2f18f { "metadata": { "url": "https://www.commerce.gov.in/international-trade/india-and-world-trade-organization-wto/indias-gats-schedule-for-commitments-and-offers/special-sessions/council-for-trade-in-services-special-session-communication-from-india-proposed-liberalisation-of-movement-of-professionals-under-general-agreement-on-trade-in-services-gats", "title": "Council for Trade in Services - Special Session - Communication from India - Proposed Liberalisation of Movement of Professionals under General Agreement on Trade in Services (GATS) - Mcommerce", "meta_description": "", "meta_keywords": "commerce,antidumping,TRADE,Press release, MOC" }, "content": "Council for Trade in Services - Special Session - Communication from India - Proposed Liberalisation of Movement of Professionals under General Agreement on Trade in Services (GATS) - Mcommerce\nWelcome to Department of Commerce\nScreen reader access\nSkip to Main content\n+A\nA\n-A\nEnglish\nHindi\nEN\nHi\nGovernment of 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Promotion Programmes and Schemes\n7th Trade Policy Review (TPR) of India\nFAQs on FTAs Engineering Sector\nEU GSP Scheme of Self Certification\nCouncil for Trade in Services – Special Session – Communication from India – Proposed Liberalisation of Movement of Professionals under General Agreement on Trade in Services (GATS)\nIndian Papers/ submissions on Services in WTO\nRESTRICTED\nS/CSS/W/12\n24 November 2000(00-5077)\nOriginal: English\nCouncil for Trade in Services Special Session\nCOMMUNICATION FROM INDIA\nProposed Liberalisation of Movement of Professionals under\nGeneral Agreement on Trade in Services (GATS)\nThe attached communication has been received from the delegation of India with the request that it be circulated to Members of the Council for Trade in Services.\nI. OBJECTIVE OF THE PAPER\nThe objective of this paper is to assess the nature of liberalization that has taken place in Mode 4 under the existing GATS framework and the extent to which the objectives of Article IV of GATS have been operationalized through liberalization in this mode, of significant export interest to developing countries. This paper then identifies the key barriers to the movement of Professionals and the specific problems with the existing commitments undertaken by Member countries. Finally, it suggests possible strategies and approaches to achieving meaningful liberalization in this area which is of great relevance to many developing countries and could contribute to effective implementation of Article IV of GATS.\nII. EMPIRICAL ASSESSMENT\nThere is considerable asymmetry in commitments between different modes of supply with minimum level of commitments having been taken by developed countries in mode 4, which is of primary interest to the developing countries. For instance, horizontal commitments in mode 4 are subject to limitations in the case of 100 countries as opposed to only 4 countries for mode 2. The effectiveness of even these limited commitments is further reduced through a host of limitations and administrative hurdles.\nFurther, the number of aggregate entries for the main categories scheduled in the horizontal commitments are as follows:\nIntra-Corporate Transferees 135\nBusiness Visitors 70\nExecutives, managers and specialists 104\nIndependent contract suppliers 3\nOnly 12 Members have made commitments in the category of independent Professionals, including those providing services within a service contract. In other words, existing commitments are largely linked to commercial presence which is of very limited use to developing countries who are interested primarily in movement of independent professionals and other persons.\nIII. SPECIFIC PROBLEMS WITH THE COMMITMENTS\n1. Nature of commitments\nHorizontal: Commitments in mode 4 are primarily horizontal and these horizontal commitments are subject to many kinds of limitations. Further, they are bound for only a small subset of service personnel related to commercial presence and at higher levels and very few commitments extend to independent movement. The existing commitments also suffer from lack of clarity and uniformity in some aspects. The personnel categories are either not well defined or differ widely in their scope and coverage.\nSectoral: The sectoral commitments for most Members are Unbound and refer to the commitments filed under the horizontal schedules. And the horizontal commitments in turn are subject to many conditions and limitations as mentioned above. Mostly, they make the commitments even more restrictive, allowing no predictable market access at all in the sectors of interest to developing countries.\nThus, the extent of liberalization in mode 4 is quite limited given the fact that not only have important sectors (where professional movement is important) been left out by many countries in their scheduling exercise, but that even when such sectors have been scheduled, partial commitments with critical limitations exist.\n2. Other Limitations\n(a) Administrative Procedures\nThe administrative and procedural problems effectively rule out market access for developing country professionals.\n(i) Restrictions on the entry and stay of service providers\nOne important restriction to the movement of natural persons originates in immigration and labour market policies of individual countries. Temporary movement of labour is not separated from permanent movement of labour and therefore comes under the purview of immigration legislation and labour conditions. These restrictions range from strict eligibility conditions for application and processing of visas and work permits and limitations on the length of stay and transferability of employment in the overseas market. All of these restrictions raise the direct and indirect costs of entering the foreign market, thereby eroding the cost advantage of foreign service suppliers.\nWage parity is another restrictive eligibility condition which negates the cost based advantage of developing countries in exporting labour-intensive services. Wage parity is an important part of the labour certification process in many countries and constitutes an administrative hurdle delaying issuance of work permits and visas.\nThere are also constraints in the form of quantitative limits on visas in important developed countries for movement of professionals.\nRestrictions also apply to natural persons after they enter the foreign market such as limitations on the transferability of work permits and mobility of the provider after he enters the host country. There are also limits on the duration of stay for service providers.\n(ii) Requirement for Economic Needs Test\n11. Major entry barriers exist in the form of Economic Needs Tests (ENT), Local Market Tests and Management Needs Tests to ascertain the need for entry as well as the number to be allowed to enter. The ENTs are artificial barriers preventing free movement of labour. Further, the conditions on which they are based have not been clearly specified and defined, leaving complete discretion in their application thereby reducing the predictability and certainty of the commitment. Use of such discretionary ENTs is widespread and in only three out of a total of 54 cases have criteria been specified in the schedule\n(b) Recognition of qualifications and licensing requirements\nThe ability of professionals to supply services in developed county markets is also adversely affected by the lack of recognition of professional qualifications and licensing requirements. These requirements may either prevent market access for the foreign service provider causing a rejection of the work permit or visa application, or may limit his scope for work to specific activities once he enters the overseas market, preventing him from practising.\nArticle VII of GATS provides for Mutual Recognition Agreements (MRAs) and also provides opportunity to Members to participate in negotiations to such Agreements. However, the provisions of Article VII remain largely unused.\nDeveloping countries have normally been kept outside the ambit of such MRAs, they being limited to developed countries. Besides, Members are not complying with notification requirements under Article VII:4. Members have also not informed in advance regarding opening of negotiations and interested Members are not getting adequate opportunity to participate in them. All this has greatly reduced the scope for qualifications being recognised, leading to complete discretion and lack of multilateral/bilateral norms.\n(c) Payment of Social Security Taxes without corresponding benefits\nThe developing countries’ professionals are being subjected to payment of social security contributions in the host country even though they are not eligible to get the benefits from such contributions since their period of stay under GATS is invariably lower than the minimum period required for such benefits to flow to them.\nThe direct or indirect effect of all these limitations is to raise costs of entry and operation for service providers, reduce the scope for technology and skill transfer, and force substitution of domestic with foreign service personnel.\nIV. STRATEGIES & APPROACHES TO EFFECTIVE liberalization\nGiven the unsatisfactory nature and extent of liberalization in Mode 4, alternative approaches and strategies need to be adopted in this Round for bringing about effective market access in this mode, thereby contributing significantly to the operationalization of Article IV: 1(c) of GATS.\nImproving the Structure of Commitments\n(a) Horizontal Commitments\nHorizontal Commitments to specifically include category of Individual Professionals in addition to the various categories that currently exist. Consequently, delinking of commitments with mode 3 is to be achieved.\nRelevant criterion for determination of eligibility to a particular category needs to be clearly specified.\nUniform definitions and coverage of broader service personnel categories included in the horizontal commitments need to be drawn up for bringing about greater certainty in these commitments.\nFurther expansion in the scope of categories covered by Horizontal Schedules by defining coverage of “other persons” and “specialists” to include middle and lower level professionals by specifying relevant criteria\n(b) Sectoral Commitments\nSpecific Sectoral / sub-sectoral commitments needs to be taken in addition to the horizontal commitments for Professional and Business Services where movement of professionals is important\nSectoral commitments should be detailed and specific in terms of:\nMeasures applicable to individual sectors\nCategories for which commitments apply\nAll limitations, conditions etc. relevant to the individual sector/sub-sector to be clearly laid down in sectoral schedules.\n(c) Finer Classification of Categories\nDis-aggregated categories of Service providers in Sectoral Schedules to be clearly specified relevant to the market needs and potential for each sector/ sub-sector.\nIn order to achieve this objective, one approach that is suggested is the super-imposition of International Standard Classification of Occupation (ISCO-88) of ILO on the WTO Services Sectoral Classification List- MTN/GNS/W/120. The ISCO has established an internationally adopted classification of 9 major occupational groups.\nFor purposes of illustration and also the fact that this paper seeks to focus on Professionals, Annex- “A” to this paper indicates how this superimposition can be done for the Occupational Category Professionals in so far as it relates to Professional Services Sector of W/120. Professionals are included in two Major Groups covered by ISCO-88:\nMajor Group 2: Professionals\nMajor Group 3: Technicians and Assistant Professionals\nCommitments may be made by Members with respect to the specific sectors/sub-sectors as contained in W/120 buttressed by specific occupational categories relevant to these sectors/sub-sectors as contained in ISCO-88 as indicated in Annex “A”.\nRemoval of Existing Limitations\n(a) Economic Needs Tests (ENT)\nNeed for establishment of Multilateral Norms to reduce scope for discriminatory practices in use of ENT.\nClear criteria to be laid down for Applying such tests Establishing norms for administrative and procedural formalities Specifying how results of such tests would restrict entry to foreign service providers.\nFewer occupational categories to be made subject to such tests and consensus achieved on such categories.\nSpecific suggestion is to exclude applicability of ENTs to specified occupational categories of Professionals as contained in ISCO-88 under the relevant sectors/sub-sectors of W/120.\nIn sectors/sub-sectors and Occupations where applicability of ENT is not excluded, its application should be based on Multilateral Principles laid out in “Reference Paper on Use of ENT”.\nThe various Principles that such a Reference Paper should address could be:\nDefinition of ENT\nCriteria (Qualitative / Quantitative) for introduction of ENT\nProcedures for application\nGuidelines for administration of ENT\nTransparency & Full Availability of information\nDuration & Review of ENT application\n(b) Administrative Procedures Relating to Visas, Work Permits\nMultilateral guidelines/norms are necessary to tackle this area as it negates even the limited market access available.\nThe member countries should try to have a more transparent and objective implementation of visa and work permit regimes in future.\nTemporary service providers should be separated from permanent labour flows, so that the normal immigration procedures would not hinder the commitments made for temporary movement. This could be achieved either by introducing a special GATS Visa for categories of personnel covered by horizontal and sectoral commitments undertaken by a Member in mode 4 under GATS or through a special sub-set of Administrative Rules and Procedures within the overall immigration policy framework.\nThe conditions for entry & stay in the case of both these alternatives should obviously be less stringent than for permanent immigration.\nThe above would be possible if the aforementioned recommendations on specificity, finer classification and wider coverage of personnel categories and transparency are reflected in the sectoral and horizontal commitments so that minimum discretion and greater degree of certainty is achieved.\nThe main features would include:\nStrict time-frames within which visa must be granted (2-4 weeks maximum);\nFlexibility for visas on shorter notice for select categories of service providers;\nTransparent and streamlined application process;\nMechanisms to find out the status of applications, causes of rejection, and requirements to be fulfilled;\nEasier renewal and transfer procedures;\nGATS visas for select Companies for use by its employees deputed abroad temporarily;\nAdequate in-built Safeguard mechanisms to prevent entering into permanent labour market;\n(c) Introducing Norms to Address Social Security Issues\nBilateral Totalisation Agreements need to be entered into by Members for overcoming this problem.\nExemption from such contributions for developing country professionals so that their comparative advantage is not affected\n(d) Strengthening GATS Norms and Disciplines on Recognition of Qualifications\n(i) Implementing existing Notification Requirements under Article VII of GATS providing for MRAs between Members.\nIndia has already made a statement before the Council for Trade in Services (CTS) in its meeting held on 6/10/2000 on this issue. The operational features that would be involved are :\nPrompt compliance by all Members with Notification Requirements laid down in Articles VII:4(a), (b) & (c)\nFull text of existing MRAs on recognition to be made available immediately to the WTO Secretariat and circulated amongst all Members. This should be done automatically in all future cases\nEffective opportunities to be provided to developing country Members to join in negotiations for establishment of MRAs\nCTS to regularly monitor implementation of all the above requirements\n(ii) Establishment of Multilateral Norms to facilitate MRAs among Member countries\nNorms for Professional Service sectors where no formal accreditation or licensing procedures are required\nSuitable example is Software Services. In this case, criteria should be laid down for minimum professional experience and minimum professional education. The idea is to lay down minimalistic international standards to reduce discrimination or excessive discretion.\nNorms concerning equivalence of work-related and academic qualifications\nThis would seek to draw an equivalence between on-the-job experience and academic degrees so that this could facilitate entry requirements for specific sectors.\nNorms concerning broad- based equivalence\nGranting recognition through broad-based equivalence of qualifications and standards. For this purpose, it is necessary to establish bridging mechanisms in case of divergence of requirements and existing standards between host and home countries.\nCompensatory system based on Local Adaptation Periods and Aptitude Tests for recognition in host country needs to be developed without requiring actual harmonization of standards and qualifications between the host and home countries.\nNorms Concerning temporary licensing\nProvisions for temporary licensing to practice in the host country where such licensing procedures are absent in home country e.g. in the case of Engineering profession.\nProcedures and Sectors where such norms could be applicable to be multilaterally determined.\nEstablishment of Bilateral MRAs to be facilitated through this framework\nV. MODALITIES AND ADMINISTRATIVE PROCEDURES FOR EFFECTING SUCH LIBERALIZATION\nSpecial Session of CTS should discuss this as a horizontal issue as it is one of the most important ways to operationalize Article IV on increasing participation of developing countries in world Services trade. It should feature permanently on its Agenda.\nCTS should regularly monitor implementation of Article VII with respect to notification requirements and also special opportunities provided to developing countries to enter into such MRAs with developed countries.\nThe Committee on Specific Commitments (CSC) should oversee the implementation of existing specific commitments relating to Mode 4 as laid down in the “Decision on Terms of Reference for CSC – S/L/6 dated 24.11.1995”.\nSpecifically, the Administrative Procedures involved in granting visas, work permits etc. are required to be administered in a reasonable, objective and impartial manner according to Article VI:1. Such administrative procedures significantly impact the actual working of the commitments undertaken on Mode 4 and hence, may be discussed in CSC so as to achieve the objectives laid down in Article VI:1\nANNEX-A\nSuperimposition of ISCO-88 of ILO relating to category of Professionals on the Professional Services sector of Services Sectoral Classification list-MTN/GNS/W/120\nW/120 Service sector classification\nInternational Standard Classification of Occupations (ISCO-88)\n1A. Professional Services\nMajor group 2: Professionals\na. Legal Services\n242 Legal professionals\n2421\nLawyers\n2422\nJudges\n2429\nLegal professionals not elsewhere classified\nb. Accounting, Auditing and Book-keeping Services\n241 Business Professionals\n2411\nAccountants\nMajor Group 3: Technicians & Associate Professionals\n343 Administrative Associate Professionals\n3433\nBook Keepers\nd. Architectural Services\ng. Urban Planning & Landscape Architectural Services\n214 Architects, Engineers and related professionals\n2141\nArchitects, town and traffic planners\n2149\nArchitects not elsewhere classified\ne. Engineering Services\nf. Integrated Engineering Services\n214 Architects, Engineers and related professionals\n2142\nCivil engineers\n2143\nElectrical engineers\n2144\nElectronics and telecommunications engineers\n2145\nMechanical Engineers\n2146\nChemical engineers\n2147\nMining engineers, metallurgists and related professionals\n2148\nCartographers and surveyors\n2149\nEngineers and related professionals not elsewhere classified\nh. Medical and Dental Services\n222 Health professionals (Except Nursing)\n2221\nMedical Doctors\n2222\nDentists\n2229\nHealth professionals (except nursing) not elsewhere classified\n322 Modern Health Associate Professionals\n3221\nMedical Assistants\n3222\nSanitarians\n3223\nDieticians & Nutritionists\n3224\nOptometrists & Opticians\n3225\nDental Assistants\n3229\nModern Health Associate Professionals not elsewhere classified\ni. Veterinary Services\n222 Health Professionals\n2223\nVeterinarians\n322 Modern Health Associate Professionals\n3227\nVeterinary Assistants\nj. Services provided by midwives, nurses, physiotherapists and paramedical personnel\n222 Health Professionals\n2224\nPharmacists\n223 Nursing & Midwifery Professionals\n2230\nNursing & Midwifery Professionals\n322 Health Associate Professionals\n3226\nPhysiotherapists & Related Associate Professionals\n3228\nPharmaceutical Assistant\n323 Nursing & Midwifery Associate Professionals\n3231\nNursing Associate Professionals\n3232\nMidwifery Associate Professionals\nB. Computer and related Services\n213 Computing professionals\n2131\nComputer systems designers and analysts\n2132\nComputer programmers\n2139\nComputing professionals not elsewhere classified\n312 Computer Associate Professionals\n3121\nComputer Assistants\n3122\nComputer Equipment Operators\nHome\nAbout Us\nWebsite Policy\nFeedback\nEngagement of ICs\nSitemap\nDisclaimer\nHelp\nContact\nShare With\nDownload Mobile Application\nCopyright 2023 (with latest amendments), all rights reserved with Department of Commerce, Ministry of Commerce and Industry, Government of India\nThe site is best viewed in Chrome 92.0 , Firefox 89.0 or Microsoft Edge 92.0 and standard resolution is 1920*1080\nLast Updated: \n\t\t\tNovember 8, 2024\nVisitors : \n\t\t\t 310783011", "html": "\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCouncil for Trade in Services - Special Session - Communication from India - Proposed Liberalisation of Movement of Professionals under General Agreement on Trade in Services (GATS) - Mcommerce\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n
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\tCouncil for Trade in Services – Special Session – Communication from India – Proposed Liberalisation of Movement of Professionals under General Agreement on Trade in Services (GATS)

\n
\nIndian Papers/ submissions on Services in WTO\n
\n

RESTRICTED
\nS/CSS/W/12
\n24 November 2000(00-5077)
\nOriginal: English


\n
\nCouncil for Trade in Services Special Session\n
\n
\nCOMMUNICATION FROM INDIA
\n

Proposed Liberalisation of Movement of Professionals under
\nGeneral Agreement on Trade in Services (GATS)

\n

The attached communication has been received from the delegation of India with the request that it be circulated to Members of the Council for Trade in Services.

\n
\nI. OBJECTIVE OF THE PAPER\n
\n

The objective of this paper is to assess the nature of liberalization that has taken place in Mode 4 under the existing GATS framework and the extent to which the objectives of Article IV of GATS have been operationalized through liberalization in this mode, of significant export interest to developing countries. This paper then identifies the key barriers to the movement of Professionals and the specific problems with the existing commitments undertaken by Member countries. Finally, it suggests possible strategies and approaches to achieving meaningful liberalization in this area which is of great relevance to many developing countries and could contribute to effective implementation of Article IV of GATS.

\n
\nII. EMPIRICAL ASSESSMENT\n
\n
    \n
  • There is considerable asymmetry in commitments between different modes of supply with minimum level of commitments having been taken by developed countries in mode 4, which is of primary interest to the developing countries. For instance, horizontal commitments in mode 4 are subject to limitations in the case of 100 countries as opposed to only 4 countries for mode 2. The effectiveness of even these limited commitments is further reduced through a host of limitations and administrative hurdles.
    • \n
  • Further, the number of aggregate entries for the main categories scheduled in the horizontal commitments are as follows:
    • \n

    Intra-Corporate Transferees 135
    \nBusiness Visitors 70
    \nExecutives, managers and specialists 104
    \nIndependent contract suppliers 3

    \n
  • Only 12 Members have made commitments in the category of independent Professionals, including those providing services within a service contract. In other words, existing commitments are largely linked to commercial presence which is of very limited use to developing countries who are interested primarily in movement of independent professionals and other persons.
    • \n
    \nIII. SPECIFIC PROBLEMS WITH THE COMMITMENTS\n
    \n
    \n1. Nature of commitments\n
    \n
      \n
    • Horizontal: Commitments in mode 4 are primarily horizontal and these horizontal commitments are subject to many kinds of limitations. Further, they are bound for only a small subset of service personnel related to commercial presence and at higher levels and very few commitments extend to independent movement. The existing commitments also suffer from lack of clarity and uniformity in some aspects. The personnel categories are either not well defined or differ widely in their scope and coverage.
      • \n
    • Sectoral: The sectoral commitments for most Members are Unbound and refer to the commitments filed under the horizontal schedules. And the horizontal commitments in turn are subject to many conditions and limitations as mentioned above. Mostly, they make the commitments even more restrictive, allowing no predictable market access at all in the sectors of interest to developing countries.
      • \n
    • Thus, the extent of liberalization in mode 4 is quite limited given the fact that not only have important sectors (where professional movement is important) been left out by many countries in their scheduling exercise, but that even when such sectors have been scheduled, partial commitments with critical limitations exist.
      • \n
    \n
    \n2. Other Limitations\n
    \n
    \n(a) Administrative Procedures\n
    \n

    The administrative and procedural problems effectively rule out market access for developing country professionals.

    \n
    \n(i) Restrictions on the entry and stay of service providers\n
    \n
      \n
    • One important restriction to the movement of natural persons originates in immigration and labour market policies of individual countries. Temporary movement of labour is not separated from permanent movement of labour and therefore comes under the purview of immigration legislation and labour conditions. These restrictions range from strict eligibility conditions for application and processing of visas and work permits and limitations on the length of stay and transferability of employment in the overseas market. All of these restrictions raise the direct and indirect costs of entering the foreign market, thereby eroding the cost advantage of foreign service suppliers.
      • \n
    • Wage parity is another restrictive eligibility condition which negates the cost based advantage of developing countries in exporting labour-intensive services. Wage parity is an important part of the labour certification process in many countries and constitutes an administrative hurdle delaying issuance of work permits and visas.
      • \n
    • There are also constraints in the form of quantitative limits on visas in important developed countries for movement of professionals.
      • \n
    • Restrictions also apply to natural persons after they enter the foreign market such as limitations on the transferability of work permits and mobility of the provider after he enters the host country. There are also limits on the duration of stay for service providers.
      • \n
    \n
    \n(ii) Requirement for Economic Needs Test\n
    \n

    11. Major entry barriers exist in the form of Economic Needs Tests (ENT), Local Market Tests and Management Needs Tests to ascertain the need for entry as well as the number to be allowed to enter. The ENTs are artificial barriers preventing free movement of labour. Further, the conditions on which they are based have not been clearly specified and defined, leaving complete discretion in their application thereby reducing the predictability and certainty of the commitment. Use of such discretionary ENTs is widespread and in only three out of a total of 54 cases have criteria been specified in the schedule

    \n
    \n(b) Recognition of qualifications and licensing requirements\n
    \n
      \n
    • The ability of professionals to supply services in developed county markets is also adversely affected by the lack of recognition of professional qualifications and licensing requirements. These requirements may either prevent market access for the foreign service provider causing a rejection of the work permit or visa application, or may limit his scope for work to specific activities once he enters the overseas market, preventing him from practising.
      • \n
    • Article VII of GATS provides for Mutual Recognition Agreements (MRAs) and also provides opportunity to Members to participate in negotiations to such Agreements. However, the provisions of Article VII remain largely unused.
      • \n
    • Developing countries have normally been kept outside the ambit of such MRAs, they being limited to developed countries. Besides, Members are not complying with notification requirements under Article VII:4. Members have also not informed in advance regarding opening of negotiations and interested Members are not getting adequate opportunity to participate in them. All this has greatly reduced the scope for qualifications being recognised, leading to complete discretion and lack of multilateral/bilateral norms.
      • \n
    \n
    \n(c) Payment of Social Security Taxes without corresponding benefits\n
    \n
      \n
    • The developing countries’ professionals are being subjected to payment of social security contributions in the host country even though they are not eligible to get the benefits from such contributions since their period of stay under GATS is invariably lower than the minimum period required for such benefits to flow to them.
      • \n
    • The direct or indirect effect of all these limitations is to raise costs of entry and operation for service providers, reduce the scope for technology and skill transfer, and force substitution of domestic with foreign service personnel.
      • \n
    \n
    \nIV. STRATEGIES & APPROACHES TO EFFECTIVE liberalization
    \n

    Given the unsatisfactory nature and extent of liberalization in Mode 4, alternative approaches and strategies need to be adopted in this Round for bringing about effective market access in this mode, thereby contributing significantly to the operationalization of Article IV: 1(c) of GATS.

    \n
    \nImproving the Structure of Commitments
    \n
    \n(a) Horizontal Commitments\n
    \n
      \n
    • Horizontal Commitments to specifically include category of Individual Professionals in addition to the various categories that currently exist. Consequently, delinking of commitments with mode 3 is to be achieved.
      • \n
    • Relevant criterion for determination of eligibility to a particular category needs to be clearly specified.
      • \n
    • Uniform definitions and coverage of broader service personnel categories included in the horizontal commitments need to be drawn up for bringing about greater certainty in these commitments.
      • \n
    • Further expansion in the scope of categories covered by Horizontal Schedules by defining coverage of “other persons” and “specialists” to include middle and lower level professionals by specifying relevant criteria
      • \n
    \n
    \n(b) Sectoral Commitments\n
    \n
      \n
    • Specific Sectoral / sub-sectoral commitments needs to be taken in addition to the horizontal commitments for Professional and Business Services where movement of professionals is important
      • \n
    • Sectoral commitments should be detailed and specific in terms of:
      • \n
    • Measures applicable to individual sectors
      • \n
    • Categories for which commitments apply
      • \n
    • All limitations, conditions etc. relevant to the individual sector/sub-sector to be clearly laid down in sectoral schedules.
      • \n
    \n
    \n(c) Finer Classification of Categories\n
    \n
      \n
    • Dis-aggregated categories of Service providers in Sectoral Schedules to be clearly specified relevant to the market needs and potential for each sector/ sub-sector.
      • \n
    • In order to achieve this objective, one approach that is suggested is the super-imposition of International Standard Classification of Occupation (ISCO-88) of ILO on the WTO Services Sectoral Classification List- MTN/GNS/W/120. The ISCO has established an internationally adopted classification of 9 major occupational groups.
      • \n
    • For purposes of illustration and also the fact that this paper seeks to focus on Professionals, Annex- “A” to this paper indicates how this superimposition can be done for the Occupational Category Professionals in so far as it relates to Professional Services Sector of W/120. Professionals are included in two Major Groups covered by ISCO-88:
      • \n
      \nMajor Group 2: Professionals\n
      \n
      \nMajor Group 3: Technicians and Assistant Professionals\n
      \n

      Commitments may be made by Members with respect to the specific sectors/sub-sectors as contained in W/120 buttressed by specific occupational categories relevant to these sectors/sub-sectors as contained in ISCO-88 as indicated in Annex “A”.

      \n
      \n Removal of Existing Limitations\n
      \n
      \n (a) Economic Needs Tests (ENT)\n
      \n
        \n
      • Need for establishment of Multilateral Norms to reduce scope for discriminatory practices in use of ENT.
        • \n
      • Clear criteria to be laid down for Applying such tests Establishing norms for administrative and procedural formalities Specifying how results of such tests would restrict entry to foreign service providers.
        • \n
      • Fewer occupational categories to be made subject to such tests and consensus achieved on such categories.
        • \n
      • Specific suggestion is to exclude applicability of ENTs to specified occupational categories of Professionals as contained in ISCO-88 under the relevant sectors/sub-sectors of W/120.
        • \n
      • In sectors/sub-sectors and Occupations where applicability of ENT is not excluded, its application should be based on Multilateral Principles laid out in “Reference Paper on Use of ENT”.
        • \n
      • The various Principles that such a Reference Paper should address could be:
        • \n
      • Definition of ENT
        • \n
      • Criteria (Qualitative / Quantitative) for introduction of ENT
        • \n
      • Procedures for application
        • \n
      • Guidelines for administration of ENT
        • \n
      • Transparency & Full Availability of information
        • \n
      • Duration & Review of ENT application
        • \n
      \n
      \n (b) Administrative Procedures Relating to Visas, Work Permits\n
      \n
        \n
      • Multilateral guidelines/norms are necessary to tackle this area as it negates even the limited market access available.
        • \n
      • The member countries should try to have a more transparent and objective implementation of visa and work permit regimes in future.
        • \n
      • Temporary service providers should be separated from permanent labour flows, so that the normal immigration procedures would not hinder the commitments made for temporary movement. This could be achieved either by introducing a special GATS Visa for categories of personnel covered by horizontal and sectoral commitments undertaken by a Member in mode 4 under GATS or through a special sub-set of Administrative Rules and Procedures within the overall immigration policy framework.
        • \n
      • The conditions for entry & stay in the case of both these alternatives should obviously be less stringent than for permanent immigration.
        • \n
      • The above would be possible if the aforementioned recommendations on specificity, finer classification and wider coverage of personnel categories and transparency are reflected in the sectoral and horizontal commitments so that minimum discretion and greater degree of certainty is achieved.
        • \n
      • The main features would include:
        • \n
      • Strict time-frames within which visa must be granted (2-4 weeks maximum);
        • \n
      • Flexibility for visas on shorter notice for select categories of service providers;
        • \n
      • Transparent and streamlined application process;
        • \n
      • Mechanisms to find out the status of applications, causes of rejection, and requirements to be fulfilled;
        • \n
      • Easier renewal and transfer procedures;
        • \n
      • GATS visas for select Companies for use by its employees deputed abroad temporarily;
        • \n
      • Adequate in-built Safeguard mechanisms to prevent entering into permanent labour market;
        • \n
      \n
      \n (c) Introducing Norms to Address Social Security Issues\n
      \n
        \n
      • Bilateral Totalisation Agreements need to be entered into by Members for overcoming this problem.
        • \n
      • Exemption from such contributions for developing country professionals so that their comparative advantage is not affected
        • \n
        \n (d) Strengthening GATS Norms and Disciplines on Recognition of Qualifications\n
        \n
        \n (i) Implementing existing Notification Requirements under Article VII of GATS providing for MRAs between Members.\n
        \n
          \n
        • India has already made a statement before the Council for Trade in Services (CTS) in its meeting held on 6/10/2000 on this issue. The operational features that would be involved are :
          • \n
        • Prompt compliance by all Members with Notification Requirements laid down in Articles VII:4(a), (b) & (c)
          • \n
        • Full text of existing MRAs on recognition to be made available immediately to the WTO Secretariat and circulated amongst all Members. This should be done automatically in all future cases
          • \n
        • Effective opportunities to be provided to developing country Members to join in negotiations for establishment of MRAs
          • \n
        • CTS to regularly monitor implementation of all the above requirements
          • \n
        \n
        \n (ii) Establishment of Multilateral Norms to facilitate MRAs among Member countries\n
        \n
          \n
        • Norms for Professional Service sectors where no formal accreditation or licensing procedures are required
          • \n
        • Suitable example is Software Services. In this case, criteria should be laid down for minimum professional experience and minimum professional education. The idea is to lay down minimalistic international standards to reduce discrimination or excessive discretion.
          • \n
        • Norms concerning equivalence of work-related and academic qualifications
          • \n
        • This would seek to draw an equivalence between on-the-job experience and academic degrees so that this could facilitate entry requirements for specific sectors.
          • \n
        • Norms concerning broad- based equivalence
          • \n
        • Granting recognition through broad-based equivalence of qualifications and standards. For this purpose, it is necessary to establish bridging mechanisms in case of divergence of requirements and existing standards between host and home countries.
          • \n
        • Compensatory system based on Local Adaptation Periods and Aptitude Tests for recognition in host country needs to be developed without requiring actual harmonization of standards and qualifications between the host and home countries.
          • \n
        • Norms Concerning temporary licensing
          • \n
        • Provisions for temporary licensing to practice in the host country where such licensing procedures are absent in home country e.g. in the case of Engineering profession.
          • \n
        • Procedures and Sectors where such norms could be applicable to be multilaterally determined.
          • \n
        • Establishment of Bilateral MRAs to be facilitated through this framework
          • \n
        \n
        \n V. MODALITIES AND ADMINISTRATIVE PROCEDURES FOR EFFECTING SUCH LIBERALIZATION
        \n
          \n
        • Special Session of CTS should discuss this as a horizontal issue as it is one of the most important ways to operationalize Article IV on increasing participation of developing countries in world Services trade. It should feature permanently on its Agenda.
          • \n
        • CTS should regularly monitor implementation of Article VII with respect to notification requirements and also special opportunities provided to developing countries to enter into such MRAs with developed countries.
          • \n
        • The Committee on Specific Commitments (CSC) should oversee the implementation of existing specific commitments relating to Mode 4 as laid down in the “Decision on Terms of Reference for CSC – S/L/6 dated 24.11.1995”.
          • \n
        • Specifically, the Administrative Procedures involved in granting visas, work permits etc. are required to be administered in a reasonable, objective and impartial manner according to Article VI:1. Such administrative procedures significantly impact the actual working of the commitments undertaken on Mode 4 and hence, may be discussed in CSC so as to achieve the objectives laid down in Article VI:1
          • \n
          \n ANNEX-A
          \n
          \nSuperimposition of ISCO-88 of ILO relating to category of Professionals on the Professional Services sector of Services Sectoral Classification list-MTN/GNS/W/120\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
          W/120 Service sector classification International Standard Classification of Occupations (ISCO-88)
          1A. Professional ServicesMajor group 2: Professionals
          a. Legal Services242 Legal professionals
           2421Lawyers
           2422Judges
           2429Legal professionals not elsewhere classified\n

           

          \n
          b. Accounting, Auditing and Book-keeping Services241 Business Professionals
           2411Accountants
           Major Group 3: Technicians & Associate Professionals
           343 Administrative Associate Professionals
           3433Book Keepers
          d. Architectural Services
          g. Urban Planning & Landscape Architectural Services          		214 Architects, Engineers and related professionals
           2141Architects, town and traffic planners
           2149Architects not elsewhere classified
          e. Engineering Services
          f. Integrated Engineering Services          		214 Architects, Engineers and related professionals
           2142Civil engineers
           2143Electrical engineers
           2144Electronics and telecommunications engineers
           2145Mechanical Engineers
           2146Chemical engineers
           2147Mining engineers, metallurgists and related professionals
           2148Cartographers and surveyors
           2149Engineers and related professionals not elsewhere classified
          h. Medical and Dental Services222 Health professionals (Except Nursing)
           2221Medical Doctors
           2222Dentists
           2229Health professionals (except nursing) not elsewhere classified
           322 Modern Health Associate Professionals
           3221Medical Assistants
           3222Sanitarians
           3223Dieticians & Nutritionists
           3224Optometrists & Opticians
           3225Dental Assistants
           3229Modern Health Associate Professionals not elsewhere classified
          i. Veterinary Services222 Health Professionals
           2223Veterinarians
           322 Modern Health Associate Professionals
           3227Veterinary Assistants
          \n

          j. Services provided by midwives, nurses, physiotherapists and paramedical personnel

          \n          		222 Health Professionals
           2224Pharmacists
           223 Nursing & Midwifery Professionals
           2230Nursing & Midwifery Professionals
           322 Health Associate Professionals
           3226Physiotherapists & Related Associate Professionals
           3228Pharmaceutical Assistant
           \n

          323 Nursing & Midwifery Associate Professionals

          \n
           3231Nursing Associate Professionals
           3232Midwifery Associate Professionals
          B. Computer and related Services213 Computing professionals
           2131Computer systems designers and analysts
           2132Computer programmers
           2139Computing professionals not elsewhere classified
           312 Computer Associate Professionals
           3121Computer Assistants
           3122Computer Equipment Operators
          \n
          \n\n
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