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renewable energy service providers in foreign markets. These include restrictions on legal form, foreign equity limits, and economic needs tests. 83 Measures that hinder the temporary movement of foreign workers can act as a barrier to trade in renewable energy services. Common restrictions include limits on entry and duration of stay, quotas, and labor market tests. Other impediments include qualification and licensing restrictions, including nationality or residency requirements.84 Burdensome requirements for visa applications, work permits, and residence permits can hinder a company’s ability to rapidly deploy technically skilled workers needed to perform maintenance or repair services on renewable energy equipment in foreign countries. For instance, visa restrictions in Brazil reportedly limit the ability to bring in skilled wind technicians from the United States in the absence of a reciprocal visa agreement between the two countries.85 According to General Electric (GE), a manufacturer of renewable energy technologies and a service provider, it may not be feasible to hire fully trained, domestic workers that are needed in each country in which GE operates, underscoring the need to allow the movement of persons to perform services in a timely manner.86 Specific Measures Affecting Trade and Investment in Renewable Energy Services Forced localization measures, such as local-content requirements, can act as a barrier to trade in both technologies and services for renewable energy.87 For example, local- content requirements may require renewable energy projects like wind or solar farms to include a minimum share of goods or services of domestic origin to qualify for an FIT. Some of these requirements have been challenged at the WTO as being inconsistent with WTO obligations, as described in chapters 3 and 4. Local-content requirements are most often directed at renewable technologies, as a part of efforts to spur domestic manufacturing and job creation, rather than specifically targeting services.88 However, many project developers that provide renewable energy technologies also supply renewable energy services. Project developers that do not produce goods locally in markets that require local content can therefore be shut out from providing services in those markets as well. Local-content requirements can limit market access for service providers in other ways. For instance, they may require workers to be nationals of a particular country, require specific procedures to take place within a country, or require firms to have local partners or majority local ownership.89 Other impediments may include cumbersome project approval processes, country-specific standards, or certifications that do not recognize foreign providers of renewable energy services.90 83 Kim, “Facilitating Trade in Services,” 2011, 33; Steenblick and Geloso Grosso, “Trade in Services Related to Climate Change,” 2011, 38. 84 Kim, “Facilitating Trade in Services,” 2011, 33–34; Steenblick and Geloso Grosso, “Trade in Services Related to Climate Change,” 2011, 38. 85 Industry representative, interview by USITC staff, São Paolo, Brazil, May 8, 2013. 86 Fessenden, written testimony before the U.S. House Ways and Means Subcommittee on Trade, September 20, 2012, 4. 87 Localization barriers to trade can broadly be defined as measures designed to protect, favor, or stimulate domestic industries, services providers, and/or intellectual property (IP) at the expense of goods, services, or IP from other countries. Marantis, Statement to the Senate Committee on Finance, March 19, 2013, 4. 88 Peszko and Ketterer, “Local Content Requirements for Renewable Energy,” November 23, 2012. 89 Fessenden, written testimony before the U.S. House Ways and Means Subcommittee on Trade, September 20, 2012, 4–5. 90 Ibid., 4–5. 2-22PDF Image | Renewable Energy and Related Services: Recent Developments
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