ministry of economy annex on mode 4 23 june 2014 alev yildirim 1

MINISTRY of ECONOMYMINISTRY of ECONOMY

Annex on Mode 4

23 JUNE 201423 JUNE 2014

Alev YILDIRIM

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What are the concerns raised in TISA?What are the concerns raised in TISA?

23 23 JuneJune 20120144 Republic of Turkey - Republic of Turkey - Ministry of EconomyMinistry of Economy 22

Main Mode 4 issues during DohaMain Mode 4 issues during Doha

3323 23 JuneJune 20120144 Republic of Turkey - Republic of Turkey - Ministry of EconomyMinistry of Economy

S/CSS/W/12 (2000) from IndiaS/CSS/W/12 (2000) from India

Observation•Asymmetry in commitments between different modes of supply.

•Effectiveness is further reduced through a host of limitations and administrative hurdles. Granting visas and work permits should be administered in a reasonable, objective and impartial manner. CSC should oversee implementation of Mode 4 commitments in accordance with GATS VI:1

•Most of the time only horizontal, mostly for personnel linked to commercial presence. Very few sectoral commitments, no predictable market access. Partial commitments with critical limitations.

•Temporary service suppliers come under the purview of immigration legislation and labour conditions. (strict eligibility conditions for application and processing of visas and work permits, limitations on the length of stay, ENTs, quotas)

Proposal•Strict time frames within which visa must be granted. (2-4 weeks maximum)

•Transparent and streamlined application process.

•Mechanisms to find out the status of applications, causes of rejection, and requirements to be fulfilled.

•Easier renewal procedures

•GATS visa


Communications from EU, Canada, US, Japan Communications from EU, Canada, US, Japan (2000, 2001)(2000, 2001)

Canada•Requests that Members should explore ways to strengthen horizontal transparency obligations of GATS, since problems in this area can effectively rule out MA.

EU•Common definitions of categories, particularly ICT and CSS.•Common code of practice for ENTs (i.e. Define application criteria, make them non-discriminatory, impose a due process procedure)•Greater transparency provisions building on GATS Article III:4 (setting out service providers’ rights and obligations clearly, so that the procedures are applied fairly) Provisions to facilitate the swift adoption of decisions on applications for temporary entry and stay, on the basis of objective and verifiable criteria. Development of clear, simple and predictable application procedures.•General information points that involve contact details of national authorities competent to receive applications for relevant permits.


Japan requests:•Reduction of restrictions on the movement of ICTs.•Transparency of information on immigration procedures and requirements, simplification and facilitation of immigration procedures.•Elimination of ENTs, as a first step clearly identify the criteria.

US•Suggests that similar to telecom and financial services, additional regulatory disciplines is also needed to ensure full implementation of existing and potential new MA in Mode 4 as this area is also highly regulated. (specifically, access to information and procedural transparency)

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Communications from EU, Canada, US, Japan Communications from EU, Canada, US, Japan (2000, 2001)(2000, 2001)


JOB(03)195 Mode 4 Categories by the Secretariat JOB(03)195 Mode 4 Categories by the Secretariat (2003)(2003)

• Review of 108 schedules with commitments on Mode 4

• Most scheduled categories ICT (60 %) followed by BV and/or SS (40 %), very limited commitments in CSS and IP(15 %).

• Contrary to this general picture 11 RAMs all committed ICT and BV, 8 also CSS.

ICT: Executive, managers, specialists (common elements)

BV/SS: wide degree of overlap, sometimes merged. (in general, activities as sales negotiations or setting up of a commercial presence

CSS: either employees of juridical persons or independents professionals.

Others: installers and servicers, graduate trainees, legal representatives, personnel of transportation companies, spouses and partners etc.


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Commitments are not in a uniform manner and difficult to compare (due to different terminology and different entry systems)

•Immigration and labor measures affect Mode 4 commitments.

•Impossible to clearly asses the real value or the extent to which commitments are liberal or facilitative.

•Domestic regime on immigration and labour market developments are crucial in determining the benefit of commitments.

•The prerequisites for issuing visas or work permits are not specified.

•Supplementary measures or requirements( duration of stay, possibility of extensions, etc.) not stipulated in actual commitments undermine the commitments.

Proposal•Each Member should provide voluntarily and separate from its specific commitments, all relevant information sources for each of its commitments (not the actual wording of the measures but citing the relevant parts)

(Question: is this possible without any binding obligation?)

TN/S/W/47 from Canada on Transparency of TN/S/W/47 from Canada on Transparency of Mode 4 Commitments (2005)Mode 4 Commitments (2005)


TN/S/W/32 from EU(2005)TN/S/W/32 from EU(2005)

The lack of transparency can be a major barrier to international trade in services through Mode 4 and, because of inter-linkages between the modes of supply, through the other modes as well.

•use the same terminology for each main category and sub-category of service provider.

•list the definitional elements that are relevant for each category (or sub-category).

•indicate – where applicable – the market access and national treatment conditions which are relevant for each category and where necessary each sub-category.

•indicate the length of temporary entry and stay permitted for each category as well as whether multiple entries and extensions are possible.

Main and sub-categories together with definitional elements: ICTs (E, SM, S), BV (SS, setting up CP), CSS, IP, Others.


JOB(04)142 Transparency from 14 WTO Members JOB(04)142 Transparency from 14 WTO Members including 5 TiSA Members (2004)including 5 TiSA Members (2004)

• Existing GATS rules on transparency are not effective. Lack of transparency impedes the even limited MA commitments on Mode 4.

Request:

• Make available in a consolidated form, all current measures, in particular administrative ones, and any descriptive material accompanying such measures that pertain to the temporary admission of natural persons (entry, temporary stay and work authorization).


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Information should include:Information should include:

Categories of permit and their requirements; Documentation required; Method of filing; Processing time and application fees (if any); Length and validity of stay; Possibility and conditions for extensions (including availability of multiple entry

visas/permits); Rules regarding accompanying dependants; Review and/or appeal procedures (if any); Details of relevant contact points for further information (e.g. links to relevant

government web-sites which provide more detailed information on embassies, consulates and other issuing bodies).

Any relevant immigration laws of general application should also be referenced (not necessarily included in full, but details of where information can be found on them).

Any exceptions to these rules, be it due to bilateral or pluri-lateral arrangements.


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CONTACT POINTCONTACT POINT

Each Member shall designate a contact point at authorized departments for trade and/or immigration, to facilitate communications regarding these measures and their applications, between business persons and the relevant authorities.


TN/S/W/14 by Mode 4 Friends (2003)TN/S/W/14 by Mode 4 Friends (2003)

• Use of common categories (at least ICT, BV, CSS, IP)

• Need to further examine a separate visa or separate subset of procedures (transparency, due process) to ensure that already limited MA are not nullified or impaired by onerous and non-transparent criteria.

• Elimination of ENTs for the categories identified as above.

• Strengthening the framework for Recognition Agreements by developing guidelines and principles and undertaking additional commitments for verifying foreign service providers’ competence.


TN/S/W/19 from 18 WTO Members with 5 TiSA Members TN/S/W/19 from 18 WTO Members with 5 TiSA Members (2004)(2004)

HOW TO ENSURE COMMERCIALLY MEANINGFUL MODE 4 COMMITMENTS?

•Expansion of commitments in categories de-linked to Mode 3

•Attached restrictions that further erode the limited value of Mode 4 commitments (restrictions on duration of stay, ENTs, requirements for work permits, residency and citizenship requirements, etc.)

•Cumbersome and non-transparent administrative procedures and regulations on visas and work permits•Need for common understanding on service provider categories.


TN/S/23TN/S/23 (2005) (2005) OBJECTOBJECTIIVES VES IN MODE 4 IN MODE 4

AS AS IIDENTDENTIIFFIIED BY MEMBERSED BY MEMBERS

CATEGORIES OF NATURAL PERSONScommitments to be undertaken in all main categories: Business Visitors (BVs); Intra-corporate Transferees (ICTs); Contractual Service Suppliers (CSSs); Independent Professionals (IPs); Others

commitments on each of the main categories to be based on common definitions and parameters and to provide for specific market access conditions

coverage of commitments to be extended to better cover categories of persons not linked to commercial presence (CSSs and IPs), with adequate sectoral coverage

commitments on ICTs to be extended

commitments on Installers to be undertaken

scope of commitments to be extended to lower skilled workers


LIMITATIONS FOR REDUCTION OR ELIMINATION economic needs/labour market tests (LMTs); if not possible, specify non-discriminatory and objective criteria in the schedule

quantitative restrictions; where quotas cannot be removed, increase quotas

measures preventing longer periods of stay tailored to the specific needs of each category of natural persons

non-renewal of periods of stay

excessive formalities where renewal is permitted

citizenship and residency requirements

pre-employment conditions; where removal is not feasible, period of prior employment with home country juridical person to be clearly specified and not to exceed a particular time period

labour market conditions, including wage parity requirements (without prejudice to other employment laws, such as minimum wage requirements)

discriminatory tax treatment


REGULATORY ISSUES AND ADDITIONAL COMMITMENTS FOR NEGOTIATION

transparency of entry procedures and provision of information relevant to entry, temporary stay and work authorization for each of the categories of natural persons scheduled

administrative procedures affecting entry and stay, especially regarding visas

recognition and qualification requirements

SCHEDULING ISSUES TO BE ADDRESSED

commitments on the basis of common categories, using similar terminology and parameters

sector-specific commitments to complement the horizontal section and bind deeper levels of liberalization

transparency of commitments: templates for providing readily available information on a voluntary basis


OthersOthers Papers Papers

• Transparency Templates from Canada and Australia for Horizontal Mode 4 Offers (TN/S/W/42 and 48)

• Communication from Switzerland on e-Work Permit (Canton of Zurich) and from Australia on e-visa system (TN/S/W/22 and 25)

• On ENTs by Canada and Korea (TN/S/W/46 and 49)

• On Temporary Admission of Installers and Maintainers by Switzerland (TN/S/W/61) proposing Members to undertake horizontal commitment for this sub-category.

• By Pakistan (TN/S/W/57) as a continuation of earlier papers by Mode 4 Friends to overcome the reluctance of Members to liberalise Mode 4 ( security exception, system to assure that temporary workers goes back to home country, definition of temporary)


The Recent Papers (2009 and 2011)The Recent Papers (2009 and 2011)

• Background Note by the Secretariat (S/C/W/301) (S/C/M 95)

• Communication from India- Assessment of Plurilateral Request (JOB/SERV/70), 2011


S/C/W/301 (2009)S/C/W/301 (2009)

Main Obstacles to Mode 4 trade:•Not only opaque and arbitrary visa and work permit related procedures, but also administratively complex, lengthy and costly.•Work permit procedures rarely distinguish between temporary and permanent movement of labour, particularly ill-suited for the temporary.•Others: strict eligibility criteria, bias towards highly skilled categories, movement associated with commercial establishment in the host country, durations of stay not tailored to the needs of mode 4 service suppliers, ENTs and numerical quotas


S/C/M/95 (2009)S/C/M/95 (2009)

Obstacles pointed out by Members:•ENTs not clearly defined•Vague definitions for the categories•Limited number of commitments other than ICTs•Bias in favour of highly skilled•Impact of domestic regulatory measures•Visa and work permit related requirements


JOB/SERV/70 (2011)JOB/SERV/70 (2011)

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• New and/or improved market access in the categories delinked from commercial presence (CSS and IP), removal or substantial reduction of ENTs, relaxation of duration of stay with renewal, removal of residency, local training and similar requirements. Transparency as a supplement to the market access.

• No concrete positive movement from recipients, concerns being repeated.


QUESTIONS FOR FURTHER DISCUSSIONQUESTIONS FOR FURTHER DISCUSSION

• Why best FTA approach is not followed in Mode 4?

• Doha offers. Then why not FTAs that has been negotiated for the time being or those that have been finalised, but not entered into force yet?

• If we do not understand visa from entry procedures, what are meant with entry procedures?

• Similarly, what is ICT, CSS and IPs are doing if not working in host country?


INDUSTRYINDUSTRY

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Calls for continued determination in tackling “21st century issues” including cross border data flows, regulatory transparency and coherence, movement of business persons.Commitments to facilitate mobility and expedite business visas and work permits are a matter of high importance to services providers


LAW ON FOREIGNERS AND INTERNATIONAL PROTECTION LAW ON FOREIGNERS AND INTERNATIONAL PROTECTION (TURKEY)(TURKEY)

• Entered into force April 2014.• Establishment of a civilian institution under Ministry of Interior

(General Directorate of Migration Management)• Clear and efficient system for issuing and annulment of visas,

along with work and residence permits.• Foreigners wishing to stay in Turkey for up to 90 days needs to get

a visa. The period of stay with visa or visa exemption may not exceed 90 days within a period of 180 days.

• Foreigners who would stay in Turkey beyond that duration need to obtain a residence permit.

• Work permits will substitute for residence permits, and will be applied from abroad.

• Maximum duration for residence/work permits is one year, renewal possible. For work permits renewal is 3 years and then 6 years.

• Appeal mechanisms are notified to the applicant in case of a cancellation, refusal or non-renewal.


E-VISAE-VISA

• www.evisa.gov.tr is a government portal run by the Ministry of Foreign Affairs of Turkey.

• Commenced in 17 April, 2013.

• Total e-Visas issued 2.8 million. (as of 17.6.2014)

• Average Daily e-visas issued: 25,000

• Highest amount of visas issued in one day: 33.491

• e-Visa applications can be created for an individual, for a family (minimum of 2 and maximum of 10 people) or for a group (minimum of 10 and maximum of 300 people).

• e-Visa is valid for touristic and trade purposes only.


http://www.evisa.gov.tr/

E-VISAE-VISA

• An e-Visa can be obtained easily anywhere with an internet connection and it saves time that you would otherwise spend on visa applications at Turkish missions or at the ports of entry into Turkey (if you are eligible).

• Multiple entry is possible.

• The e-Visa application fee is only charged to an approved e-Visa.

• You can apply for your e-Visa any time before your travel. However, you are advised to create an e-Visa application at least 48 hours before your departure.


Thank you.Thank you.

ministry of economy annex on mode 4 23 june 2014 alev yildirim 1

Documents

ministry of economyjune

ministry of economyscssw12

ministry of economymain

republic of turkey

transparency of information

application criteria

implementation of mode

sectoral commitments