1. JOSEPHINE J. FRANCISCO Philippines

2. G ENERAL A GREEMENT ON T RADE IN S ERVICES (GATS) G ENERAL A GREEMENT ON T RADE IN S ERVICES (GATS) Provides a framework for temporary stay of people in other countries for the purpose of providing services

3. C HALLENGE FOR THE P HILIPPINES Take advantage of the opportunities Untangle from existing institutional barriers to liberalization of movements of temporary migrants

4. I.Trends in overseas employment, its economic contribution and composition of Filipino service providers II.Barriers to free movement of migrants, particularly Filipinos

5. I. T RENDS IN O VERSEAS T EMPORARY M IGRATION E MPLOYMENT Labor migration is not a new phenomenon among Filipinos

6. OVERSEAS EMPLOYMENT PROGRAM (1974) Serves as a temporary measure to ease the tight domestic labor market Serves as an alternative employment strategy for Filipinos Stabilizes the countrys balance-of-payment position

7. O VERSEAS D EPLOYMENT IN G ENERAL

8. Processed and Deployed OFWs

9. Deployed Landbased OFWs 1995 - 2000 5.32% annually 1997 - 1998 11 to 14% 1999 - 2000 less than 1%

10. Deployed Seabased OFWs 1995-2000 25% 1995-2000 25%

11. Deployed Land-based OFWs by Major Group (1985-2000) 1995 – 2000 48% 1995 – 2000 (44%)

12. O VERSEAS E MPLOYMENT Provides temporary employment to Filipinos Major generator of foreign exchange

13. OFW Foreign Exchange Remittances (in million US$) (1985-2000) $290.85 M$6.8 B

14. OFW s ' R EMITTANCES Offset foreign exchange outflows Country's saving grace during periods of negative GDP growth

15. Contribution of Overseas Employment to GNP (1990-2000) (In %)

16. Contribution of Overseas Employment (1990-2000)

17. D EPLOYMENT AS S ERVICE P ROVIDERS D EPLOYMENT AS S ERVICE P ROVIDERS

18. Who are the International Service Providers (ISP)? Sent by his/her employer to a foreign country to undertake a specific assignment for a restricted period of time Engaged in work that requires professional, commercial, technical or other highly specialized skills for a restricted period of time Upon the request of his/her employer in the country of employment, engaged in work that is transitory or brief for a restricted and definite period of time (Garnier, 1996)

19. ISP NOT ISP Engage in : Consulting Service Training activities Supervisory functions Overseas Construction Contracting - skilled engineers - managers or supervisors - consultants Seasonal and contract workers Engage in manufacturing activities

20. D. Diplomatic and international personnel C. Short term or business visitors A. Intra-company transferees B. Individual service providers and specialists on specific assignments M AIN T YPES OF S ERVICE P ROVIDERS

21. D EPLOYMENT L EVEL Number of newly hired workers as classified by the Philippines Overseas Employment Administration (POEA)

22. Deployment of Land-based Newly Hired OFWs (1995-2000) 1. Professional and Technical Workers 2. Managerial Workers 3. Clerical Workers 4. Sales Workers 5. Service Workers 6. Agriculture Workers 7. Production Workers 8. Other Skills Total (all skills) Total (skills 1, 2, 3, 4, 5 & 8) 43,62936,05551,38155,45678,68597,448 346305572385284385 3,4353,1693,6322,8972,3673,356 1,9861,9382,6372,5142,0833,188 81,04384,74576,64480,67591,20692,351 981822546388526550 82,53775,68385,82975,07857,80756,740 2003,07401,82220,0724,186 214,157205,791221,241219,215253,030258,204 127,204126,117131,234140,852192,330197,558 Skills Category1995199619971998199920012000 62,500 333 2,552 2,244 84,138 452 79,662 5,379 237,260 154,594

23. Selected Top Skills Deployed (1995-2000) SkillDestinationNumber Domestic Helpers And Related Household Workers Hong Kong136,339 KSA54,522 UAE27,692 Taiwan23,618 Kuwait20,454 Malaysia15,331 Singapore7,919 Canada6,133 Brunei 6,093 4,781 Italy Choreagraphers and Dancers Japan 145Hong Kong 153,181 Taiwan16 Japan53,989Composers, Musicians and Singers Malaysia257 Singapore256 KSA14,630Electricians Hong Kong1,085 Qatar1,002 Source: Philippine Overseas Employment Administration UAE7,368Waiters, Bartenders and related workers KSA6,111 Bahrain1,179 Kuwait1,079

24. Selected Professional Deployed (1995-2000) ProfessionDestinationNumber NursesKSA19,885 UK4,118 Libya1,488 Singapore1,241 IT(Computer Programmers and related workers, Systems analysts) USA2,730 KSA1,358 Singapore125 Australia102 57UAE AccountantsKSA988 Northern Marianas Island211 USA180 Papua New Guinea129 UAE129 EngineersKSA7,945 Source: Philippine Overseas Employment Administration

25. L ENGTH OF S TAY IN H OST C OUNTRIES L ENGTH OF S TAY IN H OST C OUNTRIES Middle East Workers : 2 years Japan Entertainers : not more than 6 months Taiwan Workers: 1 year

26. D EPLOYMENT OF S EAFARERS Philippines as Ship Manning Capital representing 25% of worlds seaman population Philippines as Ship Manning Capital representing 25% of worlds seaman population

27. RankCountryOfficer Ratings TOTAL 1Philippines 50,000 180,000 230,000 2Indonesia15,500 68,000 83,500 3China (PRC)34,197 47,820 82,017 4Turkey14,303 48,144 62,447 5Russia21,680 34,000 55,680 6India11,700 43,000 54,700 7 Ukraine14,000 23,000 37,000 8Greece17,000 15,500 32,500 9Japan18,813 12,200 31,013 10U.S.A.-Lakes13,204 17,667 30,871 Source: ISF RankCountryOfficer Ratings TOTAL 1Philippines 50,000 180,000 230,000 2Indonesia15,500 68,000 83,500 3China (PRC)34,197 47,820 82,017 4Turkey14,303 48,144 62,447 5Russia21,680 34,000 55,680 6India11,700 43,000 54,700 7 Ukraine14,000 23,000 37,000 8Greece17,000 15,500 32,500 9Japan18,813 12,200 31,013 10U.S.A.-Lakes13,204 17,667 30,871 Source: ISF Top Ten Seafarer-Supplying Countries (as of 2000)

28. D EPLOYMENT OF S EAFARERS Inclusion in the International Maritime Organization (IMO) White list Filipino seafarers onboard ocean-going vessels constitute a large pool of skilled temporary service providers on a per year contract

29. D EPLOYMENT AS TO T YPE OF M OVEMENT D EPLOYMENT AS TO T YPE OF M OVEMENT Total Number of Deployment * : Short-term Filipino service providers : 60,000 Intra-company transferees : 40,000 Long-term skilled migrants : 100,000 *Garnier / 1996

30. Bulk of deployment in the Philippines are temporary migrant workers under seasonal and contractual arrangements and not much on intra-company transferees, individual service providers and specialists

31. II. B ARRIERS TO M OBILITY OF F ILIPINOS U NDER M ODE 4 (P RESENCE OF N ATURAL P ERSONS )

32. MODE 1 : CROSS-BORDER SUPPLY Non-resident service suppliers to supply services cross- border into the Members territory MODE 2 : CONSUMPTION ABROAD Freedom for the Members residents to purchase services in the territory of another Member MODE 3 : COMMERCIAL PRESENCE Opportunities for foreign service supplier to establish, operate or expand a commercial presence in the Members territory MODE 4 : PRESENCE OF NATURAL PERSONS Entry and temporary stay of foreign nationals asservice provider in their territory

33. MODE 3 : COMMERCIAL PRESENCE Opportunities for foreign service supplier to establish, operate or expand a commercial presence in the Members territory MODE 4 : PRESENCE OF NATURAL PERSONS Entry and temporary stay of foreign nationals as service provider in their territory Mode 4 is strongly linked to Mode 3

34. All countries have restrictions that impedes or delay the movement of individuals GATS agreement is aimed at dismantling the barriers

35. B ARRIERS OF THE P HILIPPINES UNDER M ODE 4: 1. Those which are limited by the number and coverage of GATS commitments 2.Horizontal and sector-specific limitations on market access 3.Limitations imposed through requirements and procedures

36. L IMITED GATS C OVERAGE Philippines, like other developing countries, seeks to liberalize commitments in GATS under Mode 4 Developed countries are more cautious in their approach towards Mode 4 while seeking to dismantle the barriers in the other 3 modes

37. L IMITED GATS C OVERAGE Too much concentration on highly skilled labour and expertise than less skilled labour Both developing and developed countries expect significant gains from GATS However, the hold-off stance of developed countries toward less skilled labour may inhibit success of GATS

38. L IMITED GATS C OVERAGE Local businesses in developing countries are hindered by lack of capital and investment to establish commercial presence through branch or subsidiary Under GATS, bulk of Commitment entries in developing countries consist of intra-corporate transferees (Mode 3)

39. L IMITED GATS C OVERAGE 17% of all horizontal entries may cover low-skilled persons in categories as vague as business sellers, non-specified, and others Construction and engineering services (labour-intensive export potential) are confined largely to intra-corporate transferees in highly skilled or managerial capacities

40. Progress in Mode 4 commitments is reactive to developments Emphasis on high training and expertise on mobility of persons may be related to the expansion of world trade and growing role of intra-firm linkages Reflect the proliference of internal labour market within multinational firms as well as limited institutional frameworks for facilitating exchange of skills L IMITED GATS C OVERAGE

41. Growth of specialized service providers or professionals is a result of changing demographic patterns in certain developing countries The current Commitments under Mode 4 are only an extension of Commitments in Mode 3

42. Q UOTA, P RE -E MPLOYMENT AND W AGE R EQUIREMENTS Q UOTA, P RE -E MPLOYMENT AND W AGE R EQUIREMENTS Horizontal and Sectoral Commitments on Market Access Domestic minimum wage legislation coupled with restriction on work condition, working hours and social security benefits Numerical limit to what is allowed (low number of quotas relating to ordinary staff and senior staff) Intra-corporate type of movement tied to the pre- employment requirements (at least 1 year residency with the firm)

43. R ECOGNITION R EQUIREMENTS AND P ROCEDURES R ECOGNITION R EQUIREMENTS AND P ROCEDURES Licensing and qualifications such as sufficient education, experience and training before being allowed entry Variation in testing, certification and licensing requirements Variation in testing, certification and licensing requirements Because of these variations, service providers are given lower position, salary or benefits even if actual qualifications or skills are comparable Variation in the educational system of member- countries Impediments:

44. A DMINISTRATIVE BARRIERS Vague terminologies and definitions used in the Schedule of Commitments resulting to various interpretations Need for predictability of actual entry condition particularly the economic needs or labor market test No agreed definition of what constitutes temporary and standard categories (90 days for business visitors or intra-corporate transferees /2 to 5 years for other groups such as executives, managers and specialists)

45. III. T OWARDS G REATER M OBILITY

46. Mode 4 Commitments should move its focus from highly trained and skilled service providers and must be de-linked to commercial presence Mutual recognition schemes should be pursued even outside of GATS Address closely the bottlenecks in market access Commitments Give attention to the limitations on wages and regulations curtailing benefits under mandatory social insurance systems Overcome administrative barriers

47. Overseas deployment is an important contributor to the Philippine economy C ONCLUSION The key element in expanding trade through Mode 4 is negotiations to reduce barriers and facilitate greater and freer cross-border flows of service providers Only when a proactive and developmental approach to negotiations is adopted will the GATS agreement achieved its goal of distributing opportunities to all