Barriers to Trade in Education

Developments in the global economy, including an unprecedented demand for higher education, advancements in technology, and the proliferation of trade agreements continue to facilitate the movement of higher education and training, whether delivered electronically or through physically based campuses, across national borders. With services slated to be on the agenda of the next round of WTO trade negotiations (Services 2000), it is vitally important that education and training be recognized as an important element. Education and training play a crucial role in economic development and, despite their impressive performance in the global economy, providers still face many barriers when attempting to deliver their products across national borders. Some examples follow.

National Legislation & Policy

  • Prevents foreign ed. & training providers from obtaining national licenses
  • Needs Tests
  • Recognize higher education as a product of the state and not a proprietary function

Exs: Greece , Spain , Singapore & Indonesia , Israel , Turkey





Ex: Japan ( Temple Document )

Qualifications Authorities

Students have difficulties in translating degrees from foreign universities into national equivalents

Ex: Japan ( Temple Document )

Customs Regulations

Limits the movement of educational materials across borders

Ex: Medical & health related materials showing naked human body; Russia & Hungary (videos)

Telecom Laws

Restricting the use of national satellites and receiving dishes

Ex: Mexico

Movement of Persons

Difficulty in obtaining visas (teachers, students, administrative staff)

Exs: Greece , Denmark , Singapore

Foreign Currency Controls

  • 1. Measures limiting foreign direct investment
  • 2. Minimum requirements for capital investment by wholly owned foreign firms
  • 3. Additional taxes on revenues

Ex: Ghana $200,000/$10,000







Ex: Korea 25% if not incorporated under Korean law

Limitations on foreign ownership

Limits ability of foreign providers to control off-shore activities

Exs: Mexico & Thailand (49%)

Disregard for International Agreements

Concerning intellectual property rights (educational materials)

Exs: Southeast Asian nations

If you know of any additional barriers to trade in education please e-mail us at: cqaie@cqaie.org

 

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