ASEAN TRADE in Services Framework Jose Y. Cueto Jr., MD, FPCS, MHPEd Professional Regulatory Board of Medicine Representative to the ASEAN MRA AJCCM 40th APS Anniversary Lecture Forum ASEAN Economic Integration and Inclusive Growth

1. The ASEAN Trade in Services Framework 2. Conceptual Framework for Mutual Recognition Arrangement and Mutual Recognition of Skills 3. Modes of Supply of Services 3. AFAS Package of Commitments 4. Challenges in Moving Forward

1. ASEAN Trade in Services Framework

Single Market and Production Base Competitive Economic Region EquitableEconomic Development Integration into the Global Economy ASEAN ECONOMIC COMMUNITY 1. Free Flow of Goods 2. Free Flow of Services 3. Free Flow of Investment 4. Free Flow of Capital 5. Free Flow of Skilled Labor 6. Priority Integration Sectors 7. Food, Agriculture and Forestry 1. Competition Policy 2. Consumer Protection 3. Intellectual Property Rights 4. Infrastructure Development 5. Taxation 6. E-Commerce 1. SME Development 2. Initiative for ASEAN Integration 1. Coherent approach towards external economic relations 2. Enhanced participation in global supply networks

Contribution of Services to GDP (2012 ) COUNTRY ServicesAgricultureIndustry Brunei 32.5% 0.8% 66.7% Cambodia 40.0% 30.0% Indonesia 38.1% 14.7% 47.2% Lao PDR 37.4% 27.8% 34.8% Malaysia 48.0% 12.0% 40.0% Myanmar 43.6% 38.2% 18.2% Philippines 55.7% 12.8% 31.5% Singapore 73.4% 0.0% 26.6% Thailand 52.7% 13.3% 34.0% Vietnam 37.7% 22.0% 40.0%

“ Services Revolution ” driving - GDP growth - employment growth - export growth - productivity growth - poverty reduction

 Promotion of export of services  Facilitation of inflow of foreign services and foreign services providers  Identification of professions requiring skill sets considered to be in short supply in the domestic market

REGULATED PROFESSIONS Technology Professions 1. Agriculture 2. Architecture 3. Chemistry 4. Environmental Planning 5. Fisheries 6. Forestry 7. Geology 8. Interior Design 9. Landscape Architecture 10. Master Plumbers 11. Sugar Technology Health and Allied Professions 1. Dentistry 2. Medical Technology 3. Medicine 4. Midwifery 5. Nursing 6. Nutrition and Dietetics 7. Optometry 8. Pharmacy 9. Physical and Occupational Therapy 10. Radiologic Tech. 11. Respiratory Tx. 12. Veterinary Medicine Business, Education and Economic Professions 1. Accountancy 2. Criminology 3. Customs Brokers 4. Guidance Counseling 5. Librarian 6. Marine Deck Officers 7. Marine Engineer Officers 8. Professional Teachers 9. Psychology 10. Real Estate Services 11. Social Workers Engineering Professions 1. Aeronautical 2. Agricultural 3. Chemical 4. Civil 5. Electrical 6. Electronics 7. Geodetic 8. Mechanical 9. Metallurgical 10. Mining 11. Naval Architecture and Marine 12. Sanitary

Source: Single market and production base shall comprise five core elements: (i) free flow of goods; (ii) free flow of services; (iii) free flow of investment; (iv) freer flow of capital; and (v) free flow of skilled labor. Box 1 shows the commitments and targets for free flow of services and free flow of skilled labor. SINGLE MARKET AND PRODUCTION BASE Source: g Free flow of goods Free flow of professional services Free flow of invest ment Free flow of capital Free flow of skilled labor

Conceptual Framework RECOGNITION DEVELOPMENT HARMONIZATION OF QUALIFICATIONS MOBILITY OF PROFESSIONALS (ASEAN ECONOMIC COMMUNITY 2015) MRA NQF AQRF

Conceptual Framework RECOGNITION DEVELOPMENT HARMONIZATION OF SKILLS MOBILITY OF SKILLED LABOR (ASEAN ECONOMIC COMMUNITY 2015) MRSNQF AQRF

Framework for MRA and MRS ASEAN Qualifications Reference Framework (AQRF) Mutual Recognition of Skills Technical/Vocational Skills Mutual Recognition Arrangements Professional Qualifications 7 Professions Tourism Sector Priority Sectors Occupations

Regional Situation National Qualifications Frameworks (10 countries) ASEAN Qualifications Reference Framework ASEAN MRA / MRS ASEAN INTEGRATION / AEC 2015 Device for Comparison Referencing Process

The AQRF  Translation device to enable existing frameworks and training systems at national level to be compared or related to each other  The 8-level AQRF has been designed and agreed upon by all AMS  AMS have agreed to reference their NQFs to the AQRF in 2018

THE PHL QUALIFICATIONS FRAMEWORK LEVEL GRADE 10 GRADE 12 TECHNICAL EDUCATION AND SKILLS DEVELOPMENT TECHNICAL EDUCATION AND SKILLS DEVELOPMENT HIGHER EDUCATION HIGHER EDUCATION DOCTORAL AND POST DOCTORAL DOCTORAL AND POST DOCTORAL BACCALAUREATE BASICEDUCATION L1 L2 L3 L4 L5 L6 L7 L8 NC I NC II NC IV NC III NC IV DIPLOMA BACCALAUREATE POST BACCALAUREATE

MALAYSIA

INDONESIA S2S2 S1S1 S3S3 General High School Professional Spesialist D I D IV D III D II Vocational Senior High School Subspesialist Elementary/Junior High School FORMAL ACADEMIC EDUFORMAL VOCATIOAL/PROF EDU

ASEAN Qualifications Reference Framework (AQRF) Qualifications (A) Qualifications (A) Qualifications (B) Qualifications (B) Country (A) Country (A) Country (B) Country (B) AQRF 8 8

Readiness of AMS (ILO Study) Readiness Countries Can be ready for recognition for many professions Malaysia Philippines Can be ready for recognition for some occupations Brunei Indonesia Vietnam Thailand Singapore With support, can be ready for recognition for key migrant worker occupations Cambodia Lao PDR Myanmar Carmela I. Torres ILO Regional Office, Bangkok

1 Cross-Border Supply 2 Consumption Abroad 3 Commercial Presence 4 Movement of Natural Persons V. Services, unlike goods, have 4 modes of supply

Modes of Supply MEMBER AMEMBER B Mode 1: Cross border supply Mode 2: Consumption abroad Mode 3: Commercial presence Consumer A The service crosses the border Service supply Service Supplier Consumer A Service Supplier Commercial Presence Establishes a commercial presence in A Service supply

Mode 1: Cross Border Supply Cambodia Philippine Hospital Singapore Hospital

Mode 4: Movement of natural persons Employee sent by firm from B Natural person Self-employed goes to Member A MEMBER AMEMBER B Natural person Consumer A Commercial Presence Juridical person Service supply Service supply Modes of Supply

Mode 2: Consumption Abroad Philippines Singapore

Thailand

Implications for Practice  Mode 1: Cross border supply  Technology-based Diagnostic radiology Histopathology Medical transcription Medical research  Education: distance learning mode

Implications for Practice  Mode 2: Consumption abroad  Services offered/Value-added Diagnostics Surgical procedures Minimally invasive procedures  Medical education Thai students  Residency training/Subspecialty Indonesia, Nepal, India, Pakistan

Implications for Practice  Mode 3: Multinational companies invest in the Philippines  May bring their own people with them

Implications for Practice  Mode 4: Movement of natural persons  Full/Free mobility: countries with similar education, accreditation, certification systems, and professional practice US and Canada Australia and New Zealand  10 ASEAN countries: wide variation Limited Practice Temporary registration

Defining the Form of Mobility Engineering Architecture Accountancy  Establishment of ASEAN Registries Dentistry Medicine Nursing  Temporary licensing 1. Limited Practice 2. Expert Visit 3. Research 4. Education/Training 5. Humanitarian Missions

Trade in Services  Temporary movement of professionals  Does not involve: 1. Permanent registration 2. Acquisition of citizenship 3. Permanent residence

3. ASEAN Framework Agreement on Services (AFAS, 1995) Liberalization Targets and Commitments

Trade in Services in ASEAN Free Flow of Trade in Services  Important in realizing AEC  Substantially no restriction to ASEAN services suppliers in providing services and establishing companies  Subject to domestic regulations Dir. Brenda R. Mendoza, NEDA

Liberalization of Services 1. Business services 2. Communication services 3. Construction and related Engineering services 4. Distribution services 5. Educational services 6. Environmental services 7. Financial services 8. Health related and Social services

Liberalization of Services 9. Tourism and Travel related services 10. Recreational, Cultural and Sporting services 11. Transport services 12. Other services not included elsewhere

Liberalization of Services  Total of 12 Broad Sectors  Covering 128 services sub-sectors (WTO Services Sectoral Classification List: W120)

Package of Commitments Initial package 1997 Second Package 1998 Third Package 2001 Fourth Package 2004 Fifth Package 2006 Sixth Package 2007 Seventh Package 2009 Eighth Package 2010 Ninth Package 2013* Tenth Package 2015*

Status  Completing AFAS 9 and 10 packages  Scheduled subsectors: AFAS 9: 104 AFAS 10: 128  Completion Target: AFAS 9: 2013 AFAS 10: 2015

4. CHALLENGES MOVING FORWARD

 Implementation of Competitiveness Roadmaps for all regulated professions  Strengthening QA and Regulatory mechanisms  Strengthen Continuing Professional Development  Career progression pathways  Strategy: Complementation, not competition

 Providing safety nets/mechanisms  Implementing the Philippine Qualifications Framework Shift to OBE and learning outcomes Qualifications Register Quality Assurance Mechanisms International Alignment Pathways and Equivalencies

 Getting all stakeholders to act together towards a single direction Government regulatory bodies/Agencies Academe Industry/Business Professional Organizations Professionals/Students

THANK YOU FOR YOUR KIND ATTENTION!