JOSEPHINE J. FRANCISCO

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JOSEPHINE J. FRANCISCO Philippines
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GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
Provides a framework for temporary stay of people
in other countries for the purpose of providing
services
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Untangle from existing institutional barriers
to liberalization of movements of temporary
migrants
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I. Trends in overseas employment, its economic
contribution and composition of Filipino service
providers
II. Barriers to free movement of migrants,
particularly Filipinos
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I. TRENDS IN OVERSEAS TEMPORARY MIGRATION
EMPLOYMENT
Labor migration is not a new phenomenon among
Filipinos
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OVERSEAS EMPLOYMENT PROGRAM (1974)
Serves as a temporary measure to ease the
tight domestic labor market
Stabilizes the countrys balance-of-payment
position
Serves as an alternative employment strategy
for Filipinos
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OVERSEAS DEPLOYMENT IN GENERAL
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Processed and Deployed OFWs
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Deployed Landbased OFWs
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Deployed Seabased OFWs
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Deployed Land-based OFWs by Major Group
(1985-2000)
Middle East
Asia
America
Africa
Europe
Oceana
Trust Territories
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OVERSEAS EMPLOYMENT
Provides temporary employment to Filipinos
Major generator of foreign exchange
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OFW Foreign Exchange Remittances (in million
US) (1985-2000)
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OFWs' REMITTANCES
Offset foreign exchange outflows
Country's saving grace during periods of
negative GDP growth
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Contribution of Overseas Employment to GNP
(1990-2000) (In )
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Contribution of Overseas Employment (1990-2000)
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DEPLOYMENT AS SERVICE PROVIDERS
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Who are the International Service Providers
(ISP)?
Sent by his/her employer to a foreign country
to undertake a specific assignment for a
restricted period of time 
Engaged in work that requires professional,
commercial, technical or other highly
specialized skills for a restricted period of time
Upon the request of his/her employer in the
country of employment, engaged in work that is
transitory or brief for a restricted and definite
period of time (Garnier, 1996)
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ISP
NOT ISP
Seasonal and contract workers
Engage in manufacturing activities
Overseas Construction Contracting - skilled
engineers - managers or supervisors -
consultants
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MAIN TYPES OF SERVICE PROVIDERS  
A. Intra-company transferees
B. Individual service providers and specialists
on specific assignments
C. Short term or business visitors
D. Diplomatic and international personnel
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DEPLOYMENT LEVEL
Number of newly hired workers as classified by
the Philippines Overseas Employment
Administration (POEA)
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Deployment of Land-based Newly Hired OFWs
(1995-2000)
Skills Category
1995
1996
1997
1998
1999
2001
2000
1. Professional and Technical Workers
43,629
36,055
51,381
55,456
78,685
97,448
62,500
346
305
572
385
284
385
333
2. Managerial Workers
3. Clerical Workers
3,435
3,169
3,632
2,897
2,367
3,356
2,552
4. Sales Workers
1,986
1,938
2,637
2,514
2,083
3,188
2,244
5. Service Workers
81,043
84,745
76,644
80,675
91,206
92,351
84,138
6. Agriculture Workers
981
822
546
388
526
550
452
7. Production Workers
82,537
75,683
85,829
75,078
57,807
56,740
79,662
8. Other Skills
200
3,074
0
1,822
20,072
4,186
5,379
Total (all skills)
214,157
205,791
221,241
219,215
253,030
258,204
237,260
Total (skills 1, 2, 3, 4, 5 8)
127,204
126,117
131,234
140,852
192,330
197,558
154,594
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Selected Top Skills Deployed (1995-2000)
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Selected Professional Deployed (1995-2000)
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LENGTH OF STAY IN HOST COUNTRIES
Middle East Workers 2 years Japan Entertainers
not more than 6 months Taiwan Workers 1
year
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DEPLOYMENT OF SEAFARERS
Philippines as Ship Manning Capital representin
g 25 of worlds seaman population
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Top Ten Seafarer-Supplying Countries
(as of 2000)
Rank Country Officer Ratings
TOTAL 1 Philippines 50,000
180,000 230,000
2 Indonesia 15,500 68,000 83,500
3 China (PRC) 34,197 47,820 82,017
4 Turkey 14,303 48,144 62,447
5 Russia 21,680 34,000 55,680
6 India 11,700 43,000 54,700 7
Ukraine 14,000 23,000 37,000
8 Greece 17,000 15,500 32,500
9 Japan 18,813 12,200 31,013
10 U.S.A.-Lakes 13,204 17,667 30,871
Source ISF
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DEPLOYMENT OF SEAFARERS
Inclusion in the International Maritime
Organization (IMO) White list
Filipino seafarers onboard ocean-going vessels
constitute a large pool of skilled temporary
service providers on a per year contract
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DEPLOYMENT AS TO TYPE OF MOVEMENT
Total Number of Deployment
Short-term Filipino service providers
60,000
Intra-company transferees 40,000
Long-term skilled migrants 100,000
Garnier / 1996
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Bulk of deployment in the Philippines are
temporary migrant workers under seasonal and
contractual arrangements and not much on
intra-company transferees, individual service
providers and specialists
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II. BARRIERS TO MOBILITY OF FILIPINOS UNDER
MODE 4 (PRESENCE OF NATURAL PERSONS)
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MODE 1 CROSS-BORDER SUPPLY Non-resident
service suppliers to supply services cross-
border into the Members territory
MODE 2 CONSUMPTION ABROAD Freedom for the
Members residents to purchase services in
the territory of another Member
MODE 3 COMMERCIAL PRESENCE Opportunities
for foreign service supplier to establish,
operate or expand a commercial presence in the
Members territory
MODE 4 PRESENCE OF NATURAL PERSONS Entry
and temporary stay of foreign nationals
as service provider in their territory
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MODE 3 COMMERCIAL PRESENCE Opportunities for
foreign service supplier to establish, operate or
expand a commercial presence in the Members
territory
MODE 4 PRESENCE OF NATURAL PERSONS Entry and
temporary stay of foreign nationals as service
provider in their territory
Mode 4 is strongly linked to Mode 3
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All countries have restrictions that impedes
or delay the movement of individuals
GATS agreement is aimed at dismantling the
barriers
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BARRIERS OF THE PHILIPPINES UNDER MODE 4
1. Those which are limited by the number and
coverage of GATS commitments
2. Horizontal and sector-specific limitations on
market access
3. Limitations imposed through requirements and
procedures
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LIMITED GATS COVERAGE
Philippines, like other developing countries,
seeks to liberalize commitments in GATS under
Mode 4
Developed countries are more cautious in their
approach towards Mode 4 while seeking to
dismantle the barriers in the other 3 modes
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LIMITED GATS COVERAGE
Too much concentration on highly skilled labour
and expertise than less skilled labour
Both developing and developed countries expect
significant gains from GATS However, the
hold-off stance of developed countries toward
less skilled labour may inhibit success of GATS
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LIMITED GATS COVERAGE
Under GATS, bulk of Commitment entries in
developing countries consist of intra-corporate
transferees (Mode 3)
Local businesses in developing countries are
hindered by lack of capital and investment to
establish commercial presence through branch or
subsidiary
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LIMITED GATS COVERAGE
17 of all horizontal entries may cover
low-skilled persons in categories as vague as
business sellers, non-specified, and others
Construction and engineering services
(labour-intensive export potential) are confined
largely to intra-corporate transferees in highly
skilled or managerial capacities
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LIMITED GATS COVERAGE
Progress in Mode 4 commitments is reactive to
developments
Emphasis on high training and expertise on
mobility of persons may be related to the
expansion of world trade and growing role of
intra-firm linkages
Reflect the proliference of internal labour
market within multinational firms as well as
limited institutional frameworks for facilitating
exchange of skills
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LIMITED GATS COVERAGE
Growth of specialized service providers or
professionals is a result of changing demographic
patterns in certain developing countries
The current Commitments under Mode 4 are only an
extension of Commitments in Mode 3
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QUOTA, PRE-EMPLOYMENT AND WAGE REQUIREMENTS
Horizontal and Sectoral Commitments on Market
Access
Domestic minimum wage legislation coupled with
restriction on work condition, working hours and
social security benefits
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RECOGNITION REQUIREMENTS AND PROCEDURES
Licensing and qualifications such as sufficient
education, experience and training before being
allowed entry
Variation in testing, certification and
licensing requirements
Because of these variations, service providers
are given lower position, salary or benefits even
if actual qualifications or skills are comparable
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ADMINISTRATIVE BARRIERS
Vague terminologies and definitions used in the
Schedule of Commitments resulting to various
interpretations
Need for predictability of actual entry
condition particularly the economic needs or
labor market test
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III. TOWARDS GREATER MOBILITY
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Mode 4 Commitments should move its focus from
highly trained and skilled service providers
and must be de-linked to commercial presence
Mutual recognition schemes should be pursued
even outside of GATS
Address closely the bottlenecks in market
access Commitments
Give attention to the limitations on wages and
regulations curtailing benefits under mandatory
social insurance systems
Overcome administrative barriers
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CONCLUSION
Overseas deployment is an important
contributor to the Philippine economy
The key element in expanding trade through
Mode 4 is negotiations to reduce barriers and
facilitate greater and freer cross-border flows
of service providers
Only when a proactive and developmental
approach to negotiations is adopted will the
GATS agreement achieved its goal of
distributing opportunities to all
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