SERVICES TRADE: MODES OF SUPPLY SNAPSHOTS 1

Transcription

1 Archived Cntent Infrmatin identified as archived n the Web is fr reference, research r recrdkeeping purpses. It has nt been altered r updated after the date f archiving. Web pages that are archived n the Web are nt subject t the Gvernment f Canada Web Standards. As per the Cmmunicatins Plicy f the Gvernment f Canada, yu can request alternate frmats by cntacting us. SERVICES TRADE: MODES OF SUPPLY SNAPSHOTS 1 1 All diagrams and internatinal statistics came frm the WTO Secretariat. Accessed August, << Canadian statistic supplied by Statistics Canada and Internatinal Trade Canada, Trade and Ecnmic Analysis Divisin

2 SERVICES TRADE: CROSS-BORDER SUPPLY (MODE 1) Mde 1: service transactins The service crsses the brder Supplier Crss-Brder Supply is when a service is supplied frm the territry f ne Member int the territry f any ther Member. This is mst ften dne using electrnic delivery (i.e. telephne, fax r internet) Example: A user in cuntry A receives services frm abrad thrugh its telecmmunicatins, infrmatin technlgy r pstal infrastructure. Such services may include cnsultancy r market research reprts, tele-medical advice, distance training, r architectural drawings. Mde 1 cntributes t 35% f services trade internatinally. In 2004, Mde 1 accunted fr $45b in exprts and $53b in imprts in Canada. Sectrs where Mde 1 is imprtant: Prfessinal services Cmputer related services Telecmmunicatin services Curier services Other Sectrs cnducive t cnsultancy services Types f Measures affecting Mde 1 Trade: Cmmercial Presence Requirements Residency Requirements Citizenship Requirements Authrizatin and/r Licensing Requirements Limitatins and/r restrictins n insurance Canada s negtiating psitin n Mde 1: Crss brder supply f services is grwing in imprtance in the Canadian ecnmy stimulated mainly by increases in the imprtance f e-cmmerce and infrmatin technlgy. Canada supprts liberalizatin in this mde t meet the dmestic regulatry status qu that already exists in Member ecnmies. 2

3 Services Trade: Cnsumptin Abrad (Mde 2) Mde 2: service transactins The cnsumer ges abrad Service supply Supplier Cnsumptin Abrad refers t a service which is supplied when cnsumers frm ne cuntry make use f a service in anther cuntry. Example: Natinals f cuntry A have mved abrad t cuntry B as turists, students r patients t cnsume the respective service. Mde 2 cntributes t 10% t 15% f services trade internatinally. In 2004, Mde 2 accunted fr $17b in exprts and $21b in imprts in Canada. Sectrs where Mde 2 is imprtant: Turism Types f Measures affecting Mde 2 Trade: Cmmercial Presence Requirements Residency Requirements Citizenship Requirements Authrizatin and/r Licensing Requirements Discriminatry taxatin Limitatins and/r restrictins n insurance Canada s negtiating psitin n Mde 2: Canada supprts liberalizatin in this mde t meet the dmestic regulatry status qu that already exists in Member ecnmies. 3

4 Services Trade: Cmmercial Presence (Mde 3) Mde 3: service transactins Service supply Freign affiliate Direct investment in cuntry A Cmpany Cmmercial Presence cvers services supplied by a services supplier f ne Member by establishing a presence in the freign market by pening an ffice in the territry f any ther Member. This culd be dne by a cmpany setting up a subsidiary r branches in anther cuntry. Example: The service is prvided within cuntry A by a lcally-established affiliate, subsidiary, r representative ffice f a freign-wned and cntrlled cmpany, such as a bank, htel grup r cnstructin cmpany. Mde 3 cntributes t 50% f services trade internatinally. In 2003, freign affiliates f Canadian services prviders sld $113.2b f services directly t freign custmers in freign cuntries. Canadians purchased $308b f services directly frm affiliates f freign services prviders in Canada. Sectrs where Mde 3 is imprtant: Financial Services Oil, Gas and Mining Services Telecmmunicatin Services Envirnmental Services Types f Measures affecting Mde 3 trade: Restrictins n the type f legal entity Restrictins n the number f suppliers Restrictins n the participatin f freign capital Restrictins n discriminatry taxatin Restrictins n remittances, capital transfers, and currency cnversin Canada s negtiating psitin n Mde 3: Mde 3 is a pririty fr Canada Inward investments int Canada as well as Canadian direct investment abrad are imprtant tl fr Canada s ecnmic grwth. Canada supprts liberalizatin in this mde. 4

5 Services Trade: Temprary Mvement f Natural Persns (Mde 4) Mde 4: service transactins Service supply Natural persn Self-emplyed ges t cuntry A r emplyee sent by firm frm B Natural persn Mde 4: temprary emplyment Temprary emplyment Natural persn Temprary Mvement f natural persns cvers services supplied by a service supplier f ne Member thrugh the presence f natural persns f a Member in the territry f any ther Member. Fr example, this is ften dne thrugh the mvement f cmpany staff t ther cuntries. Example: An advance team f engineers preparing fr an investment in anther cuntry, a cnsultant r manager traveling frm their cuntry t anther cuntry t supply their service. Mde 4 cntributes t 1% - 2% f services trade internatinally. It is difficult t estimate the ecnmic benefits f the temprary mvement f peple. Althugh Canadian statistics cunt the numbers f business persn wrking temprarily in Canada, it is difficult t infer precisely their cntributin t the ecnmy. Generally speaking, in 2002, 1,145 businesspersns entered Canada under the GATS. Sectrs where Mde 4 is imprtant: Infrmatin Technlgy Prfessinal services Other services where the mvement f service supplying persnnel is crucial (i.e. after sales services) Types f Measures affecting Mde 4 Trade: Visa and wrk permit prcessing delays Licensing/certificatin requirement 5

6 Spusal emplyment restrictins Mre restricted entry fr certain types f prfessins Ecnmic Needs Tests and Labur Market Tests Qutas Technlgy transfer requirements Residency and natinality requirements Training/educatin/qualificatin requirements Canada s negtiating psitin n Mde 4: Canada is seeking frm ther GATS Members easier temprary entry fr all categries f business persns; and the remval f Ecnmic Needs Tests/Labur Market. Canada is als seeking imprved mde 4 transparency. 6