1. 1 Labour mobility and trade in services through the movement of natural persons Contact: andreas.maurer@wto.org joscelyn.magdeleine@wto.org Agenda item 7 Issue paper 14

2. 2 Swissinfo.ch (30/04/2009) Germans attracted to eastern Swiss job market...”About one in two doctors come from nearby Germany; one in three consultants and one in four nurses hail from across the border.”...”the number of cross-border workers from neighbouring Austria soared to more than 8300 people.” “The agriculture sector does not find its labourers in neighbouring EU member countries except for the strawberry harvest”,...

3. 3 Movement of persons Employment opportunities Income prospects Improved technology Labour mobility Trade in services Where to draw the boundary? Contract Coverage employmentservices

4. 4 Terminology / Boundary Labour mobility (employment contract) Relocation of workers to improve allocation of resources with impact on income distribution, e.g. Intra corporate transfer Directly recruited by foreign-established company Trade in services (service contract) Contractual service suppliers employees of foreign service providers self-employed intra-corporate transfer sales persons

5. 5 Value: Number of persons: Key indicators Labour mobilityTrade in services Compensation of employees Workers remittances BPM6: Personal transfers Services categories RSIM Rev.1, IRTS 2008 Non-migrants International migrants, of which short- term Visitors SNA, BPM, MSITS

6. 6 Transactions relating to employment or service contracts? Employer-employee compensation of employees relationship If not thenBOP services categories who controls? which benefits for the person? who pays social contributions?

7. 7 Options to assess Mode 4 delivery in surveys 1.Did the service delivery involve physical presence of service provider? Yes? Then, how was most of the service value provided (time/resources)? Mostly by fax, email, etc. Natural person at the end (e.g. to supervise) The person’s knowledge was essential to deliver the service Mode 4 2. Require in services surveys allocation by each GATS mode of supply 3. Require estimated share of services inputs for Mode 4 services trade Mode 1

8. 8 Mode 4, migration and tourism statistics Migrant categories Non-migrant categories Categories of the UN Recommendations on Statistics of International Migration, revision 1:

9. 9 Balance of payments labour related flows, World and leading economies, 2006, million USD Source: IMF BOP Database, May 2009

10. 10 Sales of Services by GATS Modes of Supply: 2005 Statistical Approximation

11. 11 Questions 1.Common terminology when dealing with migration/labour mobility/trade in services? 2.Developing further guidelines for differentiating employment and services contracts? 3.Further research with respect to the impact of short-term labour mobility/trade in services on productivity measures? 4.More appropriate measures for analyzing short- term labour mobility and mode 4?

12. 12 5.Possible modifications to existing primary data collections to be explored? 6.Useful to integrate economic statistics and parts of social statistics through cross-classifying workers on the basis of: (a)economic activities to which they provide labour input, classified by ISIC; (b)products resulting from their labour input (CPC); (c)skill and education level (ISCO-88 and/or ISCED); (d)category of worker (e.g. business visitor, working for a foreign owned company, etc.); (e)length of stay; and (f)country of citizenship. Questions