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© WTO/OMC1 MODE 4 MEASUREMENT World Trade Organization
© WTO/OMC2 GATS Mode 4 Coverage (1/2) Falling under mode 4Not falling under mode 4 Temporary presence (What is temporary?) Presence of natural persons for supply of commercial services (Scope of certain commercial services? What would fall under carve out of services in the exercise of governmental authority) Permanent migration Persons seeking access to employment market Presence of natural persons for supply of goods Services supplied under governmental authority Mode 4
© WTO/OMC3 GATS Mode 4 Coverage (2/2) Falling under mode 4Not falling under mode 4 All skill levels Self-employed service suppliers Employees of service suppliers sent abroad to supply a service Employees of foreign service supplier established in host country (linked to mode 3) Business visitors Employees of host country (locally-owned) firms Mode 4
© WTO/OMC4 Information Needs Value of services suppliedNumber of natural persons Type of service supplied Territory of origin (of service supplier) Duration of stay (no standard upper limit) Occupation / skills (of natural person) Information needs Contractual service suppliers Employees of services foreign affiliates (including ICTs) Business visitors
© WTO/OMC5 Information needs for categories of mode 4 persons? 1 year guideline: good starting point for differentiating short-term movements from longer-term? Proposed breakdowns envisaged? Information Needs: Questions for Discussion Information needs
© WTO/OMC6 Contractual Service Suppliers: Employees of the Service Supplier Service consumer Service supplier Measuring value Member BMember A Transaction a)< 1 yearImports of services b)> 1 yearImports of services
© WTO/OMC7 Contractual Service Suppliers: Independent Professionals Service consumer Service supplier Measuring value Member BMember A Transaction a)< 1 yearImports of services b)> 1 yearWorkers remittances / CoE (in SNA)
© WTO/OMC8 Foreign Employees of Services Foreign Affiliates (Including ICTs) Service consumer Service supplier Measuring value Member BMember A Transaction a)< 1 year a)Payroll Member BImports of services b)Payroll Member ACompensation of employees b)> 1 year a)Payroll Member BImports of services (?) b)Payroll Member AWorkers remittances (CoE) Transaction Or FATS or other BOP/SNA?
© WTO/OMC9 Contractual service suppliers: Proposed collection of information: separate mode 4 component in services transactions? Country case studies / pilot projects? Where are the transactions related to independent professionals classified (services / CoE / WR)? Four BPM5 services items identified in MSITS or extend? Foreign employees of services foreign affiliates Proposed allocation of flows in BOP (or FATS or SNA) ? Should recording of transactions related to ICTs be further explored? Measuring Value: Questions for Discussion Measuring value
© WTO/OMC10 Measuring number of persons Type of contract Category of natural persons < 3 months> 3 months and < 1 year > 1 year I. Service contracts, delivered in the host country Contractual service suppliers: Independent service suppliers Employees of foreign service supplier ? ? Residence permit system Border passenger survey Statistics from sectoral ministries Professional registers Population census Household survey RSIM: foreign business travellers (non migrants) TSA: business visitors RSIM: foreign migrant workers (migrants) What Possible Sources for Measuring Number of Persons? (1/3)
© WTO/OMC11 Measuring number of persons Type of contract Category of natural persons < 3 months> 3 months and < 1 year > 1 year II. Employment contracts with foreign (service producing) firms which have commercial presence in the host country Employees of services foreign affiliates: Intra-corporate transferees Others Residence permit system Border passenger survey Foreign Affiliates Trade in Services (FATS) RSIM: foreign business travellers (non migrants) TSA: business visitors RSIM: foreign trainees, foreign migrant workers, free establishment or movement? migrants for settlement (employment based, entrepreneurs/investors)? (migrants) What Possible Sources for Measuring Number of Persons? (2/3)
© WTO/OMC12 Measuring number of persons Type of contract Category of natural persons < 3 months> 3 months and < 1 year > 1 year III. Self employed or employed with foreign service producing firm but service is not actually supplied in host country Business visitors: For establishment of commercial presence For sales negotiations Residence permit system Border passenger survey RSIM: foreign business travellers (non migrants) TSA: business visitors What Possible Sources for Measuring Number of Persons? (3/3)
© WTO/OMC13 List of sources identified for different categories of mode 4 persons? Further research necessary?...Where would following persons be covered: Contractual service supplier remaining in host country more than one year and remunerated from home country? Independent professionals staying less than 3 months in host country (remunerated within host country)? Measuring number of persons: Questions for Discussion Measuring number of persons
© WTO/OMC14 Universe of residents and non-residents staying for less than one year - Foreign natural persons employed by a host country serv. supplier Labour migration - Foreign natural persons employed by a host country serv. supplier Services labour migration of which Other services labour migration -Foreigners employed by host country service supplier -Foreigners with service occupation employed by non- service supplier located in host country of which GATS mode 4 -Foreign self employed natural persons -Foreign natural persons employed by foreign service supplier Employees of a contractual service supplier Employees of services foreign affiliates Business visitors Services labour migration
© WTO/OMC15 Other services labour migration Services labour migration Country BCountry A Transaction a)< 1 yearCompensation of employees b)> 1 yearWorkers remittances / CoE (in SNA) Enterprise of country A (country A service supplier or non service supplier of A or another country) Value (wages): Number of persons: Sources:Residence permit systems, Border surveys, Sectoral statistics, Population censuses, Household surveys RSIM: foreign migrant workers, migrants for settlement etc.
© WTO/OMC16 Value (wages): sources identified in the context of services labour migration? Number of persons: sources identified in the context of services labour migration?...Where would following persons be covered: Non-migrant workers (i.e. staying less than three months)? Services Labour Migration: Questions for Discussion Services labour migration
Migration and Temporary Movement (Mode 4): Towards a Trade and Development approach Economic Affairs Division Commonwealth Secretariat.
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1 ICES III Montreal June 2007 Session 4 The statistical measurement of services: recent international achievements and what next? William Cave OECD.
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Mode 4 – Definition, commitments, state of play in the negotiations Hamid Mamdouh Director, Trade in Services Division, WTO September 2008 WTO Symposium.
Mode 4 in the Cariforum-EU Economic Partnership Agreement (EPA) Ramesh Chaitoo WTO Symposium on Mode 4 of the GATS: Taking Stock and Moving.
1 GATS, Mode 4 and the Pattern of Commitments Antonia Carzaniga Trade in Services Division, WTO Secretariat April 2002.
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