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Trade-in-services policy interest in remittances

Trade-in-services policy interest in remittances. Bill Cave OECD Statistics Directorate. The General Agreement on Trade in Services (GATS). Following the Uruguay Round of trade negotiations GATS came into force 1 January 1995 First worldwide agreement on trade in services

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Trade-in-services policy interest in remittances

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  1. Trade-in-services policy interest in remittances Bill Cave OECD Statistics Directorate WB/IMF Technical Meeting on Measuring Remittances 24-25 January 2005 Washington

  2. The General Agreement on Trade in Services (GATS) • Following the Uruguay Round of trade negotiations • GATS came into force 1 January 1995 • First worldwide agreement on trade in services • GATS recognises four modes of delivery of services • Mode 1 Cross - border • Mode 2 Consumption abroad • Mode 3 Commercial presence • Mode 4 Presence of natural persons WB/IMF Technical Meeting on Measuring Remittances 24-25 January 2005 Washington

  3. Mode 4 • Makes movement of people a part of trade negotiations • Related to market access • Mode 4 in GATS:- • The supply of a service by a service supplier of one Member, through presence of natural persons of a Member in the territory of any other Member • The purpose of the stay is to supply a service, when the service has been supplied the natural person leaves the country • GATS definition isnarrow but not well-defined WB/IMF Technical Meeting on Measuring Remittances 24-25 January 2005 Washington

  4. Scopeof Mode 4 – Narrow v Broad Supply of services through movement of natural persons GATS Mode 4 • Foreign self-employed service suppliers • Foreign persons employed by foreign service supplier • Employees of contractual service supplier • Intra-corporate transferees • Business visitors • Foreign persons employed by host country service supplier WB/IMF Technical Meeting on Measuring Remittances 24-25 January 2005 Washington

  5. Information needs • How much is mode 4 worth? • “Remittances” thought to be imperfect but relevant indicator of current and potential mode 4 • Bilateral flows • Numbers of people • Skills • Occupation/Function • Activity sector • Duration of stay • Bilateral flows • Impacts WB/IMF Technical Meeting on Measuring Remittances 24-25 January 2005 Washington

  6. Concluding remarks • Better measurement of international movement of people and remittances are of interest to trade policy • UN TSG on Movement of Natural Persons is addressing the issue • An alliance of different policy interests in remittances could help realise improved information in future • To what extent should we work together? • Our statistical resources are limited WB/IMF Technical Meeting on Measuring Remittances 24-25 January 2005 Washington

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