Transcript Document

« The voice of the European Service
Industries for International Trade Negotiations »
EUROPEAN PARLIAMENT
International Trade Committee Hearing
« Trade in Services in Mode 4 and Circulation
of the Workers »
Brussels, Room 2Q2 Building JAN
19 January 2009
Perspectives of the European Services Industry
Pascal Kerneis, Managing Director
ESF (European Services Forum)
« The voice of the European Service Sectors
for International trade Negotiations in Services »
WHO DOES ESF REPRESENT?
• 30 European services companies, most of them
major multinational companies
(represented at CEO or Chairman level in the
European Services Leaders Group – ESLG)
• 35 European trade federations of various
services sectors (e.g. banking, insurance,
telecommunications, express, architects,
engineers, accountants, shipping, tourism, etc.)
« The voice of the European Service Industries
for International Trade Negotiations in Services»
ESF covers most services
sectors, including:
• Insurance
• Banking
• Business services: IT &
Computer; consulting,
advertising, after-sales services
• Professional services: legal
services, accountants, architects,
engineers
• Construction services
• Distribution services
• Postal & Express Delivery
services
• Audio-visual services
• Environmental services
• Telecommunication services
• Tourism
• Air Transport
• Maritime Transport
But no members in Education
or Health services
For more information, see www.esf.be
« The voice of the European Service Industries
for International Trade Negotiations in Services»
ESF MEMBERS INCLUDE:
For more information, see www.esf.be
« The voice of the European Service Sectors
for International Trade Negotiations in Services »
Reality of today’s migration?
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+/- 200 millions economic migrants in 2007 (+/- 3%/Y)
+/- 240 Bio US$ : workers remittances (35 Bio in EU27 (2006)
50% South/South (incl. workers remittances)
If 3% of world work force would move, +200 Bio $ gain/Y
(Rodrick) or +150 Bio $ (Winter) - Value of statistics?
• Confusion between economic migration and GATS Mode 4
• US H1B visas were 195000/Y in 2000, and 65 000/Y since
11/9/2001 attacks (US GATS commitment of 1994);
but many different kinds of visas (B1, L1, F-1, J-1, H-2B, TN’s,
etc); In fact, more than 200 000 economic migrants in US/Y
• In the EU, estimates: inflow of Third-country High Skills workers
was 74 300 in 2003 in EU 25
• More accurate and detailed data: in 14 MS, 34 219 work permits were
issued for High Skills Workers in 2005.
« The voice of the European Service Sectors
for International Trade Negotiations in Services »
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EU Basic Background
The labour markets of many EU member States face
the prospect of a shrinking and ageing workforce.
EUROSTAT figures indicate that Europe’s nativeborn workforce will fall by 48 million by 2050 out of
a total today of +/- 200 mio in EU27, i.e. +/- 24%).
In many countries, companies already find it difficult
or impossible to fill vacancies due to labour and skills
shortages, incl. in engineering and informatics.
Facilitating legal migration can help boost the size of
the labour force and enable companies to fill current
job vacancies, in particular for highly qualified
workers.
« The voice of the European Service Sectors
for International Trade Negotiations in Services »
• Immigration is the most effective way of defusing
Europe’s demographic timebomb (originating from
people growing older & too few babies born in the
EU)
• Without countermeasures, EU social system will not
be sustainable in 21st Century,
• Competing economies such as USA, Canada,
Australia, New Zealand & Switzerland are attracting
the highly-skilled immigrant much more
successfully than EU
• Economic migrants don’t come to EU, and even
skilled workers from the EU migrate outside EU!
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Temporary movement of workers is already taking
place in the EU in many services sectors;
• Difficult to gather reliable statistics;
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Lack of data (only 14 Member States have “solid data”)
Mix between Manufacturing and services sectors;
Mix with single and multiple entries
Mix with temporary and permanent jobs by Non EU nationals,
Mix between high skills and low/all skills
Mix between Intra Corporate Transferees (ICT) and Contract
Services Suppliers (CSS)
• Estimates: inflow of Third-country High Skills workers was
74 300 in 2003 in EU 25
• More accurate and detailed data: in 14 MS, 34 219 work
permits were issued for High Skills Workers in 2005.
« The voice of the European Service Sectors
for International Trade Negotiations in Services »
Some 10 EU Member States are already
applying or putting into place immigration
policy favouring entry of high skilled
workers (« immigration choisie »):
1)United Kingdom (already into place),
2) Germany,
3) France,
4) Sweden,
5) Denmark,…
But we are late in the process and there is no
big visibility! There is a need for a EU
economic migration policy.
« The voice of the European Service Sectors
for International trade Negotiations in Services »
EU Internal Legislative Proposals To improve temporary entry
of third country nationals into the EU
ESF and BUSINESSEUROPE welcome the two legislative
proposals dated 23 October 2007 (still in the pipeline –
Adoption in 1st reading by EP late 2008 - Final text
expected in 2009 – implementation in 2011, but not to UK,
Ireland and DK):
1. A directive on the admission of highly qualified
immigrant workers (the “blue card” proposal),
2. A directive on a single application procedure for a
single work/residence permit and a common set of
rights.
 Good to improve legal migration, But potential
difficulty with minimum salary requirement (3x
existing minimum wage !)
« The voice of the European Service Sectors
for International trade Negotiations in Services »
• Proposals aiming at facilitating cross-border mobility of
third-country nationals already legally residing and
working in a Member State and holding a blue card (valid
for 2 years, renewable) is of value to European employers.
• Quick and simple admission procedures such as the fast-track
procedure should facilitate recruitment for highly qualified
employment (response after 30 days for HQE; for Single
Application procedure (SAP): “One –stop-shop”, 90 days
deadline, single act for residence and work permit, etc.
• Common criteria for admission proposed in the directive,
such as a work contract, ability to prove professional
qualifications, travel document, evidence for sickness
insurance and a minimum salary level (?), might increase the
transparency and reduce the complexity of admission
procedures.
• Rights for migrants: working condition, pay, education,
social security, family reunification, etc.
« The voice of the European Service Sectors
for International trade Negotiations in Services »
EXTERNAL PROCESS
• ESF is advocating for better WTO Mode 4 commitments
since its inception in early 1999, before the launch of the
DDA. ESF also favours Mode 4 in regional and bilateral
trade agreements (FTA)
• The European services industry is very interested in Mode 4,
both ways, i.e.:
– both as bringing its own staff abroad, either to their
subsidiaries (ICT) and to their clients (CSS), as well as
– bringing competent natural persons into Europe, either
within the company (ICT) or to their clients (CSS).
• ESF pleaded for a good EU offer on mode 4, and believes
that the negotiators have delivered a rather good offer, but is
very disappointed by the lack of response from trading
partners for that specific mode of supply.
 Mode 4 is not only an offensive issue for developing
countries, but also for developed countries
« The voice of the European Service Sectors
for International trade Negotiations in Services »
EU current WTO Offer on Mode 4
Preliminary provisions and conditions:
1. EC Directives on Mutual Recognition of
Diplomas and of Qualifications do not apply to
national of third countries = hence the
importance of MRAs
2. All EC and EU Member States’ laws and
regulations regarding entry & stay (i.e. visas),
work (i.e. work permits) and social security
measures (minimum wages, collective
agreements, etc.) shall continue to apply.
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Categories of Natural Persons Covered under
Mode 4:
1. Intra-Corporate Transfers (ICT)
1. Managers
2. Specialists
3. Graduate Trainees
2. Business Visitors (BV)
3. Contract Service Suppliers (CSS)
Employees of Juridical Persons
4. Independent Professionals (IP)
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Conditions For ITC in the EU:
• The natural person must work within the
juridical person for at least 1 Year
• The natural person is transferred temporarily
in the context of the provision of a service
through a commercial presence in the
territory
• No Economic Needs Tests
• No limit, no quota
• Entry and Stay limited to a max of 3 Years
for Managers and Specialist (LV: 5Y; EE:3 +
2; LT: Managers can be extended) and 1
Year for Trainees
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Conditions for Business Visitors (BV):
1. Services Sellers:
a. Person not residing in an EU Member State
b. Person representing a service supplier
c. Seeking temporary entry for the purpose of
negotiating the sale of a service
d. Not engaged in making direct sales
e. Not receiving remuneration
2. Establishment of Commercial Presence (also
some conditions depending of the EU countries)
3. No Economic Needs Test, No limit, No Quota
4. Period of up to 90 days in any 12 months
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Conditions for the Contract Service Suppliers (CSS)
(1)
1. The person is employed by a company (juridical person)
that has no commercial presence in the EU
2. The juridical person has obtained a service contract for a
period of max. 12 months from a final consumer (juridical
person?)
3. The person should work for the company for at least one
year before the contract
4. The person must posses
1. a university degree or technical qualification required,
2. the professional qualification when required
3. At least 3 years of professional experience in the sector
« The voice of the European Service Industries for
International Trade Negotiations in Services»
Conditions for the Contract Service Suppliers (CSS) (2)
5. The service contract must be obtained in the following sectors:
1.
Legal services
12.
Related and technical consulting services
2.
Accounting and bookkeeping
13.
3.
Taxation advisory services
Maintenance & repair of equipment in
after sales of after-lease services contracts
4.
Architectural services, urban planning
14.
Translation services
5.
Engineering services, integrated
engineering services
15.
Construction services
16.
Site investigation work
6.
Computer and related services
17. Higher education services
7.
Research and development services
18.
Environmental services
8.
Advertising
19.
Travel agencies & tour operator services
9.
Management consulting services
20.
Entertainment services
21.
Services related to the sale of equipment
or to the assignment of a patent
10. Services related to management
services
11. Technical testing and analysis services
6.
7.
Commitments are subject to the application of a Numerical Ceiling (i.e. a
minimum quota, but without fix cap) to be determined
For 12 new EU Member States: Transition period: 01/01/2011
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Conditions for the Independent Professionals (IP)
(1)
1. The person is self-employed in a non EU country
2. The person has obtained a service contract (but not
through an agency) for a period of max. 12 months from a
final consumer (juridical person?)
3. The person must posses
1.
2.
3.
a university degree or technical qualification required,
the professional qualification when required
At least 6 years of professional experience in the sector
4. The commitment relates only to the activity related to the
contract (i.e. not right to stay longer)
5. Temporary Entry and Stay for max of 6 months in any 12
months period, or for the duration of the contract,
whatever is less.
« The voice of the European Service Industries for
International Trade Negotiations in Services»
Conditions for the Independent Professionals (2)
5.
The service contract must be obtained in the following sectors:
1. Legal services
2. Architectural services, urban planning &
landscape architecture
3. Engineering services, integrated engineering
services
4. Computer and related services
5. Management consulting services & Services
related to management services
6. Translation services
6. Commitments are subject to the application of a Numerical
Ceiling (i.e. a quota) to be determined
7. For 12 new EU Member States: Transition period: 01/01/2011
« The voice of the European Service Sectors
for International trade Negotiations in Services »
Conclusion:
• The European Services industry is very keen in quick
action in all aspects of mobility of foreign workers;
• Progress on movement of natural persons are taking
place at all levels in the EU;
• At the Signalling Conference on Services on 26 July
2008 in Geneva, the EC has signalled its willingness to
respond positively to Developing countries requests in
Mode 4;
• But the EC also insisted that its offer could only be
tabled provided that WTO trading partners will
somewhere reciprocate on that mode…
« The voice of the European Service Industries
for International Trade Negotiations in Services»
Thank You for your attention !
Pascal KERNEIS
Managing Director
European Services Forum – ESF
168, Avenue de Cortenbergh
B – 1000 – BRUSSELS
Tel: + 32 2 230 75 14 - Fax: + 32 2 320 61 68
Email: [email protected]
Website:
www.esf.be