Liberalisation per mode of supply

The commitments under GATS are specified by mode of supply, and the extent of liberalisation therefore differs per mode of supply. Commitments under mode 4, the presence of natural persons, is considered to be important for the exports of developing countries. So far, relatively few commitments have been made under this mode of supply. Nowadays, this mode of supply is becoming also increasingly relevant for developed countries. Large companies need to be able to move personnel around the world, and in some sectors developed countries have a lack of skilled labour.

This section provides a selection of the literature on the movement of natural persons.

Service providers on the move: a closer look at labour mobility and the GATS, OECD Working Party of the Trade Committee, TD/TC/WP(2001)26/final, February 2002.

This extensive survey examines labour mobility under GATS. Because mode 4 relates to the movement of natural persons, the issue does not only concern trade in services, but also the wider aspects of movement of people. It outlines the concerns related to labour mobility both in OECD and non-OECD countries, and studies the treatment of labour mobility in regional trade agreements. Regional agreement use very different approaches to labour mobility. Considerable attention is paid to the definition and measurement of mode 4 under the GATS. The paper studies the commitments that have been made so far and reviews some proposals for improving the scope and operation of these commitments. Possible improvements are identified in the following areas: definitions of personnel, stipulations on the length of stay, improving market access in various ways, administrative procedures relating to GATS visa and transparency, and moderating measures in the field of safeguards and bonds.

This document is available here.

Movement of natural persons and trade in services: liberalising temporary movement of labour under the GATS, R. Chanda, ICRIER Working Paper No. 51, November 1999.

This paper tries to assess the importance of service trade under mode 4, the remaining barriers to this trade, and the nature of liberalisation that has taken place so far, focusing on developing countries. It suggests ways for improving the nature of commitments and increasing transparency and specificity in the scheduling of commitments. The paper concludes by highlighting various domestic reforms and measures that would be required to benefit from liberalisation under mode 4. These reforms and measures include recognition of qualifications and policies relating to immigration and taxes.

This document is available here.

http://www.icrier.res.in/pdf/RupaCh.pdf

Presence of Natural Persons (Mode 4), Background note by the WTO secretariat, S/C/W/75, December 1998, Geneva.

This background note discusses the potential effects of labour migration, both in countries of origin and countries of destination. It provides some empirical findings under this mode of services supply and presents an overview of the main barriers for the movement of natural persons as listed in the countries’ schedules of commitment. Finally, the paper summarises the relevant issues under the horizontal commitments. The paper focuses on the trade-related issues of labour mobility, it does not take social and political considerations into account.

This document is available here.