|
ICC
Policy Statement
ICC
recommendations on the movement of natural persons
Prepared
by the Commission on Trade and Investment Policy
ICC
strongly supports the objectives adopted at the 4th WTO Ministerial Conference
at Doha in November 2001 regarding negotiations on trade in services including
movement of natural persons, as provided for under article 1 paragraph
2(d) of the General Agreement on Trade in Services (henceforth referred
to as "mode 4" of service delivery in this statement). Businesses
across the globe consider that the cross-border movement of key personnel
to provide services in foreign markets is an essential component of business
strategy in international operations. However, most countries impose administrative
requirements such as visa, residence and work permit restrictions, which
impede or delay the movement of natural persons for the conduct of business
in foreign markets.
ICC
therefore notes with satisfaction that Paragraph 15 of the Doha Ministerial
Declaration states "The negotiations on trade in services shall be
conducted with a view to promoting the economic growth of all trading
partners and the development of developing and least-developed countries.
We recognize the work already undertaken in the negotiations, initiated
in January 2000 under Article XIX of the General Agreement on Trade in
Services, and the large number of proposals submitted by Members on a
wide range of sectors and several horizontal issues, as well as on movement
of natural persons. We reaffirm the Guidelines and Procedures for the
Negotiations adopted by the Council for Trade in Services on 28 March
2001 as the basis for continuing the negotiations, with a view to achieving
the objectives of the General Agreement on Trade in Services, as stipulated
in the Preamble, Article IV and Article XIX of that Agreement. Participants
shall submit initial requests for specific commitments by 30 June 2002
and initial offers by 31 March 2003."
ICC
considers that the need to move professional, technical and managerial
personnel across national borders for purposes linked to international
trade and investment should be treated as a major issue in the GATS negotiations,
and that further progress should be made towards the mutual recognition
of professional qualifications.
Present state of negotiations
Since Doha, several WTO members have made their initial offers. However,
the quality of the offers is less than satisfactory and often disappointing;
many provide little liberalization, and merely bind existing regimes,
sometimes failing even to reflect current levels of access. Moreover,
some WTO members have not yet submitted an initial service offer even
though the deadline for service offers was 31 March 2003. Progress in
the negotiations on mode 4 will require the full engagement of all WTO
members in the exchange of requests and offers. The offers will also need
to be greatly improved as they come under scrutiny in the bilateral negotiations.
ICC
recommendations
ICC is of the view that broader and deeper commitments under mode 4 should
be an important element in the liberalization process for trade in services
in general. ICC urges all WTO members to submit ambitious offer, and presents
the following recommendations to bring about effective market access under
mode 4:
Improve
and clarify commitments
The existing commitments under mode 4 often lack clarity and uniformity.
They are generally confined to small subsets of service personnel related
to commercial presence, with only a few extending to independent movements.
Also, most sectoral commitments are still unbound.
- There should be more uniformity in the definitions and coverage of broader
service personnel categories in horizontal commitments by WTO members,
in order to bring about greater certainty in these commitments and their
application.
- WTO members should make further commitments to liberalize the temporary
movement of 1) intra-corporate transferees and 2) contract service suppliers.
In particular, intra-corporate transfers "for training and career
development" should be facilitated.
- ICC supports horizontal commitments to specifically include a well defined
category of individual professionals, apart from categories that already
exist.
- More sectoral commitments also need to be made in addition to horizontal
commitments. These sectoral commitments should be bound.
- The WTO Committee on Specific Commitments should continue to assist
WTO members in improving and clarifying their commitments under mode 4.
Distinguish
between temporary and permanent movement
In most countries, temporary movement comes under the purview of immigration
and labour regulations and is not treated separately from permanent movement.
Market access for professional persons is in effect restricted by administrative
and procedural barriers. As a result, procedures to obtain visas and work
permits for short-term assignments are unnecessarily slow and cumbersome.
For businesses, this can mean lost contracts and higher costs for entering
foreign markets, thereby eroding the competitiveness of fore
ign service
suppliers. Quantitative limits on visas and other restrictive policies
and eligibility conditions negate the competitive advantage of developing
country service providers in particular.
- A distinction should be established between permanent and temporary
movement so that procedures and requirements that apply to permanent movement
do not hinder the commitments made for temporary movement. Conditions
of entry and stay for temporary movement should be less stringent than
for permanent immigration.
- ICC encourages WTO members to provide a more transparent, predictable
and objective issuing of visas and work permits.
- Procedural aspects should be simplified by way, for example, of shorter
time frames for the granting of visas for temporary movement, transparent
application processes, simplified renewal and transfer procedures, and
recourse mechanisms to ascertain the status of an application and reasons
for rejections.
- special GATS permit could be introduced to facilitate temporary movement
of personnel covered by horizontal and sectoral commitments. Such a GATS
permit would be subject to accelerated and simplified approval procedures.
Clarify
application of "economic needs tests" to mode 4
Clarification of the conditions of application of an "economic needs
test" (ENT) with regard to Mode 4 (as provided for under article
XVI, paragraph 2d of the GATS) would increase the predictability and certainty
of commitments undertaken by WTO members. A more limited use of ENTs would
allow for greater mode 4 liberalization, thereby contributing to more
efficient services sectors in both importing and exporting countries.
- ICC suggests that WTO members should endeavour to eliminate/reduce limitations
imposed by the requirements of an ENT on the number of service suppliers.
- There should be fewer occupational categories subject to such tests
and consensus achieved on such categories.
- As a first step and to improve transparency, WTO members should clearly
identify and make publicly available the criteria for an ENT. For example,
written criteria could be laid down for applying such tests, establishing
guidelines for administrative and procedural formalities, also specifying
how the results of such tests would restrict entry to foreign service
providers.
- In sectors where an ENT applies, such application should be based on
multilateral principles, which would include definition of an ENT, criteria
for introduction of an ENT, procedures for the application and guidelines
for the administration of an ENT, transparency and full availability of
information, duration and review of the application of an ENT.
Mutual
recognition
Licensing requirements and the lack of recognition of professional qualifications
and experience in third countries are frequent causes for rejection of
work permits and visa applications, thereby limiting or preventing market
access for foreign service providers under mode 4. Article VII of the
GATS provides for mutual recognition agreements (MRAs) and the opportunity
for any interested WTO member to participate in the negotiation of such
agreements. However, the provisions of Article VII remain largely unused.
- ICC encourages WTO members to engage in bilateral and plurilateral MRAs
- both at sectoral and horizo
ntal levels - to ensure that effective market
access is granted.
- Effective opportunities should be given to developing countries to participate
in the negotiation of MRAs.
- ICC strongly recommends that WTO members implement the existing Notification
Requirements under Article VII of GATS providing for MRAs between WTO
members.
- The WTO Council for Trade in Services should continue to monitor the
effective implementation of article VII of GATS.
- Wherever appropriate, WTO members should consider the establishment
of multilateral norms to facilitate MRAs among member countries. The "guidelines
for mutual recognition agreements in the accountancy sector", adopted
by the WTO in 1997, are an encouraging example of non-binding multilateral
norms designed to facilitate the negotiation of MRAs.
- ICC recognizes however that addressing the issue of mutual recognition
of qualifications at a multilateral level can be particularly complex
and time-consuming. This should not prevent progress on market access
offers.
Social
security contributions
Temporary professionals may be subject to the payment of social security
contributions in the host country even though they are not entitled to
the benefits from such contributions, since their period of stay under
GATS is usually lower than the minimum period required to be eligible
for such benefits. Many countries have already negotiated bilateral agreements
that enable temporary professionals to continue making social security
contributions in their country of permanent residence. In the context
of their commitments under mode 4, ICC encourages WTO members to consider
such provisions at multilateral level, or alternatively to exempt temporary
professionals from social security contributions in the host country,
or entitling them to a refund of such contributions after their stay.
Conclusion
ICC urges WTO members to make further commitments to improve market access
for services under mode 4. ICC understands that due to current security
concerns, many WTO member governments many not be disposed to consider
more flexible entry conditions at this time. However, ICC also believes
that an agreement by WTO members to further liberalize the movement of
natural persons would show that industrialized countries and developing
countries are able to work together to ensure that the benefits of globalization
are spread more widely.
:-:-:-:-:-:-:-:-:-:
About ICC
ICC is the world business organization, the only representative body that
speaks with authority on behalf of enterprises from all sectors in every
part of the world. ICC promotes an open international trade and investment
system and the market economy. Business leaders and experts drawn from
the ICC membership establish the business stance on broad issues of trade
and investment policy as well as on vital technical and sectoral subjects.
ICC was founded in 1919 and today it groups thousands of member companies
and associations from over 130 countries.
2 December 2004
Document n° 103 / 245 Rev 3
|
