./.WORLD TRADE
ORGANIZATIONS/CSS/W/48
14 March 2001
(01-1404)
Council for Trade in Services
Special SessionOriginal:  English/
French
COMMUNICATION FROM CANADA
Initial Negotiating Proposal on Temporary Movement of Natural Persons
Supplying Services under the GATS (Mode 4)
The attached communication has been received from the delegation of Canada with the
request that it be circulated to Members of the Council for Trade in Services.
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1. Canada reserves the right to modify this pro posal at any time. This proposal does not prejudge
Canada’s position on other service sectors, nor any future offer on this or other sectors. This proposal
should be read in conjunction with the principles and objectives as outlined in Canada’s initial
negotiating proposal.
A. INTRODUCTION
2. Following extended mode 4 negotiations completed in June 1995, only a relatively small
number of Member countries made specific commitments on the temporary movement of service
suppliers with respect to Market Access (Article XVI), National Treatment (Article XII) or additional
commitments (Article XVIII). Generally speaking, Members made horizontal commitments onintra-corporate transferees (not necessarily in all categories), a fewer number on business visitors, and
only a small number on professionals, including those providing services on a contractual basis and
unlinked to a commercial presence. Canada made commitments in all three areas.
3. The international mobility of service suppliers, whether as individuals or employees
providing services, has become an increasingly important component of competitive markets forsuppliers and consumers alike. It is also important for businesses developing new markets and
business opportunities. Access to foreign markets is important not only to large firms that conduct
business on a global basis, but also to small- and medium-sized enterprises (SMEs) and individuals
providing services on a contractual basis. They make up the vast majority of service suppliers actively
exporting in various sectors. Lack of transparency and predictability, including difficulties inobtaining procedural information, frequently affects the ability of all service suppliers to compete in
foreign markets. Transparency problems can effectively rule out market access for service suppliers
from both developed and developing countries. Therefore, Members should explore ways to
strengthen the transparency obligations of the GATS to benefit in particular individual service
suppliers, SMEs and the service suppliers from all countries.S/CSS/W/48
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B. PROPOSAL
4. Given the existence of various barriers to the temporary movement of natural persons, Canada
believes that in these negotiations Members should improve their mode 4 commitments, both
horizontal and sectoral. This would provide greater access to foreign markets for the services
suppliers of developing and developed countries. Canada also thinks that more Members should makecommitments on general business visitors and on professionals, including those entering on a
contractual basis and not linked to commercial presence. In addition, Canada believes that Members
should examine the need for rules to allow for the duty-free temporary admission of “portable tools of
the trade” required to carry-out services in foreign markets linked to Mode 4 commitments.
5. As well, Canada believes that Members should reach agreement on improving the
transparency and predictability of existing and new mode 4 commitments. Accordingly, Members
may wish to focus inter alia  on immigration laws and regulations, including procedural information,
on temporary movement; available foreign worker programs and their entry criteria; applicable
conditions for economic needs tests (ENTs); field instructions or operational guidelines for
immigration officers; maximum duration of stay and market access limitations cited in commitments.
6. Mode 4 is a key issue in these negotiations. India, Japan, the European Union and the United
States have recently provided initial views. Canada proposes that all Members now put more attentionon the mode 4 issues in these negotiations. It is important that trade policy officials and
representatives from relevant regulatory bodies (in Canada’s case, this includes immigration and
labour market officials) focus on the issues involved. Members should explore options on how they
might move forward with mode 4 discussions. Possible ideas include a temporary ad hoc  group
reporting to the Council for Trade in Services, Special Session; discussion in an existing GATScommittee; or a seminar similar to the recent tourism services event.
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