Mode 4 in the Cariforum-EU Economic Partnership Agreement

(EPA)

Ramesh Chaitoornmsts@yahoo.ca

WTO Symposium onMode 4 of the GATS: Taking Stock and

Moving OnGeneva, September 22-23, 2008

Structure of Title on Services & Investment

• Chap 1 - General provisions

• Chap 2 - Commercial Presence (Investment)

• Chap 3 - Cross Border Supply of services

• Chap 4 - Temporary Presence of Natural Persons for Business Purpose

• Chap 5 - Regulatory Framework (with sectoral rules)

Mode 4 Categories in EPA

• Special categories of natural persons for temporary entry: – Key personnel (business visitors, managers,

specialists) & graduate trainees– Business services sellers– Contractual services suppliers– Independent professionals– Short term visitors for business purposes

Key Personnel'Business visitors' mean natural persons working in a senior position who are responsible for setting up a commercial presence. They do not engage in direct transactions with the general public and do not receive remuneration from a source located within the host Party.

'Intra-corporate transfers' mean natural persons who have been employed by a juridical person or have been partners in it for at least one year and who are temporarily transferred to a commercial presence in the territory of the other Party.

Graduate Trainees

• Graduate trainees' means natural persons who have been employed by a juridical person for at least one year, possess a university degree and are temporarily transferred to a commercial presence or to the parent company of the juridical person in the territory of the other Party, for career development purposes or to obtain training in business techniques or methods

'Business services sellers'

• means natural persons who are representatives of a service supplier of one Party seeking temporary entry into the territory of the other Party for the purpose of negotiating the sale of services or entering into agreements to sell services for that service supplier. They do not engage in making direct sales to the general public and do not receive remuneration from a source located within the host Party.

Contractual Service Suppliers

Natural persons employed by a juridical person of a Party which has no commercial presence in the territory of the other Party and which has concluded a bona fide contract to supply services with a final consumer in the latter Party requiring the presence on a temporary basis of its employees in that Party in order to fulfil the contract to provide services.

Conditions for CSS1. Stays for up to 6 months in a year or length of

contract. (Contract limit of 12 months)2. Must have worked for at least one year for

company & have 3 years experience in that field3. CSS must be paid by employer in home country4. Can only do work stipulated in service contract5. Limited to the number of persons necessary to

supply the contract6. University degree & professional qualification if

needed (except for entertainment, fashion models, chefs)

Market access for CF Contractual Service Suppliers (CSS) in EU

1. Legal advisory services in respect of international public law and foreign law

2. Accounting and bookkeeping services3. Taxation advisory services4. Architectural services5. Urban planning and landscape architecture services6. Engineering services7. Integrated Engineering services8. Medical and dental services9. Veterinary services10. Midwives services11. Services provided by nurses, physiotherapists and paramedical personnel12. Computer and related services13. Research and development services

Market access for CSS in EU14. Advertising services15. Market Research and Opinion Polling16. Management consulting services17. Services related to management consulting18. Technical testing and analysis services19. Related scientific and technical consulting services20. Maintenance and repair of equipment21. Chef de cuisine services22. Fashion model services23. Translation and interpretation services24. Site investigation work25. Higher education services (only privately-funded services)26. Environmental services27. Travel agencies and tour operators' services28. Tourist guides services29. Entertainment services other than audiovisual services

Independent Professionals• means natural persons engaged in the supply

of a service and established as self-employed in the territory of a Party who have no commercial presence in the territory of the other Party and who have concluded a bona fide contract (other than through an agency as defined by CPC 872) to supply services with a final consumer in the latter Party requiring their presence on a temporary basis in that Party in order to fulfil the contract to provide services

Conditions re IPs

1. Must be supplying service as self-employed persons established in the other Party with a service contract not exceeding 12 months

2. At least six years professional experience in the sector of activity which is the subject of the contract

3. University degree or qualification to show equivalent level of knowledge; and professional qualification where required

4. Stay of up to 6 months or length of contract5. Can only do work stipulated in service contract6. Limited to the number of persons necessary to supply

the contract

Access for Independent Professionals in EU

1. Legal advisory services in respect of international public law and foreign law (i.e. non-EU law)

2. Architectural services3. Urban planning and landscape architecture services4. Engineering services5. Integrated Engineering services6. Computer and related services7. Research and development services8. Market Research and Opinion Polling9. Management consulting services10. Services related to management consulting11. Translation and interpretation services

Short term visitors for business purposes

• The EC Party and the Signatory CARIFORUM States shall endeavour to facilitate, in conformity with their respective legislation, the entry and temporary stay in their territories of short-term visitors for business purposes from the EC Party or the Signatory CARIFORUM States as the case may be with a view to carrying out the following activities:

for up to 90 days in any 12 month period:

– Research & design– Marketing– Training seminars– Trade fairs and exhibitions– Sales & purchasing– Tourism personnel

Conditions

1. provided that they are not engaged in selling their goods or services to the general public or in supplying their goods or services themselves;

2. do not on their own behalf receive any remuneration from a source located within the Party where they are staying temporarily;

3. are not engaged in the supply of a service in the framework of a contract between a company where the SVBP are staying temporarily and a consumer.

Summary of Mode 4 regime

• WTO-plus market access• Asymmetrical commitments (EU vs CF)• Some commitments required very high political

decisions• Economic needs tests (ENTs) remain in some

countries but no quotas or ceilings• Taking advantage of MA will require MRAs in

some sectors• Non traditional - entertainment, models, chefs