Types of barriers to trade in services

Combining the service transaction mode with the barriers that affect service provision and consumption, the service trade barriers are divided into four forms: product flow, capital flow, personnel flow and commercial existence barriers. Entrepreneurial right obstacle, also known as producer entrepreneurship obstacle. According to the survey, more than two-thirds of American service providers believe that the restriction of openness is the most important barrier to their service trade. Such barriers exist in the 29 countries that maintain trade relations with the surveyed manufacturers, ranging from laws prohibiting the provision of services to host country regulations on local ingredients. For example, before 1985, foreign banks were forbidden to set up branches in Australia, and after 1985, foreign banks were allowed to enter for the first time, but only 16 banks were selected from many applicants, and the selection criteria were reciprocity and the company's potential contribution to the financial system. Canada stipulates that the number of foreign banks in domestic banks shall not exceed a predetermined proportion. Generally speaking, even if foreign manufacturers can set up branches in the host country, their personnel composition is subject to many restrictions. In addition to immigration restrictions, the government has many ways to restrict foreign service providers from freely choosing employees, such as stipulating the proportion of local workers or positions through the employment law. American civil rights law, Malaysian quota system, European employment permit system, Brazilian local employee ratio law, etc. Have this property. Some countries also stipulate that professionals must receive local education or training when starting a business.