Presentation is loading. Please wait.

Presentation is loading. Please wait.

Temporary movement of people as service suppliers - GATS mode 4 Julia Nielson OECD May 2004.

Similar presentations


Presentation on theme: "Temporary movement of people as service suppliers - GATS mode 4 Julia Nielson OECD May 2004."— Presentation transcript:

1 Temporary movement of people as service suppliers - GATS mode 4 Julia Nielson OECD May 2004

2 Structure of the presentation The context for mode 4 - temporary mobility The context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalization Gains from liberalization What are the issues to manage? What are the issues to manage? Labour market impactLabour market impact Brain drain/overstayingBrain drain/overstaying Remittance managementRemittance management SecuritySecurity Thoughts on priorities for the GATS negotiations Thoughts on priorities for the GATS negotiations

3 The context Migration flows no larger now relative to population size than in 1850-1915 Migration flows no larger now relative to population size than in 1850-1915 Much is inter-regional and inter-developing countryMuch is inter-regional and inter-developing country But temporary movement is increasing But temporary movement is increasing More countries are exporters and importersMore countries are exporters and importers New drivers New drivers Technological changeTechnological change Declining transport and communication costs;Declining transport and communication costs; Global businesses and production chainsGlobal businesses and production chains

4 The context Considerable movement taking place despite very limited GATS commitments Considerable movement taking place despite very limited GATS commitments US: H1B declining, but temporary unskilled (H2B) increased by 50% per year to reach 72 400 in 2001.US: H1B declining, but temporary unskilled (H2B) increased by 50% per year to reach 72 400 in 2001. UK: 85 000 work permits in 2002, mostly new technologies, health and education (ditto France, but numbers smaller)UK: 85 000 work permits in 2002, mostly new technologies, health and education (ditto France, but numbers smaller) Japan: 142 000 in 2001 (decline in higher skilled)Japan: 142 000 in 2001 (decline in higher skilled) Australia: 43 000 temporary permits in 2001Australia: 43 000 temporary permits in 2001 Korea: 28 200 (skilled) in 2001, 60% increase; plus 100 000 traineesKorea: 28 200 (skilled) in 2001, 60% increase; plus 100 000 trainees Concentrated in certain sectors – ICT, health Concentrated in certain sectors – ICT, health Some countries prominent - India H1-B, Philippines labour exporterSome countries prominent - India H1-B, Philippines labour exporter

5 The context But figures are not comparable and do not equate with mode 4 But figures are not comparable and do not equate with mode 4 Temporary is slippery Temporary is slippery Statistically, cut off is 12 monthsStatistically, cut off is 12 months Some countries have temporary workers for 20 yearsSome countries have temporary workers for 20 years Others permit change of visa to permanent migrationOthers permit change of visa to permanent migration Different definitions of “foreign” Different definitions of “foreign” Social context – labour market, social security, culture. Social context – labour market, social security, culture. Mode 4 is a trade, not a migration concept Mode 4 is a trade, not a migration concept Don’t distinguish between service and non-service activitiesDon’t distinguish between service and non-service activities E.g., “business visitors”, “company managers”E.g., “business visitors”, “company managers” Activities may not be commercialActivities may not be commercial Amateur and professional athletesAmateur and professional athletes Combinations of modesCombinations of modes Working holiday makersWorking holiday makers

6 The context Within the universe of migration, there is the subset of temporary migration Within the universe of migration, there is the subset of temporary migration Within temporary migration, there is the subset of temporary labour migration Within temporary migration, there is the subset of temporary labour migration Mode 4 is a subset of temporary labour migration Mode 4 is a subset of temporary labour migration Depending how you define it, get closer to migration issues and concernsDepending how you define it, get closer to migration issues and concerns

7 Structure of the presentation The context for mode 4 - temporary mobility The context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalization Gains from liberalization What are the issues to manage? What are the issues to manage? Labour market impactLabour market impact Brain drain/overstayingBrain drain/overstaying Remittance managementRemittance management SecuritySecurity Thoughts on priorities for the GATS negotiations Thoughts on priorities for the GATS negotiations

8 Defining mode 4 Article 1.2(d): “the supply of a service…by a service supplier of one Members, through presence of natural persons of a Member in the territory of another Member”. Article 1.2(d): “the supply of a service…by a service supplier of one Members, through presence of natural persons of a Member in the territory of another Member”. Annex on the Movement of Natural Persons: “measures affecting natural persons who are service suppliers of a Member, and natural persons of a Member who are employed by a service supplier of a Member, in respect of the supply of a service”Annex on the Movement of Natural Persons: “measures affecting natural persons who are service suppliers of a Member, and natural persons of a Member who are employed by a service supplier of a Member, in respect of the supply of a service”

9 Defining mode 4 Mode 4 is temporary movement Mode 4 is temporary movement Not defined, commitments range from several weeks (business visitors) to 3-5 years (intra-corporate transferees)Not defined, commitments range from several weeks (business visitors) to 3-5 years (intra-corporate transferees) BUT permanent explicitly excluded BUT permanent explicitly excluded GATS does not apply to measures affecting individuals seeking access to the employment market, nor to measures regarding citizenship, residence or employment on a permanent basis.GATS does not apply to measures affecting individuals seeking access to the employment market, nor to measures regarding citizenship, residence or employment on a permanent basis.

10 Defining mode 4 What is a service supplier? What is a service supplier? Temporary agricultural workers or suppliers of fruit-picking services?Temporary agricultural workers or suppliers of fruit-picking services? What is the scope of category “services incidental to agriculture (manufacturing)” in W/120?What is the scope of category “services incidental to agriculture (manufacturing)” in W/120? Tasks performed on a fee or contract basis without ownership of the inputs or outputsTasks performed on a fee or contract basis without ownership of the inputs or outputs In the world of fragmented production chains, definition of a service is shifting In the world of fragmented production chains, definition of a service is shifting

11 Defining mode 4 Mode 4 normally includes:Mode 4 normally includes: Self-employed or independent service suppliers (remuneration received in host country) Self-employed or independent service suppliers (remuneration received in host country) Employees of a foreign company who are sent to fulfill a contract with a host country client Employees of a foreign company who are sent to fulfill a contract with a host country client Employees of foreign companies established in the host country (intra- corporate transferees) Employees of foreign companies established in the host country (intra- corporate transferees) Business visitors (short term stays, no remuneration received in host country) Business visitors (short term stays, no remuneration received in host country)

12 Defining mode 4 While foreigners working on contract to domestic firms fall under mode 4 it is unclear whether foreign employees of domestic companies are covered. While foreigners working on contract to domestic firms fall under mode 4 it is unclear whether foreign employees of domestic companies are covered. Language of GATS suggests maybe not, but included in commitments of some WTO Members.Language of GATS suggests maybe not, but included in commitments of some WTO Members. Also some members can deem a range of contracts to be employment for the purposes of bringing the worker under local labour lawAlso some members can deem a range of contracts to be employment for the purposes of bringing the worker under local labour law As a practical matter, it may be hard to distinguish between contractual service suppliers and employeesAs a practical matter, it may be hard to distinguish between contractual service suppliers and employees

13 Defining mode 4 - summary No clear definition, but can think in terms of duration and purpose of stay: No clear definition, but can think in terms of duration and purpose of stay: Gain entry for specific purpose( to fulfil a contract)Gain entry for specific purpose( to fulfil a contract) Normally confined to one sector (can’t move - vs general migrants)Normally confined to one sector (can’t move - vs general migrants) Temporary (not migrating permanently nor seeking entry to labour market)Temporary (not migrating permanently nor seeking entry to labour market)

14 IncludedExcludedDebated Temporary movement (undefined) Permanent migration (residence, citizenship or employment in a permanent basis) Related to the supply of services Persons working in non- service sectors – agriculture, manufacturing Scope of activities included in “services incidental to agriculture/ manufacturing” All skill levels (in practice, commitments are for highly skilled) Foreign employees of foreign companies established in host country Domestic (nationals of host country) employees of foreign companies established in the host country Foreign employees of domestic companies Business visitors Intra-corporate transferees Contractual service suppliers (self-employed or as employee of a foreign service supplier)

15 Structure of the presentation The context for mode 4 - temporary mobility The context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalization Gains from liberalization What are the issues to manage? What are the issues to manage? Labour market impactsLabour market impacts Brain drain/overstayingBrain drain/overstaying Remittance managementRemittance management SecuritySecurity Thoughts on priorities for the GATS negotiations Thoughts on priorities for the GATS negotiations

16 Restrictions on mode 4 Less liberalisation under mode 4 than other modes; current commitments Less liberalisation under mode 4 than other modes; current commitments Horizontal, not sectoralHorizontal, not sectoral Limited to the higher skilled (managers, executives, specialists)Limited to the higher skilled (managers, executives, specialists) Linked to investment (intra-corporate transferees), relatively few commitments for contractual service suppliersLinked to investment (intra-corporate transferees), relatively few commitments for contractual service suppliers Economic needs tests – not transparent, can be arbitrary and unpredictable in applicationEconomic needs tests – not transparent, can be arbitrary and unpredictable in application Regulatory issues Regulatory issues Wage parity, social security Wage parity, social security Time consuming and burdensome visa procedures Time consuming and burdensome visa procedures Licensing and qualification requirements - recognition Licensing and qualification requirements - recognition

17 Recognition Lack of recognition of qualifications a major issue in mode 4 Lack of recognition of qualifications a major issue in mode 4 Especially for developing countries as more of a problem for SMEs and contractual service suppliersEspecially for developing countries as more of a problem for SMEs and contractual service suppliers Trade tends to be between countries where differences are relatively smallTrade tends to be between countries where differences are relatively small GATS disciplines fairly weak. GATS disciplines fairly weak. Article VII permits but does not require recognition Article VII permits but does not require recognition Must afford other interested WTO members adequate opportunity to prove they meet the same standardsMust afford other interested WTO members adequate opportunity to prove they meet the same standards Notification requirements Notification requirements Encourages international standards “where appropriate” Encourages international standards “where appropriate” Ability to set standards left up to Members – only require that no discriminate in the application of those standards (VII.3)Ability to set standards left up to Members – only require that no discriminate in the application of those standards (VII.3) PLUS, must have adequate procedures to verify competence where commitments for professional services are made (Article VI.6) PLUS, must have adequate procedures to verify competence where commitments for professional services are made (Article VI.6)

18 Recognition Hard to assess MRAs; many still works in progress Hard to assess MRAs; many still works in progress Mostly neighbouring countries, or part of broader regional integration; those with historical (linguistic, education) ties Mostly neighbouring countries, or part of broader regional integration; those with historical (linguistic, education) ties Mostly between developed countriesMostly between developed countries Many industry agreements – including under RTAs Many industry agreements – including under RTAs already internationalised professions: engineers, architects, accountantsalready internationalised professions: engineers, architects, accountants Range – some far-reaching; some reduced requirements or procedures; some a degree of facilitation; others cooperation and dialogue. Range – some far-reaching; some reduced requirements or procedures; some a degree of facilitation; others cooperation and dialogue. Industry initiatives have made more progress.Industry initiatives have made more progress.

19 Recognition Wide range of practices and cultural assumptions Wide range of practices and cultural assumptions Fear of loss of regulatory sovereignty Fear of loss of regulatory sovereignty Absence of formal licensing or qualification systems in some countries Absence of formal licensing or qualification systems in some countries Absence of recognition frameworks or experience Absence of recognition frameworks or experience MRAs often led by industry associations – may be lacking or not interested in facilitating access MRAs often led by industry associations – may be lacking or not interested in facilitating access Lack of awareness in the professions of the benefits of MRAs Lack of awareness in the professions of the benefits of MRAs Resource intensive and complex negotiations Resource intensive and complex negotiations Lack of incentive to negotiate MRAs in absence of real market access interests (or relevant commitments) Lack of incentive to negotiate MRAs in absence of real market access interests (or relevant commitments)

20 Structure of the presentation The context for mode 4 - temporary mobility The context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalization Gains from liberalization What are the issues to manage? What are the issues to manage? Labour market impactsLabour market impacts Brain drain/overstayingBrain drain/overstaying Remittance managementRemittance management SecuritySecurity Thoughts on priorities for the GATS negotiations Thoughts on priorities for the GATS negotiations

21 Gains from mode 4 liberalisation Winters – opening of developed country labour markets to temporary entry by foreign workers to equivalent of 3 percent of current workforce would result in global welfare gains of around US$150 billion per year. Winters – opening of developed country labour markets to temporary entry by foreign workers to equivalent of 3 percent of current workforce would result in global welfare gains of around US$150 billion per year. Numbers not to be taken to strictly, but clear that gains significantNumbers not to be taken to strictly, but clear that gains significant

22 Gains from liberalisation Developed to developing country: Developed to developing country: Main issue is intra-corporate transferees Main issue is intra-corporate transferees Gains for local economy from exposure to foreign expertise in terms of knowledge transmission, productivity growth and flow-on benefits for development domestic entrepreneurship.Gains for local economy from exposure to foreign expertise in terms of knowledge transmission, productivity growth and flow-on benefits for development domestic entrepreneurship. BUT developing countries could lose out over time if these reduce opportunities for nationalsBUT developing countries could lose out over time if these reduce opportunities for nationals And thus reduce incentives for education And thus reduce incentives for education

23 Gains from liberalisation Developing to developed countries, skilled labour: Developing to developed countries, skilled labour: Reduces total output and tax baseReduces total output and tax base Can reduce capacity to entrepreneurship, ability to absorb new technologiesCan reduce capacity to entrepreneurship, ability to absorb new technologies BUT BUT Workers can be more productive in advanced economiesWorkers can be more productive in advanced economies Remittances may offset the lossRemittances may offset the loss Ideas, technology and networksIdeas, technology and networks Useful if return, but networks will be less developed than permanent migrant who maintain links Useful if return, but networks will be less developed than permanent migrant who maintain links More widely spread, but perhaps more superficial, increased skills More widely spread, but perhaps more superficial, increased skills Can increase returns to education thereby encouraging greater investment in educationCan increase returns to education thereby encouraging greater investment in education

24 Gains from liberalisation Net balance will vary by country and sector Net balance will vary by country and sector Very small economies which could not generate market to make skills profitable – may gainVery small economies which could not generate market to make skills profitable – may gain Very large economies which can create critical mass of skilled workers – lose some at margin, but offset by gainsVery large economies which can create critical mass of skilled workers – lose some at margin, but offset by gains Medium-sized economies may not reach the critical mass of skills because of migration – could lose more than gain.Medium-sized economies may not reach the critical mass of skills because of migration – could lose more than gain. More work and research needed! More work and research needed!

25 Gains from liberalisation Developing to developed country, unskilled labour Developing to developed country, unskilled labour Skilled workers less friction BUT gains from trade come from exploiting differences Skilled workers less friction BUT gains from trade come from exploiting differences Promises higher returnsPromises higher returns BUT BUT Political problems – although arguably less with temporary movement than permanent Political problems – although arguably less with temporary movement than permanent Fewer cultural or integration issuesFewer cultural or integration issues Less call on public/social servicesLess call on public/social services Could be done as for goods – with appropriate pace and adjustment policiesCould be done as for goods – with appropriate pace and adjustment policies Developed countries ageing and likely to face shortagesDeveloped countries ageing and likely to face shortages

26 Structure of the presentation The context for mode 4 - temporary mobility The context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalization Gains from liberalization What are the issues to manage? What are the issues to manage? Labour market impactsLabour market impacts Brain drain/overstayingBrain drain/overstaying Remittance managementRemittance management SecuritySecurity Thoughts on priorities for the GATS negotiations Thoughts on priorities for the GATS negotiations

27 What are the issues to manage? Impacts also vary according to policy frameworks.Impacts also vary according to policy frameworks. Key issues to manage include:Key issues to manage include: Labour market impact Labour market impact Brain drain / overstaying and migration regulator concerns Brain drain / overstaying and migration regulator concerns Remittance management Remittance management Security Security

28 Issues to manage – labour market impact Hard to assess impact because countries use so many devices to prevent real impact. Hard to assess impact because countries use so many devices to prevent real impact. – ENTs, wage parity, social security – ENTs, wage parity, social security Wage parity pros: Wage parity pros: Prevents exploitationPrevents exploitation While quotas exist, benefits developing country workersWhile quotas exist, benefits developing country workers Cons: Cons: Undermines comparative advantageUndermines comparative advantage Cost advantage developing countries currently shows up more in outsourcing than mode 4 Cost advantage developing countries currently shows up more in outsourcing than mode 4 Another administrative hurdle before can hire foreign worker Another administrative hurdle before can hire foreign worker

29 Issues to manage Social security Social security Competitive advantage to foreign workers if don’t have to payCompetitive advantage to foreign workers if don’t have to pay BUT inequitable to pay into schemes from which may never benefit.BUT inequitable to pay into schemes from which may never benefit. Possible solutions:Possible solutions: Pay into separate fund and reimburse on departure Pay into separate fund and reimburse on departure Separate short (health cover) and long-term (pensions) benefits; pay the former, with latter refunded on departure or paid into fund at home country rates Separate short (health cover) and long-term (pensions) benefits; pay the former, with latter refunded on departure or paid into fund at home country rates

30 Issues to manage Do foreign workers drive down wages? Do foreign workers drive down wages? Are they complements or substitutes?Are they complements or substitutes? Complement – brought in to fill gaps; training and turnover expenses mean not profitable to use them instead of locals; firms claim to look for most skilled. Complement – brought in to fill gaps; training and turnover expenses mean not profitable to use them instead of locals; firms claim to look for most skilled. BUT others argue that availability foreign labour undermines pressure for wage rises or improvements in conditions (nurses). BUT others argue that availability foreign labour undermines pressure for wage rises or improvements in conditions (nurses). Companies sponsoring foreigners often required to demonstrate commitment to training nationalsCompanies sponsoring foreigners often required to demonstrate commitment to training nationals Do they contribute to outsourcing in the domestic market and the casualisation of labour? Do they contribute to outsourcing in the domestic market and the casualisation of labour?

31 Issues to manage - overstaying Distinguish between legal and illegal Distinguish between legal and illegal Illegal - a risk with all forms of temporary entry (tourists, students)Illegal - a risk with all forms of temporary entry (tourists, students) Legal – can be managed, often used as pre- selection permanent migrantsLegal – can be managed, often used as pre- selection permanent migrants Cooperation, incentives and enforcement Cooperation, incentives and enforcement Enforcement – withholding part of pay, bonds, responsibility on domestic company, monitoringEnforcement – withholding part of pay, bonds, responsibility on domestic company, monitoring Incentives – tax incentives, financial assistance, reintegration assistance, creation of opportunities at home (including via FDI)Incentives – tax incentives, financial assistance, reintegration assistance, creation of opportunities at home (including via FDI)

32 Issues to manage Brain drain/circulation Brain drain/circulation Less of a problem with mode 4 than permanent migrationLess of a problem with mode 4 than permanent migration BUT even temporary loss a problem where skills are scarceBUT even temporary loss a problem where skills are scarce Codes of conduct (nurses) a possible solutionCodes of conduct (nurses) a possible solution But hard to control individual migration decisions But hard to control individual migration decisions Capacity building programs to train excess workers, help to offset lost investment in education and ensure return.Capacity building programs to train excess workers, help to offset lost investment in education and ensure return.

33 Issues to manage - remittances Remittance management Remittance management US$72.3 billion in 2001 (likely higher) US$72.3 billion in 2001 (likely higher) Over- and under-estimates mode 4 as includes permanent migrants and those in non-service sectors, but only those abroad for > 1 year Over- and under-estimates mode 4 as includes permanent migrants and those in non-service sectors, but only those abroad for > 1 year While not all mode 4, important benefit While not all mode 4, important benefit In the poorest countries, remittances are 2-3 times larger than FDIIn the poorest countries, remittances are 2-3 times larger than FDI In most developing countries, remittances>ODA.In most developing countries, remittances>ODA. Facilitate transfers – e.g., ID cards. Facilitate transfers – e.g., ID cards. Matching funds to encourage investment in community projects Matching funds to encourage investment in community projects

34 Issues to manage Security Security A reality which will complicate the trade facilitation approach to labour mobilityA reality which will complicate the trade facilitation approach to labour mobility Question of risk assessment Question of risk assessment But security measures should be reasonable and aim to be least burdensome while still effective.But security measures should be reasonable and aim to be least burdensome while still effective. Are also costs to lost mobilityAre also costs to lost mobility US scientists (also students) US scientists (also students)

35 Structure of the presentation The context for mode 4 - temporary mobility The context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalization Gains from liberalization What are the issues to manage? What are the issues to manage? Labour market impactsLabour market impacts Brain drain/overstayingBrain drain/overstaying Remittance managementRemittance management SecuritySecurity Thoughts on priorities for the GATS negotiations Thoughts on priorities for the GATS negotiations

36 Thoughts on priorities for the GATS negotiations? Three major challenges to making progress: Three major challenges to making progress: Flexibility of migration regimes vs certainty of GATS commitmentsFlexibility of migration regimes vs certainty of GATS commitments MFN GATS commitments vs special migration arrangements for certain countriesMFN GATS commitments vs special migration arrangements for certain countries Lack of understanding between trade and migration policy communitiesLack of understanding between trade and migration policy communities

37 Priorities for negotiations These tensions are not easily resolved and a degree of pragmatism might be necessary These tensions are not easily resolved and a degree of pragmatism might be necessary Need to aim for concrete gains which can actually be achievedNeed to aim for concrete gains which can actually be achieved Think both of this round and the longer term Think both of this round and the longer term Liberalization on the ground more important than seeing all reflected in GATS commitmentsLiberalization on the ground more important than seeing all reflected in GATS commitments Danger of going backwards if insist on all bound Danger of going backwards if insist on all bound

38 Priorities for negotiations - who Contractual service suppliers (not tied to investment) Contractual service suppliers (not tied to investment) Individual service suppliersIndividual service suppliers Companies sub-contractingCompanies sub-contracting Why? Why? More scope for developing countries as not tied to investmentMore scope for developing countries as not tied to investment Greater possibility of including lower-skilled labourGreater possibility of including lower-skilled labour Companies on each side of transaction, easier to enforce conditions (especially return)Companies on each side of transaction, easier to enforce conditions (especially return) For greatest benefit, remove pre-employment requirements For greatest benefit, remove pre-employment requirements

39 Priorities for negotiation - who Contractual service suppliers Contractual service suppliers Aim for more members to include in schedulesAim for more members to include in schedules Possibility of sector-specific commitmentsPossibility of sector-specific commitments Longer durations of stay (especially for individuals who are limited in the types of contracts for which they can apply)Longer durations of stay (especially for individuals who are limited in the types of contracts for which they can apply) BUT not suitable for all servicesBUT not suitable for all services

40 Priorities for negotiations - who Alternatively, another approach for certain types of workers could be bilateral labour agreements Alternatively, another approach for certain types of workers could be bilateral labour agreements More likely to cover lower-skilled workersMore likely to cover lower-skilled workers Can negotiate additional terms not available under GATS to address specific issuesCan negotiate additional terms not available under GATS to address specific issues E.g., brain drain and loss of investment in education for health workers E.g., brain drain and loss of investment in education for health workers Can allow for regulatory experimentationCan allow for regulatory experimentation BUT MFN problemBUT MFN problem Time limited waiver – perhaps with notification obligations? Time limited waiver – perhaps with notification obligations?

41 Priorities for negotiations - who Intra-corporate transferees Intra-corporate transferees Help create a broader alliance for mode 4Help create a broader alliance for mode 4 Developing countries increasingly becoming investors – real scope to bring in own workers (TCS in US)Developing countries increasingly becoming investors – real scope to bring in own workers (TCS in US) Also joint ventures in context own mode 3 liberalization Also joint ventures in context own mode 3 liberalization Own nationals often intra-corporate transferees of TNCs Own nationals often intra-corporate transferees of TNCs Need wider range of skill levels and remove pre-employment requirements to facilitate global recruitmentNeed wider range of skill levels and remove pre-employment requirements to facilitate global recruitment

42 Priorities for negotiations - who What about foreign employees domestic companies? What about foreign employees domestic companies? Not all agree covered by GATS at presentNot all agree covered by GATS at present Viewed as most contentious in migration community because closest to regular migrationViewed as most contentious in migration community because closest to regular migration Seen as entering the labour market (although can’t change employer without permission)?? Seen as entering the labour market (although can’t change employer without permission)?? Labour officials don’t want to treat differently foreign and domestic employees of domestic companies Labour officials don’t want to treat differently foreign and domestic employees of domestic companies But difficulty of distinguishing between contractual service suppliers and employeesBut difficulty of distinguishing between contractual service suppliers and employees Area for further research Area for further research

43 Priorities for negotiations - who Clarifying and aiming for more uniform definitions of key common terms – managers, executives, specialists Clarifying and aiming for more uniform definitions of key common terms – managers, executives, specialists Use ISCO-88?Use ISCO-88? RTAs also a good place to startRTAs also a good place to start Where can’t agree, at least increase the transparency and require a greater degree of specificity in commitments Where can’t agree, at least increase the transparency and require a greater degree of specificity in commitments

44 Priorities for negotiations - how GATS visa? GATS visa? Need to work closely with migration officials to see if this makes senseNeed to work closely with migration officials to see if this makes sense Danger of going backwards (less data, more restrictive definition of mode 4, more burdensome procedures) Danger of going backwards (less data, more restrictive definition of mode 4, more burdensome procedures) Where are good systems in place, use GATS visa as a reference pointWhere are good systems in place, use GATS visa as a reference point Where nothing in place, could be a good place to startWhere nothing in place, could be a good place to start Resource issues and capacity to implement Resource issues and capacity to implement Explore other optionsExplore other options APEC Business Travel Card model APEC Business Travel Card model

45 Priorities for negotiations ENTs ENTs Removal (trade-off is quotas, but these are at least transparent and negotiable)Removal (trade-off is quotas, but these are at least transparent and negotiable) Regular notifications on their operation (decisions, time frames, criteria)Regular notifications on their operation (decisions, time frames, criteria) Transparency Transparency Single windows for information and feedbackSingle windows for information and feedback Notification/provision of implementation on how commitments actually implementedNotification/provision of implementation on how commitments actually implemented Additional commitments on prior consultation for regulations affecting mode 4Additional commitments on prior consultation for regulations affecting mode 4 Over time, could lead to greater understanding and thus convergence between trade and migration communities. Over time, could lead to greater understanding and thus convergence between trade and migration communities.

46 Priorities for negotiation - recognition Use of Article VI.6 Use of Article VI.6 Use negotiations to gain more information and push for improvementsUse negotiations to gain more information and push for improvements Including assistance to help developing countries both participate in negotiations and, where necessary, meet relevant standards Including assistance to help developing countries both participate in negotiations and, where necessary, meet relevant standards Implementation Article VII Implementation Article VII Standing item on CTS to provide information on agreements in progress – including industry agreements – and presentations by relevant international associations;Standing item on CTS to provide information on agreements in progress – including industry agreements – and presentations by relevant international associations; National level - identify the problem: lack of information, interest or resources? National level - identify the problem: lack of information, interest or resources?

47 Priorities for negotiations Linkages Linkages Mode 4 and outsourcing (mode 1/2) - complementsMode 4 and outsourcing (mode 1/2) - complements Mode 4 and mode 3 (complements)Mode 4 and mode 3 (complements) Mode 4 and trade in education services (modes 2 and 3)Mode 4 and trade in education services (modes 2 and 3) Increasing dialogue between trade and migration policy communities Increasing dialogue between trade and migration policy communities Dialogue to understand needs and constraintsDialogue to understand needs and constraints Policy coordination to identify possible avenues for progressPolicy coordination to identify possible avenues for progress Identifying necessary complementary measuresIdentifying necessary complementary measures

48 Thank you


Download ppt "Temporary movement of people as service suppliers - GATS mode 4 Julia Nielson OECD May 2004."

Similar presentations


Ads by Google