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MINISTRY of ECONOMY Annex on Mode 4 23 JUNE 2014 Alev YILDIRIM 1.

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Presentation on theme: "MINISTRY of ECONOMY Annex on Mode 4 23 JUNE 2014 Alev YILDIRIM 1."— Presentation transcript:

1 MINISTRY of ECONOMY Annex on Mode 4 23 JUNE 2014 Alev YILDIRIM 1

2 What are the concerns raised in TISA? The use of term work Transparency provisions specifically tailored for Mode 4 Visa is not trade related (not covered by GATS?) Establishment of a Contact Point for Service Suppliers Binding categories and/or definitions ENTs 23 June 2014 Republic of Turkey - Ministry of Economy 2

3 Main Mode 4 issues during Doha Service Provider Categories Transparency ENTs Administrative Procedures: Recognition of Qualifications measures related to visas and work permits3 23 June 2014 Republic of Turkey - Ministry of Economy

4 S/CSS/W/12 (2000) from India Observation Asymmetry in commitments between different modes of supply. Effectiveness is further reduced through a host of limitations and administrative hurdles. Granting visas and work permits should be administered in a reasonable, objective and impartial manner. CSC should oversee implementation of Mode 4 commitments in accordance with GATS VI:1 Most of the time only horizontal, mostly for personnel linked to commercial presence. Very few sectoral commitments, no predictable market access. Partial commitments with critical limitations. Temporary service suppliers come under the purview of immigration legislation and labour conditions. (strict eligibility conditions for application and processing of visas and work permits, limitations on the length of stay, ENTs, quotas) Proposal Strict time frames within which visa must be granted. (2-4 weeks maximum) Transparent and streamlined application process. Mechanisms to find out the status of applications, causes of rejection, and requirements to be fulfilled. Easier renewal procedures GATS visa 4 23 June 2014 Republic of Turkey - Ministry of Economy

5 Communications from EU, Canada, US, Japan (2000, 2001) Canada Requests that Members should explore ways to strengthen horizontal transparency obligations of GATS, since problems in this area can effectively rule out MA. EU Common definitions of categories, particularly ICT and CSS. Common code of practice for ENTs (i.e. Define application criteria, make them non-discriminatory, impose a due process procedure) Greater transparency provisions building on GATS Article III:4 (setting out service providers’ rights and obligations clearly, so that the procedures are applied fairly) Provisions to facilitate the swift adoption of decisions on applications for temporary entry and stay, on the basis of objective and verifiable criteria. Development of clear, simple and predictable application procedures. General information points that involve contact details of national authorities competent to receive applications for relevant permits. 5 23 June 2014 Republic of Turkey - Ministry of Economy

6 Japan requests: Reduction of restrictions on the movement of ICTs. Transparency of information on immigration procedures and requirements, simplification and facilitation of immigration procedures. Elimination of ENTs, as a first step clearly identify the criteria. US Suggests that similar to telecom and financial services, additional regulatory disciplines is also needed to ensure full implementation of existing and potential new MA in Mode 4 as this area is also highly regulated. (specifically, access to information and procedural transparency) 6 Communications from EU, Canada, US, Japan (2000, 2001) 23 June 2014 Republic of Turkey - Ministry of Economy

7 JOB(03)195 Mode 4 Categories by the Secretariat (2003) Review of 108 schedules with commitments on Mode 4 Most scheduled categories ICT (60 %) followed by BV and/or SS (40 %), very limited commitments in CSS and IP(15 %). Contrary to this general picture 11 RAMs all committed ICT and BV, 8 also CSS. ICT: Executive, managers, specialists (common elements) BV/SS: wide degree of overlap, sometimes merged. (in general, activities as sales negotiations or setting up of a commercial presence CSS: either employees of juridical persons or independents professionals. Others: installers and servicers, graduate trainees, legal representatives, personnel of transportation companies, spouses and partners etc. 7 23 June 2014 Republic of Turkey - Ministry of Economy

8 8 Commitments are not in a uniform manner and difficult to compare (due to different terminology and different entry systems) Immigration and labor measures affect Mode 4 commitments. Impossible to clearly asses the real value or the extent to which commitments are liberal or facilitative. Domestic regime on immigration and labour market developments are crucial in determining the benefit of commitments. The prerequisites for issuing visas or work permits are not specified. Supplementary measures or requirements( duration of stay, possibility of extensions, etc.) not stipulated in actual commitments undermine the commitments. Proposal Each Member should provide voluntarily and separate from its specific commitments, all relevant information sources for each of its commitments (not the actual wording of the measures but citing the relevant parts) (Question: is this possible without any binding obligation?) TN/S/W/47 from Canada on Transparency of Mode 4 Commitments (2005) 23 June 2014 Republic of Turkey - Ministry of Economy

9 TN/S/W/32 from EU(2005) The lack of transparency can be a major barrier to international trade in services through Mode 4 and, because of inter-linkages between the modes of supply, through the other modes as well. use the same terminology for each main category and sub-category of service provider. list the definitional elements that are relevant for each category (or sub-category). indicate – where applicable – the market access and national treatment conditions which are relevant for each category and where necessary each sub-category. indicate the length of temporary entry and stay permitted for each category as well as whether multiple entries and extensions are possible. Main and sub-categories together with definitional elements: ICTs (E, SM, S), BV (SS, setting up CP), CSS, IP, Others. 9 23 June 2014 Republic of Turkey - Ministry of Economy

10 JOB(04)142 Transparency from 14 WTO Members including 5 TiSA Members (2004) Existing GATS rules on transparency are not effective. Lack of transparency impedes the even limited MA commitments on Mode 4. Request: Make available in a consolidated form, all current measures, in particular administrative ones, and any descriptive material accompanying such measures that pertain to the temporary admission of natural persons (entry, temporary stay and work authorization). 10 23 June 2014 Republic of Turkey - Ministry of Economy

11 11 Information should include:  Categories of permit and their requirements;  Documentation required;  Method of filing;  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 (e.g. links to relevant government web-sites which provide more detailed information on embassies, consulates and other issuing bodies).  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 pluri-lateral arrangements. 23 June 2014 Republic of Turkey - Ministry of Economy

12 12 CONTACT POINT Each Member shall designate a contact point at authorized departments for trade and/or immigration, to facilitate communications regarding these measures and their applications, between business persons and the relevant authorities. 23 June 2014 Republic of Turkey - Ministry of Economy

13 TN/S/W/14 by Mode 4 Friends (2003) Use of common categories (at least ICT, BV, CSS, IP) Need to further examine a separate visa or separate subset of procedures (transparency, due process) to ensure that already limited MA are not nullified or impaired by onerous and non- transparent criteria. Elimination of ENTs for the categories identified as above. Strengthening the framework for Recognition Agreements by developing guidelines and principles and undertaking additional commitments for verifying foreign service providers’ competence. 13 23 June 2014 Republic of Turkey - Ministry of Economy

14 TN/S/W/19 from 18 WTO Members with 5 TiSA Members (2004) HOW TO ENSURE COMMERCIALLY MEANINGFUL MODE 4 COMMITMENTS? Expansion of commitments in categories de-linked to Mode 3 Attached restrictions that further erode the limited value of Mode 4 commitments (restrictions on duration of stay, ENTs, requirements for work permits, residency and citizenship requirements, etc.) Cumbersome and non-transparent administrative procedures and regulations on visas and work permits Need for common understanding on service provider categories. 14 23 June 2014 Republic of Turkey - Ministry of Economy

15 TN/S/23 (2005) OBJECTIVES IN MODE 4 AS IDENTIFIED BY MEMBERS C ATEGORIES OF NATURAL PERSONS  commitments to be undertaken in all main categories: Business Visitors (BVs); Intra-corporate Transferees (ICTs); Contractual Service Suppliers (CSSs); Independent Professionals (IPs); Others  commitments on each of the main categories to be based on common definitions and parameters and to provide for specific market access conditions  coverage of commitments to be extended to better cover categories of persons not linked to commercial presence (CSSs and IPs), with adequate sectoral coverage  commitments on ICTs to be extended  commitments on Installers to be undertaken  scope of commitments to be extended to lower skilled workers 15 23 June 2014 Republic of Turkey - Ministry of Economy

16 L IMITATIONS FOR REDUCTION OR ELIMINATION  economic needs/labour market tests (LMTs); if not possible, specify non- discriminatory and objective criteria in the schedule  quantitative restrictions; where quotas cannot be removed, increase quotas  measures preventing longer periods of stay tailored to the specific needs of each category of natural persons  non-renewal of periods of stay  excessive formalities where renewal is permitted  citizenship and residency requirements  pre-employment conditions; where removal is not feasible, period of prior employment with home country juridical person to be clearly specified and not to exceed a particular time period  labour market conditions, including wage parity requirements (without prejudice to other employment laws, such as minimum wage requirements)  discriminatory tax treatment 16 23 June 2014 Republic of Turkey - Ministry of Economy

17 R EGULATORY ISSUES AND ADDITIONAL COMMITMENTS FOR NEGOTIATION  transparency of entry procedures and provision of information relevant to entry, temporary stay and work authorization for each of the categories of natural persons scheduled  administrative procedures affecting entry and stay, especially regarding visas  recognition and qualification requirements S CHEDULING ISSUES TO BE ADDRESSED  commitments on the basis of common categories, using similar terminology and parameters  sector-specific commitments to complement the horizontal section and bind deeper levels of liberalization  transparency of commitments: templates for providing readily available information on a voluntary basis 17 23 June 2014 Republic of Turkey - Ministry of Economy

18 Others Papers Transparency Templates from Canada and Australia for Horizontal Mode 4 Offers (TN/S/W/42 and 48) Communication from Switzerland on e-Work Permit (Canton of Zurich) and from Australia on e-visa system (TN/S/W/22 and 25) On ENTs by Canada and Korea (TN/S/W/46 and 49) On Temporary Admission of Installers and Maintainers by Switzerland (TN/S/W/61) proposing Members to undertake horizontal commitment for this sub-category. By Pakistan (TN/S/W/57) as a continuation of earlier papers by Mode 4 Friends to overcome the reluctance of Members to liberalise Mode 4 ( security exception, system to assure that temporary workers goes back to home country, definition of temporary) 18 23 June 2014 Republic of Turkey - Ministry of Economy

19 The Recent Papers (2009 and 2011) Background Note by the Secretariat (S/C/W/301) (S/C/M 95) Communication from India- Assessment of Plurilateral Request (JOB/SERV/70), 2011 19 23 June 2014 Republic of Turkey - Ministry of Economy

20 S/C/W/301 (2009) Main Obstacles to Mode 4 trade: Not only opaque and arbitrary visa and work permit related procedures, but also administratively complex, lengthy and costly. Work permit procedures rarely distinguish between temporary and permanent movement of labour, particularly ill-suited for the temporary. Others: strict eligibility criteria, bias towards highly skilled categories, movement associated with commercial establishment in the host country, durations of stay not tailored to the needs of mode 4 service suppliers, ENTs and numerical quotas 23 June 2014 Republic of Turkey - Ministry of Economy 20

21 S/C/M/95 (2009) Obstacles pointed out by Members: ENTs not clearly defined Vague definitions for the categories Limited number of commitments other than ICTs Bias in favour of highly skilled Impact of domestic regulatory measures Visa and work permit related requirements 23 June 2014 Republic of Turkey - Ministry of Economy 21

22 JOB/SERV/70 (2011) 22 New and/or improved market access in the categories delinked from commercial presence (CSS and IP), removal or substantial reduction of ENTs, relaxation of duration of stay with renewal, removal of residency, local training and similar requirements. Transparency as a supplement to the market access. No concrete positive movement from recipients, concerns being repeated. 23 June 2014 Republic of Turkey - Ministry of Economy

23 QUESTIONS FOR FURTHER DISCUSSION Why best FTA approach is not followed in Mode 4? Doha offers. Then why not FTAs that has been negotiated for the time being or those that have been finalised, but not entered into force yet? If we do not understand visa from entry procedures, what are meant with entry procedures? Similarly, what is ICT, CSS and IPs are doing if not working in host country? 23 23 June 2014 Republic of Turkey - Ministry of Economy

24 INDUSTRY 24 Calls for continued determination in tackling “21st century issues” including cross border data flows, regulatory transparency and coherence, movement of business persons. Commitments to facilitate mobility and expedite business visas and work permits are a matter of high importance to services providers 23 June 2014 Republic of Turkey - Ministry of Economy

25 LAW ON FOREIGNERS AND INTERNATIONAL PROTECTION (TURKEY) Entered into force April 2014. Establishment of a civilian institution under Ministry of Interior (General Directorate of Migration Management) Clear and efficient system for issuing and annulment of visas, along with work and residence permits. Foreigners wishing to stay in Turkey for up to 90 days needs to get a visa. The period of stay with visa or visa exemption may not exceed 90 days within a period of 180 days. Foreigners who would stay in Turkey beyond that duration need to obtain a residence permit. Work permits will substitute for residence permits, and will be applied from abroad. Maximum duration for residence/work permits is one year, renewal possible. For work permits renewal is 3 years and then 6 years. Appeal mechanisms are notified to the applicant in case of a cancellation, refusal or non-renewal. 25 23 June 2014 Republic of Turkey - Ministry of Economy

26 E-VISA www.evisa.gov.tr is a government portal run by the Ministry of Foreign Affairs of Turkey. www.evisa.gov.tr Commenced in 17 April, 2013. Total e-Visas issued 2.8 million. (as of 17.6.2014) Average Daily e-visas issued: 25,000 Highest amount of visas issued in one day: 33.491 e-Visa applications can be created for an individual, for a family (minimum of 2 and maximum of 10 people) or for a group (minimum of 10 and maximum of 300 people). e-Visa is valid for touristic and trade purposes only. 26 23 June 2014 Republic of Turkey - Ministry of Economy

27 E-VISA An e-Visa can be obtained easily anywhere with an internet connection and it saves time that you would otherwise spend on visa applications at Turkish missions or at the ports of entry into Turkey (if you are eligible). Multiple entry is possible. The e-Visa application fee is only charged to an approved e- Visa. You can apply for your e-Visa any time before your travel. However, you are advised to create an e-Visa application at least 48 hours before your departure. 27 23 June 2014 Republic of Turkey - Ministry of Economy

28 Thank you.


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