WTO may lift barriers to winning work overseas

UK construction companies may find it easier to win overseas work if current World Trade Organisation (WTO) talks on the removal of protective barriers are successful.

Member governments of the WTO are examining proposals made by the New Zealand government for the dismantling of bureaucratic barriers that can prevent construction companies from supplying their services abroad.

Its suggestions were made in the ongoing WTO services round, which has now reached the end of its first stage.

Diplomats are undertaking a year-long examination of proposals, before making formal offers to liberalise service industries, including construction.

By formally proposing the building trade as a sector for discussion, New Zealand has made it possible for diplomats at the negotiations to offer concessions on reducing protection for the industry such as quotas, tariffs and nationality requirements, in order to win deals liberalising the trade.

New Zealand's diplomats will be "actively exploring ways" to ensure a final deal includes specific commitments to remove restrictions on foreign companies providing services from "pre-erection work at construction sites" through to "building completion and finishing work".