MODE 4 MEASUREMENT
World Trade Organization
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Mode 4
GATS Mode 4 Coverage (1/2)
Falling under mode 4
• Temporary presence
Not falling under mode 4
• Permanent migration
(What is temporary?)
• Presence of natural persons
for supply of commercial
services
• Persons seeking access to
employment market
Presence of natural persons
(Scope of certain commercial
for supply of goods
services?
Services supplied under
What would fall under carve out of
governmental authority
“services in the exercise of
governmental authority”)
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Mode 4
GATS Mode 4 Coverage (2/2)
Falling under mode 4
Not falling under mode 4
• All skill levels
• Employees of host country
• Self-employed service
(locally-owned) firms
suppliers
Employees of service
suppliers sent abroad to
supply a service
Employees of foreign service
supplier established in host
country (linked to mode 3)
Business visitors
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Information needs
Information Needs
• Contractual service suppliers
• Employees of services foreign affiliates (including ICTs)
• Business visitors
Value of services supplied
Number of natural persons
Type of service supplied
Territory of origin (of service supplier)
Duration of stay (no standard upper limit)
Occupation / skills (of natural person)
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Information needs
Information Needs: Questions for
Discussion
Information needs for categories of mode 4
persons?
1 year guideline: good starting point for
differentiating short-term movements from
longer-term?
Proposed breakdowns envisaged?
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Measuring value
Contractual Service Suppliers:
Employees of the Service Supplier
Member B
Service supplier
a) < 1 year
b) > 1 year
Member A
Transaction
Service
consumer
Imports of services
Imports of services
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Measuring value
Contractual Service Suppliers:
Independent Professionals
Member B
Service supplier
a) < 1 year
b) > 1 year
Member A
Transaction
Service
consumer
Imports of services
Worker’s remittances / CoE (in SNA)
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Measuring value
Foreign Employees of Services Foreign
Affiliates (Including ICTs)
Member B
Member A
Transaction
Service supplier
a)
Transaction
< 1 year
a) Payroll Member B
b) Payroll Member A
b) > 1 year
a) Payroll Member B
b) Payroll Member A
Service
consumer
Imports of services
Compensation of employees
Imports of services (?)
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Worker’s remittances (CoE)8
Measuring value
Measuring Value:
Questions for Discussion
Contractual service suppliers:
 Proposed collection of information: separate mode 4
component in services transactions?
 Country case studies / pilot projects?
 Where are the transactions related to independent
professionals classified (services / CoE / WR)?
 Four BPM5 services items identified in MSITS or extend?
Foreign employees of services foreign affiliates
 Proposed allocation of flows in BOP (or FATS or SNA)?
 Should recording of transactions related to ICTs be
further explored?
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Measuring number
of persons
What Possible Sources for Measuring
Number of Persons? (1/3)
Type of
contract
Category of
natural persons
I. Service
contracts,
delivered
in the host
country
Contractual
service suppliers:
< 3 months > 3 months and
> 1 year
< 1 year
Residence permit system
Border passenger survey
Statistics from sectoral ministries
Professional registers
Population census
Household survey
RSIM: foreign business travellers
Independent
(non migrants)
?
service suppliers
TSA: business visitors
Employees of
RSIM: foreign migrant workers
?
foreign service
(migrants)
supplier
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Measuring number
of persons
What Possible Sources for Measuring
Number of Persons? (2/3)
Type of
contract
II.
Employment
contracts
with foreign
(service
producing)
firms which
have
commercial
presence in
the host
country
Category of
natural
persons
< 3 months > 3 months and
< 1 year
> 1 year
Employees of
Residence permit system
services foreign
Border passenger survey
affiliates:
Foreign Affiliates Trade in Services (FATS)
Intra-corporate RSIM: foreign business travellers
transferees
(non migrants)
Others
TSA: business visitors
RSIM: foreign trainees,
foreign migrant workers,
free establishment or movement?
migrants for settlement (employment
based, entrepreneurs/investors)?
(migrants)
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Measuring number
of persons
What Possible Sources for Measuring
Number of Persons? (3/3)
Type of
contract
Category of
natural persons
III. Self
employed or
employed
with foreign
service
producing
firm but
service is
not actually
supplied in
host country
Business visitors:
For establishment
of commercial
presence
For sales
negotiations
< 3 months
> 3 months
and < 1 year
> 1 year
Residence permit system
Border passenger survey
RSIM: foreign business
travellers
(non migrants)
TSA: business visitors
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Measuring number
of persons
Measuring number of persons:
Questions for Discussion
 List of sources identified for different categories
of mode 4 persons?
 Further research necessary?
 ...Where would following persons be covered:
• Contractual service supplier remaining in host country
more than one year and remunerated from home country?
• Independent professionals staying less than 3 months in
host country (remunerated within host country)?
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Services labour migration
Universe of residents and non-residents
staying for less than one year
Labour migration
Services labour migration
of which GATS mode 4
- Foreign self employed natural persons
- Foreign natural persons employed by foreign service
supplier
- Foreign
natural persons
employedservice
by a host
country serv.
Employees
of a contractual
supplier
supplier
Employees of services foreign affiliates
Business
visitors
- Foreign
natural
persons employed by a host country serv.
of which Other services labour migration
supplier employed by host country service supplier
- Foreigners
- Foreigners with service occupation employed by non© WTO/OMC
service supplier located in
host country
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Services labour migration
Other services labour migration
Country B
Country A
Enterprise of
country A (country
A service supplier
or non service
supplier of A or
another country)
Transaction
Value (wages):
a) < 1 year
Compensation of employees
b) > 1 year
Worker’s remittances / CoE (in SNA)
Number of persons:
Sources: Residence permit systems, Border surveys, Sectoral
statistics, Population censuses, Household surveys
RSIM: foreign migrant workers, migrants for settlement etc.
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Services labour migration
Services Labour Migration:
Questions for Discussion
 Value (wages): sources identified in the context
of services labour migration?
 Number of persons: sources identified in the
context of services labour migration?
 ...Where would following persons be covered:
• Non-migrant workers (i.e. staying less than three
months)?
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