Presenter: Enos A. Brown HEART Trust/NTA - Jamaica WTO Symposium on GATS Mode 4 The Jamaican Experience with the Movement of Natural Persons

Introduction The General Agreement on Trade in Services (GATS) is focused on services supplied through 4 modes: 1. Cross-border supply 2. Consumption overseas 3. Commercial presence or movement of capital 4. Temporary movement of labour to supply services overseas

Developing Country Perspective Developing countries are particularly concerned with Mode 4 Comparative advantage in labour-intensive services Negative impact of the earlier phases of trade liberalization Developing countries have a clear interest in promoting significant liberalization under Mode 4

The Presentation 1. Jamaican programmes for trade in services through the movement of natural persons (MNP) Formal Informal 2. CARICOM Protocol II and the MNP Regional TVET Strategy

Formal MNP Programmes Prior to the 1900s Jamaica was an net importer of labour Since the early 1900s Jamaica is a net exporter of labour Formal programmes include: Farm Work Programme Hospitality Work Programme Schoolteacher Work Programme

Farm Worker Programme Temporary/Seasonal work – 3 to 9 mths Low skilled agriculture workers Abundant home country supply Significant host country demand Home – Win, Host – Win, Global – Win EXPAND

Hospitality Worker Programme Temporary/Seasonal work – 3 to 9 mths Low and semi skilled workers Limited home country supply Home country capacity to produce supply Significant host country demand Home – Win, Host – Win, Global – Win Controlled Expansion-----

Schoolteacher Programme Temporary work – 2 years and over Skilled and professional workers Scarcity in home country supply Limited home country capacity to produce schoolteachers Significant host country demand Home – Lose, Host – Win, Global – Lose Limit Expansion-----

GATS Considerations Movement of low-skilled and semi-skilled persons must be considered along with skilled professionals MNP should not be tied to commercial presence in the host country Government control on MNP should be reduced Economic needs tests should be removed Temporary short-term safeguards should be available to home and host countries

Informal MNP Programmes Jamaicans are highly migratory in nature Significant numbers return to Jamaica Significant numbers maintain economic ties with Jamaica – labour related transfers (remittances)

Movement of Professionals Permanent migration is encouraged through host country immigration laws Permanent migration has a brain drain effect on home countries and contributes to social polarization Temporary movement of professionals is in the interest of home and host countries

Movement of Non-Professionals Unofficial access to temporary employment in host country – homecare & personal care services Market conditions exist to promote the temporary MNP in these services Fully represents the objective of Mode 4 – an efficient natural person service provider satisfying market demand in another members territory

GATS Considerations GATS should provide for clear differentiation between temporary work movement and permanent migration Immigration policies that favour permanent migration of professionals should be replaced with Mode 4 type movement Consideration must be given to host country public policy concerns The market should determine efficient allocation of labour. However, short-term safeguards are required

CARICOM Protocol II and MNP Protocol II – Right of Establishment, Services and Capital Promote free movement of services, capital and select skilled workers; and the right to set up business Ensure national treatment and non- discrimination in carrying out business Facilitate access to resources within CARICOM Create more business & employment opportunities; open opportunities for trade in services

CARICOM Protocol II and MNP Free MNP initially limited to graduates from approved universities and select professionals Vast majority of CARICOM nationals are excluded from this facility Absence of a formal mechanism recognize the work competencies of its nationals

Move to Regional TVET Strategy TVET covers a broader spectrum of occupations including professional qualifications Based on establishment of National Training Agency in each territory Regional TVET framework – competency based, industry led. Emphasis on accreditation, articulation and certification

The National Training Agency Development and approval of occupational performance standards for delivery by any training provider Regional and national framework for articulation of programmes across institutions and territories (Modular training standards and delivery) Valid and reliable national certification of competence Regional recognition of national certification through the CARICOM Vocational Qualification (CVQ) CVQ is the facility for free movement of nationals within CARICOM, full implementation 2005

CARICOM Model Relevant to GATS Occupational certification based on documented standards that facilitate evaluation and articulation is desirable. Some level of harmonization across countries is required for the MNP. The Mutual Recognition Model is ideal Occupation certification is preferred to a professional certification framework. It incorporates the range from low-skilled to highly skilled professionals and recognizes on-the-job experience and academic qualifications

Concluding Comments Greater liberalization under Mode 4 is in the long-term interest of both developed and developing countries Greater liberalization should focus on occupational certification in addition to professional credentialing A strengthened mechanism for the cross-border recognition of occupational competence is required. CARICOM Regional TVET Strategy is one such model