activities reserved by law to the**<br>**profession **|**0.05**|||
|4 core activities and over||0.05|1||Economic needs test is required for<br>each of ICT, Independent Professionals<br>as Employee of a local firm (IPC), and<br>Service-Supplying Employee (SSE) of<br>a firm based abroad.|0.05|1||
|2 core activities||0.05|0.5||Economic needs test is required for<br>two of ICT,IPC and SSE|0.05|0.67||
|1 core activity||0.05|0.25||Economic needs test is required for one<br>of ICT,IPC and SSE|0.05|0.33||
||||||Economic needs test is required for||||
|None||0.05|0||none of ICT,IPC and SSE|0.05|0||

25
**Table 2 Continued. Mapping:** **_Accounting Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Multi-disciplinary practices**|**0.05**|||**This category has been removed so**<br>**that the weights sum to one**||||
|Prohibition on partnership or<br>association with other professions|0.05|1||||||
|Majority partnership required|0.05|0.5||||||
|No restrictions|0.05|0||||||
|**Advertising, marketing and**<br>**solicitation**|**0.05**|0.05||**Proxy: Minimum wage/salary**<br>**restriction**|**0.1**|||
|Prohibition of advertising, marketing<br>and solicitation|0.05|1||Minimum wage/salary is required for<br>ICT, IPE, and SSE<br>|0.1|1||
|Restrictions apply to some groups or||||Minimum wage/salary is required for<br>at least one of ICT,I PE, and SSE||||
|activities|0.05|0.5|||0.1|0.5||
|General legal requirements|0.05|0||Minimum wage/salary is not required<br>for ICT, IPE, and SSE|0.1|0||
|**Fee setting**|**0.05**|||**Proxy: Minimum wage/salary**<br>**restriction **||||
|Minimum and maximum fees for all<br>||||Minimum wage/salary is required for<br>ICT, IPE, and SSE||||
|groups in the profession|0.05|1|||0.1|1||
|Restrictions apply to some groups or||||Minimum wage/salary is required for<br>at least one of ICT,I PE, and SSE||||
|activities|0.05|0.5|||0.1|0.5||
|Setting fee freely|0.05|0||Minimum wage/salary is not required<br>for ICT, IPE, and SSE|0.1|0||
|**Licensing requirements on**<br>**management**|**0.02**|||**Proxy: Restrictions on Greenfield**<br>**branches”**|**0.04**|||
|At least a majority of managers must be<br>nationals or residents|0.02|1||Greenfield branch is not allowed|0.02|1||
|Directors and managers must be locally||||||||
|licensed|0.02|0.5|NA|||||
|Directors and managers must be<br>domiciled|0.02|0.25|NA|||||
|No restrictions|0.02|0||Greenfield branch is allowed|0|||
|**Other restrictions**<br>Rii hii ll|**0.02 **|||**Proxy: Restrictions on Greenfield**<br>**branches” **||||
|estrctons on rng oca<br>professionals|0.02|0.33||Greenfield branch is not allowed|1|||
|Restrictions on the use of firm’s<br>international names||||||||
||0.02|0.33||Greenfield branch is not allowed|1|||
|Government procurement —<br>restrictions towards foreign suppliers|0.02|0.33||Greenfield branch is not allowed|1|||
|No restrictions|0.02|0||Greenfield branch is allowed|0|||
|**Temporary movement ofpeople**|**0.01**|||**Temporary movement ofpeople**|**0.01**|||
|No temporary entry|0.01|1||No limitation on the duration of stay<br>initially allowed for IPC|0.01|1||
|Temporary entry of up to 30 days|0.01|0.75||Duration of stay initially allowed for<br>IPC is up to 1 month|0.01|0.75||
|Temporary entry of up to 60 days|0.01|0.5||Duration of stay initially allowed for<br>IPC is up to 2 month|0.01|0.5||
|||||Duration of stay initially allowed for|0.01|0.25||
|Temporary entry of up to 90 days|0.01|0.25||<br>IPC is up to 3 month||||
|Temporary entry over 90 days|0.01|0||Duration of stay initially allowed for<br>IPC is over 3 month|0.01|0||
|**Total**|**1.05**||||**1**|||

26
# **Table 3. Mapping:** **_Legal Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**BARRIERS TO ESTABLISHMENT**||||**BARRIERS TO ESTABLISHMENT**||||
|**Form of establishment**|**0.08**|||**Form of establishment**|**0.08**|||
|Prohibition on incorporation|0.08|1||Prohibition of separate legal entity|0.08|1||
|Some form of incorporation permitted|0.08|0.5|**NA**|||||
|No restrictions|0.08|0||Separate legal entity allowed|0.08|0||
|**Foreign partnership or jointventure**|**0.08**|||**Foreign partnership or jointventure**|**0.08**|||
|Prohibition on partnership with foreign professionals|0.08|1||Limit on ownership or control by foreign national is not allowed|0.08|1||
|Partnership or joint venture with local professionals required|0.08|0.5|NA|||||
|No restrictions|0.08|0||ownership or control by foreign national is allowed|0.08|0||
|**Investment and ownership by foreign professionals**|**0.05**|||**Investment and ownership by foreign professionals**|**0.05**|||
|Firms must be owned or controlled by_local_professionals. The score is<br>||||The score is inversely proportional to the maximum foreign equity<br>||||
|inversely proportional to the maximum foreign equity participation<br>permitted in a professional firm|0.05|||participation permitted in a professional firm. If s = maximum<br>foreign equity participation permitted in a professional firm|0.05|1-s||
|**Investment and ownership by non-professional investors**|**0.05**|||**Investment and ownership by non-professional investors**<br>The score is inversel roortional to the maximum euit|**0.05**|||
|Firms must be owned or controlled by professionals. The score is<br>proportional to the non- professional equity permitted in a professional<br>fi F l i iii i f i||||y pp qy<br>participation permitted for non- locally licensed professionals in a<br>professional firm. Let p = the maximum equity participation<br>id f lll lid fil i fil||||
|rm. or exampe , equty partcpaton to maxmum o 75 percent n<br>existing firm receives a score of 0.25|0.05||1|permtte or non- ocay cense proessonas n a proessona<br>firm|0.05|1-p||
|**Nationality or citizenship requirements**|**0.135**|||**Nationality or citizenship requirements**|**0.135**|||
|Nationality required to qualify or to practice|0.135|1||Market closed nationality of host country is required|0.135|1||
|Nationality required for use of professional title, but practice is<br>relatively free|0.135|0.25|**NA**|||||
|No restrictions|0.135|0||No restriction|0.135|0||
|**Residency and localpresence**|**0.135**|||**Residency and localpresence**|**0.135**|||
|Permanent or prior residency (more than 12 months)|0135|1||Residenc in host contr is reired|0135|1||
|Less than 12 months prior residency|.|||y uy qu|.|||
|Prior residency required for local training|0.135<br>0135|0.75<br>05|**NA**<br>**NA**|||||
|Domicile or representative office only|.<br>0.135|.<br>0.25|<br>**NA**|||||
|No restrictions|0.135|0||No restriction|0.135|0||
|**Quotas or economic needs tests on the number of foreign**<br>**professionals and firms**|**0.1 **|||**Quotas or economic needs tests on the number of foreign**<br>**professionals and firms**|**0.1 **|||
|Quotas or economic needs tests<br>|0.1|1||Quotas or economic needs tests|0.1|1||
|Some restrictions apply|0.1|0.5||Labor market test required<br>|0.1|0.5||
|No restrictions|0.1|0||Neither quota or economic needs tests, nor labor market test<br>required|0.1|0||
|**Licensing and accreditation of ****_foreign _professionals**|**0.1 **|||**Licensing and accreditation of****_foreign_professionals**|**0.1 **|||
|Local retraining required for a full license|0.1|1||Foreign training or experience is not recognized|0.1|1||
|Local examination required in all cases|0.1|0.75||Passing a professional exam in the host country is required|0.1|0.75||
|Case-by-case assessment of foreign license and qualifications|0.1|0.5||Automatic recognition of foreign licensee is not granted|0.1|0.5||
|Aptitude tests|0.1|0.25||Foreign licensee professionals are eligible to practice subject to<br>conditions|0.1|0.25||
|<br>Foreign license and qualifications sufficient to practice|0.1|0||No restrictions|0.1|0||

27
**<u>Table 3 Continued. Mapping:</u>** **_<u>Legal Services</u>_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**<br>**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Licensing and accreditation of ****_local _professionals**|**0.05**|||**Licensing and accreditation of****_local_professionals**<br>**0.05**|||
|Compulsory membership of professional association|0.05|0.33||Passing the exam is required<br>0.05|0.33||
|Professional examination|0.05|NA|**NA**||||
|Practical experience|0.05|0.33||Training or work experience is required<br>0.05|0.33||
|Higher education|0.05|0.33||Higher education is required<br>0.05|0.33||
|**Permanent movement ofpeople**|**0.02**|||**Permanent movement of people**<br>**0.02**|||
|No entry of executives, senior managers or specialists|0.02|1||Intra Cooperate transfer (ICT) is not allowed<br>0.02|1||
|Entry of up to 1 year|0.02|0.8||Intra Cooperate transfer (ICT) is allowed up to 1 year<br>0.02|0.8||
|Entry of up to 2 years|0.02|0.6||Intra Cooperate transfer (ICT) is allowed up to 2 years<br>0.02|0.6||
|Entry of up to 3 years|0.02|0.4||Intra Cooperate transfer (ICT) is allowed up to 3 years<br>0.02|0.4||
|Entry of up to 4 years|0.02|0.2||Intra Cooperate transfer (ICT) is allowed up to 4 years<br>0.02|0.2||
|Entry of up to 5 years or more|0.02|0||Intra Cooperate transfer (ICT) is allowed over 4 years<br>0.02|0||
|**BARRIERS TO ONGOING OPERATIONS**||||**BARRIERS TO ONGOING OPERATIONS**|||
|**Activities reserved by law to theprofession**|**0.05**|||**Activities reserved by law to the profession**<br>**0.05**|||
|||||Economic needs test is required for each of ICT, Independent<br>Professionals as Employee of a local firm (IPC), and Service-<br>Supplying Employee (SSE) of a firm based abroad.<br>0.05|1||
|4 core activities and over|0.05|1||<br>|||
|2 core activities|0.05|0.5||Economic needs test is required for two of ICT,IPC and SSE<br>0.05<br>|0.67||
|1 core activity|0.05|0.25||Economic needs test is required for one of ICT,IPC and SSE<br>0.05|0.33||
|None|0.05|0||Economic needs test is required for none of ICT,IPC and SSE|||
|**Multi-disciplinary practices**|**0.05**|||**This category has been removed**|||
|Prohibition on partnership or association with other professions|0.05|1|||||
|Majority partnership required|0.05|0.5|||||
|No restrictions|0.05|0|||||
|**Advertising, marketing and solicitation**|**0.05**|||**Proxy: Minimum wage/salary restriction **<br>**0.1 **|||
|Prohibition of advertising, marketing and solicitation|0.05|1||Minimum wage/salary is required for ICT, IPE, and SSE<br>0.05|1||
|Restrictions apply to some groups or activities|0.05|0.5||Minimum wage/salary is required for at least one of ICT,I PE, and SSE 0.05|0.5||
|General legal requirements|0.05|0||Minimum wage/salary is not required for ICT, IPE, and SSE 0.05|0||
|**Fee setting**|**0.05**||||||
|Minimum and maximum fees for all groups in the profession|0.05|1|||||
|Restrictions apply to some groups or activities|0.05|0.5|||||
|Settingfee freely|0.05|0|||||
|**Licensing requirements on management**|**0.02**|||**Proxy: Restrictions on Greenfield branches”**<br>**0.04**|||
|At least a majority of managers must be nationals or residents|0.02|1||Greenfield branch is not allowed<br>0.02|1||
|Directors and managers must be locally licensed|0.02|0.5|NA||||
|Directors and managers must be domiciled|0.02|0.25|NA||||
|No restrictions|0.02|0||Greenfield branch is allowed 0.02|0||
|**Other restrictions**|**0.02 **||||||
|Restrictions on hiring local professionals|0.02|0.33|||||
|Restrictions on the use of firm’s international names|0.02|0.33|||||
|Government procurement — restrictions towards foreign suppliers|0.02|0.33|||||
|No restrictions|0.02|0|||||

28
# **Table** **<u>3 Continued. Mapping:</u>** **_Legal_** **_<u>Services</u>_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Temporary movement ofpeople**|**0.01**|||**Temporary movement ofpeople**|**0.01**|||
|No temporary entry|0.01|1||No limitation on the duration of stay initially allowed for IPC|0.01|1||
|Temporary entry of up to 30 days|0.01|0.75||Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75||
|Temporary entry of up to 60 days|0.01|0.5||Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5||
|Temporary entry of up to 90 days|0.01|0.25||Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25||
|Temporary entry over 90 days|0.01|0||Duration of stay initially allowed for IPC is over 3 month|0.01|0||
|**Total**|**1.05**||||**1**|||

29
# **Table 4. Mapping:** **_Insurance Services_**

|**Australian categories**|**Weight**|**Score**<br>**Weighted**<br>**score**|<br>**The World Bank data**|**Weight**|<br>**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Restrictions on Commercial Presence**|||**Restrictions on Commercial Presence**||||
|**Licensing of insurance services**|**_0.1_**||**Licensing of insurance services**|**_0.1_**|||
|No new license is allowed|**_0.1_**|**_1_**|Market entry is not allowed (mode 3)|**_0.1_**|**_1_**||
|Licenses are issued through complicated<br>(discriminately) and costly procedure.|**_0.1_**|**_0.75_**|Market entry is allowed but three of the following restriction apply : (a) There is a limit on the<br>number of licenses available, (b) license is allocated at the discretion of regulatory body, (c)<br>license is not granted if publicly available criteria fulfilled.|**_0.1_**|**_0.75_**||
|Licenses are generally issued with application<br>fee and several requirements.|**_0.1_**|**_0.5_**|Market entry is allowed but two of the following restriction apply : (a) There is a limit on the<br>number of licenses available, (b) license is allocated at the discretion of regulatory body, (c)<br>license is not granted if publicly available criteria fulfilled.|**_0.1_**|**_0.2_**||
|Licenses are generally issued with application<br>fee.|**_0.1_**|**_0.25_**|Market entry is allowed but one of the following restriction apply : (a) There is a limit on the<br>number of licenses available, (b) license is allocated at the discretion of regulatory body, (c)<br>license is not granted if publicly available criteria fulfilled.|**_0.1_**|**_0.1_**||
|Licenses are automatically issued upon<br>application without any cost.|**_0.1_**|**_0_**|Market entry is allowed but none of the following restriction apply : (a) There is a limit on the<br>number of licenses available, (b) license is allocated at the discretion of regulatory body, (c)<br>license is not granted if publicly available criteria fulfilled.|**_0.1_**|**_0_**||
|**Form of commercial presence**|**_0.1_**||**Form of commercial presence**|**_0.1_**|||
|Measures which restrict or require a specific<br>type of establishments.|**_0.1_**|**_1_**|One of the following form of establishment is restricted : (a) Green field branch , (b) Joint<br>venture ,( c) Greenfield Subsidiary, (d) Acquisition|**_0.1_**|**_1_**||
|No restriction on establishment.|**_0.1_**|**_0_**|Non of the following form of establishment is restricted : (a) Green field branch , (b) Joint<br>venture ,( c) Greenfield Subsidiary, (d) Acquisition|**_0.1_**|**_0_**||
|**Direct investment: equity participation**<br>**permitted**|**_0.2_**||**Direct investment: equity participation permitted**|**_0.2_**|||
|The score is inversely proportional to the<br>maximum equity participation permitted in an<br>existing domestic insurance company.|**_0.2_**|**_1-s_**|The score is inversely proportional to the maximum foreign equity participation permitted in a<br>professional firm. If s = maximum foreign equity participation permitted in a professional firm.|**_0.2_**|**_1-s_**||
|**Direct investment: restrictions on certain**<br>**types of services**|**_0.1_**||**Proxy : restriction on insurance services**|**_0.1_**|||
|Restrictions on providing some types of<br>insurance services.|**_0.1_**|**_1_**|restriction on either value of the insurance policy or term of insurance policy or both|**_0.1_**|**_1_**||
|No restriction on providing any type of<br>insurance services.|**_0.1_**|**_0_**|no restriction on either value of the insurance policy or term of insurance policy|**_0.1_**|**_0_**||
|**Joint venture arrangements**|**_0.1_**||**Joint venture arrangements**|**_0.1_**|||
|Issues no new insurance license and no entry<br>is allowed through a joint-venture with a<br>domestic insurance company.|**_0.1_**|**_1_**|No entry is allowed through a joint venture with a domestic insurance company|**_0.1_**|**_1_**||
|Foreign company entry is only through a joint<br>venture with a domestic insurance company.|**_0.1_**|**_0.5_**|There are specific requirements for foreign firms to enter the local market through a joint venture<br>( none of the following forms of establishment is allowed: (a) Green field branch, (b) Greenfield<br>Subsidiary, (c) Acquisition (d) there is a maximum foreign equity permitted which imposes a de<br>facto joint venture requirement).|**_0.1_**|**_0.5_**||
|No requirement for an insurance company to<br>enter through a joint-venture with a domestic<br>insurance company.|**_0.1_**|**_0_**|<br>No restriction|**_0.1_**|**_0_**||
|**Permanent movement of people**|**_0.02_**||**Permanent movement of people ( we used information on permanent movement of people**<br>**for accounting services)**|**_0.02_**|||
|No entry of executives, senior managers<br>and/or specialists.|**_0.02_**|**_1_**|Intra Cooperate transfer (ICT) is not allowed|0.02|1||
|Executives, specialists and/or senior managers<br>can stay up to 1 year.|**_0.02_**|**_0.8_**|Intra Cooperate transfer (ICT) is allowed up to 1 year|0.02|0.8||
|Executives, specialists and/or senior managers<br>can stay up to 2 years.|**_0.02_**|**_0.6_**|Intra Cooperate transfer (ICT) is allowed up to 2 years|0.02|0.6||
|Executives, specialists and/or senior managers<br>can stay up to 3 years.|**_0.02_**|**_0.4_**|Intra Cooperate transfer (ICT) is allowed up to 3 years|0.02|0.4||
|Executives, specialists and/or senior managers<br>can stay up to 4 years.|**_0.02_**|**_0.2_**|Intra Cooperate transfer (ICT) is allowed up to 4 years|0.02|0.2||
|Executives, specialists and/or senior managers<br>can stay a period of 5 years or more.|**_0.02_**|**_0_**|Intra Cooperate transfer (ICT) is allowed over 4 years|0.02|0||

30
**Table 4 Continued. Mapping:** **_Insurance Services_**

|**Australian categories**|**Weight**|**Score**<br>**Wei**<br>**scor**|**ghted**<br>**e**<br>**The World Bank data**|**Weight**|<br>**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Cross-border Trade**|||**Cross-border Trade**||||
|**Cross-border insurance supply by foreign**<br>**insurance companies**|**_0.2_**||**Cross-border insurance supply by foreign insurance companies**|**_0.2_**|||
|Foreign insurance companies are not<br>permitted to provide the host country<br>residents with any type of cross-border<br>insurance services.|**_0.2_**|**_1_**|Market entry is not allowed (mode 1)|**_0.2_**|**_1_**||
|Foreign insurance companies are permitted to<br>provide the host country residents with certain<br>types of cross-border insurance services.|**_0.2_**|**_0.75_**|Market entry is allowed but it domestic unavailability of service desired is required|**_0.2_**|**_0.75_**||
|Foreign insurance companies are permitted to<br>provide the host country residents with any<br>type of cross-border insurance services with<br>licenses.|**_0.2_**|**_0.5_**|Market entry is allowed but both the following restrictions apply: (a) restriction on sector of the<br>firm using the service, (b) other forms of restrictions|**_0.2_**|**_0.5_**||
|Foreign insurance companies are permitted to<br>provide the host country residents with any<br>type of cross-border insurance services<br>without restrictions.<br>|**_0.2_**|**_0_**|Market entry is allowed but one the following restrictions apply: (a) restriction on sector of the<br>firm using the service, (b)other forms of restrictions|**_0.2_**|**_0.25_**||
|Foreign insurance companies are permitted to<br>provide the host country residents with any<br>type of cross-border insurance services<br>without restrictions.|**_0.2_**|**_0_**|Market entry is allowed but none the following restrictions apply: (a) restriction on sector of the<br>firm using the service, (b) other forms of restrictions|**_0.2_**|**_0_**||
|**Other Restrictions**|||**Other Restrictions**||||
|**Other business of insurances - banking**<br>**and securities -**|**_0.1_**||**Proxy: Other restrictions on foreign insurance companies**|**_0.1_**|||
|Insurance companies can only provide<br>insurance services.|**_0.1_**||Restriction on repatriation of earning|**_0.01_**|**_0.33_**||
|Insurance companies can provide insurance<br>services plus one other type of business -<br>banking or security services –|**_0.1_**||Difference in licensing criteria for foreign and domestic applicants|**_0.01_**|**_0.33_**||
|Insurance companies have no restrictions on<br>conducting other lines of business.<br>Score is taken from column H of the World<br>Bank matrix|**_0.1_**<br>**_0.1_**||Other forms of discrimination<br>Sum|**_0.01_**|**_0.33_**||
|**Expanding the number of insurance**<br>**outlets**|**_0.05_**||**Expanding the number of insurance outlets**|**_0.05_**|||
|One insurance outlet with no new insurance<br>outlet permitted.|**_0.05_**|**_1_**|Restriction on the number of branches|**_0.05_**|**_1_**||
|Number of insurance outlets is limited in<br>number and location.|**_0.05_**|**_NA_**|||||
|Expansion of insurance outlets in subject to<br>non-prudential regulatory approval.|**_0.05_**|**_NA_**|||||
|No restriction for insurance companies<br>expanding operations|**_0.05_**|**_0_**|No restriction on the number of branches|**_0.05_**|**_0_**||
|**Composition of the board of directors**|**_0.02_**||**Composition of the board of directors**|**_0.02_**|||
|The score is inversely proportional to the<br>percentage of the board that can comprise<br>foreigners.|**_0.02_**|**_1-b_**|The score is inversely proportionately to the percentage of the board that can comprise foreigners.<br>If b = maximum percentage of the board that can comprise foreigners.|<br>_0.02_|_1-b_||
|**Temporary movement of people**|**_0.01_**||**Temporary movement of people ( we used information on temporary movement of people**<br>**for accounting services)**|**_0.01_**|||
|No temporary entry of executives, senior<br>managers and/or specialists.|**_0.01_**|**_1_**|No limitation on the duration of stay initially allowed for IPC|0.01|1||
|Temporary entry of executives, senior<br>managers and/or specialists up to 30 days.|**_0.01_**|**_0.75_**|Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75||
|Temporary entry of executives, senior<br>managers and/or specialists up to 60 days.|**_0.01_**|**_0.5_**|Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5||
|Temporary entry of executives, senior<br>managers and/or specialists up to 90 days.|**_0.01_**|**_0.25_**|Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25||
|Temporary entry of executives, senior<br>|**_0.01_**|**_0_**|Duration of stay initially allowed for IPC is over 3 month|0.01|0||
|managers and/or specialists over 90 days.<br>**Total**|**_1_**|||**_1_**|||

31
**Table.5. Mapping** **_: Fixed-line Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Restrictions on Commercial Presenc**|**e**|||**Restrictions on Commercial Presence**||||
|**Licensing of fixed line services**|**0.2**|||**Licensing of fixed line services**|**0.2**|||
|**(a) Regional Line Service**<br>||||||||
|No new license is allowed.|0.2/3|1||Market entry is not allowed (mode 3)|0.2|1||
|Licenses are issued through<br>complicated (discriminately) and<br>costly procedure.|0.2/3|0.75||Market entry is allowed but three of the following restrictions apply : (a) There is a limit on the<br>number of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is<br>not always granted if publicly available criteria fulfilled.|0.2|0.75||
|Licenses are generally issued with<br>application fee and several<br>requirements.|0.2/3|0.2||Market entry is allowed but two of the following restrictionsapply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.2||
|Licenses are generally issued with<br>application fee.|0.2/3|0.1||Market entry is allowed but one of the following restrictionsapply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.1||
|Licenses are automatically issued<br>upon application without any cost.<br>**(b) Domestic Long Distance Line Ser**|0.2/3<br>**vice**|0||Market entry is allowed but none of the following restrictions apply: (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0||
|No new license is allowed.|0.2/3|1||Market entry is not allowed (mode 3)|0.2|1||
|Licenses are issued through<br>complicated (discriminately) and<br>costly procedure.|0.2/3|0.75||Market entry is allowed but three of the following restrictions apply : (a) There is a limit on the<br>number of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is<br>not always granted if publicly available criteria fulfilled.|0.2|0.75||
|Licenses are generally issued with<br>application fee and several<br>requirements.|0.2/3|0.2||Market entry is allowed but two of the following restrictions apply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.2||
|Licenses are generally issued with<br>application fee.|0.2/3|0.1||Market entry is allowed but one of the following restrictions apply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.1||
|Licenses are automatically issued<br>upon application without any cost.|0.2/3|0||Market entry is allowed but none of the following restrictions apply : (a) There is a limit on the<br>number of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is<br>not always granted if publicly available criteria fulfilled.|0.2|0||
|**(c) International Line Service**||||||||
|No new license is allowed.|0.2/3|1||Market entry is not allowed (mode 3)|0.2|1||
|Licenses are issued through<br>complicated (discriminately) and<br>costly procedure.|0.2/3|0.75||Market entry is allowed but three of the following restrictions apply: (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.75||
|Licenses are generally issued with<br>application fee and several<br>requirements.|0.2/3|0.2||Market entry is allowed but two of the following restrictions apply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.2||
|Licenses are generally issued with<br>application fee.|0.2/3|0.1||Market entry is allowed but one of the following restriction apply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is not<br>always granted if publicly available criteria fulfilled.|0.2|0.1||
|Licenses are automatically issued<br>upon application without any cost.|0.2/3|0||Market entry is allowed but none of the following restrictions apply : (a) There is a limit on the<br>number of licences available, (b) Licence is allocated at the discretion of regulatory body(c) licence is<br>not always granted if publicly available criteria fulfilled.|0.2|0||
|**Form of commercial presence**|**0.1**|||**Form of commercial presence**|**0.1**|||
|**(a) Regional Line Service**<br>||||One of the following form of establishment is restricted : (a) Green field branch (b) Joint venture ( c)||||
|Measures which restrict or require a<br>specific type of establishments.|0.1/3|1||, ,<br>Greenfield Subsidiary, (d) Acquisition|0.1|1||
|No restriction on establishment.|0.1/3|0||None of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|0.1|0||
|**(b) Domestic Long Distance Line Se**|**rvice**|||||||
|Measures which restrict or require a<br>specific type of establishments.|0.1/3|1||One of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|0.1|1||
|<br>No restriction on establishment.|0.1/3|0||None of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|0.1|0||
|**(c) International Line Service**||||||||
|Measures which restrict or require a<br>specific type of establishments|0.1/3|1||One of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|0.1|1||
|.<br>No restriction on establishment.|0.1/3|0||None of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|0.1|0||

32
**Table 5 Continued. Mapping:** **_Fixed-line Services_**

|**Australian categories**|**Weight**|**Score**<br>**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Direct Investment: equity**<br>**participation permitted**|**0.2**||**Direct Investment: equity participation permitted**|**0.2**|||
|The score is inversely proportional to<br>the maximum equity participation<br>permitted in an existing domestic<br>company|0.2|**1-s**|The score is inversely proportional to the maximum foreign equity participation permitted in a<br>professional firm. If s = maximum foreign equity participation permitted in a professional firm|0.2|1-s||
|**Direct investment: restrictions on**<br>**certain types of services**|**0.1**||**Direct investment: restrictions on certain types of services**|**0.1**|||
|Restrictions on providing some types<br>of telephone services.|0.1|1*|VOIP operation is not allowed.|0.1|0.5||
|* Score above is the sum of the two line|s of the Wo|rld Bank scoring|Operators are not permitted to own and operate international gateway|0.1|0.5||
|No restriction on providing any type<br>of telephone services.|0.1|0|||||
|**Joint venture arrangements**|**0.1**||**Joint venture arrangements**|**0.1**|||
|Issues no new license and no entry is<br>allowed through a joint venture with<br>a domestic company.|0.1|1|No entry is allowed through a joint venture with a domestic fixed-line operator|**0.1**|**1**||
|Foreign company can enter only<br>through a joint venture with a<br>domestic company.|0.1|0.5|There are specific requirements for foreign firms to enter the local market through a joint venture ( none<br>of the following forms of establishment is allowed: (a) Green field branch, (b) Greenfield Subsidiary,<br>(c) Acquisition (d) there is a maximum foreign equity permitted which imposes a de facto joint venture<br>requirement).|**0.1**|**0.5**||
|No requirement for foreign<br>companies to enter through a joint<br>venture with a domestic company.|0.1|0|No restriction|**0.1**|**0**||
|**Permanent movement of people**|**0.02**||**Permanent movement of people ( we used information on permanent movement of people for**<br>**accounting services)**|**_0.02_**|||
|No entry of executives, senior<br>managers and/or specialists.|**0.02**|**1**|Intra Cooperate transfer (ICT) is not allowed|0.02|1||
|Executives, specialists and/or senior<br>managers can stay up to 1 year.|**0.02**|**0.8**|Intra Cooperate transfer (ICT) is allowed up to 1 year|0.02|0.8||
|Executives, specialists and/or senior<br>managers can stay up to 2 years.|**0.02**|**0.6**|Intra Cooperate transfer (ICT) is allowed up to 2 years|0.02|0.6||
|Executives, specialists and/or senior<br>managers can stay up to 3 years.|**0.02**|**0.4**|Intra Cooperate transfer (ICT) is allowed up to 3 years|0.02|0.4||
|Executives, specialists and/or senior<br>managers can stay up to 4 years.|**0.02**|**0.2**|Intra Cooperate transfer (ICT) is allowed up to 4 years|0.02|0.2||
|Executives, specialists and/or senior<br>managers can stay a period of 5<br>years or more.|**0.02**|**0**|Intra Cooperate transfer (ICT) is allowed over 4 years|0.02|0||
|**Other Restrictions**|||**Other Restrictions**||||
|**Third party resale of lease line**|**0.1**||**Acquisition domestic private entity -max. ownership allowed by a group of entities**|**0.1**|||
|Resale is not permitted.|**0.1**|**1**|The score is inversely proportional to the maximum foreign equity participation permitted allowed by a<br>group of entities in acquisition. If d = maximum foreign equity participation permitted allowed by a<br>group of entities in acquisition|**0.1**|**1-d**||
|Resale is permitted in any market.|**0.1**|**0**|||||
|**End user tariff**|**0.05**||**Proxy: Other forms of discrimination**||||
|End user tariff is determined by rate<br>of return regulation.|**0.05**|**1**|Restriction on repatriation of earning|**0.05**|**0.33**||
|End user tariff is determined by price<br>cap rule established by the authority.|**0.05**|**0.5**|Difference in licencing criteria for foreign and domestic applicants|**0.05**|**0.33**||
|End user tariff is determined by<br>market force (no regulation).|**0.05**|**0**|Other forms of discrimination|**0.05**|**0.33**||

*Score for this category is the sum of column G from the World Bank components

33
**Table 5 Continued. Mapping** **_: Fixed-line Services_**

|**Australian categories**|**Weight**|**Score**<br>**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Regulation of network**<br>**interconnection **|**0.05**||**Regulation of network interconnection**|**0.1**|||
|Interconnection is completely<br>regulated by the authority*.|**0.05**|**1**|Interconnection agreements/prices are publicly available|**0.1**|**0.5**||
|Interconnection is determined private<br>negotiations in general, but general<br>terms are determined by the<br>authority.|**0.05**|**0.5**|Operators are required to publish Reference Interconnection Offer|**0.1**|**0.5**||
|Interconnection is completely<br>determined by private negotiations<br>(no regulation).|**0.05**|**0**|||||
|*The score for this category is the sum|of the Worl|d Bank scores|||||
|**Market structure**|**0.05**||**Right to Appeal Regulatory Decisions**|**0.05**|||
|**(a) Regional Line Service**|||||||
|Monopoly.|**0.05/3**|**1**|No right to appeal regulatory decisions|**0.1**|**1**||
|Competition among plural providers.|**0.05/3**|**0**|Right to appeal regulatory changes but no prior notice of regulatory changes|**0.1**|**0.5**||
|Competition among plural providers.|**0.05/3**|**0**|Right to appeal regulatory changes and prior notice of regulatory changes|**0.1**|**0**||
|**(b) Domestic Long Distance Line Serv**|**ice**||||||
|Monopoly.|**0.05/3**|**1**|No right to appeal regulatory decisions|**0.1**|**1**||
|Competition among plural providers.|**0.05/3**|**0**|Right to appeal regulatory changes but no prior notice of regulatory changes|**0.1**|**0.5**||
|Competition among plural providers.|**0.05/3**|**0**|Right to appeal regulatory changes and prior notice of regulatory changes|**0.1**|**0**||
|**(c) International Line Service**|||||||
|Monopoly.|**0.05/3**|**1**|No right to appeal regulatory decisions|**0.1**|**1**||
|Competition among plural providers.|**0.05/3**|**0**|Right to appeal regulatory changes but no prior notice of regulatory changes|**0.1**|**0.5**||
|Competition among plural providers.|**0.05/3**|**0**|Right to appeal regulatory changes and prior notice of regulatory changes|**0.1**|**0**||
|**Composition of the board of**<br>**directors**|**0.02**||**Composition of the board of directors**|**0.02**|||
|The score is inversely<br>proportionately to the percentage of<br>the board that can comprise<br>foreigners.|**0.02**|**1-b**|The score is inversely proportionately to the percentage of the board that can comprise foreigners. If b<br>= maximum percentage of the board that can comprise foreigners.|0.02|1-b||
|**Temporary movement of people**|**0.01**||**Temporary movement of people ( we used information on temporary movement of people for**<br>**accounting services)**|**_0.01_**|||
|No temporary entry of executives,<br>senior managers and/or specialists.|**0.01**|**1**|No limitation on the duration of stay initially allowed for IPC|0.01|1||
|Temporary entry of executives,<br>senior managers and/or specialists up<br>to 30 days.|**0.01**|**0.75**|Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75||
|Temporary entry of executives,<br>senior managers and/or specialists up<br>to 60 days.|**0.01**|**0.5**|Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5||
|Temporary entry of executives,<br>senior managers and/or specialists up<br>to 90 days.|**0.01**|**0.25**|Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25||
|Temporary entry of executives,<br>senior managers and/or specialists<br>over 90 days.|**0.01**|**0**|Duration of stay initially allowed for IPC is over 3 month|0.01|0||
|**Total**|**1**|||**1**|||

34
# **Table  6 Continued. Mapping:** **_Mobile line Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|<br>**Score**<br>**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Restrictions on Commercial Presence**||||**Restrictions on Commercial Presence**|||
|**Licensing of mobile phone**<br>**services**|**_0.2_**|||**Licensing of mobile phone services**|**_0.2_**||
|No new license is allowed.|**_0.2_**|**_1_**||Market entry is not allowed (mode 3)|**_0.2_**|**_1_**|
|Licenses are issued through<br>complicated (discriminately) and<br>costly procedure.|**_0.2_**|**_0.75_**||Market entry is allowed but three of the following restrictions apply : (a) There is a limit on the<br>number of licences available, (b) Licence is allocated at the discretion of regulatory body, (c) licence is<br>not always granted if publicly available criteria fulfilled.|**_0.2_**|**_0.75_**|
|Licenses are generally issued with<br>application fee and several<br>requirements.|**_0.2_**|**_0.2_**||Market entry is allowed but two of the following restrictions apply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body, (c) licence is not<br>always granted if publicly available criteria fulfilled.|**_0.2_**|**_0.2_**|
|Licenses are generally issued with<br>application fee.|**_0.2_**|**_0.1_**||Market entry is allowed but one of the following restrictions apply : (a) There is a limit on the number<br>of licences available, (b) Licence is allocated at the discretion of regulatory body, (c) licence is not<br>always granted if publicly available criteria fulfilled.|**_0.2_**|**_0.1_**|
|Licenses are automatically issued<br>upon application without any cost.|**_0.2_**|**_0_**||Market entry is allowed but none of the following restrictions apply : (a) There is a limit on the<br>number of licences available, (b) Licence is allocated at the discretion of regulatory body, (c) licence is<br>not always granted if publicly available criteria fulfilled.|**_0.2_**|**_0_**|
|**Form of commercial presence**|**_0.1_**|||**Form of commercial presence**|**_0.1_**||
|Measures which restrict or require a<br>specific type of establishments.|**_0.1_**|**_1_**||One of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|**_0.1_**|**_1_**|
|No restriction on establishment.|**_0.1_**|**_0_**||Non of the following form of establishment is restricted : (a) Green field branch , (b) Joint venture ,( c)<br>Greenfield Subsidiary, (d) Acquisition|**_0.1_**|**_0_**|
|**Direct investment: equity**<br>**participation permitted**|**_0.2_**|||**Direct investment: equity participation permitted**|**_0.2_**||
|The score is inversely proportional to<br>the maximum equity participation<br>permitted in an existing domestic<br>company|**_0.2_**|**_1-s_**||The score is inversely proportional to the maximum foreign equity participation permitted in a<br>professional firm. If s = maximum foreign equity participation permitted in a professional firm|**_0.2_**|**_1-s_**|
|**Direct investment: restrictions on**<br>**certain types of services**|**_0.1_**|||**Direct investment: restrictions on certain types of services**|**_0.1_**||
|Restrictions on providing some types<br>of telephone services.|**_0.1_**|**_1*_**||VOIP operation is not allowed.|**_0.1_**|**_0.5_**|
|* Score above is the sum of the two line|s of the Wo|rld Bank sc|oring|Operators are not permitted to own and operate international gateway|**_0.1_**|**_0.5_**|
|No restriction on providing any type<br>of telephone services.|**_0.1_**|**_0_**||No restriction|**_0.1_**|**_0_**|
|**Joint venture arrangements**|**_0.1_**|||**Joint venture arrangements**|**_0.1_**||
|Issues no new license and no entry is<br>allowed through a joint venture with<br>a domestic company|**_0.1_**|**_1_**||No entry is allowed through a joint venture with a domestic mobile operator|**_0.1_**|**_1_**|
|.<br>Foreign company can enter only<br>through a joint venture with a<br>domestic company.|**_0.1_**|**_0.5_**||There are specific requirements for foreign firms to enter the local market through a joint venture ( none<br>of the following forms of establishment is allowed: (a) Green field branch, (b) Greenfield Subsidiary,<br>(c) Acquisition (d) there is a maximum foreign equity permitted which imposes a de facto joint<br>venture requirement).|**_0.1_**|**_0.5_**|
|No requirement for foreign<br>companies to enter through a joint<br>venture with a domestic company.|**_0.1_**|**_0_**||No restriction|**_0.1_**|**_0_**|
|**Permanent movement of people**|**_0.02_**|||**Permanent movement of people**|**_0.02_**||
|No entry of executives, senior<br>managers and/or specialists.|**_0.02_**|**_1_**||Percentage of domestic residents/citizens on the board of directors required is 100%|**_0.02_**|**_1_**|
|Executives, specialists and/or senior<br>managers can stay up to 1 year.|**_0.02_**|**_0.8_**||Percentage of domestic residents/citizens on the board of directors required is above 75% and below<br>100%|**_0.02_**|**_0.8_**|
|Executives, specialists and/or senior<br>managers can stay up to 2 years.|**_0.02_**|**_0.6_**||Percentage of domestic residents/citizens on the board of directors required is above 50% and below<br>75%|**_0.02_**|**_0.6_**|
|Executives, specialists and/or senior<br>managers can stay up to 3 years.|**_0.02_**|**_0.4_**||Percentage of domestic residents/citizens on the board of directors required is above 25% and below<br>50%|**_0.02_**|**_0.4_**|
|Executives, specialists and/or senior<br>managers can stay up to 4 years.|**_0.02_**|**_0.2_**||Percentage of domestic residents/citizens on the board of directors required is above 0% and below<br>25%|**_0.02_**|**_0.2_**|
|Executives, specialists and/or senior||||Percentage of domestic residents/citizens on the board of directors required is 0%|||
|managers can stay a period of 5<br>years or more.|**_0.02_**|**_0_**|||**_0.02_**|**_0_**|

35
**Table 6 Continued. Mapping:** **_Mobile line Services_**

|**Australian categories**|**Weight**|**Score**<br>**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|
|**Other Restrictions**|||**Other Restrictions**||||
|**Regulation of interconnection**<br>**between fixed line and mobile or**<br>**between mobiles**|**_0.05_**||**Regulation of network interconnection**|**0.05**|||
|Interconnection is completely<br>regulated by the authority*.|**_0.05_**|**_1_**|Interconnection agreements/prices are publicly available|**0.05**|**0.5**||
|Interconnection is determined by<br>private negotiations in general, but<br>general terms are determined by the<br>authorities.|**_0.05_**|**_0.5_**|Operators are required to publish Reference Interconnection Offer|**0.05**|**0.5**||
|Interconnection is completely<br>determined by private negotiations<br>(no regulation).|**_0.05_**|**_0_**|||||
|*The score for this category is the sum|of the Worl|d Bank scores|||||
|**End user tariff**|**_0.1_**||**Proxy: Discrimination on Foreigners**|0.1|||
|End user tariff is determined by rate<br>of return regulation.|**_0.1_**|**_1_**|Restriction on repatriation of earning|**_0.1_**|**_0.33_**||
|End user tariff is determined by price<br>cap rule established by the authority.|**_0.1_**|**_0.5_**|Difference in licensing criteria for foreign and domestic applicants|**_0.1_**|**_0.33_**||
|End user tariff is determined by<br>market force (no regulation).|**_0.1_**|**_0_**|Other forms of discrimination|**_0.1_**|**_0.33_**||
|*Score for this category is the sum of co|lumn G fro|m the World Bank compo|nents||||
|**Allocation of radio spectrum**|**_0.05_**||**Allocation of radio spectrum**|**_0.05_**|||
|Allocation is discriminately decided<br>by the authority.|**_0.05_**|**_1_**|Spectrum use is not publicly available and gateway licence fee is required|**_0.05_**|**_1_**||
|Allocated by auction with<br>application fee.|**_0.05_**|**_0.2_**|Spectrum use is not publicly available and gateway licence fee is not required|**_0.05_**|**_0.5_**||
|Allocated by auction without<br>application fee.|**_0.05_**|**_0.1_**|Spectrum use is publicly available but gateway licence fee is required|**_0.05_**|**_0.25_**||
|Radio frequencies are obtained with<br>mobile services.|**_0.05_**|**_0_**|Spectrum use is publicly available and gateway licence fee is not required|**_0.05_**|**_0_**||
|**Market structure**|**_0.05_**||**Proxy: Right to Appeal Regulatory Decisions**|**_0.05_**|||
|Monopoly.<br>|**_0.05_**|**_1_**|No right to appeal regulatory decisions|0.05|1||
|Competition among plural providers.|**_0.05_**|**_0_**|Right to appeal regulatory changes but no prior notice of regulatory changes|0.05|0.5||
|Competition among plural providers.|**_0.05_**|**_0_**|<br>Right to appeal regulatory changes and prior notice of regulatory changes|0.05|0||
|**Composition of the board of**<br>**directors**|**_0.02_**||**Composition of the board of directors**|**_0.02_**|||
|The score is inversely proportional to<br>the percentage of the board that can<br>comprise foreigners|**_0.02_**|**_1-b_**|The score is inversely proportionately to the percentage of the board that can comprise foreigners. If<br>b = maximum percentage of the board that can comprise foreigners.|_0.02_|_1-b_||
|**Temporary movement of people**|**_0.01_**||**Temporary movement of people ( we used information on temporary movement of people for**<br>**accounting services)**|**_0.01_**|||
|No temporary entry of executives,<br>senior managers and/or specialists.|**_0.01_**|**_1_**|No limitation on the duration of stay initially allowed for IPC|0.01|1||
|Temporary entry of executives,<br>senior managers and/or specialists up<br>to 30 days.|**_0.01_**|**_0.75_**|Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75||
|Temporary entry of executives,<br>senior managers and/or specialists up<br>to 60 days.|**_0.01_**|**_0.5_**|Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5||
|Temporary entry of executives,<br>senior managers and/or specialists up<br>to 90 days.|**_0.01_**|**_0.25_**|Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25||
|Temporary entry of executives,<br>senior managers and/or specialists<br>over 90 days.<br>**Total**|**_0.01_**<br>**_1_**|**_0_**|Duration of stay initially allowed for IPC is over 3 month|0.01<br>**_1_**|0||

36
**Table 7 Continued. Mapping:** **_Maritime transport Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Restrictions on Commercial Presence and Cross-Border**<br>**Trade**||||**Restrictions on Commercial Presence and Cross-Border Trade**||||
|**Conditions on the right to fly the national flag**|**0.15**|||**Conditions on the right to fly the national flag**|**0.15**|||
|Commercial presence required in the domestic economy|0.15|0.4||Greenfield branch is not allowed|0.15|0.4||
|50 per cent or more of equity participation must be domestic|0.15|0.3||50 per cent or more of equity participation must be domestic|0.15|0.3||
|50 per cent or more of the crew are required to be domestic|0.15|0.2||50 percent or more of employees are required to be domestic|0.15|0.2||
|Ship must be registered|0.15|0.1||Licence required|0.15|0.1||
|**Form of commercial presence**|**0.1**|||**Form of commercial presence**|**0.1**|||
|Measures which restrict or require a specific type of legal entity or<br>joint venture arrangement|0.1|1||One of the following form of establishment is restricted : (a) joint venture, (b)<br>Greenfield Subsidiary, (c) Acquisition|0.1|1||
||0.1|NA||||||
|Shipping service suppliers must be represented by an agent<br>No restrictions on establishment|0.1|0||Non of the following form of establishment is restricted : (a) joint venture, (b)<br>Greenfield Subsidiary, (c) Acquisition|0.1|0||
|**Direct investment in shipping services suppliers**|**0.1**|||**Direct investment in shipping services suppliers**|**0.1**|||
|The score is inversely proportional to the maximum equity<br>participation permitted in an existing services supplier|0.1|1-s||The score is inversely proportional to the maximum foreign equity participation<br>permitted in a professional firm. If s = maximum foreign equity participation<br>permitted in a professional firm|0.1|1-s||
|**Direct investment in onshore maritime services suppliers**|**0.1**|||**Proxy:Acquisition domestic private entity -max. ownership allowed by a**<br>**group of entities**|**0.1**|||
|The score is inversely proportional to the maximum equity<br>participation permitted in an existing onshore maritime service<br>supplier|0.1|0||The score is inversely proportional to the maximum foreign equity participation<br>permitted allowed by a group of entities in acquisition. If d = maximum foreign<br>equity participation permitted allowed by a group of entities in acquisition|0.1|1-d||
|**Permanent movement of people**|**0.02**|||**Permanent movement of people**|**0.02**|||
|No entry of executives, senior managers and/or specialists|0.02|1||Percentage of domestic residents/citizens on the board of directors required is<br>100%|0.02|1||
|Executives, specialists and/or senior managers can stay a period<br>of up to 1 year|0.02|0.8||Percentage of domestic residents/citizens on the board of directors required is<br>above 75% and below 100%|0.02|0.8||
|Executives, specialists and/or senior managers can stay a period<br>of up to 2 year|0.02|0.6||Percentage of domestic residents/citizens on the board of directors required is<br>above 50% and below 75%|0.02|0.6||
|Executives, specialists and/or senior managers can stay a period of<br>up to 3 year|0.02|0.4||Percentage of domestic residents/citizens on the board of directors required is<br>above 25% and below 50%|0.02|0.4||
|Executives, specialists and/or senior managers can stay a period of<br>up to 4 year|0.02|0.2||Percentage of domestic residents/citizens on the board of directors required is<br>above 0% and below 25%|0.02|0.2||
|Executives, specialists and/or senior managers can stay a period of<br>up to 5 year or more|0.02|0||Percentage of domestic residents/citizens on the board of directors required is 0%|0.02|0||
|**Cabotage**|**0.1**|||**Proxy: Market entry**|0.1|||
|Foreigners that fly the national flag can provide domestic<br>maritime services|0.1|1||Market entry is not allowed (mode 3)|0.1|1||
|<br>Restrictions on type and length of time cargoes can be carried|0.1|0.5||Market entry is allowed but two of the following restrictions apply : (a) There is<br>a limit on the number of licences available, (b) Licence is allocated at the<br>discretion of regulatory body(c) licence is not granted if publicly available<br>criteria fulfilled.|0.1|0.5||
|No cabotage restrictions|0.1|0||Market entry is allowed but none of the following restrictions apply : (a) There is<br>a limit on the number of licences available, (b) Licence is allocated at the<br>discretion of regulatory body(c) licence is not granted if publicly available<br>criteria fulfilled.|0.1|0||
|**Transportation on non-commercial cargoes**|**0.1**|||**Proxy: quotas on cargos**|0.1|||
|Private shipping service suppliers cannot carry non-commercial<br>cargoes|0.1|1||There are quotas for government cargos in bulk|0.1|0.25||
|National flag shipping service suppliers can carry non-commercial<br>cargoes|0.1|0.5||There is quotas for private cargos in bulk|0.1|0.25||
|No restrictions on access to non-commercial cargoes|0.1|0||There is quotas forgovernmentliner cargos|0.1|0.25||
|||||There is quotas for private liner cargos|0.1|0.25||
|Score will be sum of Column G for World Bank score weighted<br>by 0.1|**0.1**|||Sum of the above 4||||

37
**Table** **<u>7 Continued. Mapping</u>** **_<u>:  Maritime transport Services</u>_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**||**Weight**<br>**Score**|
|---|---|---|---|---|---|---|
|**Other restrictions**||||**Other restrictions**|||
|**Port services**|**0.1**|||**Port services**|**0.1**||
|Some restrictions on access to ports|0.1|0.8||All the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,<br>(d) storage/warehousing other ships allowed, (e) customs clearance own ships<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|1|
|||||All the following restriction apply except one: (a) Cargo handling own ships<br>allowed, (b) cargo handling other ships allowed, (c) storage/warehousing own<br>ships allowed, (d) storage/warehousing other ships allowed, (e) customs clearance|||
|Mandatory use of berthing services|0.1|0.05||<br>own ships allowed, (f) customs clearance other ships allowed, (g) container<br>station/ depot own ships allowed, (h) container station/ depot other ships allowed,<br>(I) freight forwarding own ships allowed (J) freight forwarding other ships<br>allowed.|0.1|0.9|
|||||All the following restriction apply except two: (a) Cargo handling own ships<br>allowed, (b) cargo handling other ships allowed, (c) storage/warehousing own<br>ships allowed (d) storage/warehousing other ships allowed (e) customs clearance|||
|Mandatory use of pilotage|0.1|0.2||, ,<br>own ships allowed, (f) customs clearance other ships allowed, (g) container<br>station/ depot own ships allowed, (h) container station/ depot other ships allowed,<br>(I) freight forwarding own ships allowed (J) freight forwarding other ships<br>allowed.|0.1|0.8|
|||||All the following restriction apply except three: (a) Cargo handling own ships<br>allowed, (b) cargo handling other ships allowed, (c) storage/warehousing own<br>ships allowed, (d) storage/warehousing other ships allowed, (e) customs clearance|||
|Mandatory use of towing|0.1|0.15||own ships allowed, (f) customs clearance other ships allowed, (g) container<br>station/ depot own ships allowed, (h) container station/ depot other ships allowed,<br>(I) freight forwarding own ships allowed (J) freight forwarding other ships<br>allowed.|0.1|0.7|
|||||Six of the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,<br>|||
|Mandatory use of tug assistance|0.1|0.1||(d) storage/warehousing other ships allowed, (e) customs clearance own ships<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0.6|
|||||Five of the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,|||
|Mandatory use of navigational aids|0.1|0.05||(d) storage/warehousing other ships allowed, (e) customs clearance own ships<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0.5|
|||||Four ofl the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,|||
|Mandatory use of waste disposal|0.1|0.05||(d) storage/warehousing other ships allowed, (e) customs clearance own ships<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0.4|
|||||Three of the following restriction apply: (a) Cargo handling own ships allowed,<br>(b) cargo handling other ships allowed, (c) storage/warehousing own ships<br>allowed (d) storae/warehousin other shis allowed (e) customs clearance own|||
|Mandatory use of anchorage|0.1|0.05||, gg p ,<br>ships allowed, (f) customs clearance other ships allowed, (g) container station/<br>depot own ships allowed, (h) container station/ depot other ships allowed, (I)<br>freight forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0.3|
|||||Two of the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,<br>d /hi h hi lld l hi|||
|Mandatory use of casting off|0.1|0.05||() storagewareousng oter sps aowe, (e) customs cearance own sps<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0.2|
|||||One of the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,<br>(d) storage/warehousing other ships allowed, (e) customs clearance own ships<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0.1|
|||||None of the following restriction apply: (a) Cargo handling own ships allowed, (b)<br>cargo handling other ships allowed, (c) storage/warehousing own ships allowed,<br>d t/hi th hi lld t l hi|||
|Score is taken from the World Bank score for this category||||() soragewareousng oer sps aowe, (e) cusoms cearance own sps<br>allowed, (f) customs clearance other ships allowed, (g) container station/ depot<br>own ships allowed, (h) container station/ depot other ships allowed, (I) freight<br>forwarding own ships allowed (J) freight forwarding other ships allowed.|0.1|0|

38
**Table 7 Continued. Mapping:** **_Maritime transport Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Discretionary imposition or restrictions, including for**<br>**retaliatory purposes**|**0.05**|||**Discretionary imposition or restrictions, including for retaliatory purposes**|**0.05**|||
|Governments are able to impose selective restrictions|0.05|1||Restriction on repatriation of earning|0.5|0.25||
|Governments are unable to impose selective restrictions|0.05|0||Difference in licensing criteria for foreign and domestic applicants|0.5|0.25||
|||||Other forms of discrimination|0.5|0.25||
|**Score will be sum of Column G for World Bank score**<br>**weighted by 0.05**|**0.5**|||No right to appeal regulatory decisions|0.5|0.25||
|**United Nations Liner Code**|**0.05**|||**United Nations Liner Code**|**0.05**|||
|Economy is party of the code and applies to Article 2 of the code.|0.05|1||Economy is party of the code and applies to Article 2 of the code|0.05|1||
|Economy is party to the code but does not apply Article 2 of the<br>code.|0.05|0.75||Economy is party to the code but does not apply Article 2 of the code|0.05|0.75||
|Economy is not party to code|0.05|0||Economy is not party to code|0.05|0||
|**Government permits conference**|**0.05**|||**Government permits conference**|**0.1**|||
|Governments permits the operation of conferences|0.05|1||There is exemption of carrier agreements from competition law|0.05|1||
|Conferences are subject to effective competition|0.05|0||Exemption of carrier agreements from competition law does not exist|0.05|0||
|**Bilateral maritime services agreements on cargo sharing**|**0.05**|||||||
|The score for an economy is taken from the 35 by 35 matrix of<br>bilateral agreements on cargo sharing|0.05|1||||||
|**Composition of the board of directors**|**0.02**|||**Composition of the board of directors**|0.02|||
|The score is inversely proportional to the percentage of the board<br>that can comprise foreigners|0.02|0||The score is inversely proportionately to the percentage of the board that can<br>comprise foreigners. If b = maximum percentage of the board that can comprise<br>foreigners.<br>|0.02|1-b||
|**Temporary movement of people**<br>No temporary entry of executives, senior managers and/or<br>specialists|**0.01**<br>0.01|1||**Temporary movement of people ( we used information on temporary**<br>**movement ofpeople for accounting services)**<br>No limitation on the duration of stay initially allowed for IPC|**_0.01_**<br>0.01|1||
|Temporary entry of executives, senior managers and/or specialists<br>up to 30 days|0.01|0.75||Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75||
|Temporary entry of executives, senior managers and/or specialists<br>up to 60 days|0.01|0.5||Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5||
|Temporary entry of executives, senior managers and/or specialists<br>up to 90 days|0.01|0.25||Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25||
|Temporary entry of executives, senior managers and/or specialists<br>over 90 days|0.01<br>**1**|0||Duration of stay initially allowed for IPC is over 3 month|0.01<br>**1**|0||

39
# **Table 8. Mapping** **_: Air transport Services_**

|Australian categories|Weight|Score|Weighted<br>score|Score|Weight<br>score|<br>Score|Weighted<br>score|
|---|---|---|---|---|---|---|---|
|Restrictions on Commercial Presence and Cross-Border Trade||||Restrictions on Commercial Presence and Cross-Border Trade||||
|<br>Form of commercialpresence|0.1|||<br>Form of commercialpresence|0.1|||
|Measures which restrict or require a specific type of legal entity or joint<br>venture arrangement.|0.1|1||One of the following form of establishment is restricted : (a)<br>joint venture, (b) Greenfield Subsidiary, (c) Acquisition|0.1|1||
|Air transport service suppliers must be represented by an agent.|0.1|NA||||||
|No restrictions on establishment.<br>Direct investment in international air transport service suppliers|0.1<br>0.1|||Non of the following form of establishment is restricted : (a)<br>joint venture, (b) Greenfield Subsidiary, (c) Acquisition<br>Direct investment in international air transport service suppliers|0.1<br>0.1|0||
|The score is inversely proportional to the maximum equity participation<br>permitted in an existing air transport service supplier.|0.1|1-s||The score is inversely proportional to the maximum foreign<br>equity participation permitted in a professional firm. If s =<br>maximum foreign equity participation permitted in a<br>professional firm.|0.1|1-s||
|Direct investment in domestic air transport service suppliers|0.1|||Proxy: Acquisition domestic private entity -max. ownership<br>allowed byagroupof entities|0.1|||
|The score is inversely proportional to the maximum equity participation<br>permitted in an existing domestic air transport service supplier.|0.1|1-d||The score is inversely proportional to the maximum foreign<br>equity participation permitted allowed by a group of entities in<br>acquisition. If d = maximum foreign equity participation<br>permitted allowed by a group of entities in acquisition|0.1|1-d||
|Permanent movement of people|0.02|||**Permanent movement of people ( we used information on**<br>**permanent movement ofpeople for accounting services)**|**_0.02_**|||
|No entry of executives, senior managers and/or specialists.|0.02|1||Intra Cooperate transfer (ICT) is not allowed|0.02|1||
|Executives, specialists and/or senior managers can stay a period of up to<br>1 year.|0.02|0.8||Intra Cooperate transfer (ICT) is allowed up to 1 year|0.02|0.8||
|Executives, specialists and/or senior managers can stay a period of up to<br>2 years.|0.02|0.6||Intra Cooperate transfer (ICT) is allowed up to 2 years|0.02|0.6||
|Executives, specialists and/or senior managers can stay a period of up to<br>3 years.|0.02|0.4||Intra Cooperate transfer (ICT) is allowed up to 3 years|0.02|0.4||
|Executives, specialists and/or senior managers can stay a period of up<br>to 4 years.|0.02|0.2||Intra Cooperate transfer (ICT) is allowed up to 4 years|0.02|0.2||
|Executives, specialists and/or senior managers can stay a period of up to<br>5 years or more.|0.02|0||Intra Cooperate transfer (ICT) is allowed over 4 years|0.02|0||
|International air transport<br>Foreigners generally cannot provide international air transport services.|0.1<br>0.1|1||Market entryin international air transport<br>Market entry is not allowed in air passenger service|0.1<br>0.1|1||
|Foreigners can provide international air transport services with<br>intergovernmental agreement, ASA.|0.1|0.5||Domestic acquisition allowed, but less than 100 percent<br>ownership.|0.1|0.5||
|No restriction on international air transport services.|0.1|0||Market entry is allowed without restrictions|0.1|0||
|International charter flight|0.1|||Proxy: Market entryin international air transport|0.1|||
|Foreigners generally cannot provide international charter flight services.|0.1|1||Market entry is not allowed in air passenger service|0.1|1||
|Foreigners can provide international charter flight services upon<br>agreements.|0.1|0.5||Domestic acquisition allowed, but less than 100 percent<br>ownership|0.1|0.5||
|No restriction on international charter flights services.<br>Di i|0.1<br>01|0||Market entry is allowed without restrictions<br>Mki di i|0.1<br>01|0||
|omestc ar transport<br>Foreigners generally cannot provide domestic air transport services.|.<br>0.1|1||aret entryn omestc ar transport<br>Market entry is not allowed in air passenger service|.<br>0.1|1||
|Foreigners can provide domestic air transport services with agreements.|0.1|0.5||Domestic acquisition allowed, but less than 100 percent<br>ownership|0.1|0.5||
|No restriction on domestic air transport services.|0.1|0||Market entry is allowed|0.1|0||
|Domestic charter flight|0.1|||Proxy: Market entryin domesgtic air transport|0.1|||
|Foreigners generally cannot provide domestic charter flight services.|0.1|1||Market entry is not allowed in air passenger service|0.1|1||
|Foreigners can provide domestic charter flight services upon<br>agreements|0.1|0.5||Domestic acquisition allowed, but less than 100 percent<br>ownership|0.1|0.5||
|.<br>No restriction on domestic charter flight services.|0.1|0||<br>Market entry is allowed|0.1|0||

40
**Table 8 Continued. Mapping:** **_Air transport Services_**

|Australian categories|Weight|Score|Weighted<br>score|Score|Weight<br>score|<br>Score<br>Weighted<br>score|
|---|---|---|---|---|---|---|
|Other Restrictions*||||Other Restrictions|||
|<br>Airport services|0.1|||<br>Proxy: Limit on number of licenses available|_0.1_||
|Foreigners generally cannot own airports.<br>Foreigners generally cannot provide fuel supply services.|0.1<br>0.1|0.4<br>0.15||No licence available<br>Licence available but all the following restriction apply :(a)<br>there is a limit on the number of licences available, (b) licences<br>allocated at the discretion of regulatory authority, (c) there is no<br>requirement to provide licencing decision within a time<br>framework|_0.1_<br>_0.1_|_1_<br>_0.75_|
|Foreigners generally cannot provide repair and maintenance services of<br>aircraft.|0.1|0.15||Licence available but two of the following restriction apply ::(a)<br>there is a limit on the number of licences available, (b) licences<br>allocated at the discretion of regulatory authority, (c) there is no<br>requirement to provide licencing decision within a time<br>framework|_0.1_|_0.5_|
|Foreigners generally cannot provide air services trade and marketing.|0.1|0.15||Licence available but one of the following restriction apply: (a)<br>there is a limit on the number of licences available, (b) licences<br>allocated at the discretion of regulatory authority, (c) there is no<br>requirement to provide licencing decision within a time<br>framework|_0.1_|_0.25_|
|Foreigners generally cannot provide computer reservation system.|0.1|0.15||Licence available but none of the following restriction apply :<br>(a) there is a limit on the number of licences available, (b)<br>licences allocated at the discretion of regulatory authority, (c)<br>there is no requirement to provide licencing decision within a<br>time framework|_0.1_|_0_|
|No restriction.|0.1|0|||||
|This category has been replaced with the category "Limit on number of<br>licenses available" and score is taken from the World Bank score for<br>this category.|||||||
|Discretionary imposition of restrictions, including for retaliatory<br>purposes|0.05|||Difference in licensing criteria for foreign and domestic<br>applicants|**0.05**||
|Governments are able to impose selective restrictions.|0.05|1||There is difference in licencing criteria for foreign and domestic<br>applicants|0.05|1|
|Governments are unable to impose selective restrictions.|0.05|0||There is no difference in licencing criteria for foreign and<br>domestic applicants|0.05|0|
|Discretionaryimposition of subsidytoprotect domestic air companies|0.05|||Proxy: Discrimination on foreign firms|0.05||
|Government directly subsidizes only domestic companies.|0.05|1||Both of the following restrictions apply: (a) restrictions on<br>repatriation of earning, (b) "other" forms of discrimination|0.05|1|
|Government indirectly subsidizes only domestic companies.|0.05|0.75||One of the following restriction apply: (a) restrictions on<br>repatriation of earning, (b) "other" forms of discrimination|0.05|0.75|
|Government does not subsidize either domestic companies or foreign<br>companies.|0.05|0||None of the following restriction apply: (a) restrictions on<br>repatriation of earning, (b) "other" forms of discrimination|0.05|0|
|Inter-governmental ASA agreement.|0.05|||Proxy: Existence of regulatory authority for the sector|0.05||
|The score for an economy is calculated, based on the number of<br>participating airline companies in each ASA.|0.05|||There exist regulatory authority for the sector|0.05|1|
|* Score is taken from the World Bank score for this category||||There is no regulatory authority for the sector|0.05|0|
|Composition of the board of directors|0.02|||Composition of the board of directors|0.02||
|The score is inversely proportionately to the percentage of the board<br>that can comprise foreigners.|0.02|1-b||The score is inversely proportionately to the percentage of the<br>board that can comprise foreigners. If b = maximum<br>percentage of the board that can comprise foreigners.|0.05|1-b|
|Temporary movement of people|0.01|||**Temporary movement of people ( we used information on**<br>**temporary movement ofpeople for accounting services)**|**_0.01_**||
|No temporary entry of executives, senior managers and/or specialists.|0.01|1||No limitation on the duration of stay initially allowed for IPC|0.01|1|
|Temporary entry of executives, senior managers and/or specialists up to<br>30 days.|0.01|0.75||Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75|
|Temporary entry of executives, senior managers and/or specialists up to<br>60 days.|0.01|0.5||Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5|
|Temporary entry of executives, senior managers and/or specialists up to<br>90 days.|0.01|0.25||Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25|
|Temporary entry of executives, senior managers and/or specialists over<br>90 days.<br>Total|0.01<br>1|0||Duration of stay initially allowed for IPC is over 3 month|0.01<br>1|0|

41
# **Table 9. Mapping :** **_Road transport_**

|**Australian categories**|**Weight**|**Score**|**Weighted**|**The World Bank data**|**Weight**|**Score**|**Weighted**|
|---|---|---|---|---|---|---|---|
||||**score**||||**score**|
|**Restrictions on Commercial Presence**||||**Restrictions on Commercial Presence**||||
|**Market entry**|**0.25**||||**0.25**|||
|completely closed, i.e. no entry allowed at all|0.25|1||Market entry is not allowed|0.25|1||
|virtually closed but with very limited opportunities to enter and operate|0.25|0.75||Market entry is allowed but three of the following restriction<br>apply : (a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0.75||
|allow entry and operations but impose restrictions that are neither trivial<br>nor stringent|0.25|0.5||Market entry is allowed but two of the following restriction apply<br>:(a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0.5||
|virtually open but with minor restrictions|0.25|0.25||Market entry is allowed but one of the following restriction apply<br>:(a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0.25||
|completely open, i.e. no restrictions at all|0.25|0||Market entry is allowed but none of the following restriction<br>apply : (a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0||
|**Greenfield Investment (maximum ownership allowed)**|**0.2**|||**Greenfield Investment (maximum ownership allowed)**|**0.2**|||
|score is 1 minus that share of foreign ownership allowed|1-s|||The score is inversely proportional to the maximum foreign<br>equity participation permitted in a professional firm. If s =<br>maximum foreign equity participation permitted in a professional<br>firm|0.2|1-s||
|**Acquisition domestic private entity -max. ownership allowed by a**<br>**group of entities**|**0.1**|||**Acquisition domestic private entity -max. ownership allowed**<br>**by agroup of entities**|**0.1**|||
|score is 1 minus that share of foreign ownership allowed|1-d|||The score is inversely proportional to the maximum foreign<br>equity participation permitted allowed by a group of entities in<br>acquisition. If d = maximum foreign equity participation<br>permitted allowed by a group of entities in acquisition|0.1|1-d||
|**Difference in licensing criteria for foreign and domestic applicants**|**0.2**|||**Difference in licensing criteria for foreign and domestic**<br>**applicants**|**0.2**|||
|completely closed, i.e. no entry allowed at all|0.2|1||There is difference in licencing criteria for foreign and domestic<br>applicants|0.2|1||
|virtually closed but with very limited opportunities to enter and operate|0.2|0.75||There is no difference in licencing criteria for foreign and<br>domestic applicants but two of the following restriction apply :<br>(a) restrictions on repatriation of earning, (b)other forms of<br>discrimination|0.2|0.75||
|allow entry and operations but impose restrictions that are neither trivial<br>nor stringent|0.2|0.5||There is no difference in licencing criteria for foreign and<br>domestic applicants but one of the following restriction apply :<br>(a) restrictions on repatriation of earning, (b)Other forms of<br>discrimination|0.2|0.5||
|virtually open but with minor restrictions<br>completely open, i.e. no restrictions at all|0.2<br>0.2|NA<br>0||There is no difference in licencing criteria for foreign and<br>domestic applicants and none of the following restriction apply :<br>(a) restrictions on repatriation of earning, (b)Other forms of<br>discrimination|0.2|0||

42
# **Table 9 Continued. Mapping :** **_Road transport_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|<br>**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Limit on number of licenses available**|**0.1**|||**Limit on number of licenses available**|**0.1**|||
|completely closed, i.e. no entry allowed at all|0.1|1||No licence available|0.1|1||
|virtually closed but with very limited opportunities to enter and operate|0.1|0.75||Licence available but all the following restriction apply : there is<br>a limit on the number of licences available (b)licences allocated at<br>the discretion of regulatory authority,(c)there is no requirement to<br>provide licencing decision within a time framework|0.1|0.75||
|allow entry and operations but impose restrictions that are neither trivial<br>nor stringent|0.1|0.5||Licence available but two of the following restriction apply :<br>there is a limit on the number of licences available (b)licences<br>allocated at the discretion of regulatory authority,(c)there is no<br>requirement to provide licencing decision within a time<br>framework|0.1|0.5||
|virtually open but with minor restrictions|0.1|0.25||Licence available but one of the following restriction apply : there<br>is a limit on the number of licences available (b)licences allocated<br>at the discretion of regulatory authority,(c)there is no requirement<br>to provide licencing decision within a time framework|0.1|0.25||
|completely open, i.e. no restrictions at all|0.1|0||Licence available but none of the following restriction apply :<br>there is a limit on the number of licences available (b)licences<br>allocated at the discretion of regulatory authority,(c)there is no<br>requirement to provide licencing decision within a time<br>framework|0.1|0||
|**Nationality Requirement for Board of Directors**|**0.05**|||**Nationality Requirement for Board of Directors**|**0.05**|||
|completely closed, i.e. no foreign Directors allowed at all|0.05|1||Percentage of domestic residents/citizens on the board of<br>directors required is 100%|0.05|1||
|allow foreign Directors but impose restrictions that are neither trivial nor<br>stringent|0.05|0.5*||Percentage of domestic residents/citizens on the board of<br>directors required is above 75% and below 100%|0.05|0.8||
|*A score between zero and one in the World Bank scoring is scored at 0.5 in|the Australian|matrix||Percentage of domestic residents/citizens on the board of<br>directors required is above 50% and below 75%|0.05|0.6||
|||||Percentage of domestic residents/citizens on the board of<br>directors required is above 25% and below 50%|0.05|0.4||
|||||Percentage of domestic residents/citizens on the board of<br>directors required is above 0% and below 25%|0.05|0.2||
|completely open, i.e. no restrictions at all|0.05|0||Percentage of domestic residents/citizens on the board of<br>directors required is 0%|0.05|0||
|**Right to Appeal Regulatory Decisions**|**_0.1_**|||**Right to Appeal Regulatory Decisions**|**_0.1_**|||
|completely closed, i.e. no appeal allowed at all|0.1|1||No right to appeal regulatory decisions|**_0.1_**|**_1_**||
|allow entry and operations but impose restrictions that are neither trivial<br>|0.1|0.5||Either licence is required or there is restriction on length of<br>licence or both|**_0.1_**|**_0.5_**||
|nor stringent<br>completely open, i.e. no restrictions at all|0.1|0||no licences is required, and there is no restriction on length of<br>licence|**_0.1_**|**_0_**||
|**Total**|**1**||||**1**|||

43
# **Table 10. Mapping:** **_Rail transport_**

|**Australian categories**|**Weight**|**Score**|**Weighted**|**The World Bank data**|**Weight**|**Score**|**Weighted**|
|---|---|---|---|---|---|---|---|
||||**score**||||**score**|
|**Restrictions on Commercial Presence**||||**Restrictions on Commercial Presence**||||
|**Market entry**|**0.25**||||**0.25**|||
|completely closed, i.e. no entry allowed at all|0.25|1||Market entry is not allowed|0.25|1||
|virtually closed but with very limited opportunities to enter and operate|0.25|0.75||Market entry is allowed but three of the following restriction<br>apply : (a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0.75||
|allow entry and operations but impose restrictions that are neither trivial<br>nor stringent|0.25|0.5||Market entry is allowed but two of the following restriction apply<br>:(a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0.5||
|virtually open but with minor restrictions|0.25|0.25||Market entry is allowed but one of the following restriction apply<br>:(a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0.25||
|completely open, i.e. no restrictions at all|0.25|0||Market entry is allowed but none of the following restriction<br>apply : (a) Green field branch, (b) joint venture , (c) Greenfield<br>Subsidiary, (d) Acquisition|0.25|0||
|**Greenfield Investment (maximum ownership allowed)**|**0.2**|||**Greenfield Investment (maximum ownership allowed)**|**0.2**|||
|score is 1 minus that share of foreign ownership allowed|1-s|||The score is inversely proportional to the maximum foreign<br>equity participation permitted in a professional firm. If s =<br>maximum foreign equity participation permitted in a professional<br>firm|0.2|1-s||
|**Acquisition domestic private entity -max. ownership allowed by a**<br>**group of entities**|**0.1**|||**Acquisition domestic private entity -max. ownership allowed**<br>**by agroup of entities**|**0.1**|||
|score is 1 minus that share of foreign ownership allowed|1-d|||The score is inversely proportional to the maximum foreign<br>equity participation permitted allowed by a group of entities in<br>acquisition. If d = maximum foreign equity participation<br>permitted allowed by a group of entities in acquisition|0.1|1-d||
|**Difference in licensing criteria for foreign and domestic applicants**|**0.2**|||**Difference in licensing criteria for foreign and domestic**<br>**applicants**|**0.2**|||
|completely closed, i.e. no entry allowed at all|0.2|1||There is difference in licencing criteria for foreign and domestic<br>applicants|0.2|1||
|virtually closed but with very limited opportunities to enter and operate|0.2|0.75||There is no difference in licencing criteria for foreign and<br>domestic applicants but two of the following restriction apply :<br>(a) restrictions on repatriation of earning, (b)other forms of<br>discrimination|0.2|0.75||
|allow entry and operations but impose restrictions that are neither trivial<br>nor stringent|0.2|0.5||There is no difference in licencing criteria for foreign and<br>domestic applicants but one of the following restriction apply :<br>(a) restrictions on repatriation of earning, (b)Other forms of<br>discrimination|0.2|0.5||
|virtually open but with minor restrictions<br>completely open, i.e. no restrictions at all|0.2<br>0.2|NA<br>0||There is no difference in licencing criteria for foreign and<br>domestic applicants and none of the following restriction apply :<br>(a) restrictions on repatriation of earning, (b)Other forms of<br>discrimination|0.2|0||

44
# **Table 10 Continued. Mapping :** **_Rail transport_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|<br>**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Limit on number of licenses available**|**0.1**|||**Limit on number of licenses available**|**0.1**|||
|completely closed, i.e. no entry allowed at all|0.1|1||No licence available|0.1|1||
|virtually closed but with very limited opportunities to enter and operate|0.1|0.75||Licence available but all the following restriction apply : there is<br>a limit on the number of licences available (b)licences allocated at<br>the discretion of regulatory authority,(c)there is no requirement to<br>provide licencing decision within a time framework|0.1|0.75||
|allow entry and operations but impose restrictions that are neither trivial<br>nor stringent|0.1|0.5||Licence available but two of the following restriction apply :<br>there is a limit on the number of licences available (b)licences<br>allocated at the discretion of regulatory authority,(c)there is no<br>requirement to provide licencing decision within a time<br>framework|0.1|0.5||
|virtually open but with minor restrictions|0.1|0.25||Licence available but one of the following restriction apply : there<br>is a limit on the number of licences available (b)licences allocated<br>at the discretion of regulatory authority,(c)there is no requirement<br>to provide licencing decision within a time framework|0.1|0.25||
|completely open, i.e. no restrictions at all|0.1|0||Licence available but none of the following restriction apply :<br>there is a limit on the number of licences available (b)licences<br>allocated at the discretion of regulatory authority,(c)there is no<br>requirement to provide licencing decision within a time<br>framework|0.1|0||
|**Nationality Requirement for Board of Directors**|**0.05**|||**Nationality Requirement for Board of Directors**|**0.05**|||
|completely closed, i.e. no foreign Directors allowed at all|0.05|1||Percentage of domestic residents/citizens on the board of<br>directors required is 100%|0.05|1||
|allow foreign Directors but impose restrictions that are neither trivial nor<br>stringent|0.05|0.5*||Percentage of domestic residents/citizens on the board of<br>directors required is above 75% and below 100%|0.05|0.8||
|*A score between zero and one in the World Bank scoring is scored at 0.5 in|the Australian|matrix||Percentage of domestic residents/citizens on the board of<br>directors required is above 50% and below 75%|0.05|0.6||
|||||Percentage of domestic residents/citizens on the board of<br>directors required is above 25% and below 50%|0.05|0.4||
|||||Percentage of domestic residents/citizens on the board of<br>directors required is above 0% and below 25%|0.05|0.2||
|completely open, i.e. no restrictions at all|0.05|0||Percentage of domestic residents/citizens on the board of<br>directors required is 0%|0.05|0||
|**Right to Appeal Regulatory Decisions**|**_0.1_**|||**Right to Appeal Regulatory Decisions**|**_0.1_**|||
|completely closed, i.e. no appeal allowed at all|0.1|1||No right to appeal regulatory decisions|**_0.1_**|**_1_**||
|allow entry and operations but impose restrictions that are neither trivial<br>|0.1|0.5||Either licence is required or there is restriction on length of<br>licence or both|**_0.1_**|**_0.5_**||
|nor stringent<br>completely open, i.e. no restrictions at all|0.1|0||no licences is required, and there is no restriction on length of<br>licence|**_0.1_**|**_0_**||
|**Total**|**1**||||**1**|||

45
# **Table 11. Mapping :** **_Retailing Services_**

|**Australian categories**|**Weight**|**Score**|**Weighted**<br>**score**|**The World Bank data**|**Weight**|**Score**|**Weighted**<br>**score**|
|---|---|---|---|---|---|---|---|
|**Restrictions on establishment**||||**Restrictions on establishment**||||
|**Restrictions on commercial land**|**0.2**|||**Proxy: Greenfield branch allowed**|**0.2**|||
|Acquisition of commercial land is not permitted.|0.2|1||Greenfield branch is not allowed|0.05|1||
|Acquisition of commercial land is permitted, but is restricted to a certain<br>size|0.2|NA||||||
|No restrictions on the acquisition of land|0.2|0||Greenfield branch is allowed|0.02|0||
|**Direct investment in distribution firms**|**0.2**|||**Direct investment in distribution firms**|**0.2**|||
|The score will be inversely proportional to the maximum foreign equity<br>participation permitted in a domestic distribution firm. For example, equity<br>participation to a maximum of 75 per cent of an existing distribution firm<br>receives a score of 0.25.|0.2|1-s||The score is inversely proportional to the maximum foreign equity<br>participation permitted in a professional firm. If s = maximum foreign equity<br>participation permitted in a professional firm|0.2|1-s||
|**Restrictions on large-scale stores**|**0.05**|||**Proxy: Expanding the number of retailing outlets**|**0.05**|||
|National legislation prohibits large-scale stores.|0.05|1||Number of retailing outlets is limited|0.05|1||
|Regional and local authorities restrict large-scale stores|0.05|NA||||||
|No restrictions on large scale stores|0.05|0||Number of retailing outlets is not limited|0.05|0||
|**Factors affecting investment**|**0.075**|||**Proxy: Form of commercial presence**|**0.075**|||
|Takeovers are hindered by regulation|0.075|0.3||One of the following form of establishment is restricted : (a) Joint venture ,<br>(b) Greenfield Subsidiary, (c) Acquisition|0.075|1||
|Investors must meet performance requirements|0.075|0.3||Non of the following form of establishment is restricted : (a) Joint venture ,<br>(b) Greenfield Subsidiary, (c) Acquisition|0.075|0||
|Establishment subject to an economic needs test|0.075|0.2||||||
|Government screening of investment|0.075|0.2||||||
|Score is taken from the World Bank score for this category||||||||
|**Local government requirements**|**0.075**|||**Local government requirements**|**0.075**|||
|Establishment subject to a local environmental impact assessment or<br>zoning requirements|0.075|0.4||Nationality requirement for employees|0.075|0.5||
|Local employment requirements.|0.075|0.4||Limits on opening only single-brand stores|0.075|0.5||
|Restrictions on operating hours|0.075|0.2||||||
|Score is taken from the World Bank score for this category||||||||
|**Movement of People – Permanent**|**0.05**|||**Permanent movement of people ( we used information on permanent**<br>**movement ofpeople for accounting services)**|**_0.05_**|||
|No entry of executives, senior managers or staff.|0.05|1||Intra Cooperate transfer (ICT) is not allowed|0.02|1||
|Executives, senior managers or staff can stay a period of up to 1 year|0.05|0.8||Intra Cooperate transfer (ICT) is allowed up to 1 year|0.02|0.8||
|Executives, senior managers or staff can stay a period of up to 2 years.|0.05|0.6||Intra Cooperate transfer (ICT) is allowed up to 2 years|0.02|0.6||
|Executives, senior managers or staff can stay a period of up to 3 years|0.05|0.4||Intra Cooperate transfer (ICT) is allowed up to 3 years|0.02|0.4||
|Executives, senior managers or staff can stay a period of up to 4 years.|0.05|0.2||Intra Cooperate transfer (ICT) is allowed up to 4 years|0.02|0.2||
|Executives, senior managers or staff can stay a period of more than 4<br>years.|0.05|0||Intra Cooperate transfer (ICT) is allowed over 4 years|0.02|0||

46
# **<u>Table 11 Continued. Mapping:</u>** **_<u>Retailing Services</u>_**

|**Australian categories**|**Weight**|**Score**<br>**Weighted**<br>**score**<br>**The World Bank data**|**Weight**|<br>**Score**<br>**Weighted**<br>**score**|
|---|---|---|---|---|
|**Restrictions on ongoing operations**|||||
|**Wholesale import licensing**|**0.075**|**Market Entry**|**0.075**||
|No new import licenses are available for wholesalers|0.075|1<br>Market entry is not allowed (mode 3)|0.2|1|
|A limited number of new import licenses are available for wholesalers.|0.075|0.5<br>Market entry is allowed but three of the following restrictions apply: (a)<br>There is a limit on the number of licences available, (b) Licence is allocated<br>at the discretion of regulatory body, (c) license is not always granted if<br>publicly available criteria fulfilled.|0.2|0.75|
|A limited number of new import licenses are available for wholesalers.|0.075|0.5<br>Market entry is allowed but two of the following restrictionsapply : (a) There<br>is a limit on the number of licences available, (b) Licence is allocated at the<br>discretion of regulatory body, (c) licence is not always granted if publicly<br>available criteria fulfilled.|0.2|0.2|
|A limited number of new import licenses are available for wholesalers.|0.075|0.5<br>Market entry is allowed but one of the following restrictions apply : (a)<br>There is a limit on the number of licences available, (b) Licence is allocated<br>at the discretion of regulatory body, (c) licence is not always granted if<br>publicly available criteria fulfilled.|0.2|0.1|
|There are no limits on the issue of import licenses|0.075|0<br>Market entry is allowed but none of the following restrictions apply : (a)<br>There is a limit on the number of licences available, (b) Licence is allocated<br>at the discretion of regulatory body, (c) licence is not always granted if<br>publicly available criteria fulfilled.|0.2|0|
|**Limits on the promotion of retail products**|**0.05**|**Proxy: other forms of discrimination**|0.05||
|Distribution firms are prohibited from using advertising and promotion to<br>market retail products.|0.05|1<br>Restriction on repatriation of earning|0.025|0.33|
|Distribution firms are limited in their use of advertising and promotion to<br>market retail products|0.05|0.5<br>Other forms of discrimination|0.025|0.33|
|No restrictions on advertising/promotion of retail products<br>Score is taken from the World Bank score for this category|0.05|0<br>Difference in licensing criteria for foreign and domestic applicants|0.025|0.33|
|**Statutory government monopolies**|**0.1**|**Statutory government monopolies**|**0.1**||
|The score for an economy is taken from a table of 16 product categories, in<br>which distribution occurs through statutory government monopolies|0.1|Retailers are restricted from selling some products|0.1|1|
|||Rtil t titd f lli dt|01|0|
|||eaers are no resrce rom seng any proucs|.||
|**Protection of intellectual property rights**|**0.05**|**Protection of intellectual property rights**|**0.05**||
|An economy is on the USTR priority 301 watch list|0.05|1<br>An economy is on the USTR priority 301 watch list|0.05|1|
|An economy is on the USTR priority watch list|0.05|0.5<br>An economy is on the USTR priority watch list|0.05|0.05|
|Intellectual property rights are not on USTR watch lists.|0.05|0<br>Intellectual property rights are not on USTR watch lists.|0.05|0|
|**Licensing requirements on management**|**0.05**|**Licensing requirements on management**|0.05||
|All directors or managers or at least a majority of them must be nationals<br>or residents|0.05|1<br>Percentage of domestic residents/citizens on the board of directors required is<br>100%|0.05|1|
|At least 1 director/manager must be a national or resident|0.05|0.75<br>Percentage of domestic residents/citizens on the board of directors required is<br>above 75% and below 100%|0.05|0.8|
|Directors and managers must be locally licensed|0.05|0.5<br>Percentage of domestic residents/citizens on the board of directors required is<br>above 50% and below 75%|0.05|0.6|
|Directors and managers must be domiciled in the foreign economy|0.05|0.25<br>Percentage of domestic residents/citizens on the board of directors required is<br>above 25% and below 50%|0.05|0.4|
|||Percentage of domestic residents/citizens on the board of directors required is<br>above 0% and below 25%|0.05|0.2|
|Score is taken from the World Bank score for this category||Percentage of domestic residents/citizens on the board of directors required is<br>0%|0.05|0|
|**Movement of people – Temporary**|**0.025**|**Temporary movement of people ( we used information on temporary**<br>**movement ofpeople for accounting services)**|**_0.025_**||
|No temporary entry of executives, senior managers or staff.|0.025|1<br>No limitation on the duration of stay initially allowed for IPC|0.01|1|
|Temporary entry of executives, senior managers or staff up to 30 days.|0.025|0.75<br>Duration of stay initially allowed for IPC is up to 1 month|0.01|0.75|
|Temporary entry of executives, senior managers or staff up to 60 days.|0.025|0.5<br>Duration of stay initially allowed for IPC is up to 2 month|0.01|0.5|
|Temporary entry of executives, senior managers or staff up to 90 days.|0.025|0.25<br>Duration of stay initially allowed for IPC is up to 3 month|0.01|0.25|
|Temporary entry of executives, senior managers or staff over 90 days.<br>Total|0.025<br>1|0<br>Duration of stay initially allowed for IPC is over 3 month|0.01<br>1|0|

47
**Table 12. Scoring of Services Trade Restrictive Indices**

|Sector|Albania|Algeria|Argentina|Armenia|Australia|Austria|Bahrain|Bangladesh|Belarus|Belgium|Bolivia|Botswana|Brazil|Bulgaria|Burundi|Cote<br>d'Ivoire|Cambodia|Cameroon|Canada|Chile|China|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|0.30|<br>0.71|0.27|0.33|0.42|0.42|0.26|0.13|0.38|0.36|0.33|0.27|0.54|0.23|0.48|0.65|0.52|0.32|0.31|0.24|0.40|
|<br>Legal Services|0.15|<br>0.66|0.23|0.25|0.28|0.49|0.92|0.66|0.70|0.28|0.34|0.44|0.75|0.51|0.66|0.71|0.92|0.44|0.51|0.35|0.92|
|Air Transport|0.33|<br>0.75|0.51|0.34|0.17|0.40|0.32|0.15|0.01|0.06|0.02|0.52|0.44|0.14|0.10|0.12|0.03|0.07|0.47|0.06|0.41|
|<br>Rail Transport|0.35|<br>1.00|0.13|0.26|0.21|0.31|0.25|1.00|1.00|1.00|0.26|0.37|0.10|0.23|1.00|1.00|0.15|0.31|0.21|0.00|0.10|
|<br>Road Transport|0.28|<br>1.00|0.20|0.23|0.11|0.94|0.25|0.30|0.20|0.94|0.26|0.37|0.10|0.29|0.32|0.34|0.15|0.25|0.14|0.00|0.13|
|<br>Banking|0.11|<br>0.18|0.02|0.11|0.02|0.02|0.18|0.08|0.17|0.02|0.01|0.22|0.23|0.01|0.26|0.22|0.12|0.01|0.04|0.01|0.28|
|<br>Insurance|0.15|<br>0.33|0.17|0.17|0.28|0.15|0.30|0.27|0.45|0.13|0.31|0.28|0.21|0.18|0.35|0.17|0.21|0.30|0.17|0.19|0.26|
|Fixed Line|0.07|<br>0.18|0.14|0.26|0.20|0.27|0.39|0.94|0.83|0.25|0.29|0.61|0.27|0.32|0.40|0.36|0.52|0.14|0.59|0.11|0.58|
|Mobile Line|0.24|<br>0.09|0.06|0.18|0.22|0.24|0.27|0.33|0.07|0.24|0.05|0.41|0.26|0.23|0.26|0.23|0.44|0.05|0.54|0.10|0.51|
|Retail|0.11|<br>0.33|0.05|0.05|0.13|0.16|0.11|0.11|0.40|0.00|0.09|0.13|0.09|0.05|0.00|0.05|0.35|0.10|0.16|0.10|0.40|
|Maritime Transport|0.07|<br>0.26|0.11|n/a|0.37|n/a|0.26|0.40|n/a|0.24|n/a|n/a|0.31|0.23|0.17|0.19|0.21|0.20|0.31|0.19|0.30|
|**Table 12 C**<br>Sector|**ontinue**<br>Colombia|**d. Scorin**<br>Congo, the<br>Democratic<br>Republic of the|**g of Ser**<br>Costa Rica|**vices Tr**<br>Czech Republic|**ade Re**<br>Denmark|**strictiv**<br>Republic|**e Indice**<br>Ecuador|**s**<br>Egypt|Ethiopia|Finland|France|Georgia|Germany|Ghana|Greece|Guatemala|Honduras|Hungary|India|Indonesia|Iran (Islamic<br>Republic of)|
|Accounting|0.51|0.37|0.71|<br> <br>0.25|0.64|<br>0.45|<br>0.36|<br>0.71|<br>0.25|<br>0.30|<br>0.30|<br>0.12|<br>0.56|0.37|0.19|0.23|0.28|0.17|0.50|0.64|0.82|
|<br>Legal Services|0.35|0.46|0.66|<br>0.11|0.47|<br>0.27|<br>0.28|<br>0.92|<br>0.92|<br>0.43|<br>0.25|<br>0.70|<br>0.64|0.32|0.55|0.36|0.20|0.29|0.92|0.92|0.81|
|<br>Air Transport|0.02|0.13|0.06|<br>0.40|0.41|<br>0.06|<br>0.17|<br>0.42|<br>0.99|<br>0.06|<br>0.41|<br>0.16|<br>0.41|0.02|0.40|0.07|0.45|0.40|1.00|0.46|0.89|
|<br>Rail Transport|0.00|1.00|0.51|<br>0.31|0.31|<br>0.30|<br>0.19|<br>1.00|<br>0.35|<br>1.00|<br>1.00|<br>0.36|<br>0.31|0.23|1.00|1.00|0.41|0.38|1.00|1.00|0.55|
|<br>Road Transport|0.00|0.35|0.29|<br>0.94|0.94|<br>0.25|<br>0.13|<br>0.13|<br>1.00|<br>0.00|<br>0.94|<br>0.29|<br>0.94|0.00|0.94|0.30|0.68|0.94|1.00|1.00|0.55|
|<br>Banking|0.17|0.04|0.23|<br>0.02|0.03|<br>0.21|<br>0.52|<br>0.49|<br>0.99|<br>0.02|<br>0.02|<br>0.09|<br>0.03|0.40|0.02|0.01|0.32|0.02|0.18|0.21|0.99|
|<br>Insurance|0.30|0.98|0.24|<br>0.14|0.15|<br>0.21|<br>0.40|<br>0.41|<br>0.98|<br>0.14|<br>0.15|<br>0.16|<br>0.15|0.32|0.14|0.32|0.18|0.14|0.44|0.32|0.98|
|<br>Fixed Line|<br>0.35|<br>0.34|<br>0.28|<br> <br> <br>0.26|<br>0.27|<br> <br> <br>0.28|<br> <br> <br>0.26|<br> <br> <br>0.41|<br> <br> <br>0.94|<br> <br> <br>0.26|<br> <br> <br>0.27|<br> <br> <br>0.13|<br> <br> <br>0.27|<br>0.42|<br>0.26|<br>0.12|<br>0.16|<br>0.41|<br>0.43|<br>0.28|<br>0.94|
|Mobile Line|0.36|0.34|0.25|<br>0.24|0.25|<br>0.26|<br>0.08|<br>0.35|<br>0.88|<br>0.24|<br>0.25|<br>0.10|<br>0.25|0.38|0.24|0.09|0.05|0.40|0.38|0.25|0.47|
|Retail|0.11|0.10|0.21|<br>0.02|0.05|<br>0.09|<br>0.08|<br>0.41|<br>0.85|<br>0.02|<br>0.17|<br>0.04|<br>0.05|0.11|0.02|0.09|0.08|0.26|0.48|0.35|0.33|
|Maritime Transport|0.13|0.32|0.31|<br>n/a|0.32|<br>0.23|<br>0.25|<br>0.64|<br>0.80|<br>0.24|<br>0.62|<br>0.26|<br>0.32|0.37|0.27|0.26|0.24|n/a|0.36|0.47|0.39|

48
**Table 12 Continued. Scoring of Services Trade Restrictive Indices**

|Sector|Ireland|Italy|Japan|Jordan|Kazakhstan|Kenya|Korea, Republic<br>of|Kuwait|Kyrgyzstan|Lebanon|Lesotho|Lithuania|Madagascar|Malawi|Malaysia|Mali|Mauritius|Mexico|Mongolia|Morocco|Mozambique|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|0.41|0.46|0.26|0.26|0.29|0.34|<br>0.31|0.52|0.52|0.48|0.20|<br>0.25|<br>0.31|<br>0.42|<br>0.26|<br>0.76|0.13|0.30|<br>0.31|<br>0.35|0.26|
|<br>Legal Services|0.40|0.43|0.29|0.92|0.39|0.92|0.92|0.83|0.42|0.81|0.16|<br>0.33|<br>0.51|<br>0.62|<br>0.92|<br>0.63|0.83|0.38|<br>0.34|<br>0.59|0.26|
|<br>Air Transport|0.41|0.43|0.44|0.37|0.06|0.01|0.42|0.42|0.34|0.94|0.15|<br>0.40|<br>0.14|<br>0.33|<br>0.37|<br>0.05|0.06|0.37|<br>0.01|<br>0.06|0.04|
|<br>Rail Transport|0.31|0.31|0.74|1.00|0.30|1.00|0.22|1.00|1.00|1.00|1.00|<br>0.38|<br>0.35|<br>0.26|<br>1.00|<br>0.23|1.00|1.00|<br>1.00|<br>0.00|0.25|
|<br>Road Transport|0.94|0.94|0.10|1.00|0.30|0.00|0.10|0.47|0.23|0.45|0.20|<br>0.00|<br>0.43|<br>0.21|<br>0.49|<br>0.23|0.26|1.00|<br>0.00|<br>0.10|0.23|
|<br>Banking|0.03|0.02|0.02|0.43|0.17|0.02|0.02|0.24|0.01|0.22|0.01|<br>0.02|<br>0.22|<br>0.22|<br>0.38|<br>0.06|0.05|0.02|<br>0.06|<br>0.02|0.01|
|<br>Insurance|0.15|0.13|0.15|0.16|0.30|0.44|0.43|0.48|0.34|0.36|0.21|<br>0.14|<br>0.28|<br>0.26|<br>0.45|<br>0.26|0.21|0.49|<br>0.16|<br>0.31|0.03|
|Fixed Line|0.27|0.25|0.25|0.09|0.39|0.45|0.42|0.93|0.16|0.40|0.21|<br>0.26|<br>0.31|<br>0.46|<br>0.53|<br>0.45|0.16|0.32|<br>0.29|<br>0.31|0.88|
|Mobile Line|0.25|0.24|0.24|0.53|0.25|0.29|0.37|0.55|0.19|0.23|0.25|<br>0.24|<br>0.26|<br>0.45|<br>0.32|<br>0.39|0.23|0.19|<br>0.21|<br>0.25|0.20|
|Retail|0.17|0.12|0.00|0.17|0.08|0.05|0.16|0.59|0.08|0.22|0.13|<br>0.02|<br>0.04|<br>0.10|<br>0.43|<br>0.07|0.02|0.10|<br>0.08|<br>0.05|0.09|
|Maritime Transport<br>**Table 12 Co**|0.25<br>**ntinued.**|0.33<br>**Scorin**|0.32<br>**g of Se**|0.22<br>**rvices T**|n/a<br>**rade R**|0.16<br>**estricti**|0.35<br>**ve Indi**|0.44<br>**ces**|n/a|0.60|n/a|0.22|<br>0.12|<br>n/a|0.35|<br>n/a|0.20|0.29|<br>n/a|<br>0.48|0.13|
|Sector|Namibia|Nepal|Netherlands|Zealand|Nicaragua|Nigeria|Oman|Pakistan|Panama|Paraguay|Peru|Philippines|Poland|Portugal|Qatar|Romania|Russian<br>Federation|Rwanda|Saudi Arabia|Senegal|South Africa|
|Accounting|0.52|0.63|0.32|0.32|0.24|0.38|0.48|0.13|0.62|0.33|0.32|0.99|0.25|0.41|0.40|0.39|0.37|0.27|<br> <br>0.64|<br>0.59|<br>0.41|
|<br>Legal Services|0.70|0.92|0.48|0.26|0.20|0.34|0.48|0.70|0.92|0.28|0.25|0.92|0.07|0.11|0.69|0.44|0.66|0.19|<br>0.92|<br>0.83|0.92|
|<br>Air Transport|0.17|0.47|0.41|0.17|0.50|0.25|0.32|0.37|0.40|0.12|0.34|0.42|0.40|0.40|0.36|0.37|0.39|0.07|<br>0.37|<br>0.74|0.43|
|<br>Rail Transport|0.40|1.00|0.31|0.20|0.43|1.00|1.00|0.10|1.00|0.31|0.20|0.43|0.40|0.31|1.00|0.29|0.09|1.00|<br>0.00|<br>1.00|0.15|
|<br>Road Transport|0.31|0.25|0.94|0.10|0.74|0.14|0.24|0.10|0.30|0.31|0.20|0.43|0.10|0.94|0.45|0.23|0.00|0.21|<br>1.00|<br>0.19|0.15|
|<br>Banking|0.22|0.15|0.03|0.02|0.06|0.02|0.26|0.20|0.12|0.19|0.16|0.41|0.02|0.02|0.97|0.06|0.24|0.18|<br>0.20|<br>0.17|0.08|
|<br>Insurance|0.33|0.33|0.15|0.15|0.30|0.54|0.26|0.34|0.18|0.31|0.28|0.23|0.14|0.14|0.46|0.19|0.50|0.32|<br>0.29|<br>0.17|0.35|
|Fixed Line|0.60|0.57|0.27|0.26|0.09|0.03|0.93|0.31|0.27|0.32|0.13|0.56|0.26|0.26|0.93|0.22|0.06|0.37|<br>0.42|<br>0.24|0.36|
|Mobile Line|0.61|0.38|0.31|0.24|0.03|0.05|0.46|0.05|0.11|0.42|0.11|0.37|0.24|0.24|0.88|0.26|0.02|0.35|<br>0.35|<br>0.23|0.42|
|Retail|0.07|0.13|0.05|0.00|0.09|0.16|0.28|0.40|0.85|0.06|0.08|0.20|0.02|0.02|0.23|0.05|0.28|0.41|<br>0.63|<br>0.05|0.06|
|Maritime Transport|0.15|n/a|0.27|0.30|0.26|0.13|0.35|0.45|0.23|n/a|0.22|0.49|0.32|0.24|0.30|0.14|0.36|n/a|0.31|<br>0.16|0.19|

49
**Table 12 Continued. Scoring of Services Trade Restrictive Indices**

|Sector|Spain|Sri Lanka|Sweden|Tanzania,<br>United<br>Republic of|Thailand|Trinidad and<br>Tobago|Tunisia|Turkey|Uganda|Ukraine|Kingdom|United<br>of America|United States<br>Uruguay|Uzbekistan|Venezuela|Viet Nam|Yemen|Zambia|Zimbabwe|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|0.49|0.80|0.38|0.55|0.83|0.08|1.00|0.95|0.51|0.45|0.27|0.60|0.28|0.35|0.51|0.54|0.83|0.33|0.49|
|Legal Services|0.48|0.48|0.09|0.66|0.77|0.38|0.87|0.92|0.62|0.28|0.22|0.41|0.24|0.28|0.51|0.66|0.92|0.34|0.61|
|Air Transport|0.46|0.42|0.40|0.30|0.41|0.12|0.41|0.48|0.01|0.21|0.41|0.45|0.36|0.04|0.67|0.46|0.06|0.09|0.41|
|Rail Transport|1.00|1.00|0.31|0.46|0.32|1.00|0.40|1.00|0.22|1.00|0.31|0.20|1.00|1.00|0.00|0.58|1.00|0.19|0.60|
|Road Transport|0.94|0.00|0.11|0.09|0.32|0.14|0.34|0.23|0.20|0.20|0.94|0.13|0.30|0.23|0.00|0.60|0.34|0.30|0.52|
|Banking|0.03|0.38|0.03|0.16|0.38|0.02|0.13|0.02|0.02|0.16|0.03|0.03|0.08|0.05|0.22|0.06|0.13|0.07|0.28|
|Insurance|0.15|0.36|0.14|0.39|0.36|0.15|0.35|0.17|0.21|0.30|0.15|0.15|0.31|0.30|0.47|0.33|0.33|0.30|0.37|
|Fixed Line|0.22|0.37|0.26|0.29|0.62|0.13|0.31|0.30|0.31|0.18|0.27|0.25|0.66|0.31|0.17|0.61|0.61|0.93|0.50|
|Mobile Line|0.22|0.41|0.25|0.17|0.50|0.24|0.22|0.23|0.65|0.21|0.25|0.24|0.12|0.23|0.22|0.53|0.17|0.25|0.37|
|Retail|0.17|0.11|0.16|0.09|0.11|0.28|0.35|0.06|0.04|0.19|0.05|0.11|0.04|0.32|0.11|0.43|0.51|0.05|0.70|
|Maritime Transport|0.25|0.38|0.25|0.34|0.25|0.27|0.53|0.28|n/a|0.18|0.17|0.38|0.29|n/a|0.29|0.29|0.24|n/a|n/a|

Note :Note The "n/a" cells in maritime transport sector are referred to "not Applicable" cells where the country is landlocked.

50
**Table 13: Estimated Ad Valorem Equivalents of Services Barriers**

|Sector|Albania|Algeria|Argentina|Armenia|Australia|Austria|Bahrain|Bangladesh|Belarus|Belgium|Bolivia|Botswana|Brazil|Bulgaria|Burundi|Cote<br>d’Ivoire|Cambodia||Cameroon|Canada|Chile|China|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|24|56|21|26|34|33|20|10|30|29|26|21|43|18|38|51|4|1|26|25|19|32|
|Legal Services|12|52|18|20|22|39|73|52|55|22|27|35|59|40|52|56|7|3|34|40|28|73|
|Air Transport|59|81|74|61|0|18|58|0|0|0|0|75|71|0|0|0||0|0|22|0|68|
|Rail Transport|62|84|0|42|1|12|37|84|84|35|42|65|0|3|84|84||0|56|1|0|0|
|Road Transport|47|84|0|20|0|34|37|53|0|34|42|65|0|10|57|60||0|37|0|0|0|
|Banking|9|14|2|9|2|2|14|6|14|1|1|18|18|1|21|17||9|1|3|1|22|
|Insurance|11|28|13|13|23|12|24|22|39|10|26|23|17|14|29|13|1|6|25|14|15|21|
|Fixed Line|3|10|3|6|2|3|11|915|9|3|17|64|6|5|915|n/a|9|15|29|5|915|13|
|Mobile Line|1|0|0|0|1|0|1|2|0|1|0|1|1|0|5|n/a||2|0|2|1|2|
|Retail|2|5|1|1|2|3|2|2|6|0|2|2|2|1|0|1||6|2|3|2|6|
|Maritime Transport|0|42|0|n/a|16|n/a|42|68|n/a|4|n/a|n/a|55|3|0|0||6|0|12|0|53|

**Table 13 Continued: Estimated Ad Valorem Equivalents of Services Barriers**

|Sector|Colombia|Congo, the<br>Democratic of<br>the|Costa Rica|Czech<br>Republic|Denmark|Dominican<br>Republic|Ecuador|Egypt|Ethiopia|Finland|France|Georgia|Germany|Ghana|Greece|Guatemala||Honduras||Hungary||India||Indonesia|Iran (Islamic<br>Republic of)|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|41|<br>29|56|20|50|36|29|56|19|24|24|9|44|29|15|1|8|2|2|1|3|4|0|50|<br>65|
|<br>Legal Services|28|36|52|8|37|21|22|73|73|34|19|55|50|25|43|2|8|1|6|2|3|7|3|73|<br>64|
|<br>Air Transport|0|0|0|18|19|0|0|69|84|0|19|0|19|0|18|0||7|1|1|8|8|4|72|<br>83|
|<br>Rail Transport|0|84|74|12|12|53|0|84|62|35|35|64|12|26|35|8|4|6|9|1|7|8|4|84|<br>76|
|<br>Road Transport|0|62|50|34|34|37|0|0|84|0|34|50|34|0|34|5|3|8|0|3|4|8|4|84|<br>76|
|<br>Banking|14|3|19|1|2|17|46|44|106|2|1|7|2|34|2|1||2|6|2||1|4|16|<br>106|
|<br>Insurance|25|104|20|10|11|16|34|35|105|11|11|13|11|26|10|2|6|1|4|1|0|3|8|27|<br>105|
|Fixed Line|11|915|4|5|3|14|9|18|915|5|2|2|2|915|2|5||8||6||1|91|8|<br>13|
|Mobile Line|1|1|1|1|1|1|0|1|37|0|1|0|0|1|1|0||0||1|||2|1|<br>2|
|Retail|2|2|3|0|1|1|1|7|14|0|3|1|1|2|0|2||1||4|||8|6|<br>5|
|Maritime Transport|0|58|56|n/a|13|20|39|79|82|5|27|40|13|65|8|4|3|2|9|n/|a|6|3|72|<br>67|

51
**Table 13 Continued: Estimated Ad Valorem Equivalents of Services Barriers**

|Sector|Ireland|Italy|Japan|Jordan|Kazakhstan|Kenya|Korea,<br>Republic of|Kuwait|Kyrgyzstan|Lebanon|Lesotho|Lithuania|Madagascar|Malawi|Malaysia|Mali|Mauritius|Mexico|Mongolia|Morocco|Mozambique|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|33|36|21|21|23|26|25|41|41|38|16|20|25|33|21|60|10|23|25|27|20|
|<br>Legal Services|31|34|23|73|31|73|73|65|33|64|13|26|40|49|73|50|65|30|27|47|20|
|Air Transport|19|20|20|65|0|0|19|69|61|84|0|18|0|59|65|0|0|16|0|0|0|
|<br>Rail Transport|12|12|30|84|53|84|2|84|84|84|84|17|62|42|84|20|84|35|84|0|37|
|<br>Road Transport|34|34|0|84|53|0|0|72|20|71|0|0|70|5|73|20|42|35|0|0|20|
|<br>Banking|2|1|1|37|14|2|2|19|1|18|1|1|18|18|32|4|3|2|5|2|1|
|<br>Insurance|11|10|12|12|24|38|37|42|28|30|16|10|23|21|39|21|17|43|13|26|2|
|Fixed Line|3|3|2|5|7|915|3|25|8|9|109|5|915|915|17|915|2|9|22|13|915|
|Mobile Line|1|0|1|1|1|1|1|1|0|1|1|0|2|6|1|2|1|1|1|1|2|
|Retail|3|2|0|3|1|1|3|9|1|4|2|0|1|2|7|1|0|2|1|1|1|
|Maritime Transport|6|13|12|20|n/a|0|15|71|n/a|78|n/a|3|0|n/a|63|n/a|0|10|n/a|73|0|

**Table 13 Continued: Estimated Ad Valorem Equivalents of Services Barriers**

|Sector|Namibia|Nepal|Netherlands||New Zealand|Nicaragua|Nigeria|Oman|Pakistan|Panama|Paraguay|Peru|Philippines|Poland|Portugal|Qatar|Romania|Russian<br>Federation|Rwanda|Saudi Arabia|Senegal||South Africa|Spain|Sri Lanka|Sweden|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|41|50|2|5|25|19|30|38|10|49|26|25|78|20|33|31|31|29|21|50|4|6|<br>32|39|<br>63|30|
|<br>Legal Services|55|73|3|8|21|16|27|38|55|73|22|20|73|6|8|54|35|52|15|73|6|5|<br>73|38|<br>38|7|
|Air Transport|0|72|1|9|0|74|37|58|65|67|0|61|70|18|18|64|16|66|0|65|8|1|<br>70|21|<br>69|18|
|Rail Transport|68|84|1|2|0|70|84|84|0|84|56|0|70|18|12|84|10|0|84|0|8|4|<br>0|35|<br>84|12|
|Road Transport|56|37|3|4|0|81|0|30|0|53|56|0|70|0|34|71|3|0|5|84||0|0|34|<br>0|0|
|Banking|18|12||2|1|5|2|21|16|9|15|13|35|1|1|103|5|19|14|16|1|3|<br>6|2|32|2|
|Insurance|27|27|1|1|12|25|48|21|28|14|26|23|18|10|10|40|15|44|27|24|1|3|<br>29|11|<br>30|11|
|Fixed Line|63|759||3|3|10|35|68|64|8|33|6|51|6|3|33|5|1|915|14|6|0|<br>23|2|10|2|
|Mobile Line|2|3||1|1|0|0|1|0|0|1|0|1|0|1|2|1|0|3|0||1|1|1|1|1|
|Retail|1|2||1|0|2|3|4|6|14|1|1|3|0|0|4|1|4|7|10||1|1|3|2|3|
|MaritimeTransport|0|n/a||8|11|43|0|63|71|25|n/a|11|73|13|4|53|0|63|n/a|55||0|0|6|66|6|

52
# **Table 13 Continued: Estimated Ad Valorem Equivalents of Services Barriers**

|Sector|Tanzania,<br>United<br>Republic of|Thailand|Trinidad<br>and<br>Tobago|Tunisia|Turkey|Uganda|Ukraine|United<br>Kingdom|United<br>States<br>of America|Uruguay|Uzbekistan|Venezuela|Viet Nam|Yemen|Zambia|Zimbabwe|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|44|65|6|79|75|40|36|22|47|22|28|40|43|65|26|39|
|Legal Services|52|61|30|69|73|49|22|17|33|19|22|40|52|73|27|48|
|Air Transport|54|69|0|69|22|0|4|19|21|64|0|79|72|0|0|69|
|Rail Transport|72|57|84|68|35|18|84|12|0|84|84|0|77|84|0|77|
|Road Transport|0|57|0|60|3|0|0|34|0|53|20|0|77|60|53|75|
|Banking|13|32|2|10|2|2|13|2|2|6|4|18|4|10|5|23|
|Insurance|33|30|12|29|14|16|24|11|12|25|24|41|28|28|24|31|
|Fixed Line|915|37|3|12|6|915|3|2|2|11|25|3|20|160|915|267|
|Mobile Line|1|1|0|1|1|4|0|0|1|0|1|1|1|1|2|2|
|Retail|1|2|4|6|1|1|3|1|2|1|5|2|7|8|1|11|
|Maritime Transport|61|36|45|75|9|n/a|0|0|17|50|n/a|50|51|30|n/a|n/a|

Note: The "n/a" cells are referred to "Not Applicable" cells. In maritime transport if the country is landlocked then estimating TRIs and consequently AVEs are not applicable. _For fixed and mobile line sectors “n/a” cells indicate that the supplementary data on the subscription rate is not available._

*For the four transport sectors, the ad valorem equivalent (AVE) or the tariff equivalent (TE) we have calculated has the domestic price in the denominator. For other sectors, the tariff equivalent contains the unrestricted shipping margins in the denominator. To make the conversion, if TE is the ad valorem equivalent with restricted country shipping margins in the denominator and TE* is the ad valorem equivalent with unrestricted country shipping margins in the denominator, then TE* may be derived from TE as TE* = TE/[1-TE].

53
**Table 14. Services Trade Restrictions Index (STRI) and Ad valorem Equivalents (AVEs) by Sector and By Level of Development**

|||STRIs<br>Transition and|||A<br>Transition and|VEs*<br>|
|---|---|---|---|---|---|---|
|Sector|OECD and<br>other EU<br>countries|<br>other<br>developing<br>countries|Least<br>developed<br>countries|OECD and<br>other EU<br>countries|<br>other<br>developing<br>countries|Least<br>developed<br>countries|
|Accounting|0.37|0.44|0.42|29|35|33|
|Legal Services|0.39|0.59|0.58|31|46|46|
|Air Transport|0.35|0.32|0.21|15|44|17|
|Rail Transport|0.47|0.59|0.59|16|58|56|
|Road Transport|0.54|0.32|0.30|18|38|31|
|Banking|0.02|0.21|0.17|2|18|15|
|Insurance|0.18|0.32|0.35|14|27|31|
|Fixed Line|0.28|0.37|0.51|35|69|764|
|Mobile Line|0.26|0.27|0.35|1|1|4|
|Retail|0.09|0.21|0.19|1|3|3|
|Maritime Transport|0.29|0.30|0.29|9|40|31|

*For the four transport sectors, the ad valorem equivalent (AVE) or the tariff equivalent (TE) we have calculated has the domestic price in the denominator. For other sectors, the tariff equivalent contains the unrestricted shipping margins in the denominator. To make the conversion, if TE is the ad valorem equivalent with restricted country shipping margins in the denominator and TE* is the ad valorem equivalent with unrestricted country shipping margins in the denominator, then TE* may be derived from TE as TE* = TE/[1-TE].

54
**Table 15: Services Trade Restrictions Index (STRI) and Ad valorem Equivalents (AVEs) by Sector and By Geographical region**

|Sector|North America|Europe and Central Asia|East Asia and the Pacific|STRIs<br>South Asia|Latin America and Caribbean|Middle East and North Africa|Sub-Saharan Africa|North America|Europe and Central Asia|<br>East Asia and the Pacific|AVEs*<br>South Asia|Latin America and Caribbean|Middle East and North Africa|Sub-Saharan Africa|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Accounting|0.46|0.33|0.49|0.44|0.35|0.57|0.42|36|26|38|34|27|45|33|
|Legal Services|0.42|0.43|0.61|0.74|0.42|0.80|0.58|34|34|48|58|33|63|46|
|Air Transport|0.26|0.23|0.30|0.48|0.31|0.44|0.22|10|24|31|58|37|59|23|
|Rail Transport|0.26|0.52|0.54|0.82|0.48|0.71|0.51|28|49|45|67|41|66|53|
|Road Transport|0.19|0.20|0.35|0.33|0.31|0.49|0.25|18|19|35|35|31|56|26|
|Banking|0.02|0.10|0.14|0.20|0.14|0.34|0.18|1|8|12|16|12|32|16|
|Insurance|0.23|0.26|0.26|0.35|0.32|0.39|0.32|18|22|21|29|27|34|28|
|Fixed Line|0.20|0.27|0.37|0.52|0.28|0.53|0.44|16|7|90|388|60|30|545|
|Mobile Line|0.14|0.18|0.29|0.31|0.20|0.37|0.35|0|0|1|2|1|1|3|
|Retail|0.11|0.14|0.16|0.25|0.16|0.32|0.17|2|2|3|4|3|5|3|
|Maritime Transport|0.29|0.21|0.32|0.40|0.26|0.39|0.24|8|16|30|67|34|57|18|

*For the four transport sectors, the ad valorem equivalent (AVE) or the tariff equivalent (TE) we have calculated has the domestic price in the denominator. For other sectors, the tariff equivalent contains the unrestricted shipping margins in the denominator. To make the conversion, if TE is the ad valorem equivalent with restricted country shipping margins in the denominator and TE* is the ad valorem equivalent with unrestricted country shipping margins in the denominator, then TE* may be derived from TE as TE* = TE/[1-TE].

55
# Appendices

## **Appendix A: The Ad Valorem Equivalence of Trade in Services Barriers in Different Modes of Transport**

In order to be able to convert the estimated TRI indexes estimated in Section 2.3 into tax equivalent, this paper follows modified approach of the study of Kimura (2004a) based on the study by McGuire (2000)<sup>25</sup> as well as the estimations of Kang (2000)<sup>26</sup> . This is done using the study of Kang (2000) and his model of measurement of shipping restrictions on transport margins, also employed by McGuire (2000) and Kimura (2004a).

In Kang (2000)<sup>27</sup> , shipping margins are used as the proxy for shipping price. The shipping margins from country _i_ (exporter) to country _j_ (importer), _M ij_ are defined as Where _IM ji_ represents the observed CIF value reported by importing country _j_ for all products imported from country _i_ , and _EX ij_ represents the observed FOB value of all exports reported by the _i_ ’th country as exported to the _j_ ’th country.

The shipping margin _M ij_ are function of bilateral restrictions _Rij_ , the distance between the trading partners _Dij_ and the scale of bilateral trade _SCij_ . Since it is assumed that this function is of a Cobb-Douglas form, the natural logarithmic form represents the following linear relationship:

> 25McGire, Greg, Michelle Schuele and Tine Smith, 2000, “Restrictiveness of international trade in maritime services”, in Findlay, Christopher and Tony Warren (eds), Impediments to Trade in Services: Measurement and Policy Implications, (London: Routledge)

> 26 Kang, Joog-Soon (2000), “Price Impact of Restrictiveness on Maritime Transportation Services,” in Findlay, Christopher and Tony Warren

> (eds), Impediments to Trade in Services: Measurement and Policy Implications, (London: Routledge).

> 27 Kang, Joog-Soon (2000), “Price Impact of Restrictiveness on Maritime Transportation Services,” in Findlay, Christopher and Tony Warren

> (eds), Impediments to Trade in Services: Measurement and Policy Implications, (London: Routledge).

56
Due to the fact that _Rij_ represents restrictions both for the importing country as well as for the exporting one, equation 2 can be rewritten in the following form The restrictions can be further divided into restrictions on commercial presence, identified with a superscript _c_ in the equation below, and other restrictions, identified with _a_ superscript _o_ . With this under consideration, the fully extended form of the equation is _o c o c_ ln( _M ij_ ) = _C_ + α 11 ln( _Ri_ ) + α 12 ln( _Ri_ ) + α 21 ln( _R j_ ) + α 22 ln( _R j_ ) + β ln( _Dij_ ) +γ ln( _SCij_ ) + _eij_ (4) Kang (2000) obtains measures of the regulatory barriers for 35 economies and considers the differences between developing and industrialized countries by estimating separate regressions for the two groups. After construction of _M ij_ and _SCij_ comparable statistics were used for 23 economies.

The variable representing the restrictions on commercial presence for country _j_ and the variable representing other form of restrictions for country _i_ are highly correlated and because of multicollinearity problems are not included in equation 2 at the same time. In addition, the results of various estimations obtained by Kang (2000) show that restrictions on commercial presence of maritime services in importing countries (<sup>_R_</sup> _cj_ ) have no significant impact on the shipping margins of exported products and the exclusion of this variable slightly improves the fitness. As a result, the obtained estimated coefficients for<sup>_i_</sup> developing countries, and<sup>_i_</sup> industrialized countries based on equation 2 are the following: 57
We assume that when the restrictiveness index in country _i_ changes, the other variables in equations 5.1 and 5.2 (restrictiveness index in country j for other than commercial presence, the distance between trading partners and the intensity of trading among partners) do not change. Further, we follow Kimura et al., (2004a) and estimate the shipping margins for countries that are not in the sample of Kang. Following Kimura et al., we assume that for countries outside the Kang sample, the differences in shipping margins between country i and the average for the group, differ only due to differences in the restrictiveness indices. Then, in equations 6 below, we may ignore the values for _R oj_<sup>,</sup> _D jj_<sup>, and</sup> _S jj_<sup>in calculating the change in the shipping margin</sup> in country i due to a change in the restrictiveness index in country i.

**Table A.1. Indexes of restrictiveness of international trade in maritime services for other economies**

|Industrialized Economies||DevelopingEconomies||
|---|---|---|---|
|Singapore|0.207|Argentina|0.331|
|United Kingdom|0.239|Colombia|0.469|
|Denmark|0.284|Mexico|0.478|
|Finland|0.315|Chile|0.503|
|Canada|0.32|Malaysia|0.52|
|New Zealand|0.352|Brazil|0.521|
|Germany|0.39|Indonesia|0.558|
|Hong Kong SAR, China|0.403|Korea, Rep.|0.582|
|Japan|0.408|Thailand|0.601|
|Sweden|0.415|India|0.605|
|Australia|0.416|Philippines|0.644|
|United States|0.6|||

Source: Jong-Soon Kang (2000) Table 11.2 Original source: McGuire et al (2000) 58
Based on the regression of Kang (2000) we may find the expected logarithm of the shipping margin<sup>28</sup> for each country of interest using the average logarithm of shipping margins with restrictions for each classification of countries (developed countries, and developing countries) in which the country of interest is classified; and the average logarithm of degree of restrictiveness index for each group of countries.: In 6.1 and 6.2, given that the equation was estimated based on Kang’s data, we calculate the average logarithm of shipping margins with restriction for industrialized countries as well as developing based on Kang (2000, table 11.1), not the entire sample. In the case of the restrictiveness indices, we calculate the average logarithm of TRI index for group of developed countries, and industrialized countries are -0.65, and -1.10, respectively (Kang 2000, table 11.2) for developed (or industrialized) countries29.We take the simple average of the natural log of the TRIs for each group of countries, i.e. we calculate ∑ ln(T for maritime transport sectors. Here, d refers to the dd number of countries at each level of development. Accordingly, the average logarithm of shipping ii=1 ii TT ) /dd margins with restrictions for developing countries and industrialized countries are 0.1777 and 0.0795, respectively. Further the average logarithm of TRI index for group of developed countries, and industrialized countries are -0.65, and -1.10, respectively.

One potential problem may occur due to the fact that in 6 and thus in 5.1 and 5.2 nothing forbids Mi to lie below 1, but it is inconsistent with economic logic of shipping margins, so in that case we set _E_ [ln( _M i_ )] = 0 .

28Mathematical expectation of logarithm of shipping margin.

59
As described earlier in order to estimate shipping margin for each country when all restrictions are removed, we assume that a country has no restrictions if its restrictiveness index is as low as the index of Singapore (or lower) <mark>. Therefore, in equation 7, we use the value of Singapore’s restrictiveness index to predict the lowest possible shipping margin as a function of the restrictiveness index. Building on equation 6.1 (a</mark> s Singapore was grouped by Kang in the developing countries group), <mark>we have the lowest predicted shipping margin as follows:</mark> Based on the restricted and unrestricted shipping margins for each country, we may estimate the ad valorem equivalents, but first we need to correctly calculate the predicted levels of _M i_ and _M Countryunrestricted_ . Note that Kang’s shipping margins are analyzed in logarithmic linear regression approach, so it is indirectly assumed that<sup>_M_</sup> has log normal distribution. We will not follow Kimura (2004a) in applying a linear approximation approach to estimating the ad valorem equivalence. As Idrisov (2010) has shown, we may employ a non-linear formula which allows us to avoid the linear approximation error. In that case, levels of shipping margins may be found as follows 60
where var( _ei_ )<sup>is the estimate of the variance of the errors from Kang’s regression andexpis</sup> exponent. In order to find estimated variance of errors we need to use statistical relations among var( _ei_ )<sup>, adjusted R squared and observed dependent variable in regression (</sup> _n_<sup>- number of</sup> observation, _p_ - number of independent variables): So one may derive var( _ei_ )<sup>as a function of</sup> _Radj_ 2 , _n_ , _p_ and dependent variable sample: thus the estimated variance of the errors is 0.00262.

Based on the equations above, the ad valorem equivalence on a net basis (%), TE, is calculated as follows: _TE_ = {[( _E_ ( _M i_ ) − )1 − ( _E_ ( _M developingunrestricted_ country_ ) − 1)]/( _E_ ( _M i_ ) − 1)}*100 , i=developing country (13a) 61
Equations 13a and 13b are used to calculate the ad valorem equivalence for the TRI index in the different transport services sectors, and these are the values we report. In (13a and 13b), we use the own country shipping margins in the denominator. The impact of the barrier is part of the denominator, which reduces the calculated AVE. If we use (13), the upper bound is unity or 100 percent TE or AVE. Consistent with the view that barriers are lowest in Singapore, if we calculate the TRIj<TRIS, we assume that AVE = 0.

Finally, note that it is straightforward to convert the TE in (14) to one with unrestricted shipping margins in the denominator. In particular, if TE* is the ad valorem equivalent with unrestricted country shipping margins in the denominator, then TE* may be derived from (13) as TE* = TE/[1-TE] (14) To illustrate an example, consider the detailed calculation of AVE for air and rail transport services sector in Albania and the USA where the following raw data are obtained from Kang (2000), except for TRI which comes from our estimation in present study.

62
# **Table A.2: Variables, Elasticities And Parameters**

|**Variables**||
|---|---|
|Trade Restrictiveness Index of Albania in air transport, TRI(Albania)|0.327|
|Trade Restrictiveness Index of the USA in air transport, TRI(USA)|0.4487|
|Trade Restrictiveness Index of Albania in rail transport, TRI(Albania)|0.5375|
|Trade Restrictiveness Index of the USA in rail transport, TRI(USA)|0.3875|
|**Elasticities and Parameters**||
|Trade Restrictiveness of Singapore, TRI(Singapore)|0.207|
|Ln[TRI(Singapore)]|-1.575|
|Estimated Variance of the errors [<br>)<br>var( _ie_ ]|0.00262|
|_Elasticity of policy index_||
|Elasticity Of Policy Index In Developed (Industrialized) Countries, e(I)|-0.0225|
|Elasticity Of Policy Index In Developing Countries. e(D)|-0.1416<br>0.207|
|_Average Logarim of Shipping Margins_||
|Ln(M)_developing country average (as used in equation 6.1)_|0.1777|
|Ln(M)_ developed country average (as used in equation 6.2)|0.0795|
|_Average Natural Log on the Trade Restrictiveness Indices_||
|Ln(TRI)_developing country average (as used in equation 6.1)|-0.65|
|Ln(TRI)_ developed country average (as used in equation 6.2)|-1.1|

# **_Calculation of TE for air transport services in Albania._**

Based on equations (6.1) and (7.1), expected logarithm of restricted shipping margins in Albania, _E_ [ln( _M Albania_ )] , and the expected logarithm of unrestricted shipping margins in Albania, _E_ [ln( _M Albaniaunrestricted_ )] , are calculated.

63
_E_ [ln( _M Albania_ )] = ( ln( _M_ ) ) _developingaverage_ countries_ − .01416 ⋅ [ ( ln( _TRI_ ) ) _devlopingaverage_ countries_ − ln( _TRI Albania_ )] = 0.1777+ [-0.1416 *(-0.65 – (-1.1177951))] = 0.1114602 (15) _E_ [ln( _M Albaniaunrestricted_ )] = ( ln( _M_ ) ) _develoingaverage_ countries_ − .01416 ⋅ [ln( _TRI_ ) _developingaverage_ countries_ − ln( _TRI Singapore_ ) ] = 0.1777+ [-0.1416 *(-0.65 – (-1.575036486))] = 0.0467148 (16) Note that the left hand side “expected log of the unrestricted shipping margin,” is independent of the individual developing country. That is, this value applies to all developing countries. Thus, it is unnecessary to recalculate it for other developing countries.

Consequently, based on the equations (8) and (9), the average of restricted shipping margins ( _E_ [ _M Albania_ ] ) and the average of unrestricted shipping margins ( _E_ [ _M iunrestricted_ ] ) are estimated, respectively, as follows: E [MAlbania]=EXP[E [ln(MAlbania)]+ 0.5 var( _ei_ ) ] =EXP[0.1114602+ (0.5 *0.00262)]= 1.1192193 (17) _unrestricted unrestricted E_ [ _M Albania_ ] = EXP[ _E_ [ln( _M Albania_ )]) ] +0.5 var( _ei_ ) ]=EXP[0.0467148+ (0.5 *0.00262)]= 1.0491332 ( 18) Note that the left hand side of equation 20 is independent of the particular developing country. That is, the value of the expected value of the unrestricted shipping margin in equation 20 applies to all developing countries. Thus, we need not recalculate it for other developing countries.

Finally, the ad valorem equivalence on a net basis (%), TE, is calculated based on equation (13a) as follows: 64
# **Other example:**

Rail transport services in Albania: TRI = 0.5375 Substitute TRI = 0.5375 in equation 13. We get E[ln(MAlbania)] = 0.1818 Using E[ln(MAlbania)] = 0.1818 in equation 15, we get E [MAlbania]= 1.201 From equation 16, we have the unrestricted shipping margin of 1.049.

With these values, we may calculate the AVE from equation 17 at AVE = 0.755 or 75.5 percent.

# **_Calculation of AVE for air transport services sector in the USA_**

Based on equations (6.2) and (7.2), expected logarithm of restricted shipping margins in the USA, _E_ [ln( _M USA_ )] , and the expected logarithm of unrestricted shipping margins in the USA, _E_ [ln( _M USAunrestricted_ )] , are calculated.

_E_ [ln( _M USA_ )] = ( ln( _M_ ) ) _developedaverage_ − .00225 ⋅ [ ( ln( _TRI_ ) ) _developedaverage_ − ln( _TRIUSA_ )] =0.0795- [0.0225 *(-1.1 + 1.575036486) = 0.068811679 (20) _E_ [ln( _M USAunrestricted_ )] = ( ln( _M_ ) ) _developedaverage_ − .00225 ⋅ [ln( _TRI_ ) _developedaverage_ − ln( _TRI Singapore_ )] = 0.0795- [0.0225 *(1.1 + 1.575036486) = 0.068811679 (21) Note that the left hand side “expected log of the unrestricted shipping margin,” is independent of the individual developed country. That is, this value applies to all developed countries. Thus, it is unnecessary to recalculate it for other developed countries.

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Consequently, based on the equations (8) and (9), the average of restricted shipping margins ( _E_ [ _M USA_ ]) and the average of unrestricted shipping margins ( _E_ [ _M USAunrestricted_ ] ) are estimated, respectively, as follows: _E_ [ _MUSA_ ] = exp( _E_ [ln( _MUSA_ )] + 5.0 var( _ei_ )]= EXP[0.086219383+ (0.5 *0.00262)]= 1.091355439 (22) _unrestricted unrestricted E_ [ _MUSA_ ] = exp[ _E_ [ln( _MUSA_ )] + 5.0 var( _ei_ )] = EXP[0.068811679+ (0.5 *0.00262)]= 1.072544454 Note that the left hand side of equation 23 is independent of the particular developed country. That is, the value of the expected value of the unrestricted shipping margin in equation 25 applies to all developed countries. Thus, we need not recalculate it for other developed countries.

Finally, the ad valorem equivalence on a net basis (%), TE, is calculated based on equation (11b) as follows: Other example: Rail transport services in the USA: TRI = 0.3875 Substitute TRI = 0.3875 in equation 18. We get E[ln(MUSA)] = 0.083 Using E[ln(MUSA)] = 0.083 in equation 20, we get E [MUSA]= 1.088 From equation 21, we have the unrestricted shipping margin of 1.073.

With these values, we may calculate the AVE from equation 22 at AVE = 0.17 or 17 percent.

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# **Appendix B: The Ad Valorem Equivalence of Trade in Services Barriers in in Telecom Services Sectors**

Using the estimated TRI indexes for the fixed line and mobile phone sectors, the ad valorem equivalents are calculated using the methodology and coefficients obtained by Warren (2000)<sup>30</sup> . In Warren (2000), the penetration rates of the fixed and mobile networks in country _i_ are represented by equations (25) and (27) and the estimated equations (26) and (28),respectively.

_f m_ where, _Qi_ is the quantity of fixed lines per 100 inhabitants and _Qi_ is the quantity of mobile phones per 100 inhabitants, α is a constant, represents the GDP per capita in USD, _HDi_ is the household density, _UDi_ is the waiting list for connection to the public switch network, YY _Quali_ is the percentage of mainlines attached to a digital switch in the economy, PDi is the population density and _M if_ and _M im_ are policy variables. The results of Warren (2000) estimation are reported in Table B.1.

> 30 Warren, Tony (2000), The impact on output of impediments to trade and investment in telecommunications services”, in Findlay, Christopher and Tony Warren (eds), Impediments to Trade in Services: Measurement and Policy Implications, (London: Routledge).

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# **Table B.1. Estimated results by Warren for the fixed and mobile penetration models**

Dependent variable for the fixed penetration model: the quantity of mainlines (mainlines per 100 inhabitants) Dependent variable for the mobile penetration model: the quantity of cellular mobile subscribers <u>(mainlines per 100 inhabitants)</u>

|Policy variable|Fixed penetration model|Mobile penetration model|
|---|---|---|
|Policy|5.26**|3.05**|
||(3.11)|(1.85)|
|Y|0.004***|0.0008***|
||(0.0003)|(0.00005)|
|Y<sup>2</sup>|-6.3E-8***|-1.9E-9***|
||(0.0)|(0.0)|
|Y<sup>3</sup>|1.3E-13***||
||(0.0)||
|HD|0.003||
||(0.003)||
|UD|-0.08*||
||(0.05)||
|Qual|-0.13***<br>(0.03)||
|PD||0.001**|
|||(0.0006)|
|Constant|12.26***|-1.3*|
||-2.66|(0.70)|
|Adj. R-squared|0.89|0.78|

Notes: the reported figures are estimated coefficients figures in parenthesis represent standard errors

*=coefficient estimates are at the 90% significance level

**=coefficient estimates are at the 95% significance level

***=coefficient estimates are at the 99% significance level Source: Warren (2000) Model 5 in Table 6.5 and Model 7 in Table 6.6

The policy variable can be separated in the following equations where b is vector of estimated coefficients on the vector of actual policy measures.

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Substituting [ _M if_ ] with [ _M if_ ] * and [ _M im_ ] with [ _M im_ ] *, which are the indexes of the maximum policy measures affecting the mobile lines network: where P is price.

We note that since the price without restrictions must be non-negative, we impose the following constraint: _PI if_ > -1, and _PI im_ > -1.

We use this constraint below for a few outlier countries with very low values of Q.

First subtract (29) from (31) for fixed line and equation (29) from (31) for the mobile phones sector. That yields: Now divide (33a) and (33b) by (29 ) and (30) respectively. We get: Further, following Kimura (2004c), we consider that a higher index of the policy variable means a more liberalized sector. For this reason we define (1-TRI) as a proxy for the policy variables.

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Then, as in Warren (2000), _M im_ * and _M if_ * are policy measure indexes when they are most liberal. The most liberal measure for us is when TRI is 0. So, _M i_ * = 1- TRI=1-0=1 , and

* − consequently, _M i M i_ = 1- (1-TRIi) = TRIi

Thus, we may rewrite (43a) and (43b) as From the definition of elasticity of demand, we have: We use the elasticity of substitution -1.2 from Kimura (2004c).

Based on the results of equations (36a) and (36b) the tariff equivalent can then be estimated to equal For a few countries, the initial fixed line penetration rate is so low that combined with a high TRI equation 45a yields a value of _PI if_ that is less than negative one. In this case, we can not use equation 45a, since it implies a negative price of fixed line telecom services without restrictions. Since it occurs in cases of either extremely high barriers or extremely low fixed line penetration rates, we assign a TE in these cases equal to the highest TE for countries in our sample for which 70
we can calculate a TE. That value is: 915%, based on the estimate for Cambodia.

Note that in equation 37 the price without restrictions is in the denominator, so the TE can exceed 100 percent.

So to calculate the TE, we use equations (37a) and (37b). Start with (35a) and (35b),we need data on Q (which varies by country), the estimated value of b from Warren (5.26 for fixed line and 3.05 for mobile) and our value of TRI, which is estimated in Section 2.3. This gives us QI. Note that following Idrisov (2010), we used the number of quantity of fixed/mobile lines per 100 inhabitants in each country as a proxy for Q. We took this data from an <mark>International telecommunication Union</mark> website at: <u><mark>http://www.itu.int/ITU-D/ict/statistics/ for the year 2010.</mark></u> Then, with QI and the elasticity of substitution value -1.2 (from Dee and others), we get the value of PI from (36a) and (36b). Then with PI, we get the TE% in (37a) and (37b).

To illustrate an example, consider the detailed calculation of AVE for fixed line and mobile line services sectors in Albania.

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|**Table B.2: Variables, Elasticities And Parameters**<br>**Variables**|**Value**|
|---|---|
|Trade Restrictiveness Index of Albania in fixed line telecom, TRI(Albania)|0.07|
|Trade Restrictiveness Index of Albania in mobile line telecom, TRI(Albania)|0.24|
|Current quantity of fixed line per 100 inhabitants in Albania (<br>_m_<br>_Albania_<br>_QI_<br>)|10.39|
|Current quantity of mobile line per 100 inhabitants in Albania (<br>_f_<br>_Albania_<br>_QI_<br>)|84.02|
|**Elasticities and Parameters**||
|The estimated value of b from Warren for fixed line telecom services (ei)|5.26|
|The estimated value of b from Warren for mobile line telecom services (ei)|3.05|
|Substitution elasticity from Dee and others (b)|-1.2|

# **Calculation of AVE in fixed line telecom services in Albania**

Based on equation 35 (a), the quantity index in fixed line services in Albania ( _QI Albaniaf_ ) is calculated: Based on Equation (36a) and considering the value of _QI Albaniaf_ estimated in (36a), and the obtained elasticity ( e= -1.2) , we have : 72
Substituting the value of _PI Albaniaf_ into (37a) results in

# **Calculation of AVE in mobile line telecom services in Albania**

Based on (35b), the quantity index in mobile line services in Albania ( _QI Albaniam_ ) is calculated Based on Equation (36b), and considering the value of _QI Albaniam_ estimated in (35b) and the obtained elasticity ( e= -1.2), we have : Substituting the value of _PI Albaniam_ into (37b) results in 73