ANNEX D:

EDUCATION SERVICES

SUMMARY

The trade agreement should create conditions favorable to suppliers of higher education, adult

education, and training services (including testing services) by removing and reducing obstacles

to the transmission of such services across national borders through electronic or physical means.

The agreement should also remove barriers in Mode 3 (commercial presence) and Mode 2

(consumption abroad).  Examples of barriers could be:

Prohibition of higher education, adult education, and training services offered by foreign

entities

Lack of an opportunity for foreign suppliers of higher education, adult education, and

training services to obtain authorization to establish facilities within the territory of the

negotiating country

Lack of an opportunity for foreign suppliers of higher education, adult education, and

training services to qualify as degree granting institutions

Excessive restrictions on electronic transmission of course materials

Economic needs tests

Measures requiring the use of a local partner

Denial of permission for private sector suppliers of higher education, adult education, and

training to enter into and exit from joint ventures with local or non local partners on a

voluntary basis

Where government approval is required, exceptionally long delays are encountered and,

when approval is denied, no reasons are given for the denial and no information is given

on what must be done to obtain approval in the future

Tax treatment that discriminates against foreign suppliers

Foreign partners in a joint venture are treated less favorably than the local partners

Franchises are treated less favorably than other forms of business organization

Domestic laws and regulations are unclear and administered in an arbitrary manner

Subsidies for higher education, adult education, and training are not publicized in a clear

and transparent manner

Minimum requirements for local hiring are disproportionately high, leading to

uneconomic operations

Specialized, skilled personnel (including managers, computer specialists, expert

speakers), needed for a temporary period of time, have difficulty obtaining authorization

to enter and leave the country

Repatriation of earnings is subject to excessively costly fees and/or taxes for currency

conversion

Excessive fees/taxes are imposed on licensing or royalty payments.

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