temporary movement of people as service suppliers - gats mode 4 julia nielson oecd may 2004

Temporary movement of Temporary movement of people as service supplierspeople as service suppliers

- GATS mode 4- GATS mode 4

Julia NielsonJulia Nielson

OECDOECD

May 2004May 2004

Structure of the presentationStructure of the presentation The context for mode 4 - temporary mobilityThe context for mode 4 - temporary mobility Defining GATS mode 4 Defining GATS mode 4 Restrictions on mode 4 Restrictions on mode 4 Gains from liberalizationGains from liberalization What are the issues to manage?What are the issues to manage?

• Labour market impactLabour market impact• Brain drain/overstayingBrain drain/overstaying• Remittance managementRemittance management• SecuritySecurity

Thoughts on priorities for the GATS negotiationsThoughts on priorities for the GATS negotiations

The contextThe context

Migration flows no larger now relative to Migration flows no larger now relative to population size than in 1850-1915population size than in 1850-1915• Much is inter-regional and inter-developing Much is inter-regional and inter-developing

countrycountry But temporary movement is increasingBut temporary movement is increasing

• More countries are exporters and importersMore countries are exporters and importers New driversNew drivers

• Technological change Technological change • Declining transport and communication costs; Declining transport and communication costs; • Global businesses and production chainsGlobal businesses and production chains

The contextThe context Considerable movement taking place despite very Considerable movement taking place despite very

limited GATS commitments limited GATS commitments • USUS: H1B declining, but temporary unskilled (H2B) : H1B declining, but temporary unskilled (H2B)

increased by 50% per year to reach 72 400 in 2001.increased by 50% per year to reach 72 400 in 2001.• UKUK: 85 000 work permits in 2002, mostly new : 85 000 work permits in 2002, mostly new

technologies, health and education (ditto technologies, health and education (ditto FranceFrance, but , but numbers smaller)numbers smaller)

• JapanJapan: 142 000 in 2001 (decline in higher skilled): 142 000 in 2001 (decline in higher skilled)• AustraliaAustralia: 43 000 temporary permits in 2001: 43 000 temporary permits in 2001• KoreaKorea: 28 200 (skilled) in 2001, 60% increase; plus 100 : 28 200 (skilled) in 2001, 60% increase; plus 100

000 trainees 000 trainees Concentrated in certain sectors – ICT, healthConcentrated in certain sectors – ICT, health

• Some countries prominent - India H1-B, Philippines Some countries prominent - India H1-B, Philippines labour exporterlabour exporter

The contextThe context But figures are not comparable and do not equate with But figures are not comparable and do not equate with

mode 4mode 4 Temporary is slipperyTemporary is slippery

• Statistically, cut off is 12 monthsStatistically, cut off is 12 months• Some countries have temporary workers for 20 yearsSome countries have temporary workers for 20 years• Others permit change of visa to permanent migrationOthers permit change of visa to permanent migration

Different definitions of “foreign”Different definitions of “foreign” Social context – labour market, social security, culture.Social context – labour market, social security, culture. Mode 4 is a trade, not a migration conceptMode 4 is a trade, not a migration concept

• Don’t distinguish between service and non-service activitiesDon’t distinguish between service and non-service activities• E.g., “business visitors” , “company managers” E.g., “business visitors” , “company managers”

• Activities may not be commercialActivities may not be commercial• Amateur and professional athletesAmateur and professional athletes

• Combinations of modesCombinations of modes• Working holiday makersWorking holiday makers

The contextThe context

Within the universe of migration, there is Within the universe of migration, there is the subset of temporary migrationthe subset of temporary migration

Within temporary migration, there is the Within temporary migration, there is the subset of temporary labour migrationsubset of temporary labour migration

Mode 4 is a subset of temporary labour Mode 4 is a subset of temporary labour migration migration • Depending how you define it, get closer to Depending how you define it, get closer to

migration issues and concernsmigration issues and concerns


• Labour market impactLabour market impact• Brain drain/overstayingBrain drain/overstaying• Remittance managementRemittance management• SecuritySecurity


Defining mode 4Defining mode 4 Article 1.2(d): “the supply of a service…Article 1.2(d): “the supply of a service…

by a service supplier of one Members, by a service supplier of one Members, through presence of natural persons of a through presence of natural persons of a Member in the territory of another Member in the territory of another Member”. Member”. • Annex on the Movement of Natural Persons: Annex on the Movement of Natural Persons:

“measures affecting natural persons who are “measures affecting natural persons who are service suppliers of a Member, and natural service suppliers of a Member, and natural persons of a Member who are employed by a persons of a Member who are employed by a service supplier of a Member, in respect of service supplier of a Member, in respect of the supply of a service”the supply of a service”

Defining mode 4Defining mode 4

Mode 4 is Mode 4 is temporarytemporary movement movement• Not defined, commitments range from Not defined, commitments range from

several weeks (business visitors) to 3-5 several weeks (business visitors) to 3-5 years (intra-corporate transferees)years (intra-corporate transferees)

BUT permanent explicitly excludedBUT permanent explicitly excluded• GATS does not apply to measures GATS does not apply to measures

affecting individuals seeking access to the affecting individuals seeking access to the employment market, nor to measures employment market, nor to measures regarding citizenship, residence or regarding citizenship, residence or employment on a permanent basis.employment on a permanent basis.

Defining mode 4Defining mode 4

What is a service supplier? What is a service supplier? • Temporary agricultural workers or suppliers of Temporary agricultural workers or suppliers of

fruit-picking services?fruit-picking services?• What is the scope of category “services What is the scope of category “services

incidental to agriculture (manufacturing)” in incidental to agriculture (manufacturing)” in W/120?W/120?

• Tasks performed on a fee or contract basis Tasks performed on a fee or contract basis without ownership of the inputs or outputswithout ownership of the inputs or outputs

In the world of fragmented production chains, In the world of fragmented production chains, definition of a service is shiftingdefinition of a service is shifting

Defining mode 4 Defining mode 4

• Mode 4 normally includes:Mode 4 normally includes: Self-employed or independent service Self-employed or independent service

suppliers (remuneration received in host suppliers (remuneration received in host country)country)

Employees of a foreign company who are sent Employees of a foreign company who are sent to fulfill a contract with a host country client to fulfill a contract with a host country client

Employees of foreign companies established Employees of foreign companies established in the host country (intra-corporate in the host country (intra-corporate transferees)transferees)

Business visitors (short term stays, no Business visitors (short term stays, no remuneration received in host country) remuneration received in host country)

Defining mode 4Defining mode 4 While foreigners working on contract to While foreigners working on contract to

domestic firms fall under mode 4 it is domestic firms fall under mode 4 it is unclear unclear whether foreign whether foreign employeesemployees of of domesticdomestic companies are covered. companies are covered.• Language of GATS suggests maybe not, but Language of GATS suggests maybe not, but

included in commitments of some WTO included in commitments of some WTO Members.Members.

• Also some members can deem a range of Also some members can deem a range of contracts to be employment for the purposes contracts to be employment for the purposes of bringing the worker under local labour lawof bringing the worker under local labour law

• As a practical matter, it may be hard to As a practical matter, it may be hard to distinguish between contractual service distinguish between contractual service suppliers and employeessuppliers and employees

Defining mode 4 - summaryDefining mode 4 - summary

No clear definition, but can think in No clear definition, but can think in terms of duration and purpose of terms of duration and purpose of stay:stay:• Gain entry for specific purpose( to fulfil a Gain entry for specific purpose( to fulfil a

contract)contract)• Normally confined to one sector (can’t Normally confined to one sector (can’t

move - vs general migrants)move - vs general migrants)• Temporary (not migrating permanently Temporary (not migrating permanently

nor seeking entry to labour market)nor seeking entry to labour market)

IncludedIncluded ExcludedExcluded DebatedDebated

Temporary movement Temporary movement (undefined)(undefined)

Permanent migration Permanent migration (residence, citizenship or (residence, citizenship or employment in a permanent employment in a permanent basis)basis)

Related to the supply of Related to the supply of servicesservices

Persons working in non-Persons working in non-service sectors – agriculture, service sectors – agriculture, manufacturingmanufacturing

Scope of activities Scope of activities included in “services included in “services incidental to agriculture/ incidental to agriculture/ manufacturing”manufacturing”

All skill levels (in practice, All skill levels (in practice, commitments are for highly commitments are for highly skilled)skilled)

Foreign employees of Foreign employees of foreign companies foreign companies established in host countryestablished in host country

Domestic (nationals of host Domestic (nationals of host country) employees of foreign country) employees of foreign companies established in the companies established in the host countryhost country

Foreign employees of Foreign employees of domestic companiesdomestic companies

Business visitorsBusiness visitors

Intra-corporate transfereesIntra-corporate transferees

Contractual service Contractual service suppliers (self-employed or suppliers (self-employed or as employee of a foreign as employee of a foreign service supplier)service supplier)


• Labour market impactsLabour market impacts• Brain drain/overstayingBrain drain/overstaying• Remittance managementRemittance management• SecuritySecurity


Restrictions on mode 4Restrictions on mode 4 Less liberalisation under mode 4 than other Less liberalisation under mode 4 than other

modes; current commitmentsmodes; current commitments• Horizontal, not sectoralHorizontal, not sectoral• Limited to the higher skilled (managers, executives, Limited to the higher skilled (managers, executives,

specialists)specialists)• Linked to investment (intra-corporate transferees), Linked to investment (intra-corporate transferees),

relatively few commitments for contractual service relatively few commitments for contractual service supplierssuppliers

• Economic needs tests – not transparent, can be arbitrary Economic needs tests – not transparent, can be arbitrary and unpredictable in application and unpredictable in application

Regulatory issuesRegulatory issues Wage parity, social securityWage parity, social security Time consuming and burdensome visa proceduresTime consuming and burdensome visa procedures Licensing and qualification requirements - recognitionLicensing and qualification requirements - recognition

RecognitionRecognition Lack of recognition of qualifications a major issue in mode 4Lack of recognition of qualifications a major issue in mode 4

• Especially for developing countries as more of a problem for Especially for developing countries as more of a problem for SMEs and contractual service suppliersSMEs and contractual service suppliers

• Trade tends to be between countries where differences are Trade tends to be between countries where differences are relatively smallrelatively small

GATS disciplines fairly weak.GATS disciplines fairly weak. Article VII permits but does not require recognitionArticle VII permits but does not require recognition

• Must afford other interested WTO members adequate Must afford other interested WTO members adequate opportunity to prove they meet the same standardsopportunity to prove they meet the same standards

Notification requirementsNotification requirements Encourages international standards “where appropriate”Encourages international standards “where appropriate”

• Ability to set standards left up to Members – only require that Ability to set standards left up to Members – only require that no discriminate in the application of those standards (VII.3)no discriminate in the application of those standards (VII.3)

PLUS, must have adequate procedures to verify PLUS, must have adequate procedures to verify competence where commitments for professional services competence where commitments for professional services are made (Article VI.6)are made (Article VI.6)

RecognitionRecognition Hard to assess MRAs; many still works in progressHard to assess MRAs; many still works in progress Mostly neighbouring countries, or part of broader Mostly neighbouring countries, or part of broader

regional integration; those with historical regional integration; those with historical (linguistic, education) ties(linguistic, education) ties• Mostly between developed countriesMostly between developed countries

Many industry agreements – including under Many industry agreements – including under RTAsRTAs• already internationalised professions: engineers, already internationalised professions: engineers,

architects, accountantsarchitects, accountants Range – some far-reaching; some reduced Range – some far-reaching; some reduced

requirements or procedures; some a degree of requirements or procedures; some a degree of facilitation; others cooperation and dialogue.facilitation; others cooperation and dialogue.• Industry initiatives have made more progress.Industry initiatives have made more progress.

RecognitionRecognition

Wide range of practices and cultural assumptionsWide range of practices and cultural assumptions Fear of loss of regulatory sovereigntyFear of loss of regulatory sovereignty Absence of formal licensing or qualification Absence of formal licensing or qualification

systems in some countriessystems in some countries Absence of recognition frameworks or experienceAbsence of recognition frameworks or experience MRAs often led by industry associations – may be MRAs often led by industry associations – may be

lacking or not interested in facilitating accesslacking or not interested in facilitating access Lack of awareness in the professions of the Lack of awareness in the professions of the

benefits of MRAsbenefits of MRAs Resource intensive and complex negotiations Resource intensive and complex negotiations Lack of incentive to negotiate MRAs in absence of Lack of incentive to negotiate MRAs in absence of

real market access interests (or relevant real market access interests (or relevant commitments)commitments)

Gains from mode 4 liberalisationGains from mode 4 liberalisation

Winters – opening of developed Winters – opening of developed country labour markets to temporary country labour markets to temporary entry by foreign workers to entry by foreign workers to equivalent of 3 percent of current equivalent of 3 percent of current workforce would result in global workforce would result in global welfare gains of around US$150 welfare gains of around US$150 billion per year.billion per year.• Numbers not to be taken to strictly, but Numbers not to be taken to strictly, but

clear that gains significantclear that gains significant

Gains from liberalisationGains from liberalisation

Developed to developing country:Developed to developing country: Main issue is intra-corporate transfereesMain issue is intra-corporate transferees

• Gains for local economy from exposure to Gains for local economy from exposure to foreign expertise in terms of knowledge foreign expertise in terms of knowledge transmission, productivity growth and flow-on transmission, productivity growth and flow-on benefits for development domestic benefits for development domestic entrepreneurship.entrepreneurship.

• BUT developing countries could lose out over BUT developing countries could lose out over time if these reduce opportunities for nationalstime if these reduce opportunities for nationals

And thus reduce incentives for educationAnd thus reduce incentives for education


Developing to developed countries, skilled labour:Developing to developed countries, skilled labour:• Reduces total output and tax baseReduces total output and tax base• Can reduce capacity to entrepreneurship, ability to Can reduce capacity to entrepreneurship, ability to

absorb new technologiesabsorb new technologies BUTBUT

• Workers can be more productive in advanced economiesWorkers can be more productive in advanced economies• Remittances may offset the lossRemittances may offset the loss• Ideas, technology and networksIdeas, technology and networks

Useful if return, but networks will be less developed than Useful if return, but networks will be less developed than permanent migrant who maintain links permanent migrant who maintain links

More widely spread, but perhaps more superficial, More widely spread, but perhaps more superficial, increased skillsincreased skills

• Can increase returns to education thereby encouraging Can increase returns to education thereby encouraging greater investment in educationgreater investment in education


Net balance will vary by country and Net balance will vary by country and sectorsector• Very small economies which could not Very small economies which could not

generate market to make skills profitable – generate market to make skills profitable – may gainmay gain

• Very large economies which can create critical Very large economies which can create critical mass of skilled workers – lose some at margin, mass of skilled workers – lose some at margin, but offset by gainsbut offset by gains

• Medium-sized economies may not reach the Medium-sized economies may not reach the critical mass of skills because of migration – critical mass of skills because of migration – could lose more than gain.could lose more than gain.

More work and research needed!More work and research needed!

Gains from liberalisationGains from liberalisation Developing to developed country, unskilled labourDeveloping to developed country, unskilled labour Skilled workers less friction BUT gains from trade Skilled workers less friction BUT gains from trade

come from exploiting differencescome from exploiting differences• Promises higher returnsPromises higher returns

BUT BUT Political problems – although arguably less with Political problems – although arguably less with

temporary movement than permanenttemporary movement than permanent• Fewer cultural or integration issuesFewer cultural or integration issues• Less call on public/social servicesLess call on public/social services• Could be done as for goods – with appropriate pace and Could be done as for goods – with appropriate pace and

adjustment policiesadjustment policies• Developed countries ageing and likely to face shortagesDeveloped countries ageing and likely to face shortages

What are the issues to manage?What are the issues to manage?

• Impacts also vary according to policy Impacts also vary according to policy frameworks.frameworks.

• Key issues to manage include:Key issues to manage include: Labour market impact Labour market impact Brain drain / overstaying and migration Brain drain / overstaying and migration

regulator concernsregulator concerns Remittance managementRemittance management SecuritySecurity

Issues to manage – labour market Issues to manage – labour market impactimpact

Hard to assess impact because countries use so Hard to assess impact because countries use so many devices to prevent real impact.many devices to prevent real impact.• – – ENTs, wage parity, social securityENTs, wage parity, social security

Wage parity pros:Wage parity pros:• Prevents exploitation Prevents exploitation • While quotas exist, benefits developing country workersWhile quotas exist, benefits developing country workers

Cons:Cons:• Undermines comparative advantageUndermines comparative advantage

Cost advantage developing countries currently shows up Cost advantage developing countries currently shows up more in outsourcing than mode 4more in outsourcing than mode 4

Another administrative hurdle before can hire foreign Another administrative hurdle before can hire foreign workerworker

Issues to manageIssues to manage

Social securitySocial security• Competitive advantage to foreign workers if Competitive advantage to foreign workers if

don’t have to paydon’t have to pay• BUT inequitable to pay into schemes from BUT inequitable to pay into schemes from

which may never benefit.which may never benefit.• Possible solutions:Possible solutions:

Pay into separate fund and reimburse on departurePay into separate fund and reimburse on departure Separate short (health cover) and long-term Separate short (health cover) and long-term

(pensions) benefits; pay the former, with latter (pensions) benefits; pay the former, with latter refunded on departure or paid into fund at home refunded on departure or paid into fund at home country ratescountry rates

Issues to manageIssues to manage Do foreign workers drive down wages? Do foreign workers drive down wages?

• Are they complements or substitutes?Are they complements or substitutes? Complement – brought in to fill gaps; training and Complement – brought in to fill gaps; training and

turnover expenses mean not profitable to use turnover expenses mean not profitable to use them instead of locals; firms claim to look for them instead of locals; firms claim to look for most skilled.most skilled.

BUT others argue that availability foreign labour BUT others argue that availability foreign labour undermines pressure for wage rises or undermines pressure for wage rises or improvements in conditions (nurses).improvements in conditions (nurses).• Companies sponsoring foreigners often required to Companies sponsoring foreigners often required to

demonstrate commitment to training nationalsdemonstrate commitment to training nationals Do they contribute to outsourcing in the domestic Do they contribute to outsourcing in the domestic

market and the casualisation of labour?market and the casualisation of labour?

Issues to manage - overstaying Issues to manage - overstaying

Distinguish between legal and illegalDistinguish between legal and illegal• Illegal - a risk with all forms of temporary entry Illegal - a risk with all forms of temporary entry

(tourists, students)(tourists, students)• Legal – can be managed, often used as pre-Legal – can be managed, often used as pre-

selection permanent migrantsselection permanent migrants Cooperation, incentives and enforcementCooperation, incentives and enforcement

• Enforcement – withholding part of pay, bonds, Enforcement – withholding part of pay, bonds, responsibility on domestic company, responsibility on domestic company, monitoringmonitoring

• Incentives – tax incentives, financial Incentives – tax incentives, financial assistance, reintegration assistance, creation assistance, reintegration assistance, creation of opportunities at home (including via FDI)of opportunities at home (including via FDI)


Brain drain/circulationBrain drain/circulation• Less of a problem with mode 4 than permanent Less of a problem with mode 4 than permanent

migration migration • BUT even temporary loss a problem where BUT even temporary loss a problem where

skills are scarceskills are scarce• Codes of conduct (nurses) a possible solutionCodes of conduct (nurses) a possible solution

But hard to control individual migration decisionsBut hard to control individual migration decisions

• Capacity building programs to train excess Capacity building programs to train excess workers, help to offset lost investment in workers, help to offset lost investment in education and ensure return.education and ensure return.

Issues to manage - remittancesIssues to manage - remittances Remittance managementRemittance management

US$72.3 billion in 2001 (likely higher)US$72.3 billion in 2001 (likely higher) Over- and under-estimates mode 4 as includes Over- and under-estimates mode 4 as includes

permanent migrants and those in non-service permanent migrants and those in non-service sectors, but only those abroad for > 1 yearsectors, but only those abroad for > 1 year

While not all mode 4, important benefitWhile not all mode 4, important benefit• In the poorest countries, remittances are 2-3 In the poorest countries, remittances are 2-3

times larger than FDItimes larger than FDI• In most developing countries, In most developing countries,

remittances>ODA.remittances>ODA. Facilitate transfers – e.g., ID cards. Facilitate transfers – e.g., ID cards. Matching funds to encourage investment Matching funds to encourage investment

in community projectsin community projects


SecuritySecurity• A reality which will complicate the trade A reality which will complicate the trade

facilitation approach to labour mobilityfacilitation approach to labour mobility Question of risk assessmentQuestion of risk assessment

• But security measures should be But security measures should be reasonable and aim to be least reasonable and aim to be least burdensome while still effective.burdensome while still effective.

• Are also costs to lost mobilityAre also costs to lost mobility US scientists (also students)US scientists (also students)

Thoughts on priorities for the GATS Thoughts on priorities for the GATS negotiations?negotiations?

Three major challenges to making Three major challenges to making progress:progress:• Flexibility of migration regimes vs Flexibility of migration regimes vs

certainty of GATS commitmentscertainty of GATS commitments• MFN GATS commitments vs special MFN GATS commitments vs special

migration arrangements for certain migration arrangements for certain countriescountries

• Lack of understanding between trade Lack of understanding between trade and migration policy communitiesand migration policy communities

Priorities for negotiationsPriorities for negotiations

These tensions are not easily resolved and These tensions are not easily resolved and a degree of pragmatism might be a degree of pragmatism might be necessarynecessary• Need to aim for concrete gains which can Need to aim for concrete gains which can

actually be achievedactually be achieved Think both of this round and the longer termThink both of this round and the longer term

• Liberalization on the ground more important Liberalization on the ground more important than seeing all reflected in GATS commitmentsthan seeing all reflected in GATS commitments

Danger of going backwards if insist on all boundDanger of going backwards if insist on all bound

Priorities for negotiations - whoPriorities for negotiations - who Contractual service suppliers (not tied to Contractual service suppliers (not tied to

investment)investment)• Individual service suppliersIndividual service suppliers• Companies sub-contractingCompanies sub-contracting

Why?Why?• More scope for developing countries as not tied More scope for developing countries as not tied

to investmentto investment• Greater possibility of including lower-skilled Greater possibility of including lower-skilled

labourlabour• Companies on each side of transaction, easier Companies on each side of transaction, easier

to enforce conditions (especially return)to enforce conditions (especially return) For greatest benefit, remove pre-employment For greatest benefit, remove pre-employment

requirementsrequirements

Priorities for negotiation - whoPriorities for negotiation - who

Contractual service suppliersContractual service suppliers• Aim for more members to include in Aim for more members to include in

schedulesschedules• Possibility of sector-specific Possibility of sector-specific

commitmentscommitments• Longer durations of stay (especially for Longer durations of stay (especially for

individuals who are limited in the types individuals who are limited in the types of contracts for which they can apply)of contracts for which they can apply)

• BUT not suitable for all servicesBUT not suitable for all services

Priorities for negotiations - whoPriorities for negotiations - who

Alternatively, another approach for certain Alternatively, another approach for certain types of workers could be bilateral labour types of workers could be bilateral labour agreementsagreements• More likely to cover lower-skilled workersMore likely to cover lower-skilled workers• Can negotiate additional terms not available Can negotiate additional terms not available

under GATS to address specific issuesunder GATS to address specific issues E.g., brain drain and loss of investment in education E.g., brain drain and loss of investment in education

for health workersfor health workers

• Can allow for regulatory experimentation Can allow for regulatory experimentation • BUT MFN problemBUT MFN problem

Time limited waiver – perhaps with notification Time limited waiver – perhaps with notification obligations?obligations?


Intra-corporate transfereesIntra-corporate transferees• Help create a broader alliance for mode 4Help create a broader alliance for mode 4• Developing countries increasingly becoming Developing countries increasingly becoming

investors – real scope to bring in own workers investors – real scope to bring in own workers (TCS in US)(TCS in US)

Also joint ventures in context own mode 3 Also joint ventures in context own mode 3 liberalizationliberalization

Own nationals often intra-corporate transferees of Own nationals often intra-corporate transferees of TNCsTNCs

• Need wider range of skill levels and remove Need wider range of skill levels and remove pre-employment requirements to facilitate pre-employment requirements to facilitate global recruitmentglobal recruitment

Priorities for negotiations - whoPriorities for negotiations - who What about foreign employees domestic What about foreign employees domestic

companies?companies?• Not all agree covered by GATS at presentNot all agree covered by GATS at present• Viewed as most contentious in migration Viewed as most contentious in migration

community because closest to regular community because closest to regular migrationmigration

Seen as entering the labour market (although can’t Seen as entering the labour market (although can’t change employer without permission)??change employer without permission)??

Labour officials don’t want to treat differently foreign Labour officials don’t want to treat differently foreign and domestic employees of domestic companiesand domestic employees of domestic companies

• But difficulty of distinguishing between But difficulty of distinguishing between contractual service suppliers and employeescontractual service suppliers and employees

Area for further researchArea for further research


Clarifying and aiming for more uniform Clarifying and aiming for more uniform definitions of key common terms – definitions of key common terms – managers, executives, specialistsmanagers, executives, specialists• Use ISCO-88? Use ISCO-88? • RTAs also a good place to startRTAs also a good place to start

Where can’t agree, at least increase the Where can’t agree, at least increase the transparency and require a greater degree transparency and require a greater degree of specificity in commitmentsof specificity in commitments

Priorities for negotiations - howPriorities for negotiations - how GATS visa?GATS visa?

• Need to work closely with migration officials to Need to work closely with migration officials to see if this makes sensesee if this makes sense

Danger of going backwards (less data, more Danger of going backwards (less data, more restrictive definition of mode 4, more burdensome restrictive definition of mode 4, more burdensome procedures)procedures)

• Where are good systems in place, use GATS Where are good systems in place, use GATS visa as a reference pointvisa as a reference point

• Where nothing in place, could be a good place Where nothing in place, could be a good place to startto start

Resource issues and capacity to implementResource issues and capacity to implement• Explore other optionsExplore other options

APEC Business Travel Card modelAPEC Business Travel Card model

Priorities for negotiationsPriorities for negotiations ENTsENTs

• Removal (trade-off is quotas, but these are at least Removal (trade-off is quotas, but these are at least transparent and negotiable)transparent and negotiable)

• Regular notifications on their operation (decisions, time Regular notifications on their operation (decisions, time frames, criteria)frames, criteria)

TransparencyTransparency• Single windows for information and feedbackSingle windows for information and feedback• Notification/provision of implementation on how Notification/provision of implementation on how

commitments actually implementedcommitments actually implemented• Additional commitments on prior consultation for Additional commitments on prior consultation for

regulations affecting mode 4 regulations affecting mode 4 Over time, could lead to greater understanding and thus Over time, could lead to greater understanding and thus

convergence between trade and migration communities. convergence between trade and migration communities.

Priorities for negotiation - Priorities for negotiation - recognitionrecognition

Use of Article VI.6Use of Article VI.6• Use negotiations to gain more information and Use negotiations to gain more information and

push for improvementspush for improvements Including assistance to help developing countries Including assistance to help developing countries

both participate in negotiations and, where both participate in negotiations and, where necessary, meet relevant standardsnecessary, meet relevant standards

Implementation Article VIIImplementation Article VII• Standing item on CTS to provide information on Standing item on CTS to provide information on

agreements in progress – including industry agreements in progress – including industry agreements – and presentations by relevant agreements – and presentations by relevant international associations;international associations;

National level - identify the problem: lack of National level - identify the problem: lack of information, interest or resources?information, interest or resources?

Priorities for negotiationsPriorities for negotiations LinkagesLinkages

• Mode 4 and outsourcing (mode 1/2) - complementsMode 4 and outsourcing (mode 1/2) - complements• Mode 4 and mode 3 (complements)Mode 4 and mode 3 (complements)• Mode 4 and trade in education services (modes 2 and 3)Mode 4 and trade in education services (modes 2 and 3)

Increasing dialogue between trade and migration Increasing dialogue between trade and migration policy communitiespolicy communities• Dialogue to understand needs and constraintsDialogue to understand needs and constraints• Policy coordination to identify possible avenues for Policy coordination to identify possible avenues for

progressprogress• Identifying necessary complementary measuresIdentifying necessary complementary measures

Thank youThank you

temporary movement of people as service suppliers - gats mode 4 julia nielson oecd may 2004

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