1 What’s happening in Mode 4? SIEL Conference 2008 Panel on International Regulation of Labour Migration Markus Jelitto Trade in Services Division, WTO Secretariat

2 Mode 4 - definition The supply of a service by: a service supplier of one Member, through presence of natural persons of a Member in the territory of any other Member.

3 Structure of Commitments

4 Where access commitments, many restrictions remain Limited Categories of workers included Pre-employment requirements Economic Needs Tests/Labour Market Tests Quotas Residency requirements Education/ Qualification Authorisation, approval, registration requirements Training of Locals Wage parity requirements

5 Relative importance of Mode 4 Estimates: –Mode 1 - > 25% –Mode 2 - ~ 15% –Mode 3 - ~ 60% –Mode 4 - ~ 1-2% The situation may differ across sectors

6 DDA negotiations Plurilateral request on Mode 4 (2006) Focus on Contract Service Suppliers and Independent Professionals recognizes that contract to be obtained before entry into territory Recognizes minimum educational requirements (diploma, university degree, or demonstrated experience) no wage-parity conditions, but minimum wage requirements acceptable ENTs: elimination or substantial reduction: specification of criteria, and duration of ENTs duration for CSS 1 year or duration of contract

7 DDA negotiations Plurilateral request on Mode 4 (2006) Sector-specific interests (main sectors): -Accounting & bookkeeping -Architectural services -Engineering services & Integrated engineering services -Health-related: Medical & dental services, Veterinary services, nurses and paramedical personnel -Computer & related services -Research and Development services -Management consulting services -Technical testing & analysis services -Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) (CSS only) -Construction and related engineering services (CSS only) - Environmental services -Tourism Services -Sporting and other recreational services

8 DDA negotiations Plurilateral request on Mode 4 (2006) Transparency: (no substitute for MA!) –“hope” for progress on transparency in negotiations on domestic regulation –single window for information on, inter alia, Categories of permit and their requirements; Documentation required; Processing time and application fees (if any); Length and validity of stay; Possibility and conditions for extensions (including availability of multiple entry visas/permits); Rules regarding accompanying dependants; Review and/or appeal procedures (if any); Details of relevant contact points for further information Any relevant immigration laws of general application should also be referenced (not necessarily included in full, but details of where information can be found on them). Any exceptions to these rules, be it due to bilateral or plurilateral arrangements

9 DDA negotiations LDC request on Mode 4 (2006) Categories: –Independent Professionals –Contract Service Suppliers –Business Visitors –Others (e.g. installers, seafarers, graduate trainees, CSS for government procurement, artists etc.) Access conditions: –Substantial removal of quotas and ENTs (at least clarification) –No wage parity, but minimum wage ok –Full national treatment –Extensive list of occupations to be covered –Single window for information –Accelerate verification of competences

10 DDA negotiations LDC request on Mode 4 (2006) What about lower skilled workers? –Level of education: “appropriate education, qualifications, and experience relevant to the service to be provided” –List of sectors includes many areas where lower skilled persons could meet the definition: (services incidental to agriculture, construction, warehousing etc)

11 What’s happening with domestic regulation? Chairman’s draft (1/2008) contains substantive requirements to facilitate assessment of foreign qualifications, e.g. –adequate procedures for the verification and assessment of qualifications held by service suppliers of other Members (see Art VI:6) –due consideration to relevant professional experience, as a complement to educational qualifications (including membership in professional associations) –Identification of any deficiency and information of applicant of requirements to meet the deficiency. –Where appropriate, provide the possibility for applicants to fulfil such requirements in the home, host or any third jurisdiction. –applicant to be allowed to submit applications at any time, authority to initiate processing without delay. –examinations at reasonably frequent intervals

12 A little bit of speculation: prospects for the M4 negotiations Main stumbling block: disability of USTR to engage Some other Members likely to make headway for CSS, and to lesser extent IP. Unlikely to include lower skilled occupations No major changes expected for ICTs No major changes for removal of ENTs LDC request for accelerated verification unlikely to result in tangible outcome

13 The wider context: how far can we go with Mode 4 Inherent limitations: –no coverage of employment in goods sector, –no coverage of employment of domestically owned enterprise –Stay only for the duration of the supply of the service For lower-skilled workers: preference of bilateral, sectoral, arrangements? No general indication that Preferential Trade Agreements provide greater M4 access between partners Are trade negotiations appropriate vehicle to address issues that are broadly related to immigration?