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Australia’s Trade Policy Agenda: Creating Opportunities for Education Providers

Australia’s Trade Policy Agenda: Creating Opportunities for Education Providers. Presentation to the Victorian TAFE Association by Rhonda Piggott 22 April 2005. Outline. Australia’s Trade Policy Agenda Education Services in the WTO: General Agreement on Trade in Services (GATS)

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Australia’s Trade Policy Agenda: Creating Opportunities for Education Providers

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  1. Australia’s Trade Policy Agenda: Creating Opportunities for Education Providers Presentation to the Victorian TAFE Association by Rhonda Piggott 22 April 2005

  2. Outline • Australia’s Trade Policy Agenda • Education Services in the WTO: General Agreement on Trade in Services (GATS) • Australia’s Free Trade Agreement Agenda • Preserving Australia’s VET Advantages

  3. Growing Education Industry • Education services were worth nearly $6 billion in export revenue to Australia in 2003-04, an increase of more than 60% since 1999-2000. • Total international student enrolments have increased from 133,384 (1999) to 322,776 (2004). • International student enrolments in VET have increased from 29,593 (1999) to 57,384 (2004).

  4. Australia’s Trade Policy Agenda • The Australian Government advocates global trade liberalisation to open markets for Australian exporters through multilateral, regional and bilateral trade policy. • Australia is an active participant in the current Doha Round of WTO negotiations, plays a leading role in regional groups such as APEC, and has embarked on an FTA program focused toward strengthening our major trading relationships.

  5. General Agreement on Trade in Services (GATS) • First multilateral agreement covering international trade in services, the GATS came into effect in 1995 as part of the Uruguay Round of WTO negotiations. • The GATS sets out principles and rules affecting international trade in services, and also includes WTO Member schedules detailing specific market access and national treatment commitments applied to foreign service providers in a range of services sectors.

  6. WTO/GATS Principles • Market Access – extent to which services and suppliers can enter or operate in a market. • National Treatment – according the same treatment to foreign suppliers as extended to domestic suppliers.

  7. Modes of Supply for Services Trade The modes of supply for services under GATS are: • 1. Cross-border supply – education services delivered through distance/correspondence. • 2. Consumption abroad – international students studying abroad. • 3. Commercial presence – establishment of offshore campus. • 4. Presence of natural persons – short-term travel by education professionals.

  8. GATS: Current State of Play • The current round of multilateral trade negotiations commenced in Doha, Qatar in November 2001. • WTO Members negotiate improvements in market access and treatment of service providers. • Australia aims to eliminate barriers to trade in key export sectors, including education.

  9. Services Sector Trade Barriers Examples of trade barriers that exist in services industries include: • Restrictions on foreign equity ownership and joint ventures or other partnerships. • Lack of regulatory transparency associated with licensing and approval procedures. • Restrictions on the number of service suppliers or the places where they may operate.

  10. Typical Barriers in Education Services • Restrictions on investment, student recruitment, and service delivery/marketing without the involvement of local partners. • Limitations on the operation of wholly foreign-owned educational institutions. • Restrictions on course accreditation, and recognition of Australian qualifications.

  11. Approach to Free Trade Agreements • Negotiate on a comprehensive “GATS plus” basis. • Aim to complement Australia’s multilateral trade objectives. • Aim to facilitate deeper engagement with important trading partners. • Aim to deliver substantial liberalisation, remove trade barriers and improve market access in a shorter timeframe than through the WTO.

  12. Completed FTAs • Australia-New Zealand Closer Economic Relations Trade Agreement – Services Protocol (1 Jan 1989) • Singapore-Australia FTA (28 July 2003) • Thailand-Australia FTA (1 Jan 2005) • Australia-United States FTA (1 Jan 2005)

  13. Upcoming FTAs • ASEAN-Australia and New Zealand FTA • UAE-Australia FTA • Malaysia-Australia FTA • China-Australia FTA

  14. FTA Objectives in Education Services Sector • Comprehensive national treatment and market access commitments. • Fewer restrictions on the delivery of distance and online education. • Greater recognition of Australian-based qualifications. • Transparent procedures for establishing a campus, twinning arrangement or joint venture overseas.

  15. Preserving Australia’s VET Advantages Look to FTA opportunities to build on existing strengths: • Diversity of students in education sector. • Comprehensive curriculum coverage. • Variety of course delivery methods. • Quality assurance mechanisms. • High level of English language proficiency and uptake of information technology.

  16. Industry Consultation • DFAT welcomes input from the VET sector regarding problems or challenges faced by providers seeking to establish operations internationally. • Industry consultation is vital in assisting DFAT to effectively address the concerns of the education sector in our multilateral and bilateral trade negotiations.

  17. Contact Details Rhonda Piggott Assistant Secretary Services Intellectual Property Branch Department of Foreign Affairs and Trade, Canberra. (02) 6261 3156 rhonda.piggott@dfat.gov.au

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