Movement of business people – a SADC perspective Malcolm McKinnon Trade in Services Advisor to SADC
Outline • Importance of movement of business people • SADC Protocol on Facilitation of Movement of People • SADC Protocol on Trade in Services • Tripartite Agreement on Movement of Business People
Importance of movement of business people
Benefits of business mobility • Allows face-to-face communication and in-person meetings • Most effective way of meeting new clients • Essential for negotiating final agreements • Key factor in building long-term relationships • Key channel for transfer of knowledge • Stimulates trade and economic growth
BUT … • Impediments to mobility of business people across borders imposes real costs on economies • Reduced imports and exports • Reduced FDI stocks • Reduced productivity • Reduced competitiveness • Translates into trade transaction costs for business
Sensitivities • Political sensitivity? • Regulatory concerns? • Enforcement concerns (temporary entry leading to permanent entry)? • Effect on labour market? • Impact on wages of locals? • Bilateral arrangements provide for greater flexibility?
Why politically sensitive? • Temporary entry leading to people absconding • Economic migration vs asylum seeking • Free movement of labour vs threat to domestic jobs • Social security benefits • Political targets to reduce net migration
Why politically sensitive? Open markets Export interests require reciprocity Skills shortages Import of skills leads to improvement of domestic skills Temporary entry leading to people absconding Free movement of labour vs threat to domestic jobs Unfair access to social security benefits Economic migration vs asylum seeking - security Political targets to reduce net migration
SADC Protocol on Facilitation of Movement of Persons
Context for SADC movement of business people SADC Treaty (1991) Facilitation Other Transport, Trade in of Trade sectoral Communication Movement Services Protocol Protocols, eg and Protocol of Persons Meteorology (1996) Tourism, (2010) Protocol Protocol (1996) Energy, etc (2005)
Background • Two foundations for the PFMP: 1. SADC Treaty, which advocates for the “promotion of interdependence and integration of national economies for the harmonious, balanced and equitable development of the region” 2. Protocol on Tourism Development, which advocates for the introduction of a tourist Univisa
Protocol on Facilitation of Movement of Persons • The development of policies aimed at the progressive elimination of obstacles to the movement of persons in the region, generally into and within the territories of State Parties • Specifically: a. entry , for a lawful purpose and without a visa, into the territory of another State Party for a maximum period of ninety (90) days per year for bona fide visits and in accordance with the laws of the State Party concerned; b. permanent and temporary residence in the territory of another State Party; c. establishment of oneself and working in the territory of another State Party
Harmonisation of Immigration Practices • State Parties agree to take steps to achieve each of the following from the date of entry into force: a. harmonisation around entry for a maximum period of ninety (90) days per year for bona fide visits b. standardisation of immigration procedures c. establishment of a separate SADC desk at ports of entry d. sufficient number of border crossing points with identical opening hours e. simple border permit/border passes for citizens of State Parties who reside in border areas f. abolition of visa requirements g. co-operation in the provision of training
Current status of Protocol MEMBER STATES DATE OF SIGNATURE DATE OF RATIFICATION Botswana 18-8-2005 6-9-2006 DRC 18-8-2005 Lesotho 18-8-2005 Mozambique 18-8-2005 9-12-2005 Namibia 18-8-2005 South Africa 18-8-2005 4-2-2008 Swaziland 18-8-2005 2-8-2006 Tanzania 18-8-2005 Zimbabwe 18-8-2005 Angola Madagascar Malawi Mauritius Seychelles Zambia
SADC Protocol on Trade in Services
Timeline 2000 : Services Annex to Trade Protocol – liberalization of 6 priority sectors 2006 : Standalone Protocol instead of Annex 2009 : Adoption of Protocol by CMT 2011 : Adoption of Negotiating Guidelines by CMT and approval to start negotiations 2012 : Start of negotiations in April 2012; Protocol open for signature – 11 Member States sign at 2012 SADC Summit 2013 : Zimbabwe signs at SADC Summit 2015 : Negotiations due to end March 2015; CMT approves extension until December 2015 South Africa signs at SADC Summit CMT approves further extension until September 2016 2016 : CMT approves further extension beyond September 2016 for 2 sectors
Signature and ratification • Signature • Ratification • 13 Member States signed • 4 Member States have ratified (Botswana, Mauritius, • Not signed: Madagascar, Namibia Mozambique, South Africa)
SADC Trade in Services Protocol and GATS • The Protocol is built on the basis of GATS • Takes into account the rights and obligations o Framed on Art. V – achieved through the schedules of commitments • Most articles borrowed from GATS o Adapted to suit regional issues • Recognises on-going GATS negotiations o Disciplines on domestic regulations shall take into account the achievements of the GATS negotiations
TIS Protocol Objectives • Deeper regional integration and sustainable economic growth and development • To meet the challenges of globalisation • Diversified SADC economies through greater services trade • Integrated regional market for services, complemented by cooperative mechanisms • New opportunities for a dynamic business sector • Strengthened services capacity, efficiency and competitiveness • Expanded services exports
Progressive liberalisation - six priority sectors
Modes of supply Mode of Short description GATS definition Example supply Cross-border From the territory of one Member Computer services supplier in Country Mode 1 supply into the territory of any other A supplying services to Country B via Member the Internet Mode 2 Consumption In the territory of one Member to the Hotel in Country B providing services abroad service consumer of any other to a visiting citizen from Country A Member Commercial By a service supplier of one Member, Bank in Country A setting up a Mode 3 presence through commercial presence in the branch, subsidiary or joint venture in territory of any other Member Country B Mode 4 Movement of By a service supplier of one Member, Manager of bank in Country A moving natural persons through presence of natural persons temporarily to Country B to set up or of a Member in the territory of any run its branch office, subsidiary or other Member joint venture
Modes of supply Mode of Short description GATS definition Example supply Cross-border From the territory of one Member Computer services supplier in Country Mode 1 supply into the territory of any other A supplying services to Country B via Member the Internet Mode 2 Consumption In the territory of one Member to the Hotel in Country B providing services abroad service consumer of any other to a visiting citizen from Country A Member Commercial By a service supplier of one Member, Bank in Country A setting up a Mode 3 presence through commercial presence in the branch, subsidiary or joint venture in territory of any other Member Country B Mode 4 Movement of By a service supplier of one Member, Manager of bank in Country A moving natural persons through presence of natural persons temporarily to Country B to set up or of a Member in the territory of any run its branch office, subsidiary or other Member joint venture
Mode 4 (movement of natural persons) • Categories of “natural person” • Business visitor • Intra-corporate transferee • Contractual service supplier • Independent professional • Conditions of temporary entry and stay • Length of stay • Requirement for work permit, residency permit etc
Tripartite Agreement on Movement of Business Persons
“On a separate track” • Tripartite Ministers agree (October 2014): • Movement of Business Persons should not be incorporated in the TFTA; and • the TTC-MBP should develop content and define the appropriate legal instrument to be used.
Possible structure of TAMBP Article Heading Article Heading Simplification and Preamble 9 harmonization of procedures 1 Objective and documentation Fees and formalities for the 10 2 Scope and definitions issue of visas 3 MFN 11 Expedited processing times 4 Short-term temp movement 12 Immigration measures 5 Long-term temp movement 13 Labour market testing Cooperation between Tripartite 6 Market access 14 immigration and labour market 7 National treatment authorities 15 Concluding provisions 8 Transparency of procedures
Recommend
More recommend
