Services Trade Restrictions - PowerPoint Presentation

Services Trade Restrictions Transportation Services in SADC

... ... Transportation Services

Mode 3 Restrictions (Mode 3 — Commercial presence): By a service supplier of one Member, through commercial presence, in the territory of any other Member.  

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Mauritius Cargo market is liberalised Has signed > 32 bilateral agreements for air transport Withdrew from Yamoussoukro Decision in March 2003 No GATS Commitment There are no restrictions on the entry of foreign suppliers. Currently , Air Mauritius is the only state-owned provider . Cabotage is not allowed There are no restrictions on the entry of foreign suppliers. Currently , Air Mauritius is the only state-owned provider . Cabotage is not allowed There are no restrictions. This is closed at the main port , but foreign investment may be allowed at the Freeport. Botswana No GATS Commitment Entry is allowed only through acquisition; the limit on foreign ownership in this case is 49 %. A Board of Directors nationality requirement applies .( R) For greenfield investment, the limit on foreign ownership is 50 %. For entry through acquisition and/or a joint venture, the limit on foreign ownership is 49%. Holding of a controlling stake is not allowed . (R) N/A. Landlocked country. N/A. Landlocked country.

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Congo No GATS commitent Entry is subject to reciprocity. Approval of the President is required for entry. Acquisition of a state-owned entity not allowed. In addition, 95% of the Board of Directors must be nationals. Entry is subject to reciprocity and to bilateral agreements. Approval of the President is required for entry. Acquisition of a state-owned entity not allowed. In addition, 95% of the Board of Directors must be nationals. For market entry, authorization of the President is required . Acquisition of a state-owned entity is not allowed. In addition, 95% of the Board of Directors must be nationals. All allowed, except for customs clearance. For market entry, authorization of the President is required . (Seems somewhat contradictory) Lesotho No national airline, all international airlines are operated by SA airlink There are no equity restrictions, except FDI 70% in state-owned entities. Repatriation of earnings: Must comply with foreign exchange regulations and seek permission of the Central Bank . ( R) GATS Commitment = None(i.e. Open) There are no equity restrictions, except that foreign equity limit is 70% in state-owned entities. Permission of the Central Bank is required for repatriation of earnings for foreign companies that are beyond the Common Monetary Area (CMA ). ( R) GATS Commitment = None(i.e. Open) N/A. Landlocked. N/A. Landlocked.

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Madagascar There are no restrictions, with the exception of certain requirements to hire nationals . ( R) There are no restrictions, with the exception of certain requirements to hire nationals .( R) There are no restrictions, except that they must be staffed with Malagasy crew .(R) There are no restrictions. Malawi No GATS Commitments About 25 preferential agreements Air Malawi has exclusive traffic rights for regional services, Domestic routes are open for competition (only Malawian registered) For domestic routes, the limit on foreign ownership is 49%. For repatriation of earnings, approval of the Central Bank is required, and this must also comply with exchange control regulations and tax requirements .(R) Only a Malawian-owned company can be designated as an international air carrier or benefit from bilateral air services agreements. For repatriation of earnings, approval of the Central Bank is required . (R ) N/A. Landlocked. N/A. Landlocked.

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Mozambique No GATS commitment Signed the 1988 Yamoussoukro Declaration which provides for granting 5 th freedom right Domestic cabotage is restricted in all bilateral agreements There are no restrictions, except that for repatriation of earnings, approval of the investment promotion agency and registration with the Central Bank is required . (R ) There are no restrictions, except that for repatriation of earnings, approval of the investment promotion agency and registration with the Central Bank is required . (R) There are no restrictions, except that for repatriation of earnings, approval of the investment promotion agency and registration with the Central Bank is required . (R ) There are no restrictions, except that for repatriation of earnings, approval of the investment promotion agency and registration with the Central Bank is required . (R ) Namibia No GATS Commitment AIR: Yamoussoukro Decision: has signed reciprocal agreements with SA, Zambia, Republic of Congo, Zimbabwe, and the United Kingdom MARITIME: No controls on entry into shipping, or cabotage restrictions Foreign vessels may operate domestic services between Walvis Bay and Lüderitz without a permit except for sea worthiness This is open; repatriation of dividends is subject to a withholding tax of 10%. (R ) T he limit on foreign ownership is 49% in international air passenger carriers .(R ) Repatriation of dividends from Namibia is subject to a withholding tax of 10%. (R ) There are no restrictions; repatriation of dividends from Namibia is subject to a withholding tax of 10%. (R ) There are no restrictions; repatriation of dividends from Namibia is subject to a withholding tax of 10%. (R )

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Seychelles Is Mauritius interested in transport services to Seychelles? Traffic rights is subject to Bilateral agreement as guided by tourism industry Different licences are required for different flight crew Non-helicopter domestic passenger and freight is provided solely by government and currently there is 1 helicopter operator in which govt. hold rights Maintenance and repair of aircraft is on monopoly and limited to defect rectification during transit Ground handling under de facto monopoly (CAA) Traffic rights is subject to Bilateral agreement as guided by tourism industry Different licences are require for different flight crew Non-helicopter domestic passenger and freight is provided solely by government and currently there is 1 helicopter operator in which govt. hold rights Maintenance and repair of aircraft is on monopoly and limited to defect rectification during transit Ground handling under de facto monopoly (CAA) Seaport infrastructure is reserved for government Vessels register under domestic laws enjoy some discounts on tariffs for port and harbour facilities Vessels from foreign ports can only anchor or moor only at the Victoria port Passenger and landing fee are applied for cruise ships different for different ports Foreign investment in boat charter services is restricted Ship employees must write exams for certificate of competency Push and towing services are under government monopoly

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services South Africa AIR : 2 state owned airlines (SAA and SA Express) and about 7 privately owned airline operate in SA MARITIME: Cabotage is allowed (local and foreign-owned vessels on international trade routes to carry its coastal cargo) 1,129 registered ships under the South African flag (by 2008) The limit on foreign ownership is 25%. The Minister of Transport may, at his discretion, grant an exemption from the restriction that at least 75%of voting rights be held by residents of South Africa . ( R) Acquiring a state-owned entity not allowed . GATS Commitment = Unbound The limit on foreign ownership is 49%. ( R) Acquisition of a state-owned entity is not allowed. Foreign exchange control restrictions may apply to resident companies (non-discriminatory ).(RC) GATS Commitment = Unbound There is no limit on foreign ownership, although equity ownership by historically disadvantaged groups is encouraged and viewed as one of the factors in assessing a firm's overall profile with regards to the Black Economic Empowerment (BEE) program (non-discriminatory). Foreign exchange control restrictions may apply to resident companies (non-discriminatory ).(RC) GATS Commitment = Unbound Closed. Swaziland GATS commitment only on road 1 international airport, 2 state-owned and 9 privately owned airstrips Airlink Swaziland JV between government and SAA no significant air freight operation Found no information on restrictions Found no information on restrictions

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Tanzania The limit on foreign ownership is 49 % (both for greenfield and M&A). Restrictions on board members and employees apply .(RC) There are no equity restrictions. (RC). The limit on foreign ownership is 99 %. Restrictions on board members and employees apply .(RC) Firms must be locally incorporated and registered in Tanzania to supply these services. The limit on foreign ownership is 40%. Zambia No GATS commitment on Transport Fully privatized its air services and thus has 15 private airlines 4 major airports: Lusaka, Ndola, Livingstone and Mfuwe managed by National Airports Corporation Air cargo market plays a significant role for the country's exports of perishable products There are no equity restrictions. Licenses may be subject to public interest, an economic needs test, and/or the current number and efficiency of providers in the market . (R) There are no equity restrictions. Licenses may be subject to public interest, an economic needs test, and/or the current number and efficiency of providers in the market.(R) N/A. Landlocked. N/A. Landlocked.

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Zimbabwe No GATS commitment on Transport three international airports state-owned airline (air Zimbabwe) is the provider of cargo and passenger services The limit on foreign ownership is 49 %. The Minister of State for Indigenisation and Empowerment can grant higher foreign equity participation; 51% of the Board of Directors must be nationals. For repatriation of earnings, approval of the Reserve Bank is required and repatriation is subject to availability of foreign currency (which may be difficult due to the severe shortage of foreign currency ). (R ) The limit on foreign ownership is 49 %. The Minister of State for Indigenization and Empowerment can grant higher foreign equity participation. 51%of the Board of Directors must be nationals . For repatriation of earnings, approval of the Reserve Bank is required and repatriation is subject to availability of foreign currency (which may be difficult due to the severe shortage of foreign currency ). (R ) N/A. Landlocked. N/A. Landlocked. Angola No information on Restrictions No information on Restrictions No information on Restrictions No information on Restrictions

Mode 1 Restrictions (Mode 1 — Cross border trade): From the territory of one Member into the territory of any other Member. 

Air Passenger Domestic Air Passenger International Maritime Shipping International Maritime Auxiliary Services Road Freight Domestic Rail Freight Domestic Mauritius There are no restrictions. Botswana N/A. Landlocked country. Congo There are no restrictions. Carrier agreements are not subject to competition law, because no competition law exists in DRC. Lesotho N/A. Landlocked. Madagascar There are no restrictions. Malawi N/A. Landlocked. Zambia N/A. Landlocked. Mozambique There are no restrictions. Namibia There are no restrictions. Tanzania There are no restrictions. South Africa There are no restrictions. Zimbabwe N/A. Landlocked.

Services Trade Restrictions Index Transportation Services Botswana 54.8 Congo, the Democratic Republic of the 55.4 Lesotho 22.5 Madagascar 5.8 Malawi 31.8 Mauritius 30.5 Mozambique 5.8 Namibia 29.7 South Africa 40.6Tanzania, United Republic of29.4Zambia9.5Zimbabwe68.2 Closer to zero is the more open

The end. Thank you/