ࡱ> hji'( / 0LDTimes New Roman̳0~0  @n?" dd@  @@`` x.|&    !%%"#c $ @>g4FdFd~08l ppp@  g4KdKd~0p@ pp<4!d!d,;? %O = Current regimes for temporary Movement of Service Providers Possible approach to negotiations from the developing countries perspective$<L4Jolita Butkeviciene Trade in Services Section UNCTAD5P53Why movement of people across borders is important?The role of new technologies the role of new business organizations dynamism of the markets low cost - high speed communication networks and transport services demographic trends cultural change dSome features of the developing countries regimesjPolicy framework is open to foreign providers legal instruments are of general nature national treatment is usually provided in mode 4 measures affecting services in mode 4 fall under the domestic regulation in nature proportion of foreign population in the labor markets is important regional integration among developing countries increasingly concerns mode 4'What has been achieved under the GATS? Mode 4 was negotiated as a horizontal issue categories covered included: intra-corporate transferees, business visitors, independent professionals linked to investment limited commitments under the Annex on mode 46JLCJLCIIExamples of categories of occupations in existing GATS national schedules JPI$MLegal services supplied by a lawyer or attorney, accounting, auditing and bookkeeping services supplied by an accountant, medical doctors and dentists fashion models and those in specialist occupations urban planner senior computer specialist systems analyst programmers software document analyst field engineers travel tour managersNN5Other issues relevant to the liberalization of mode 4Market access as the most important issue Economic needs tests Lack of transparency in procedures and criteria Issue of visa Implementation of GATS Article IV aimed at increasing participation of developing countries  How to advance the negotiations?IAdopt the ILO International Standard Classification for Occupations follow the sector-specific approach Limit the scope of the Economic Needs Test indicating the minimum market access without the need to comply with the ENT Improve transparency in regulations establish criteria in for the application of ENT Adopt the GATS visa ZM$1M$1JLinking GATS services sectors with occupational classification: an exampleProfessionals in the following occupations: Legal: ISCO 242 and CPC 861 Accountants: ISCO 2411 and CPC 862 Engineering: part of ISCO 214 and CPC 8672 Architectural: ISCO 2141 and CPC 8671 Medical: ISCO 222 and 223 a.o. and CPC 9312,5Measuring trade in services in mode 4 internationallyIMF Balance of Payments statistics UN Statistics of International Migration ILO ISCO and employment statistics Statistics on Foreign Affiliates Trade in Services Other relevant information: work permits; arrivals/departures; censuses and household surveys^ Top 10 countries in receiving workers remittances, 1999 in mln USDDC(<Country Value Share in total exports India 11 002 21% Mexico 5 909 4% Turkey 4 529 10% Portugal 3 320 10% Spain 3 305 2% Egypt 3 235 22% Morocco 1 938 18% Bangladesh 1 797 29% Greece 1 667 7% Jordan 1 664 47%0*Z) @Top 10 countries where remittances originate, 1999 in mln of USDA@(6Country Value Share in total imports United States 17 370 1.4% Saudi Arabia 13 977 31.4% Germany 3 656 0.6% France 2 875 0.8% Japan 2 720 0.7% Malaysia 2 038 2.7% Switzerland 1 889 1.8% Kuwait 1 731 14.6% Oman 1 438 25% Spain 968 0.6%<*P)l tWorkers remittances received as a percentage of GDP, 1999Country Value Jordan 22% Samoa 21% Yemen 19% Albania 12% El Salvador 11% Jamaica 11% Nicaragua 10% Cape Verde 9% Dominican Rep. 8% Sri Lanka 6%  Country Value Sudan 6% Morocco 6% Bosnia&Herz 5% Vanuatu 5% Honduras 5% Ecuador 4% Egypt 4% Nigeria 4% Bangladesh 4% Tunisia 3% }1Z LWorkers remittances in USD per capita'&(Country Value in 1999 Jordan 348 Portugal 332 Jamaica 282 Barbados 269 El Salvador 267 Dominican Rep. 223 Greece 184 Albania 157 Vanuatu 114 Croatia 98<Z fAnnual average growth rates of Workers remittancesGroup 1995-99 1996-97 1997-98 1998-99 World 4.3 13.2 -7.1 5.2 Developed - 4.3 -10.9 -6.4 4.7 countries Developing 6.8 21.0 -8.0 6.2 countries\(# (" 2'x~ SGATS relevant categories covered under the UN Statistics on International MigrationTPT-Foreign border workers Foreign business travelers Migrant workers: seasonal; contract; project tied; temporary migrant workers Migrants having the right to free establishment or movement Migrants for long-term settlement: employment-based selected for their qualifications; entrepreneurs and investors6PC;`P)7Net number of migrants, thousands (UN DESA statistics)*8P#( Country 1995-2000 United States 6 250 Russian Fed. 1 434 Germany 924 Canada 720 Italy 588 United Kingdom 475 Australia 474 Saudi Arabia 400 Singapore 368 Japan 280 France 194<P Country 1995-2000 China -1 903 Mexico -1 550 India -1 400 Philippines -950 Indonesia -900 Egypt -400 Sudan -384 Pakistan -351 Albania -300 Burkina Faso -300 Bangladesh -300$What have we learned?The movement of persons internationally is of particular and demonstrated importance to developing countries Mode 4 related trade generates direct export earnings which are of significant magnitude to receiving countries Mode 4 relate payments as part of import of services is not strategic in terms of share in total trade The importance of mode 4 related global income flows is steadily increasing over time    /    ! " # $ %'(* ` ̙33` ` ff3333f` 333MMM` f` f` 3>?" dd@,|?" dd@   " @ ` n?" dd@   @@``PR    @ ` ` p>> c(    6T P  T Click to edit Master title style! !  0   RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  0 ``  =*  0t `   ?*  0 `   ?*Z  BQ޽h @ ? f̙33 0 0.( \3,   0# P    Y*   0#     [* d  c $ ?    0T$  @  RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  6$ `P   Y*   6% `   [* H  0޽h ? ̙33 @(  l  C 0   l  C  ` p  H  0޽h ? ̙33  ` P(    r  S $P     S <$  0  H  0޽h ? ̙33  ,D(   ,l , C     , C 0<$ 0  H , 0޽h ? ̙33  P(  r  S $P     S <$ 0  H  0޽h ? ̙33  4D(  4l 4 C     4 C dP<$ 0  H 4 0޽h ? ̙33  $P(  $r $ S P    $ S <$ 0  H $ 0޽h ? ̙33  (D(  (l ( C $    ( C <$ 0  H ( 0޽h ? ̙33   8D( X 8l 8 C $    8 C  0<$ 0  H 8 0޽h ? ̙33  @<D( P a <l < C $    < C P<$ 0  H < 0޽h ? ̙33   `@( ek @l @ C $   l @ C    H @ 0޽h ? ̙33   H(  Hl H C    l H C d   H H 0޽h ? ̙33   TLP(  Pl P C     P C p <$ 0   P C D` P<$ 0  H P 0޽h ? ̙33   L(    Ll L C    l L C d@  H L 0޽h ? ̙33   T(  Tr T S T]P   l T C ]  H T 0޽h ? ̙33  \D(   \l \ C 4_    \ C _ <$ 0  H \ 0޽h ? ̙33  TL (  l  C `     C a` P<$ 0    C ta0 <$ 0  H  0޽h ? ̙33  @D( 7 l  C b     C bP<$ 0  H  0޽h ? ̙33B  `( x `r ` S "p  r ` S 4# `    V `  W>1  ?Thank youArial Black5HY?fHp,$D  0H ` 0޽h ? ̙33v 0 6.p(  R  3    4  C D @   Movement of people is a two-way process: lack of certain types of the management skills has undermined in the past the competitiveness of the developing countries in export of services, e.g. construction projcets migration has increased in the 90s in the UK migration is the main component of the population change Cultural change: example is Germany where unlimited stay is extended to skilled workers - deep shift in previous approach on limiting inflow of immigrants In the UK foreign labor population is more skilled on average than British - broad occupational categories Foreign workers are employed in different type of occupations, health and IT are predominantH  0޽h ? ̙33 0 z(  R  3      C  @     H  0޽h ? ̙33 0 zP ( g  R  3      C  @     H  0޽h ? ̙33 0 0>(  0R 0 3     0 C  @   LDeveloping countries are interested in attracting investment at large and often have provisions for the employment of foreign service providers under the investment legislation As a rule are not very explicit in their legislation and in implementing regulations: often, the requirement of a general quota of, for example 15% in all economy and not exceeding 10% per establishment of certain size may be applied. However, department of labor may grant additional permits when the need is justified by the employer. In some countries foreign employment is reaching 24% of the labor force which is significantly higher than that of developed countries. Regional integration has already manifested in the introduction of special visa and passport arrangements, for example the SADC passport. H 0 0޽h ? ̙33 0 zd( 4 dR d 3     d C $ @     H d 0޽h ? ̙33 0 zh( 4 hR h 3     h C  @     H h 0޽h ? ̙33 0 zl( D@z@ lR l 3     l C ć @     H l 0޽h ? ̙33 0 z0p( 4 pR p 3     p C Ċ @     H p 0޽h ? ̙33  0   PtL ( D@z@ tR t 3      t C d @   Z  BPM5 provides statistics on the compensation of the employees and workers remittances which are relevant to mode 4. Underestimates: It is based on the one-year residency criteria CE only covers the income received by those employed by the resident employers. WR are the residual income (after expenditure and savings). Overestimates: BPM5 related labor flows do not distinguish between services and non-services industries. However, WR is the single most important measure as a proxy to identify relative importance of trade related to mode 4 and in fact the comparative advantage across countries and modes of supply. UN framework for migration includes important categories which are GATS-related and which are detailed later. World Bank is also reporting relevant information of foreign employment, but for a small number of countries and the most recent year is 1997. ISCO is particular important in terms of providing classification of occupations. FATS statistics when available will be likely to provide information relevant to commitments on intra-corporate transferees. Other information may be of interest to the trade negotiators.*w zWH t 0޽h ? ̙33f  0 &px( D@z@ xR x 3    $ x C  @   This list further includes other developing countries, where share of the workers remittances is often above 10% of their export earnings, namely Dominican Republic (19%), El Salvador (43%), Nigeria ( 10%), Colombia (10%), Yemen (46%), Ecuador (20%), Sri Lanka (19%), Pakistan (11%), Jamaica (20%), Sudan (77%), Guatemala (13%), Albania (66%).H x 0޽h ? ̙33  0 z|(  |R | 3     | C $ @     H | 0޽h ? ̙33  0 z( D@z@ R  3      C  @     H  0޽h ? ̙33  0 z( 4 R  3      C \ @     H  0޽h ? ̙33V   0   ( @V@ R  3      C t^ @   The following growth rates are found as the regression coefficients. The annual average over the longer period of time often may hide strong fluctuations as is the case in this period of 95 - 99. The average annual growth rate for the 10 year period however, is somewhat stronger for 10 year period for the world as a whole at 5%. We may conclude that as a global trend workers remittances are exhibiting growing importance. The average growth rate in developing countries is significantly higher than the world average, while for developed countries the growth rate has a stronger tendency to fluctuate between positive and negative growth. In fact, between 90 and 95 there was no actual change on average in developed countries and workers remittances stayed constant. For the last year 99-00 the trend is expected to remain positive all around. In any case, the rates demonstrate a relative higher importance of the mode 4 related income flow to developing countries. H  0޽h ? ̙33 0 z( D@z@ R  3      C T` @     H  0޽h ? ̙33 0 z`( 4 R  3      C 4e @     H  0޽h ? ̙33  0 J B P (  R  3    H   C d @    24 of 30 top recipients of workers remittances are developing countries when measured by the share of workers remittances in GDP top 21are developing countries. In terms of negotiations, this demonstrates the importance that developing countries attach to mode 4. The list of countries that have a demonstrated economic interest in this area includes all regions (Asia, Latin America, Africa including North Africa) and is relevant to large and small economies, including island countries. Countries that are destination markets for mode 4 related trade may not find it difficult to negotiate down their barriers as this trade may not significant affect their position in the sense of their terms of trade. All this being said, negotiating process would have to be as specific and detailed as reasonably feasible. In that respect, progress in negotiations would be most likely if the approach based on occupational classifications was to be adopted. As a general rule, mode 4 related trade is of particular importance to developing countries in overall terms, while this is true for selected services industries in developed countries. Thus, negotiating on a sector specific basis may bring better and more tangible results as an outcome.H  0޽h ? ̙33~ 0 >60( D@z@ R  3    <  C a @   The left-hand column enlists the countries where net increase of migrants have occurred over the last 5 year period reported and the other - the most pronounced outflow of the population. This list attempted to exclude countries with pronounced political turbulence. Even without detailed information, it is possible to suggest which markets are key destinations for the migrant population and on the other hand - where the migrant population came from. H  0޽h ? ̙33r'6780"<\F@@a c:^Bd:>jDvFH@bJBLNPRxYik^m(oplW{d.… '@TF̡*Oh+'0 hp |    Current regimes for temporary Movement of Service Providers: possible approach to negotiations from the developing countries perspectiveoJolita ButkevicieneRC:\Program Files\Microsoft Office\Templates\Presentation Designs\Professional.potneSpeirgr21iMicrosoft PowerPointoso@f:U@&@`5hGoM  l9& &&#TNPP0D & TNPP &&TNPP    &&--&&- $0Z- $Z- $>- $>h- $h- $L- $Lv- $v- $Z*- $*Z- $- $h8- $8h- $- $vF- $Fv&&&- & $&&-&& &&-&&&&- $0Z- $Z- $>- $>h- $h- $L- $Lv- $v- $Z*- $*Z- $- $h8- $8h- $- $vF- $Fv&- --&&&G& wwgw  - &Gy& --@H-- Times New Romanwgw  - .32 mCurrent regimes for temporary '.-. .32 Movement of Service Providers 4.!!.Times New Romanwgw  - .92 g!Possible approach to negotiations$. .42 @from the developing countries*. .2 s perspective.--i1-- Times New Romanwgw  - f.$2 Jolita Butkeviciene     . f.-2 )qTrade in Services Section     . f.2 \uUNCTAD.--"Systemw f>    -&TNPP &՜.+,D՜.+,8     On-screen Show EIG Founexh1 Times New RomanDefault DesignCurrent regimes for temporary Movement of Service Providers Possible approach to negotiations from the developing countries perspective4Why movement of people across borders is important?3Some features of the developing countries regimes(What has been achieved under the GATS? JExamples of categories of occupations in existing GATS national schedules6Other issues relevant to the liberalization of mode 4!How to advance the negotiations?KLinking GATS services sectors with occupational classification: an example6Measuring trade in services in mode 4 internationallyDTop 10 countries in receiving workers remittances, 1999 in mln USDATop 10 countries where remittances originate, 1999 in mln of USD;Workers remittances received as a percentage of GDP, 1999'Workers remittances in USD per capita4Annual average growth rates of Workers remittancesTGATS relevant categories covered under the UN Statistics on International Migration8Net number of migrants, thousands (UN DESA statistics)What have we learned?No Slide Title  Fonts UsedDesign Template Slide Titles 6> _PID_GUIDAN{73479388-505B-11D6-BDF6-000629770E82}Root EntrydO)P{~g@Current User%SummaryInformation(RPowerPoint Document(  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQSTUVWXYZ[]^_`abcn_〢SpeirRoot EntrydO)Lk@Current User%SummaryInformation(RPowerPoint Document(  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQSTUVWXYZ[]^_`abcn_〢Speir  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQSTUVWXYZ[]^_`abcefghijknRoot EntrydO)Current UserdSummaryInformation(RPowerPoint Document(DocumentSummaryInformation8\