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Trade in services under the GATS!!3fFour modes of supply (Article I): (1) Cross border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons N"t"X3GATS Definition of mode 40 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 Nzy1)3+ (GATS Annex - (2) Mode 4 does not cover: ))  Plus ... ( Governments are free to regulate entry and temporary stay, provided these measures do not nullify or impair the commitments Including by applying differential visa requirementsD3D<!GATS Definitions (Article XXVIII)""( eService supplier of another Member In the case of a juridical person In the case of a natural personff$*#NMode 4 commitments  where do we stand?((6  A snapshot of commitments0Governed by horizontal commitments Absence of full liberalization (i.e.  None ) Positive listing:  Unbound except ... Often linked to commercial presence High-level of training/expertise, often as ICT Most frequently specified durations of stay: 3 months for BV, 5 years for ICTMain limitations scheduledgLimited categories included Pre-employment requirements Economic Needs Tests/Labour Market Tests Quotas&hZ V Residency and nationality requirements Training/Education/ Qualification Authorisation, approval, registration requirements Training of localsZ5-p Typical definitions of categories in commitments - ICT 95((@ Intra-corporate transferees (ICT)  work for an enterprise established in the territory of a Member and are transferred to the enterprise s commercial presence in the territory of another Member in the context of the supply of a service. Often as executives, managers, specialists.  Executives  direct the management, have wide latitude in decision-making, are supervised only by board of directors or stockholders, do not provide service directly  Managers  direct organization or department, hire/fire, have day-to-day discretion, supervise other staff  Specialists  have essential knowledge at advanced level of expertise, proprietary knowledge of organisationb#  c b6.n Typical definitions of categories in commitments - BV 85(( Business visitors (BV) are not engaged in supplying the service or making direct sales to the public, and do not receive remuneration from a source in host Member  Sales BV  negotiate for the sale of a service, establish business contacts, attend business meetings and similar  Set-up BV  set-up a commercial presence in another Member, where their employer has nonenuZ k Q7/p Typical definitions of categories in commitments - CSS 95(( Contractual service suppliers (CSS)  employees of a juridical person (which has no commercial presence in host Member) who supply a service on the basis of a contract their employer has concluded with a consumer in host Member The employee receives remuneration from the employer while abroad, has appropriate educational and professional qualifications, may not engage in other employment Commitment relates only to the activity which is the subject of the contractb  80n Typical definitions of categories in commitments - IP 85(( Independent professional (IP)  self-employed person based in the territory of another Member who supplies a service on the basis of a services contract with a consumer in the host Member IP has appropriate educational and professional qualifications Commitment relates only to the activity which is the subject of the contract6J" LStructure of Horizontal Commitments (% of total categories scheduled, 2008) 0MP$$&$91(State of play in the mode 4 negotiations)) :2Starting pointIn comparison to the other three modes of supply, mode 4 commitments are the least liberal, due to positive listing and proliferation of limitations<4*Main mode 4 barriers identified by Members++(Structure and coverage of existing commitments Economic Needs Tests (ENTs) Definitional problems Administrative practices: no access to information and lack of transparency Lack of recognition of qualificationsE=5!Some of the solutions proposed...""More and better commitments more categories, improved definitions, finer classification,  sector-specific commitments Removal of barriers multilateral criteria for ENTs - more specific, transparent and non-discriminatory Greater transparency and predictability GATS visa More regulatory cooperation amongst sending and receiving MembersZ\ZZTZtZ[St>6.Mode 4 - Offers so far&    30 of around 70 offers propose some improvement to horizontal commitments (half developed, half developing countries) The value or importance of horizontal commitments in mode 4 depends on the number of sectors included in the schedule  ?7-Main mode 4 improvements contained in offers..New categories, broader coverage Expanded list of sectors to which the commitments apply Extended periods of stay; possibility of renewal Clarification of the application/reduction of the scope of ENTs Reduction of discriminatory measures Some improvements in transparencyH@82Overall state of play in the services negotiations33(Number and quality of offers has thus far been unsatisfactory, including on mode 4  Few, if any, new commercial opportunities would ensue for service suppliers. Most Members feel that the negotiations are not progressing as they should. [Chair of CTSS, July 2005 (TN/S/20)] BUT Hong Kong Ministerial (December 2005) provided objectives and plurilateral process nSXS%U FV |0A9jHong Kong Ministerial Declaration  Mode 4 objectives66(3 Members to be guided, to the maximum extent possible, by the following mode 4 objectives: New or improved commitments on: CSS, IP and Others de-linked from commercial presence ICT, Business Visitors to reflect inter alia removal or substantial reduction of ENTs indication of duration of stay and renewal[ MV[ M  V  -B:Plurilateral Requests - Mode 4Collective request on mode 4 From 15 developing to 9 developed countries Seeks commitments on CSS and IP Commitments are called for in a number of sectors, falling under business, construction, environmental, tourism and recreational services Asks for the removal/clarification of Economic Needs Tests Least-developed countries have also submitted a mode 4 request, with a largely similar focusXP0P`Z3^3C;hJuly 2008  Mini-Ministerial  Signalling Conference55(Indications were exchanged on own new and improved commitments as well as on the contributions expected from others Overall, positive indications were given about market access commitments across all major services sectors and modes of supply  Most participants indicated their readiness to improve access conditions for mode 4. 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