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Current regimes for temporary Movement of Service Providers Possible approach to negotiations from the developing countries perspective Jolita Butkeviciene.

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Presentation on theme: "Current regimes for temporary Movement of Service Providers Possible approach to negotiations from the developing countries perspective Jolita Butkeviciene."— Presentation transcript:

1 Current regimes for temporary Movement of Service Providers Possible approach to negotiations from the developing countries perspective Jolita Butkeviciene Trade in Services Section UNCTAD

2 Why movement of people across borders is important? The role of new technologies the role of new business organizations dynamism of the markets low cost - high speed communication networks and transport services demographic trends cultural change

3 Some features of the developing countries regimes Policy framework is open to foreign providers legal instruments are of general nature national treatment is usually provided in mode 4 measures affecting services in mode 4 fall under the domestic regulation in nature proportion of foreign population in the labor markets is important regional integration among developing countries increasingly concerns mode 4

4 What has been achieved under the GATS? Mode 4 was negotiated as a horizontal issue categories covered included: –intra-corporate transferees, –business visitors, –independent professionals linked to investment limited commitments under the Annex on mode 4

5 Examples of categories of occupations in existing GATS national schedules Legal services supplied by a lawyer or attorney, accounting, auditing and bookkeeping services supplied by an accountant, medical doctors and dentists fashion models and those in specialist occupations urban planner senior computer specialist systems analyst programmers software document analyst field engineers travel tour managers

6 Other issues relevant to the liberalization of mode 4 Market access as the most important issue Economic needs tests Lack of transparency in procedures and criteria Issue of visa Implementation of GATS Article IV aimed at increasing participation of developing countries

7 How to advance the negotiations? Adopt the ILO International Standard Classification for Occupations follow the sector-specific approach Limit the scope of the Economic Needs Test –indicating the minimum market access without the need to comply with the ENT Improve transparency in regulations –establish criteria in for the application of ENT Adopt the GATS visa

8 Linking GATS services sectors with occupational classification: an example Professionals in the following occupations: Legal: ISCO 242 and CPC 861 Accountants: ISCO 2411 and CPC 862 Engineering: part of ISCO 214 and CPC 8672 Architectural: ISCO 2141 and CPC 8671 Medical: ISCO 222 and 223 a.o. and CPC 9312

9 Measuring trade in services in mode 4 internationally IMF Balance of Payments statistics UN Statistics of International Migration ILO ISCO and employment statistics Statistics on Foreign Affiliates Trade in Services Other relevant information: work permits; arrivals/departures; censuses and household surveys

10 Top 10 countries in receiving workers remittances, 1999 in mln USD CountryValue Share in total exports India11 00221% Mexico 5 909 4% Turkey 4 52910% Portugal 3 32010% Spain 3 305 2% Egypt 3 23522% Morocco 1 93818% Bangladesh1 79729% Greece1 667 7% Jordan1 66447%

11 Top 10 countries where remittances originate, 1999 in mln of USD CountryValue Share in total imports United States17 370 1.4% Saudi Arabia13 97731.4% Germany 3 656 0.6% France 2 875 0.8% Japan 2 720 0.7% Malaysia 2 038 2.7% Switzerland 1 889 1.8% Kuwait 1 73114.6% Oman 1 43825% Spain 9680.6%

12 Workers remittances received as a percentage of GDP, 1999 Country Value Jordan22% Samoa21% Yemen19% Albania12% El Salvador11% Jamaica11% Nicaragua10% Cape Verde9% Dominican Rep.8% Sri Lanka6% Country Value Sudan6% Morocco6% Bosnia&Herz5% Vanuatu5% Honduras5% Ecuador4% Egypt4% Nigeria4% Bangladesh4% Tunisia3%

13 Workers remittances in USD per capita Country Value in 1999 Jordan348 Portugal332 Jamaica282 Barbados269 El Salvador267 Dominican Rep.223 Greece184 Albania157 Vanuatu114 Croatia 98

14 Annual average growth rates of Workers remittances Group1995-991996-97 1997-981998-99 World 4.313.2-7.15.2 Developed - 4.3-10.9-6.44.7 countries Developing 6.821.0-8.06.2 countries

15 GATS relevant categories covered under the UN Statistics on International Migration Foreign border workers Foreign business travelers Migrant workers: seasonal; contract; project tied; temporary migrant workers Migrants having the right to free establishment or movement Migrants for long-term settlement: –employment-based selected for their qualifications; –entrepreneurs and investors

16 Net number of migrants, thousands (UN DESA statistics) Country1995-2000 United States 6 250 Russian Fed. 1 434 Germany924 Canada720 Italy588 United Kingdom 475 Australia474 Saudi Arabia 400 Singapore 368 Japan280 France194 Country1995-2000 China-1 903 Mexico-1 550 India-1 400 Philippines -950 Indonesia -900 Egypt -400 Sudan -384 Pakistan -351 Albania -300 Burkina Faso -300 Bangladesh -300

17 What have we learned? The movement of persons internationally is of particular and demonstrated importance to developing countries Mode 4 related trade generates direct export earnings which are of significant magnitude to receiving countries Mode 4 relate payments as part of import of services is not strategic in terms of share in total trade The importance of mode 4 related global income flows is steadily increasing over time

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