GATS Negotiations

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GATS Negotiations Mode 4 Temporary Movement
of Business People CUSLI/OBA Services Agenda
Getting up to speed February 26-27, 2004 Toronto
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Topics

• Quick review of Mode 4
• Business views from previous consultations
• Mode 4 barriers identified
• Update regional/bilateral negotiations
• Update GATS mode 4 negotiations
• Requests Offers
• Suggested Approach Your Views

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Mode 4 Review

• foreigners providing services temporarily in
  another country
• help drive intl. trade (exports imports)
  investment (outward inward)
• employees of service providers
• or
• self-employed

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Mode 4 Review

• No access to employment market
• Not measures on citizenship, residence or
  employment on permanent basis
• In principle, all skill levels covered
• In practice, Members commitments
• -most on intra-corporate transferees
• -some on business visitors professionals
• -few on medium low skilled workers

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Mode 4 Review

• Members specific commitments
• most are horizontal (apply to all covered
  sectors)
• some are sectoral
• Members maintain right to regulate normal
  admission (screening for security, criminality,
  health, bona fides)
• entry with or without work permits
• no HRSD job offer confirmations

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Cdas Mode 4 Commitments

• Existing
• business visitors (BV) (90-day period)
• intra-company transferees (ICT) (3-year period)
• 9 professionals (lesser of 90 days or contract
  length)

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• Previous Consultations
• Business Views
• Mostly on outward issues (problems with access
  to foreign markets)
• Most problems access to work in the US
• Fewer problems access to work in other
  countries
• Transparency poor info on temporary entry
  regimes or admin. practices (processing times)
• Spousal employment After-sales/lease services
• Licensing certification of professionals

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State of PlayRegional/Bilateral

• NAFTA -process to modify Chapter 16
• -other implementation issues
• -IT professions
• FTAA - little discussion so far
• Central America - modest provisions
• (like Cda-CR FTA)
• Exploratory (EU, Caribbean, Andean)

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Priority Markets

• USA
• European Union
• Japan
• China
• India
• Brazil
• Other WTO Members (based on cited mode 4
  barriers)

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Mode 4 State of Play Requests

• Other Members (32)
• junior personnel/ trainees
• medium low skilled workers
• professionals on contract

• CANADA (50)
• match Cdas high commitments
• after-sales/lease services
• spousal employment
• better transparency
• define categories
• say if work permits, economic needs tests or
  labour market tests apply
• provide source of explanatory info on commitments

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Mode 4 State of Play Offers

• Other Members (8)
• professionals
• some transparency
• junior personnel/ trainees

• Canada
• professionals on contract
• greater transparency
• spousal employment
• after-sales/lease

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Cdas Mode 4 Commitments

• Existing
• business visitors (BV)
• (90-day period)
• intra-company transferees (ICT) (3-year period)
• professionals (9) (lesser of 90 days or contract
  length)

• Offers
• BV incl. after-sales/lease service providers (6
  months, possible extensions)
• ICT (period of transfer, possible extensions, ex.
  5yr. cap for specialists)
• professionals (lesser of 1yr. or contract length)
• spouses/common-law partners
• transparency (definitions, work permits, labour
  market tests)

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Suggested Approach

• more aggressive
• transparency
• elimination of labour market/economic needs
• tests
• professionals
• less emphasis on doubtful issues
• (spousal employment, after-sales/lease services)
• possible future offers
• junior personnel/trainees?
• additional professionals?
• computer specialists (lower education/experience
  requirements)?

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• Give Us Your Views
• besides entering the US
• where are the big problems?
• what are the details?
• focus outward (export markets direct
  investment abroad)
• focus inward too (access to competitive,
  temporary foreign workers)
• mode 4 barriers hurting Cdas intl. trade FDI
  attraction/retention?
• provide contact info for follow-up

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Problems

• lack of info on temporary entry rules,
  procedures, administrative practices?
• work permits or visas subject to labour market
  or economic needs tests?
• transferring junior personnel / trainees?
• spousal employment?
• after-sales/lease services?
• specific professionals (no labour market or
  economic needs tests)?

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Conclusion

• Mode 4 key issue in GATS negotiations
• Cdas negotiators promoting discussions
  (ambitious requests offer, Friends of Mode 4
  group, paper on greater transparency of
  commitments)
• Gains for Canada possible (reciprocity or
  tradeoffs)
• better mode 4 access abroad for Cdns
• tradeoffs (e.g., mode 4 liberalization for
• sectoral liberalization)
• Your views continuing dialogue on mode 4 issues