No. ID-17 

OFFICE OF INDUSTRIES WORKING PAPER

U.S. INTERNATIONAL TRADE COMMISSION

Jennifer Baumert 

Kyle Johnson 

Dawn Heuschel 

Brendan Lynch 

U.S. International Trade Commission 

January 2008 

Jennifer Baumert is a Lead International Trade Analyst, Dawn Heuschel is an 

International Trade Analyst, and Brendan Lynch is an intern in the Office of 

Industries of the U.S. International Trade Commission (USITC); Kyle Johnson is 

an Industry Economist in the USITC Office of Economics. Office of Industries 

working papers are the result of the ongoing professional research of USITC Staff 

and are solely meant to represent the opinions and professional research of 

individual authors. These papers are not meant to represent in any way the views 

of the U.S. International Trade Commission or any of its individual Commissioners. 

 Working papers are circulated to promote the active exchange of ideas between 

USITC Staff and recognized experts outside the USITC, and to promote 

professional development of Office staff by encouraging outside professional 

critique of staff research. 

Address correspondence to: 

Office of Industries 

U.S. International Trade Commission 

Washington, DC 20436 USA 

International Cooperation on Trade and Labor Issues 
International Cooperation on Trade and Labor Issues

Jennifer Baumert

Kyle Johnson

Dawn Heuschel

Brendan Lynch

ABSTRACT: The relationship between the labor market and international trade is a broad

and complex subject that has been the focus of significant attention in recent years.

Discussion and analysis in this area has covered a number of discrete issues, including the

effect of shifting trade patterns on employment levels and earnings in domestic markets, the

impact of wage levels and labor legislation on the location of production facilities, and the

positive and negative aspects of the cross-border movement of workers, among others. The

continuing importance of labor issues within the larger trade debate is highlighted by the

inclusion of measures relating to labor standards and/or the cross-border movement of

workers in recent bilateral and multilateral trade agreements such as the North American Free

Trade Agreement (NAFTA), the General Agreement on Trade in Services (GATS), and the

U.S.–Oman Free Trade Agreement. This paper aims to provide background for future work

on trade-related labor issues by describing how labor issues such as internationally recognized

labor standards and the cross-border movement of workers have been addressed by

international organizations, as well as in U.S. trade legislation and recent trade agreements.
1

International Cooperation on Trade and Labor Issues

The nature and evolution of the labor-related provisions contained in recent trade agreements,

including the WTO agreements and bilateral FTAs, provides evidence of the importance of the

relationship between trade and labor issues. This paper provides a general overview of internationally

recognized labor rights and discusses the ways in which labor-related issues—including workers’ rights

and the transboundary movement of workers—have been addressed by the International Labour

Organization (ILO), the World Trade Organization (WTO) agreements, and bilateral trade fora. A brief

overview of the literature regarding trade-related labor issues is provided in an appendix to this paper.

Introduction

The relationship between the labor market and international trade is a broad and complex subject

that has been the focus of significant attention in recent years. Discussion and analysis in this area has

occurred in both political and academic circles at the local, national, and international levels, and has

covered a number of discrete issues. Such issues include the effect of shifting trade patterns on

employment levels and earnings in domestic markets, the impact of wage levels and labor legislation on

the location of production facilities, and the positive and negative aspects of the cross-border movement

of workers, among others (appendix A). 

Although the ILO continues to be the primary international body promoting labor rights,

measures relating to labor standards and/or the cross-border movement of workers have been incorporated

into recent bilateral and multilateral trade agreements such as the North American Free Trade Agreement

(NAFTA), the General Agreement on Trade in Services (GATS), and the U.S.–Oman Free Trade

Agreement. 
 1

 International Labor Organization (ILO). “ILO History;” and ILO, Bureau for Workers’ Activities (ACTRAV),

“International Labor Law.”

 2

 ILO. “About the ILO.”

2

This paper aims to provide background for future work on trade-related labor issues by describing

how labor issues such as internationally recognized labor standards and the cross-border movement of

workers have been addressed by international organizations, as well as in U.S. trade legislation and recent

trade agreements. More specifically, this overview focuses on the evolution of workers rights provisions

in trade agreements, and demonstrates the increasing profile of such provisions in U.S. trade agreements.

The paper begins by discussing the ILO’s role in promoting labor standards, and provides information

regarding the context and ratification of key ILO conventions, some of which have served as the basis for

the labor standards identified in U.S. legislation and trade agreements. This is followed by a description

of the limited extent to which the WTO has addressed labor issues and incorporated labor-related

provision in its agreements. The paper continues with a discussion that illustrates the evolving role of

workers rights and other labor-related provisions in U.S.-trade legislation and free trade agreements over

the past three decades, and briefly describes the treatment of labor issues in trade programs to which the

United States is not a party. The paper concludes by relating recent developments that highlight the

ongoing and increasing attention that labor issues receive in trade fora. 

The International Labor Organization

International cooperation on labor issues has a long history, spanning more than 100 years. Such

cooperation was first promoted in the 19th century by industrialists such as Robert Owen and David

Legrand, and took institutional form with the founding of the International Association for Labor

Legislation in 1901 and its successor, the ILO, in 1919.1

 The ILO is currently the world’s foremost

multilateral labor organization and has been since its inception as part of the League of Nations in 1919.

The ILO is now a 180-member specialized agency of the United Nations that formulates international

labor standards and sets minimum standards for basic labor rights across a variety of work-related issues.2

The ILO also provides technical assistance in a number of areas including vocational training,
 3

 Ibid.

 4

 Members who have ratified a convention have the opportunity to denounce their ratification from time to time,

generally once every five or ten years, and the ILO Governing Body may suggest possible revisions to a convention

during the annual ILO conference of member states.

 5

 This highlights a key difference between ratification of an ILO labor convention versus a UN convention and

may explain some of the difference between the higher ratification rates of UN human rights conventions, as

member states may ratify UN conventions with reservations, but countries that ratify an ILO convention must agree

with its provisions in full. 

 6

 ILO. “Conventions and Recommendations.”

 7

 ILO. “About the ILO.”

 8

 ILO. “Structure of ILO.” 

 9

 ILO. “About the Declaration,”

 10 More information on the provisions included in recent U.S. free trade agreements (FTAs) is included in the

section of this chapter entitled “U.S. Trade Legislation and Free Trade Agreements.”

3

employment policy, labor administration, labor law and industrial relations, working conditions, the

development of management expertise, cooperatives, social security, labor statistics, and occupational

health; promotes the establishment of independent workers’ and employers’ organizations; and makes

recommendations and facilitates the development of conventions and recommendations.3

 A member’s

ratification of a convention4

 implies the member’s willingness to accept the convention without

reservations,5

 apply the convention in practice, and adhere to ILO monitoring of the implementation of

that convention.6

The ILO has a tripartite structure in which member governments, workers, and employers

participate on an equal level.7

 The ILO is composed of three main bodies: the International Labor

Conference, an annual conference of member states at which international labor standards are established

and adopted; the Governing Body, which serves as the executive council of the ILO and is composed of

28 member states, 14 worker organizations, and 14 employer organizations; and the International Labor

Office, which implements technical assistance programs and publishes a variety of research, reference,

and policy-related reports.8

In 1998, the ILO adopted the Declaration on Fundamental Principles and Rights at Work, which

stands as a principal and widely cited point of reference on labor rights9

 and serves as the basis for certain

provisions in recent U.S. free trade agreements (FTAs).10 The declaration addresses four subjects:

freedom of association and the effective recognition of the right to collective bargaining; the elimination

of all forms of forced or compulsory labor; the abolition of child labor; and the elimination of
 11 ILO. “Ratification of Fundamental Human Rights Conventions.”

 12 For example, the ILO published a report on the status of child labor in 2006, a report on the status of forced

labor in 2005, a report on the status of freedom of association and collective bargaining in 2004, and a report on the

status of workplace discrimination in 2003. Links to these reports can be found on the ILO internet site,

http://www.ilo.org/dyn/declaris/DECLARATIONWEB.INDEXPAGE. 

 13 The first annual reports were completed in 2000. 

 14 ILO. “About the Declaration.”

4

discrimination in regard to employment and occupation. Eight core labor conventions, commonly referred

to as the “fundamental human rights conventions,”11 provide the framework for the Declaration. These

include conventions on forced labor (convention number 29), freedom of association and protection of the

right to organize (convention number 87), the right to organize and bargain collectively (convention

number 98), the right to equal remuneration (convention number 100), abolition of forced labor

(convention number 105), discrimination (employment and occupation) (convention number 111),

minimum age (convention number 138), and the worst forms of child labor (convention number 182)

(table 1). The ILO promotes global compliance with the Declaration’s four principles through the

publication of comprehensive global analyses of core labor standards12 and annual reports13 reviewing

member countries’ adherence to these standards, and through the provision of in-country technical

assistance and training.14

There is not necessarily a direct correlation between a country’s ratification of ILO conventions

and its labor standards in practice, and there are a number of reasons that a particular country may choose

to ratify, or not ratify, a certain convention. However, the ratification of ILO conventions is one of many

indicators that may provide some indication of a country’s commitment to protect workers’ rights. The

global ratification rate for the ILO’s eight core labor conventions is high, with each of these conventions

having been ratified by at least 80 percent of ILO member countries (see table 1). The convention on
5

TABLE 1 ILO core labor conventions: Major provisions and member country ratifications as of January 29, 2007

Convention Major Provisions

Total

ratifications

Ratification

rate

U.S.

ratification

Percent

Forced Labor

Convention 

(29) 

• suppress the use of forced labora

 as soon as

possible

• exceptions- work on behalf of the public during an

emergency, where severe labor shortages exist.b

• establishes several criteria for work conditions

where forced labor as a tax exists

170 94 No

Freedom of

Association and

Protection of the

Right to Organize

Convention 

(87)

• guarantees workers and employers the, “right to

establish and...join organisations of their own

choosing”c

• workers’ and employers’ organizations shall have

the right to affiliate with relevant international

organizations 

• the law shall not impair the right to form

associations or organized

147 82 No

Right to Organize

and Collective

Bargaining

Convention 

(98) 

• workers’ and employers’ organizations should be

afforded government protection against anti-union

discrimination

• promote negotiation between employers or

employers’ organizations and workers’

organizations to regulate collective agreements 

• specific protections against discrimination such as

prohibition of union membership and dismissal

from work 

156 87 No

Equal

Remuneration

Convention 

(100)

• men and women workers receive equal

remuneration for work of equal value

• signatories may ensure equal remuneration by

means of: national laws or regulations; legally

established mechanisms for determining wages;

and collective agreements between employers

and workers

163 91 No

Abolition of Forced

Labor Convention 

(105) 

• signatories must, “suppress and not make use of

any form of forced or compulsory labor” for

holding or expressing political views; as a means

of labor discipline; as a punishment for having

participated in strikes; or as a means of racial,

social, national, or religious discriminatione

166 92 Yes

Discrimination

(Employment and

Occupation)

Convention

(111) 

• promote equal opportunity and treatment in

respect of employment and occupation

• seek cooperation of employers’ and workers’

organizations; enact legislation and educational

programs to secure acceptance and observance

of the policy 

165 92 No

Convention

Concerning the

Worst Forms of

Childf

 Labor (182) 

• signatories,“shall take immediate and effective

measures to secure the prohibition and elimination

of the worst forms of child labor”g

• design and implement programs to eliminate the

worst forms of child labor and implement

enforcement

163 91 Yes

See footnotes at end of table.
 15 ILO. “Ratification of Fundamental Human Rights Conventions by Country.”

 16 Golub. “International Labor Standards: Are They an Appropriate Response to Global Competitiveness?”

6

TABLE 1 ILO core labor conventions: Major provisions and member country ratifications as of January 29,

2007—Continued

Convention Major Provisions

Total

ratifications

Ratification

rate

U.S.

ratification

Convention on

Minimum Age for

Admission to

Employment (138) 

• ensure the effective abolition of child labor and 

raise the minimum age for admission to

employment

• each Member shall determine the minimum age

for employmenth

• minimum age may not be below 15 years of agei

147 82 No

Source: USITC calculations, based on ILO, “Ratifications of the fundamental human rights conventions by country,” Jan.

29, 2007, found at http://www.ilo.org/ilolex/english/docs/declworld.htm, retrieved Jan. 30, 2007. Information regarding

the major provisions of the ILO core labor conventions was also obtained from the ILO’s ILOEX database, found at

http://www.ilo.org/iloex/english/index.htm.

 aConvention 29 defines forced or compulsory labor as “all work or service which is exacted from any person under the

menace of any penalty and for which the said person has not offered himself voluntarily.” For the purposes of this

convention, forced labor does not include: compulsory military service; work which serves as part of normal civic

obligations; work extracted as a consequence of a conviction in a court of law, provided that the work be carried out

under the control of a public authority; work extracted in cases of emergency; or minor communal services. ILO

convention 29, Article 2.

 b

ILO Convention 29. The Convention further states that, with the exception of forced labor carried out under the

auspices of article 10, which addresses forced labor used in public works projects and as a means of taxation,

individuals forced to engage in forced or compulsory labor shall receive a cash remuneration at prevailing rates. ILO

Convention 29, Article 14.

 c

ILO Convention 87, Article 2.

 d

ILO Convention 87, Article 8.

 e

ILO Convention 105, Article 1.

 f

The term child applies to all persons under the age of 18. 

 g

The worst forms of child labor include: all forms of slavery or practices similar to slavery, such as forced or

compulsory labor, including use of children in armed conflict; the use or procuring of a child for prostitution or

pornography; the use or procuring of a child for illicit activities; the use of a child for work that is likely to harm the health,

safety or morals of children. Article 3. 

 h

ILO Convention 138, Article 2.

 i

This Convention does not apply for certain educational work (Article 6). National laws may permit certain light work to

be carried out by persons aged 13-15 (Article 7.1), or, in cases where Members are permitted and have elected to

initially determine the minimum age to be 14, may permit said certain light work to be carried out by persons aged 12-14

(Article 7.4).

forced labor has the highest ratification rate, with ratifications by 94 percent of ILO member countries, 

followed by the convention on the abolition of forced labor and the convention on discrimination, both

with 92-percent ratification rates.15 The freedom of association and minimum age conventions have been

ratified by the fewest member countries, with 82-percent ratification rates.16
 17 Executive Order 12216 (issued in 1980) established this committee, and Executive Order 12610 (issued in

1987) continued the Committee until 1989. President, “Executive Order 12216".

 18 For example, the Congressional Research Service indicates that U.S. ratification of certain core

conventions—such as those which apply to minimum employment age, discrimination, and forced labor—would

require the revision of U.S. labor legislation. Bolle. “Trade Promotion Authority (TPA) Renewal,” CRS-6.

 19 DOL. “International Labor Organization (ILO).” See also Linsenmayer. “U.S. Ends ILO Moratorium by

Ratefying Two Conventions.” 52.

 20 Golub. “International Labor Standards: Are They an Appropriate Response to Global Competitiveness?”

 21 DOL. “International Labor Organization.”

 22 USTR. “Statement of Robert B. Zoellick U.S. Trade Representative before the Committee on Finance of the

United States Senate.”

 23 The ILO’s regional comparison of ratifications considers 50 countries in the European region. 

 24 The EU-27 includes: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, France, Finland,

Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,

Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom.

 25 The latest of these ratifications occurred in March and April of 2007, when Estonia and the Czech Republic

ratified the convention concerning minimum age. ILO. ILOLEX Database.

7

The United States has ratified two of the eight core conventions: the abolition of forced labor

convention and the worst forms of child labor convention. The President’s Committee on the ILO17 has

established stringent guidelines for U.S. ratification of ILO conventions. These rules preclude the

ratification of conventions to which the letter and application of U.S. federal and state law18 do not fully

conform, and as such, U.S. ratification of ILO conventions necessarily involves a long and complicated

legal review process.19These guidelines, combined with the frequent use of European labor legislation as a

template for ILO conventions may further explain the United States’ low number of ratifications.20

However, despite a low ratification rate, U.S. labor law reportedly meets ILO standards and is effectively

enforced.21 Moreover, the U.S. Department of Labor (DOL) International Labor Affairs Bureau (ILAB)

had demonstrated its support of ILO standards by, inter alia, actively promoting the ILO’s Declaration on

Fundamental Principals and Rights at Work and aiding other member countries’ efforts to implement the

ILO’s core labor standards.22

On a regional basis, Europe23 has ratified the highest number of the eight core conventions per

country, with an average ratification rate of 98.3 percent (figure 1). Each member of the EU-2724 has

ratified all eight of the core conventions.25 Africa has the second-highest regional ratification rate, at 95

percent. The countries of the Western Hemisphere have also ratified a substantial share of ILO core

conventions, with an average ratification rate of 92 percent. Within the Western Hemisphere, South 
 26 Ibid.

 27 Ibid.

8

American countries have ratified all core conventions, with the exception of Brazil’s abstention from the

freedom of association and collective bargaining convention. Central American countries also have

relatively high ratification rates as compared with their North American neighbors, as Costa Rica,

Guatemala, Honduras, Nicaragua, and Panama have each ratified all of the ILO core conventions. 

Asian countries have the lowest regional ratification rate, at 66 percent. Korea, with which the

United States has recently concluded an FTA, has ratified four of the eight ILO core conventions. Korea

ratified the equal remuneration convention, in 1997, followed by ratifications of the discrimination

convention, the minimum age convention, and the worst forms of child labor convention in 1998, 1999,

and 2001, respectively.26 India and China also have ratified half of the eight core conventions. China has

ratified the same four conventions as Korea, while India has ratified the conventions on forced labor,

equal remuneration, abolition of forced labor, and discrimination.27

Europe Africa The Am ericas Asia & Pacific

0

20

40

60

80

100

Figure 1 Ratification rates for ILO core labor conventions, by region, as of 

January, 29, 2007

Percent

USITC calculations, based on ILO, "Ratifications of the fundamental human rights conventions by

country," Jan. 29, 2007, found at http://www.ilo.org/ilolex/english/docs/declworld.htm, retrieved Feb. 12,

2007.
 28 For the purposes of this study, an FTA partner is a country that has implemented an FTA agreement with the

United States or has concluded FTA negotiations with the United States. U.S. FTA partners include: Israel, Canada,

Mexico, Jordan, Chile, Singapore, Australia, Morocco, El Salvador, Honduras, Nicaragua, Guatemala, Bahrain,

Costa Rica, Dominican Republic, Oman, Peru, Columbia, Panama, and Korea.

 29 ILO. ILOLEX Database.

 30 This includes Botswana, Lesotho, Malaysia, Namibia, South Africa, Swaziland, Thailand, and United Arab

Emirates.

9

Each of the United States’ FTA partners28 have ratified at least four of the eight core conventions.

More specifically, ten of the twenty countries with which the United States has signed an FTA have 100-

percent ratification rates, including Israel, Chile, Honduras, Nicaragua, Guatemala, Costa Rica,

Dominican Republic, Peru, Colombia, and Panama. Morocco and Jordan have ratified all of the core

conventions except those pertaining to freedom of association and the right to organize. Mexico has

ratified six of the eight conventions, having abstained from those conventions on the right to organize and

bargain collectively and minimum age, while Canada has ratified five of the conventions, having

abstained from the conventions on forced labor, the right to organize, and minimum age. Australia and

Singapore have ratified six of the eight conventions; Australia abstained from the conventions concerning

minimum age and the worst forms of child labor, and Singapore abstained from those conventions on the

freedom of association and right to organize and discrimination. However, Singapore denounced

ratification of the abolition of forced labor convention in 1979 and is presently a party to five core

conventions.29 Bahrain, Oman, and Korea have the lowest ratification rates among U.S. FTA partners,

having ratified half of the core conventions.

Among those countries with which the United States is in the process of negotiating a free trade

agreement,30 Botswana, Lesotho, South Africa, and Swaziland have 100-percent ratification rates. By

comparison, Namibia, the United Arab Emirates, and Thailand have each ratified at least five of the core

conventions, with ratification rates of 88 percent, 75 percent, and 62 percent, respectively. Malaysia is

currently a party to five of the core conventions, having denounced its ratification of the convention on

the abolition of forced labor in 1990.
 31 WTO. “Singapore Ministerial Declaration.”

 32 WTO. “Trade and Labour Standards,” 1.

 33 United Nations High Commissioner for Human Rights. Human Rights and World Trade Agreements, 4; Grace.

“WTO Trade & Labor Standards;” and Mansoor. “The WTO Versus the ILO and the Case of Child Labor.”

10

Labor Issues and the World Trade Organization

The WTO’s overall approach to labor standards is articulated in the 1996 Singapore Ministerial

Declaration,31 which recognizes a link between trade and labor issues, but indicates that WTO members

recognize the ILO as the competent international authority with regard to labor. In the 1996 declaration,

the WTO ministers reaffirmed their commitment to recognized core labor standards and acknowledged

that those standards should not be applied as a method of disguised trade protection or as a means to

hinder the comparative advantage of low-wage countries. The declaration acknowledged that economic

growth and development, which is enhanced by trade liberalization, contributes to the promotion of labor

standards. The declaration also indicates that the WTO and ILO secretariats will continue to collaborate

on labor issues, though the ILO will maintain primary responsibility for such issues. This collaboration

includes WTO participation at ILO meetings and the free exchange of information.32

In keeping with the WTO’s recognition of ILO authority on labor issues, WTO agreements do not

include provisions that specifically relate to the enforcement of labor standards. It has been suggested that

certain general exception clauses—specifically Article XIV(a) and (b) of the GATS and Article XX(b) of

the General Agreement on Tariffs and Trade (GATT)—may apply to human rights issues, such as

workers’ rights.33 Article XIV(a) of the GATS specifies exemptions for measures that are deemed

necessary to protect public morals or to maintain public order, and both Article XIV(b) of the GATS and

Article XX(b) of the GATT allow WTO members to maintain GATS- or GATT-inconsistent policies if

these measures are considered “necessary” to protect human, animal, or plant life or health. These articles

direct that such policies should not result in arbitrary discrimination or a disguised restriction on

international trade. In addition, it has been suggested that GATT Article XXIII–which addresses

dumping–might be used to address workers’ right issues, as failing to protect labor rights could be
 34 Grace. “WTO Trade & Labor Standards;” and Mansoor. “The WTO Versus the ILO and the Case of Child

Labor.”

 35 The WTO reports that labor standards were raised indirectly within an Appellate Body Report on an EC-India

dispute regarding the conditions under which developing countries receive tariff preferences. WTO. “Labor

Standards: Consensus, Coherence and Controversy.”

 36 WTO. “Annex on Movement of Natural Persons.”

 37 Overall, a total of 111 GATS schedules contain horizontal Mode 4 commitments, including 110 member

country schedules as well as that schedule submitted for the territory of Netherlands Antilles. For the purposes of

this discussion, the EU schedule, which was submitted for the “European Communities and their Member States,” is

counted as a single member representing 12 separate countries.

 38 WTO. Council for Trade in Services (CTS), “Presence of Natural Persons (Mode 4).” 11.

11

considered “social dumping.”34 However, the WTO mentions only one instance in which a labor issue

was indirectly raised within the context of a trade dispute.35

Although specific provisions on labor standards and workers’ rights are largely absent from WTO

agreements, many member countries have undertaken binding commitments regarding the cross-border

movement of services workers. Under the GATS, many member countries have scheduled commitments

on the provision of services through the temporary entry of natural persons, or Mode 4. Services are said

to be provided through Mode 4 when an individual, functioning alone or in the employ of a service

provider, temporarily travels abroad to deliver a service. While there is no standard definition of

“temporary,” the agreement explicitly excludes measures regarding citizenship, residence, and

employment on a permanent basis.36

The vast majority of Mode 4 commitments have been scheduled as “horizontal” or “crossindustry” commitments, which apply to all service activities for which a member has scheduled specific

commitments. Among the WTO’s 151 member countries, 121 countries37 have scheduled horizontal

commitments on the provision of services through Mode 4. Measures included in horizontal Mode 4

commitments are generally of three types: measures governing the entry of specific types of workers;

labor market regulations governing the issuance of work permits; and regulations regarding foreigners’

qualifications and certification to work in certain professions or fields.38 The following discussion

summarizes country-specific horizontal commitments on the provision of services through Mode 4. 

Detailed descriptions of these commitments can be found in appendix B of this report.
 39 The EU’s 1994 schedule of commitments, which was submitted for the “European Communities and their

Member States,” applies to the 12 countries that were members of the EU prior to 1995, namely Belgium, Denmark,

France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal, Spain, and the United Kingdom.

This schedule includes, inter alia, horizontal Mode 4 commitments that remain in force for all 12 of these countries. 

The horizontal Mode 4 commitments that apply to Austria, Finland, and Sweden, as well as the 10 countries that

became EU members in 2004, are contained in the separate schedules of commitments that were independently

submitted by each of these countries.

12

Most member countries have established provisions regarding the entry and temporary stay of

specifically defined categories of workers. The United States’ schedule of commitments, for example,

defines four primary categories of workers: service salespersons or business visitors; intra-corporate

transferees, including managers, executives, and specialists; persons engaged in the establishment of a

commercial presence; and fashion models and employees in specialty occupations. Many of the United

States’ major trading partners, such as the EU,39 include provisions for similar categories of workers in

their Mode 4 commitments, although provisions regarding fashion models and individuals in specialty

occupations are unique to the U.S. schedule of commitments. 

Most horizontal Mode 4 commitments specify maximum lengths of stay and requirements

regarding length of prior employment for certain categories of workers. Where a length-of-stay restriction

is specified, the stay is often limited to 90 days for business visitors and service salespersons, persons

establishing a commercial presence, and those who have established a service contract with an entity in

the host nation. Intra-corporate transferees are generally limited to a 2- or 3-year initial stay that often can

be extended to a maximum stay of 5 years. For example, the United States limits service salespersons to

90 days and intra-corporate transferees to 5 years, including an initial 3-year stay and extensions totaling

no more than 2 years. The United States limits fashion models and employees in specialty occupations to

a maximum stay of 3 years. The EU does not specify length-of-stay limitations except for service

providers under an established contract, who are permitted to stay for 3 months in any 12-month period or

for the duration of the contract, whichever is less. Most nations, including the United States, also require

intra-corporate transferees and employees that are seeking entry for the purpose of establishing a

commercial presence to have been employed with their firm for at least one year prior to the date of

application for entry. 
 40 For example, Canada, China, the EU, Japan, and Mexico do not have provisions within their horizontal Mode 4

commitments restricting the number of foreign employees permitted entry. 

13

Several WTO member countries have included labor market regulations in their horizontal Mode

4 commitments. For example, some member countries indicate that they maintain economic needs tests or

similar provisions requiring a company to justify the need for a foreign employee based on the

unavailability of qualified professionals in the domestic market. Brazil specifies such a provision with

respect to specialized technicians and highly qualified professionals. Other countries, such as Jordan,

specify that work permits for all categories of workers are granted on the basis of an economic needs test.

By contrast, certain Mode 4 commitments—such as those maintained by South Africa, Austria, and the

EU—specifically indicate that an economic needs test is not required for certain positions. The U.S.

schedule of commitments includes no reference to economic needs tests or similar provisions. 

Many horizontal Mode 4 commitments include quotas or limitations on the number of foreign

workers permitted to enter a country, or on the number of foreigners permitted to provide services in a

particular country or firm. For example, the United States indicates that no more than 65,000 persons per

year are permitted entry as either fashion models or employees in specialty occupations. Panama’s

schedule of commitments states that 90 percent of an employer’s ordinary workforce must comprise

Panamanian nationals, foreigners with a Panamanian spouse, or foreigners that have resided in the

country for at least 10 years. Panama’s schedule also states that foreign personnel with specialized or

technical skills may not exceed 15 percent of the total workforce. Similarly, Colombia specifies that if

there are more than 10 employees in a firm, at least 90 percent of that firm's ordinary employees and no

less than 80 percent of its skilled employees or specialists, administrative staff, or persons in posts of

responsibility must be Colombians. Many of the United States’ major trading partners, however, do not

specify provisions restricting the number of foreign workers.40
 41 WTO. CTS. “Presence of Natural Persons (Mode 4).” 12.

 42 For more information on the current round of WTO services negotiations, see

http://www.wto.org/english/tratop_e/ser_e/s_negs_e.htm.

14

Several countries maintain Mode 4 provisions that restrict certain categories of foreign employees

from receiving remuneration from a source within the host country. Business persons seeking entry to a

foreign country are frequently not permitted to sell a service directly to the general public or to perform

the service itself. The United States and many of its major trading partners—such as Canada, China,

Japan, and Sweden—also maintain similar provisions for business visitors or service salespersons. Some

schedules, such as those submitted by Mexico and the EU, do not specify restrictions on remuneration but

do indicate that service salespersons may not sell services directly to the general public.

Most horizontal Mode 4 commitments include measures requiring foreign specialists and

professionals to possess certain academic or professional qualifications. In the public’s interest,

governments generally seek to ensure that suppliers have undergone a certain amount of education and

training through publicly regulated or industry-regulated systems.41 U.S. commitments indicate that

persons seeking entry for the purpose of engaging in a specialty occupation must possess highly

specialized knowledge with both theoretical and practical applications. Such specialists must possess a

bachelor's degree or higher in their specialty field, and expertise in the specialty acquired through

experience in progressively responsible positions. Such persons must also hold the appropriate licenses to

practice, as mandated by certain U.S. states. Many of the United States’ major trading partners maintain

similar requirements. India, for example, requires professionals to possess certain academic and

professional qualifications, which include three years of experience in physical sciences, engineering, or

natural sciences. 

The Doha Round negotiations, which resumed in February 2007, have among their objectives the

liberalization of services provisions, including measures affecting the supply of services through Mode

4.42 In keeping with the measures currently specified in member countries' schedules, negotiations on

Mode 4 are focussed on the liberalization of quantitative restrictions, provisions regarding length of stay,

conditions regarding length of employment in a particular firm, labor market conditions, economic needs
 43 Generalized System of Preferences Renewal Act of 1984, 19 U.S.C.§ 2901 note.

 44 Omnibus Trade and Competitiveness Act of 1988, 19 U.S.C. § 2901 note.

 45 Trade Act of 1974, 19 U.S.C. §§ 2101-2102.

 46 Omnibus Trade and Competitivenss Act of 1988, 20, 19 U.S.C.§ 2901 note.

 47 For further discussion see, for example, Horbeck and Cooper. "Trade Promotion Authority (TPA): Issues,

Options, and Prospects for Renewal," CRS-17; and Peir. "Workers Rights Provisions in Fast Trade Authority."

 48 Bipartisan Trade Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3813. This act was signed into law an

August 9, 2002 and expired on July 1, 2007.

15

tests, and other barriers to entry. Since November 2000, negotiating proposals, initial offers, and revised

offers had been submitted by a substantial number of WTO members (box 1). It is unclear what effect a

successful conclusion to these negotiations ultimately would have on members' Mode 4 commitments

and, thus, on the cross-border provision of services through Mode 4.

Measures relating to the temporary entry of workers were also included in U.S. trade agreements

with Chile and Singapore. These are discussed in the section tilted, "Free Trade Agreements Negotiated

under the Trade Act of 2002," below.

U.S. Trade Legislation and Free Trade Agreements

In contrast to the WTO approach, provisions intended to ensure workers’ rights have been an

integral component of U.S. trade legislation and negotiated FTAs since the mid-1980s. Since the U.S.

Congress amended the provisions of the Generalized System of Preferences in 1984,43 provisions that, for

example, require or urge the United States and its free trade partners to enforce or maintain worker

protections, or to engage in capacity-building and cooperative efforts related to labor rights, have been

included in most U.S. preferential trade programs, in the labor side-agreement of the NAFTA, and in the

labor chapters of most recently negotiated U.S. FTAs. Labor standards were among the negotiating

objectives included in the legislation44 that granted trade promotion to the President in 197445 and 1988.46

These objectives, as they appreared in this 1974 and 1988 legislation, were directed primarily towards

negotiations on the General Agreement on Tariffs and Trade (GATT).47 In the Trade Act of 2002,48
16

Box 1 Recent WTO negotiations on the Movement of Natural Persons (Mode 4)

In keeping with Article XIX of the GATS,a

 a new round of service negotiations, including negotiations on the provision

of services through the Movement of Natural Persons (Mode 4), began in January of 2000.b

 WTO member economies

submitted over 100 initial negotiating proposals to the GATS Council for Trade in Services in preparation for these

negotiations. These proposals outline member countries’ positions regarding both sector-specific and cross-sectoral

issues. The negotiations themselves are being conducted through a request-offer approach, under which member

countries submitted initial requests asking other members to make specific changes to their schedule of commitments.

Following these requests, WTO members submitted initial offers. These non-binding offers are presented in a redlinestrikeout format, illustrating those changes a member might be willing to make to their schedules in response to other

members’ requests. 

The provision of services through movement of natural persons, or Mode 4, was the subject of six initial proposals,

each of which primarily addressed the need to improve procedural and administrative efficacy with regard to the crossborder movement of natural persons.c

 According to the WTO, sixty-nine WTO member countries submitted initial offers

beginning in March 2003, and thirty countries submitted revised offers based on further negotiations. Among the fifteen

entities that have submitted publically available offers, twelve entities have proposed changes to their horizontal Mode

4 commitments.e

 Many of these offers simply attempt to clarify and further standardize the definitions that apply to

categories of workers covered by Mode 4 commitments.f

 Some offers propose additional worker categories in an

attempt to clarify which commitments and restrictions apply to various types of workers. For example, Japan’s revised

offer adds two categories of workers: contractual service suppliers and independent professionals. The offer enhances

the transparency of Japan’s Mode 4 commitments by specifically defining those activities that distinguish these two

categories of workers. Other offers extended the permissible length of stay for certain categories of workers. Norway’s

offer extended the maximum length of stay for intra-corporate transferees from two years to four, while Japan’s offer

would allow business visitors to receive an extension, enabling them to stay longer than the previously scheduled

ninety-day term. 

On July 24, 2006, the current round of WTO negotiations was suspended by WTO Director-General Pascal Lamy and

the Trade Negotiations Committee. The suspension applied to all negotiating groups, including those addressing Mode

4 commitments, and was attributed to an inability to achieve progress on a “triangle” of issues: reductions in domestic

farm support and subsidies; increased agricultural market access; and reductions in industrial tariffs.g

 At a meeting of

the WTO General Counsel on February 7, 2007, Director-General Lamy announced that increasing political

commitment among WTO member countries had enabled the resumption of Doha Round negotiations. The DirectorGeneral noted a general desire to conclude these negotiations quickly, and stressed the importance of achieving

substantial results. However, as of that date, no negotiating deadlines had been established.h

 On July 27, 2007,

Director-General Lamy indicated that further progress had been achieved in the negotiations, and he urged delegations

to prepare for intensive negotiations beginning on September 3, 2007.i

 aArticle XIX of the GATS requires WTO members to initiate a new round of services negotiations no later than

five years after the entry into force of the WTO agreement.

 b

For more information on the current round of WTO services negotiations, see

http://www.wto.org/english/tratop_e/serv_e/s_negs_e.htm.

 c

Proposals were submitted by Colombia, Japan, the European Communities and its Member States (EC),

Canada, the United States, and India.

 d

WTO. “The New Negotiations.”

 e

According to the WTO website, Australia, Canada, Chile, Colombia, the EC, Iceland, Japan, Korea,

Liechtenstein, New Zealand, Norway, Pakistan, Slovenia, Turkey, and the United States each submitted an initial

offer and/or a revised offer that has been made available to the public. With the exception of Colombia,

Liechtenstein, and the United States, each of these entities has proposed changes to its horizontal Mode 4

commitments in at least one of its publically available offers.

f

 As WTO member countries have not developed harmonized definitions of worker categories, the definitions

included in these offers are, in some cases, still open to interpretation. g

 For more information, see WTO. “Talks Suspended, ‘Today There Are Only Losers.’” 

h

WTO. “Lamy: ‘We Have Resumed Negotiations Fully Across the Board.’”

i

WTO. "Lamy Sees High Level of Commitment to Conclude the Round."
 49 See, for example, Center for International Development at Harvard University. “Labor Summary;” Brown,

Deardorff, and Stern. “Pros and Cons of Linking Trade and Labor Standards;” Elliott. “Labor Standards and the

FTAA;” CRS. “NAFTA Labor Side Agreement: Lessons for the Worker Rights and Fast-Track Debate;” and CRS.

“Trade Agreements: A Pro/Con Analysis of Including Core Labor Standards.”

 50 Secs. 501, 503 of the Omnibus Trade and Tariff Act of 1984. 98 Stat. 3018 et seq.

 51 Caribbean Basin Economic Recovery Act, 19 U.S.C. §§ 2701-2707. See, for example, U.S.C. § 2702(b)(7)

referencing definitions in Trade Act of 1974, 19 U.S.C. § 2467(4). Amendments in 1990 (Pub. L. 101-382, Sec.

213(5)) expanded the list of worker rights beyond “the degree to which workers in such country are afforded

reasonable workplace conditions and enjoy the right to organize and bargain collectively.”

 52 Caribbean Basin Economic Recovery Expansion Act of 1990, U.S.C. §§ 2701-2707.

 53 Andean Trade Preference Act, 19 U.S.C. §§ 3201-3206. See, for example, § 3202(c)(7) referencing definitions

in Trade Act of 1974, 19 U.S.C. § 2467(4). 

17

Congress mandated the inclusion of workers’ rights provisions in U.S. FTAs and established labor-related

reporting requirements under the legislation that restored Presidental trade promotion authority. In May

2007, the status of workers' rights provisions in U.S. FTAs was reaffirmed when the USTR and members

of Congress concluded an agreement to, inter alia, strengthen the labor provisions contained in FTAs that

had been negotiated with Peru, Colombia, Panama, and Korea. However, politicians and academics

continue to debate the positive and negative aspects of including labor issues in trade legislation and

negotiated FTAs.49

Preferential Trade Programs

As stated above, workers’ rights provisions and labor-related reporting requirements are included

in most U.S. preferential trade programs. In 1984, Congress amended the GSP provisions in the Trade Act

of 1974 to include the affording of internationally recognized workers rights as one of the purposes of the

program and to set out, in a new Section 502(a)(4) of the Trade Act of 1974, a list of internationally

recognized workers rights.50 The 1983 Caribbean Basin Ecomomic Recovery Act (CBERA),51 and the

subsequent 1990 Caribbean Basin Economic Recovery Expansion Act (CBERA),52 as well as the 1991

Andean Trade Preference Act (ATPA),53 also include similar conditions and on beneficiary countries.

Generally, as defined, the labor provisions of these legislative neasures cover the following

internationally recognized worker rights: (1) the right of association; (2) the right to organize and bargain

collectively; (3) a prohibition on the use of any form of forced or compulsory labor; (4) a minimum age

for the employment of children and a prohibition on the worst forms of child labor; and (5) acceptable

conditions of work with respect to minimum wages, hours of work, and occupational safety and health.
 54 For a general discussion on instances in which petitions have been filed for violations of the labor-related

provisions of these programs, see, for example, Polaski. “Central America and the U.S. Face Challenge,” 2. 

 55 International Labor Rights Fund. “Labor Provisions in U.S.-Chile Free Trade Agreement;” and Polaski.

“Central America and the U.S. Face Challenge.” 2. 

 56 Generalized System of Preferences Renewal Act of 1984, 19 U.S.C. § 2464. Such reports are available at

http://www.dol.gov/ilab/media/reports/iclp/main.htm.

 57 Carbbean Basin Economic Recovery Act, 19 U.S.C. § 2705 and Andean Trade Preference Act, 19 U.S.C. §

3205, respectively. For example, a list of those reports prepared under the ATPA can be found at

http://www.dol.gov/ilab/programs/otla/fercontx.htm.

 58 North American Free Trade Agreement (NAFTA) 19 U.S.C. § 3301 et seq. and the North American Agreement

on Labor Cooperation (NAALC). 19 U.S.C. § 3471 (NAALC). NAALC is one of two side agreements to the

NAFTA (the other is the North American Agreement on Environmental Cooperation). The North American

Commission for Labor Cooperation (NACLC), established as part of the agreement, oversees the implementation of

the agreement and monitors the abilities of the Parties to meet the obligations. NAFTA became effective January 1,

1994. 

 59 The Commission for Labor Cooperation, "The North American Agreement on Labor Cooperation;" and Bolle.

"NAFTA Labor Side Agreement: Lessons for the Worker Rights and Fast-Trade Debate," CRS-1.

18

A country's failure to secure these labor rights can result in the loss of preferences accorded to some or all

of its exports to the United States.54 It has been argued that the labor provisions under GSP may provide a

greater guarantee that a partner country’s laws will be consistent with internationally recognized workers’

rights than the labor measures included in those recent U.S. FTAs55 which require only that the parties

enforce their own domestic laws. 

Labor-related reporting requirements under most U.S. preferential trade programs include status

reports on labor standards in the partner country and/or assessment of potential employment impacts in

the United States. For example, the GSP Renewal Act requires the President to submit an annual report to

Congress on “the status of internationally recognized worker rights within each beneficiary developing

country, including. . . implementation of its international commitments to eliminate the worst forms of

child labor.”56 Reporting requirements under CBERA and ATPA require analysis of the impact of these

trade programs on the U.S. labor market and employment.57

Free Trade Agreements Implemented Prior to 2002

The NAFTA's side agreement on labor, known as the North American Agreement on Labor

Cooperation (NAALC),58 was the first instance in which workers' rights provisions were connected in a

significant manner to a U.S. international trade agreement.59 This side agreement—together with a side

agreement on environmental issues—was advocated by the Clinton administration and likely contributed
 60 Stern. "Labor Standards and Trade Agreements." 15.

 61 NAALC. Article 2.

 62 NAALC. Article 2.

 63 NAALC. Article 4(1).

 64 NAALC. Article 5(1).

 65 NAALC. Article 5 (2).

 66 NAALC. Annex 1.

19

to the U.S. Congress' approval of the overall agreement.60 The NAFTA side agreement on labor requires

each party to maintain high labor standards and to aspire to improve workers' rights standards in

connection with productive and high quality workplaces.61 The NAALC sets out objectives, obligations,

and principles for the parties under the agreement. The list of stated objectives of the side agreement

includes the improvement of working conditions and standards and the encouragement of an exchange of

information related to labor laws and institutions. The list of member countries’ obligations under the

NAALC includes the obligation to maintain “high labor standards;”62 to include access to “administrative,

quasi-judicial, judicial or labor tribunals for the enforcement of [its domestic] labor law;”63 and to ensure

that such tribunals are “fair, equitable and transparent.”64 The parties are obligated to ensure that decisions

by such tribunals are in writing, public, and based on evidence and information submitted by parties to

the proceedings.65

The NAALC’s stated principles include eleven labor rights norms: (1) the freedom of association

and protection of the right to organize; (2) the right to bargain collectively; (3) the right to strike; (4) the

prohibition of forced labor; (5) labor protections for children and young persons; (6) minimum

employment standards, including a minimum wage; (7) the elimination of employment discrimination; (8)

equal pay for women and men; (9) the prevention of occupational injuries and illnesses; (10)

compensation in cases of occupational injuries and illnesses; and (11) protection of migrant workers.66

NAFTA partners agreed to promote all eleven principles and to enforce their own labor laws and

standards that relate to these principles. Where enforcement of the relevant rights is in question, the

agreement establishes a process under which the parties may engage in government-to-government

discussions. However, only three of these principles are enforceable by sanctions if a country does not

enforce its related laws: labor protections for children; minimum employment standards; and the
 67 The agreement requires each party to “promote compliance and effectively enforce its labor law through

appropriate government action” NAFTA. Part II, Article 3. For further discussion, see Bolle, “NAFTA Labor Side

Agreement: Lessons for the Worker Rights and Fast-Track Debate.” 

 68 Annex 39 (“Monetary Enforcement Assessments”) requires that a remedy for violations under the labor side

agreement will be no greater than $20 million in year 1 and, after that, no greater than 0.007 percent of the total trade

in goods for the most recent year of available data. 

 69 Omnibus Trade and Competetiveness Act of 1988, 19 U.S. C. § 2901 note.

 70 For further information on this topic, see Bolle. “Trade Promotion (Fast-Track) Authority: Summary and

Analysis of Selected Major Provisions;” and Bolle. "Trade Promotion Authority (Fast-Track): Labor Issues

(Including H.R. 3005 and H.R. 3019)."

 71 Uruguay Round Agreements Act, 19 U.S.C. § 3501 et seq.

 72 Some literature on the General Agreement on Tariffs and Trade (GATT) identify certian general provisions and

sections of the agreement as establishing a link between core labor standards and trade disciplines in the WTO. 

Those include provisions such as GATT Article IV (Anti-Dumping and Countervailing Duties), Article XX (General

Exceptions), Article XXIII (Nullification or Impairment), and Article XXXV (“Opt-out provisions”). See, for

example, Brown. “International Labor Standards in the World Trade Organization.” 

 73 United States-Jordan Free Trade Area Implementation Act, 19 U.S.C. § 2112 note. The U.S.-Jordan FTA was

signed on October 24, 2000 and entered into force on December 17, 2001.

 74 The texts of U.S. bilateral free trade agreements can be found at

http://www.ustr.gov/Trade_Agreements/Bilateral.Section_Index.html. For further discussion of this issue, see, for

example, Bolle. “U.S.-Chile Free Trade Agreement: Economic and Trade Policy Issues.”

20

prevention of occupational injuries and illnesses.67 The NAALC further outlines procedures for

consultation, the resolution of disputes, and penalties for violation of the agreement, including monetary

penalties.68

NAFTA was negotiated and adopted under fast-track authority in the Omnibus Trade and

Competitiness Act of 1988,69 which expired in 1994. Section 1101(b)(14) of the 1988 Act listed among its

principal labor objectives the following: to promote respect for workers’ rights; to ensure that the benefits

of the trading system are available to all workers; and to ensure that the denial of workers’ rights would

not be a means for a country or industry to gain a competitive advantage.70 These objectives were also

incorporated into U.S. implementing legislation for the Uruguay Round trade agreements,71 which were

negotiated and adopted under this fast-track authority.72

The United States subsequently negotiated and implemented73 the U.S.-Jordan FTA, which

included labor provisions within the body of the agreement. The agreement’s labor section (Article 6)74

states that each party shall “strive to ensure” that its labor principles are protected by domestic law

(Article 6.1), are not weakened to encourage trade (Article 6.2), and are consistent with internationally

recognized labor rights (Article 6.3). Each party also “shall not fail to effectively enforce its labor laws”

(Article 6.4). The agreement defines “labor laws” as statutes or regulations directly related to: (1) the right
 75 U.S.-Jordan FTA. The text of this agreement can be found at

http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Jordan/asset-upload-file250-5112.pdf.

 76 Bipartisan Trade Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3813. This act was signed into law on

August 9, 2002 and expired on July 1, 2007.

 77 These standards include: (1) the right of association; (2) the right to organize and bargain collectively; (3) a

prohibition on the use of any form of forced or compulsory labor; (4) a minimum age for the employment of

children; and (5) acceptable conditions of work with respect to minimum wages, hours of work, and occupational

safety and health (Bipartisan Trade Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3813, P.L. 107-210, Sec.

2113(6)).

 78 Complete texts of each of these agreements can be found at

http://www.ustr.gov/Trade_Agreements/Bilateral/Section_Index.html.

21

of association; (2) the right to organize and bargain collectively; (3) the prohibition of the use of any form

of forced or compulsory labor; (4) minimum employment age; and (5) acceptable conditions of work with

respect to minimum wages, hours of work, and occupational safety and health (Article 6.6). These worker

protections are subject to the agreement’s dispute settlement process and monetary penalties for violations

of the agreement’s labor measures are not capped, as they are under most FTAs to which the United

States is party.75 Much of the language in the U.S.-Jordan FTA regarding the protection of workers’ rights

has been incorporated into subsequent U.S. FTAs, and similar language is also found in the legislation

that renewed trade promotion authority (fast-track) in 2002.

Free Trade Agreements Negotiated under the 

Trade Act of 2002

In 2002, the U.S. Congress formally established a framework for U.S. trade negotiations as part

of the Bipartisan Trade Promotion Authority Act of 2002 (TPA)—or the renewal of fast-track

authority—included in the Trade Act of 2002.76 The TPA includes labor provisions among its “overall”

and “principal” negotiating objectives for future FTAs (table 2). Core labor standards, as defined by the

TPA, are identical to those identified in the U.S.-Jordan FTA and certain U.S. preferential trade

programs.77

Since the enactment of TPA, the United States has concluded and/or signed FTAs containing

workers’ rights provisions with the following countries: Singapore (Chapter 17); Chile (Chapter 18);

Australia (Chapter 18); Morocco (Chapter 16); Costa Rica, the Dominican Republic, El Salvador,

Guatemala, Honduras, and Nicaragua (CAFTA-DR, Chapter 16); Bahrain (Chapter 15); Oman (Chapter

16); Peru (Chapter 17); Colombia (Chapter 17); Panama (Chapter 17); and Korea (Chapter 19).78
 79 Bipartisan Trade Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3813, P.L. 107-210 Sec. 2102(c)(5),

Sec. 2102(c)(8), and Sec. 2102(c)(2), respectively). Department of Labor reports for each FTA since enactment of

TPA are available at http://www.dol.gov/ilab/media/reports/usfta/main.htm.

 80 The article in these FTAs is usually worded as “not fail to effectively enforce its labor laws,” allowing the

partner country to retain the right to exercise normal enforcement discretion and set their own labor standards. In the

case of the NAFTA, the article is worded as “effectively enforce its labor law.” The U.S.-Oman FTA states, “Neither

Party shall fail to effectively enforce its labor laws.”

22

Labor issues are also a component of ongoing U.S. FTA negotiations with the UAE; Thailand; and

Botswana, Lesotho, Namibia, South Africa, and (Swaziland South African Customs Union, or SACU).

Under the provisions of the TPA, the U.S. Department of Labor is required to submit three laborrelated reports to the U.S. Congress for each new FTA. These include: (1) a report assessing the potential

impact of the FTA on U.S. employment; (2) a report on labor conditions in the partner country/countries;

and (3) a report on the partner country’s/countries’ laws governing exploitative child labor and

compliance with ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the

Elimination of the Worst Forms of Child Labor.79 These reports are public and are posted on the U.S.

Department of Labor’s website.

Certain labor provisions in U.S. FTAs are subject to dispute resolution and, thus, are regarded as

enforceable commitments. Commitments subject to dispute resolution may be enforceable through trade

sanctions or other monetary penalties. In many of the recent FTAs that secured Congressional approval

prior to May 2007, fines that can be assessed to remedy violations are capped at $15 million annually,

adjusted for inflation as specified by the agreement. Generally, the only labor commitment included in

these FTAs that is subject to dispute settlement is a provision stating that each party agrees to enforce its

own labor laws. U.S. FTAs with, inter alia, Singapore, Chile, Australia, Bahrain, and Oman include this

provision.80 Labor provisions in U.S. FTAs with Jordan, Morocco, and CAFTA-DR are worded as

objectives or aspirations that each party provide for labor standards that are consistent with 
 81 USTR. “CAFTA Facts.” In these FTAs, the article is usually worded to read that each country will “strive to

ensure” that its laws provide for labor standards consistent with internationally recognized labor rights. However, the

consistency of U.S. labor laws with internationally recognized labor standards is not subject to dispute settlement

procedures under any U.S. FTAs that recieved Congressional approval prior to May 2007.

23

TABLE 2 Overall and Principal Trade Negotiating Objectives Related to Labor as Established under the Bipartisan

Trade Promotion Authority Act of 2002

Overall Trade Negotiating Objectives 

• To promote respect for worker rights and the rights of children consistent with core labor standards of the ILO,

as defined in Sec. 2113(6), and an understanding of the relationship between trade and worker rights (Sec.

2102(a)(6))

• To seek provisions in trade agreements under which parties to those agreements strive to ensure that they do

not weaken or reduce the protections afforded in domestic labor laws as an encouragement for trade (Sec.

2102(a)(7))

• To promote universal ratification and full compliance with ILO Convention No. 182 Concerning the Prohibition

and Immediate Action for the Elimination of the Worst Forms of Child Labor (Sec. 2102(a)(9))

Principal Trade Negotiating Objectives 

• To ensure that each party does not fail to effectively enforce its environmental or labor laws, through a

sustained or recurring course of action or inaction, in a manner affecting trade between the U.S. and that party

after entry into force of a trade agreement between those countries (Sec. 2102(b)(11)(A))

• To recognize that parties retain the right to exercise discretion with respect to investigatory, prosecutorial,

regulatory, and compliance matters and to make decisions regarding the allocation of resources to

enforcement with respect to other labor or environmental matters determined to have higher priorities, and to

recognize that a country is effectively enforcing its laws if a course of action or inaction reflects a reasonable

exercise or such discretion, or results from a bona fide decision regarding the allocation of resources, and no

retaliation may be authorized based on the exercise of these rights or the right to establish domestic labor

standards and levels of environmental protection (Sec. 2102(b)(11)(B))

• To strengthen the capacity of U.S. trading partners to promote respect for core labor standards defined in

section 2113(6)a

 (Sec. 2102(a)(11)(C))

• To ensure that labor, environmental, health, or safety policies and practices of the parties to trade agreements

with the United States do not arbitrarily or unjustifiably discriminate against United States exports or serve as

disguised barriers to trade (Sec. 2102(a)(11)(G))

• To seek commitments by parties to trade agreements to vigorously enforce their own laws prohibiting the

worst forms of child labor (Sec. 2102(a)(17))

Source: Bipartisan Trade Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3813 (P.L. 107-210, Sec. 2102(a) and Sec. 2102(b)).

Excludes “priorities” specified in Sec. 2102(c). 

 aSec. 2113(6) defines core labor standards as: (1) the right of association; (2) the right to organize and bargain collectively; (3)

a prohibition on the use of any form of forced or compulsory labor; (4) a minimum age for the employment of children; and (5)

acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health (Bipartisan Trade

Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3812. P.L. 107-210, Sec. 2113(6)).

internationally recognized labor rights.81 Among the labor-related measures that are not subject to dispute

settlement under these FTAs are provisions to promote respect for core labor standards through the

establishment of cooperative programs and capacity building, to establish other institutional arrangements
 82 USTR. “Statement of the U.S. Trade Representative;” USTR. “CAFTA Facts.”

 83 Article 16.6.5 of the U.S.-Oman FTA, for example, states that "Neither party may have recourse to dispute

settlement under this Agreement for any matter arising under and provision of this Chapter other than Article

16.2.1(a)." Article 16.2.1(a) obligates the parties to enforce their own labor laws.

 84 For more information on the bipartisan trade agreement, see USTR. "Bipartisan Trade Deal."

 85 Birpartisan Trade Promotion Authority Act of 2002, 19 U.S.C. §§ 3801-3813, P.L. 107-210.

24

and consultative mechanisms among countries, and to enhance procedural guarantees and public

awareness related to labor issues.82 Under the provisions of these FTAs, parties also reaffirm their

obligations as ILO members, including their commitments to promote respect for core labor standards and

internationally recognized workers’ rights under the ILO Declaration on Fundamental Principles and

Rights at Work. Under those FTAs that were negotiated under the Bipartisan Trade Promotion Authority

Act of 2002 and had received Congressional approval prior to May 2007, these provisions and obligations

are not subject to dispute resolution.83

In May 2007, the USTR and certain members of Congress established a bipartisan agreement on

trade policy in order to facilitate efforts to re-establish Trade Promotion Authority and Congressional

approval of recently concluded FTAs with Peru, Colombia, Panama, and Korea.84 Under this agreement,

the labor provisions contained in these four FTAs—among other FTA provisions—were revised. 

Specifically, in addition to the commitment obligating parties to enforce their own labor laws, these

obligations also include an enforceable obligation to observe internationally recognized labor standards,

as defined by the ILO's Declaration of Fundamental Principals and Rights at work. Unlike the labor

provisions in other recent FTAs, both of these enforceable obligations are subject to those dispute

settlement provisions that apply to the FTA's commercial obligations, under which remedies can be

assessed according to the value of a trade injury.

Those labor provisions in recent FTAs that are subject to dispute settlement procedures are

consistent with the objectives specified in the Bipartisan Trade Promotion Authority Act of 2002.85 The

legislation requires, among its principal negotiating objectives, that each partner country “ensure that each

party does not fail to effectively enforce its environmental or labor laws, through a sustained or recurring

course of action or inaction, in a manner affecting trade between the United States and that party after
 86 Under the obligation contained in these agreements, the United States reserved a certain number of H-1B visas

for professionals from Chile (1,400 visas) and Singapore (5,400 visas).

 87 See, for example, U.S. Senate Committee on the Judiciary. Statement of Senator Jeff Session on the

Immigration Provisions in the Chile and Singapore Free Trade Agreements; and U.S. Senate. Senator Diane

Feinstein. "Talking Points on the Free Trade Agreements with Chile and Singapore."

 88 S.Res. 211 (108th Congress, 1st Sess.). Since a sense of the Senate is non-binding, Senator Feinstein later

introduced an amendment to an appropriations bill that prohibits expenditure of funds on negotiations involving any

immigration provisions by USTR. See, for example, Federation for American Immigration Reform. “Immigration

and Trade Agreements.”

 89 See, for example, USTR. "Free Trade with Colombia."

 90 Polaski. Testimony Before the Senate Committee on Finance, June 17, 2003; Polaski. “Central America and the

U.S. Face Challenge;” AFL-CIO. The Real Record on Workers’ Rights in Central America; Hogan. "DR-CAFTA

Prescribes a Poison Pill." 511; and Brown, Deardorff, and Stern. “Pros and Cons of Linking Trade and Labor

Standards.”

25

entry into force of a trade agreement between those countries (Sec. 2102(b)(11)(A)). At the same time,

the legislation recognizes that each partner country should “retain the right to exercise discretion with

respect to investigatory, prosecutorial, regulatory, and compliance matters and. . . allocation of

resources.” (Sec. 2102(b)(11)(B)). 

The U.S.-Chile and U.S.-Singapore FTAs also include provisions relating to the temporary entry

of workers. Specifically, these provisions allow the temporary entry of a certain number of foreign

professionals from these countries each year.86 However, the inclusion of immigration-related provisions

in trade agreements was not favorably viewed by certain members of the U.S. Congress.87 In response, the

U.S. Senate passed Resolution 211 stating: “(1) trade agreements are not the appropriate vehicle for

enacting immigration-related laws or modifying current immigration policy; and (2) future trade

agreements to which the United States is a party and the legislation implementing the agreements should

not contain immigration-related provisions.”88 As a result, similar provisions have not been part of

subsequent FTAs negotiated by the United States.

There is a diversity of opinion regarding the practical impact of FTA labor provisions on workers

rights in partner countries. USTR characterizes these provision as strong worker protections that

guarantee employers' and workers' access to courts and labor tribunals.89 However, certain sources report

that some of the United States’ FTA partner countries continue to have weak labor laws, ineffective

judicial systems, and inadequate enforcement of such laws.90 More information regarding the possible
 91 For example, U.S. International Trade Commission (USITC). U.S.-Colombia Trade Promotion Agreement: 

Potential Economy-wide and Selected Sectoral Effects. 6-20; USITC. U.S.-Peru Trade Promotion Agreement: 

Potential Economy-wide and Selected Sectoral Effects. 6-18; USITC. U.S.-Panama Trade Promotion Agreement:

Potential Economy-wide and Selected Sectoral Effects. 5-22; and USITC. U.S.-Korea Free Trade Agreement:

Potential Economy-wide and Selected Sectoral Effects. 6-30.

 92 USTR. “Statement of the U.S. Trade Representative.”April 28, 2004.

 93 Elliott. “Finding our Way on Trade and Labor Standards?;” and Elliott. “Labor Standards and the FTAA.”

 94 The Maastricht social protocol was preceded by the “Community Charter of Basic Social Rights for Workers,”

adopted in 1989, which required its member countries to conform their laws to a European standard. The Charter set

conditions for adopting binding, Europe-wide legislation on labor rights and is a “side agreement,” not an integral

part of the Treaty of European Union.

 95 See, for example, Rettman. “Belarus Likely to Join Burma as EU Trade Pariah.”

 96 For more information, including a link to the report, see WTO. "ILO and WTO Secretariat Issue Joint Study."

26

impact of the labor provisions contained in recent U.S. FTAs are contained in recent USITC

investigations on the potential effect of U.S. free trade agreements.91 

Labor Provisions in the Trade Programs of Other Countries

Few countries other than the United States include labor provisions in their trade agreements.92

Canada has included labor provisions in some of its negotiated free trade agreements. For example,

Canada’s FTAs with both Chile and Costa Rica contain workers’ rights provisions that parallel those in

the NAFTA.93 Recent FTAs negotiated by the European Union (EU) generally do not include labor

standards. However, the EU’s “Social Protocol and Agreement”—a component of the 1992 Maastricht

Treaty on European Union—established conditions for the adoption of binding, Europe-wide legislation

on labor rights, including most internationally recognized workers’ rights.94 EU countries also include

measures on workers’ rights as part of the GSP and other preferential trade programs, whereby failure to

secure certain labor protections can render a beneficiary country ineligible for preferential treatment.95

Outlook

Recent developments indicate ongoing awareness of the nexus between trade and labor issues,

and suggest that worker rights and the labor market impacts of trade agreements will be the subject of

increasing attention in the near future, particularly as tariff and nontariff barriers to trade continue to be

removed. The ILO remains the foremost international body with regard to labor issues, and the WTO has

limited its role primarily to collaborative efforts on trade-related labor issues. In February 2007, the

WTO and ILO jointly issued a study entitled Trade and Employment: Challenges for Policy Research,96
27

and WTO negotiations on the provision of services through the movement of natural persons (Mode 4)

are ongoing as part of the recently resumed Doha Round (see box 1). Further, the relationship between

trade and labor remains a high-profile issue within the U.S. Congress and, thus, an increasingly important

consideration in U.S. bilateral trade negotiations. The recent bipartisan agreement on trade policy

between the Bush administration and members of Congress—which proposed the inclusion of stronger

labor provisions in the U.S. agreements with Peru, Colombia, Panama, and Korea as a means of

facilitating Congressional approval of these FTAs—highlights the continuing importance of labor issues

within the larger trade debate.
28

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Appendix A

Literature Review

Introduction

The relationship between shifting international trade patterns and global and domestic labor

market trends has received significant attention in recent years. As bilateral and multilateral trade

arrangements expand in terms of scope and depth, and as decreasing administrative and technical barriers

lead to growing globalization, questions have arisen in both academic and political fora regarding the

impact of such trends on U.S. and foreign employment levels, wage rates, and labor standards. The crossborder movement of workers also has become an increasingly high-profile issue in a number of developed

countries, including the United States, where it has been the subject of recent legislative efforts. The

following discussion provides a brief overview of literature pertaining to the connection between trade

and labor markets. 

Trade and Labor Markets

Since the development of the NAFTA, U.S. trade agreements have concerned themselves not only

with reducing barriers to trade among the signatory partners, but also with a variety of other structural

liberalizations that are intended to promote harmonious trade relations. Among these are provisions

recognizing the importance of labor markets and fair labor market practices. These provisions have arisen,

in part, from the need to address the concerns of important segments of the population and the policy

community, and to ensure that free trade is not achieved at the expense of major segments of the labor

force. 

There are multiple linkages between trade and labor, and multiple theories concerning these

linkages, but the strength of each linkage and the implications for labor remain in dispute in the

economics literature. The earliest and most basic international trade theories predicted that trade would
 97 Davis and Mishra summarize reasons why this early theory may not be valid. Don Davis and Prachi Mishrah,

“Stolper-Samuelson is Dead and Other Crimes of Both Theory and Data,” in Globalization and Poverty, edited by

Ann Harrison. Chicago: University of Chicago Press, 2006. 

 98 Don Davis and David E. Weinstein, “An Account of Global Factor Trade,” The American Economic Review

91, no. 5 (December 2001): 1423-53.

 99 Described in Thomas Piketty and Emmanuel Saez, Income Inequality in the United States, 1913-1998, NBER

Working Paper 8467, September 2001. 

36

equalize wages across countries.97 However, these theories assumed that all countries have identical

technologies, that all countries produce all goods, and that capital and labor are fully employed and free to

move from one sector to another within a country. More recent theories, which have allowed both

international technology and consumption differences and the presence of some goods that are not traded,

have accorded well with empirical evidence.98 These more recent theories imply that wages would not be

equalized across countries while these technology differences persist, although some convergence might

occur.

All of these connections are essentially bi-directional; differences in wage levels or productivity,

for example, may affect decisions about where to locate production and distribution facilities, while the

location of such facilities may affect wage and productivity levels in a particular area. Trade policy debate

tends to regard trade as affecting labor markets rather than vice versa; changes in trade provisions lead to

changes in the magnitude and direction of trade, which in turn leads to changes in labor markets. As such,

the following discussion will focus on the effects of trade on labor markets, rather than on the ways in

which labor market characteristics influence trade.

Trade may be thought to influence labor markets in a number of ways. It has been argued that

import competition may lead to wage disparity. There is general evidence of a growing wage gap in the

United States. Recent data compiled by Thomas Piketty and Emmanual Saez99 show that income among

the wealthiest individuals in the United States (the highest one percent in terms of income level) has

grown faster than income among the population at large. However, it is difficult to determine the impact

of international trade on this inequality, as a variety of factors have affected the U.S. wage distribution in
 100 Over the long run, the high end of the income distribution has become increasingly dominated by high salaries

rather than high portfolio earnings. Thomas Piketty and Emmanuel Saez, The Evolution of Top Incomes: A

Historical and International Perspective, NBER Working Paper 11955, January 2006.

 101 Beth F. Ingram and George R. Neuman, “The Returns to Skill,” Labor Economics 13, no. 1 (February 2006):

35-59. These authors argue that education alone is not a good indicator of skill and find that a model that includes

observable measures of skill in addition to education performs well.

 102 Robert C. Feenstra and Gordon Hanson, “Global Production Sharing and Rising Inequality: A Survey of Trade

and Wages,” NBER Working Paper 8372, July 2001. Real wages are wages that have been adjusted to account for

inflation.

 103 These figures are based on the median annual income of full-time workers who are at least 25 years old

(USDOC, Bureau of the Census, “Current Population Reports: Consumer Income Reports 1946-2005”)

 104 USITC, The Impact of Trade Agreements, 114-25, summarized a large amount of literature related to labor and

trade. That literature suggests that trade policy changes generally have no measurable effect on the U.S. labor

market but that overall changes in the level and composition of U.S. trade may have contributed to wage inequality. 

37

recent years. These factors include changes in technology, productivity, labor force participation, and

immigration, among others.100

Since the early to mid-1970s, college-educated workers in the United States have earned

increasingly more than those without a college education, and an increasing proportion of the workforce

has attended and completed college.101 For example, between 1970 and 1995, real wages of those with at

least 16 years of education rose by 3.4 percent, while the real wages of full-time U.S. workers with 12

years of education fell by 13.4 percent, and the real wages of those with less than 12 years of education

fell by 20.2 percent.102 These trends have continued. Males with a high school diploma earned 33 percent

more that those without a high school diploma, and those with a bachelor's degree earned 104 percent

more than those without a diploma in 1995; the same ratios rose, respectively, to 36 percent and 118

percent in 2004.103

These facts suggest that the demand for skilled labor may have increased relative to the demand

for less-skilled labor in the United States. The literature reports that technical change, such as the

increased use of computers, can increase the demand for skilled labor, and automation may reduce the

demand for less-skilled labor. Increased trade may allow an economy with abundant skilled labor to

specialize in goods produced with skilled labor while importing more goods produced with less-skilled

labor. This would increased the demand for skilled labor relative to less-skilled labor.104 The literature
 105 Lawrence F. Katz and David Autor, “Changes in the Wage Structure and Earnings Inequality,” Handbook of

Labor Economics, vol. 3A, edited by Orley Ashenfelter and David Card, 1463-1555. New York: North-Holland,

1999.

 106 Feenstra and Hanson, in the paper cited above, provide a survey of various studies analyzing international

production sharing and its effect on wages. Although the argument for analyzing intermediate inputs remains

important, the fact that import's share of total intermediate inputs for the United States increased from 4.1 percent to

8.2 percent between 1974 and 1993 suggests that this effect may not be very large.

 107 Paul A. Samuelson (2004), “Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream

Economists Supporting Globalization”, Journal of Economic Perspectives Volume 18, No. 3 (Summer 2004), pp.

135-46.

38

has not reached a clear consensus on whether technical change or increased trade is primarily responsible

for the increase in wage inequality.

Katz and Autor review a number of articles and conclude that technical change appears to explain

the relative demand shifts favoring skilled workers better than international trade.105 An argument in favor

of the technical change explanation is that the magnitude of trade flows, especially from low-wage

developing countries, is too small to account for the observed wage changes. Another argument is that the

prices of low-skill-intensive goods, such as apparel, have either fallen only slightly or have been

relatively stable, whereas larger price movements would be expected to account for the movement in

wages.

Feenstra and Hanson review the literature on trade and wage inequality and conclude that the data

have often been misinterpreted because trade in intermediate inputs is ignored.106 Many firms break up the

production process and transfer less-skilled jobs to low-wage countries and high-skilled activities to highwage countries. This fragmentation of the production process, or “outsourcing,” can have a similar effect

on labor demand as technical change favoring skilled workers; both shift demand away from less-skilled

jobs and raise the demand for higher-skilled jobs. Samuelson107 argues that under realistic assumptions,

such outsourcing may not only increase wage inequality, but may adversely affect welfare of highly

skilled workers in the home country. Trade in intermediate inputs can account for high prices of skillintensive goods and employment shifts within industries toward skilled workers that some researchers

have attributed to technical change.
 108 Eli Berman, John Bound, and Zvi Griliches, “Changes in the Demand for Skilled Labor within U.S.

Manufacturing Industries: Evidence from the Annual Survey of Manufacturing,” Quarterly Journal of Economics

109, no.2 (1994): 367-98.

 109 T. Lynn Riggs and Grigoris Zarotiadis, “Soft and Hard Within- and Between-Industry Changes of U.S. Skill

Intensity: Shedding Light on Workers' Inequality,” Center for Economic Studies Working Paper CES 06-01.

Washington, DC: Bureau of the Census, January 2006. This decomposition methodology was first reported in

Berman, Bound, and Griliches, “Changes in the Demand for Skilled Labor within U.S. Manufacturing,” cited

immediately above.

 110 David Autor, Lawrence F. Katz, and Melissa S. Kearney, “Measuring and Interpreting Trends in Economic

Inequality,” American Economic Review Papers and Proceedings 96, no. 2 (January 2006): 189-94.

39

Several empirical studies have separated or decomposed the employment changes of relatively

less-skilled workers into within-industry and between-industry categories. The argument is that

international trade will cause industries to expand or contract, which will result in workers changing

industries. New technology, on the other hand, would increase the ratio of more-skilled to less-skilled

workers employed within each sector. Although this reasoning may generally be correct, it is plausible

that an industry may respond to import competition by upgrading its technology, which could result in a

greater proportion of skilled workers, or that workers may be motivated to upgrade their own skills to

qualify for higher-paying jobs in other industries. Early studies of this type found that within-industry

changes dominated between-industry changes and concluded that trade was not the main reason for the

wage and employment movements.108 Riggs and Zarotiadis carried out the latest of these types of studies

and used more detailed plant-level data than the previous studies.109 Their key findings are that the data

show increasing specialization and skill intensity in all sectors and that the entry and exit of plants

indicate that job turnover was greater than the earlier studies reported. Although the between-industry

shifts remain larger than the within-industry shifts, the difference is small. In contrast to the early studies,

the Riggs and Zarotiadis study does not clearly favor the trade or the technical change explanation for

wage divergence.

Autor, Katz, and Kearney compute wage differentials that show that since 1988 the wage gap

between the median and highest-paid workers has increased much more than the gap between the median

and the lowest-paid workers.110 They interpret these changes as resulting from the increasing use of the

computer, which complements high-skilled workers involved in abstract reasoning and problem solving,
 111 George Borjas, “The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on

the Labor Market,” NBER Working Paper 9755, June 2003. 

 112 Susan Richter, J. Edward Taylor, and Antonio Yunez-Naude, “Impact of Policy Reforms on Labor Migration

From Rural Mexico to the United States,” National Bureau of Economic Research.

40

but which substitutes for middle-skilled workers who perform routine repetitive tasks. There is a lowskilled manual labor category that is not directly affected by computerization. These authors show that the

wage gap has more subtleties than previously acknowledged, but they only consider the technical change

interpretation. Interpretations involving international trade are also plausible. For example, increased

imports produced with less-skilled labor could contribute to the wage gap between skilled and less-skilled

labor. But there could be a type of less-skilled labor that works in sectors whose output is not traded, and

imports do not affect these workers. 

Cross-Border Movement of Workers

International exchange can take place not only by trade in end-use goods and services, but by the

movement of the factors (capital and labor) used to produce such goods and services. In the United States,

recent policy debate on the cross-border movement of labor principally concerns immigration from

Mexico. One line of investigation looks at the effects of immigration on wages. Although many studies

have found little or no effect, Borjas111 finds that an increase in the supply of immigrant workers reduces

wages. His model looks at supply shifts in different education-experience combinations. Because

immigrants tended to have low education levels during the 1980s and 1990s, this is another possible

explanation of the growing wage disparity between different skill levels. Some recent literature focuses

on the migration of Mexican workers to the United States, investigating, inter alia, whether liberalized

trade between the United States and Mexico has diminished migration by creating new job opportunities

in Mexico, or increased migration by strengthening economic linkages between the two countries. A

recent empirical study by Richter, Taylor, and Yunez-Naude112 based on Mexican survey data found that

trade liberalization has led to a slight decrease in the overall share of the rural Mexican population that

migrates to the United States, but that heightened border enforcement has led to an increase in the share

of that population which lives and works in the United States on a long-term basis. More specifically,
41

increased border enforcement tends to lengthen the stay of Mexican workers in the United States and

increases their attachment to the U.S. labor force by making it more difficult for these workers to re-enter

the United States after returning to Mexico. However, the effects of trade on migration patterns are small

relative to the effects of overall macroeconomic conditions. Further,

traditional migration patterns continue to dominate trends in the cross-border movement of workers

regardless of changes in economic policy or conditions.
Appendix B

GATS commitments on the 

movement of natural persons 
43

APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)aType of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

Albania

Intra-corporate transferees 5 years None specifiedService seller 6 months in any 12 month

period, renewable

None specified

Persons responsible for setting up a commercialpresence 

3 months, renewable None specified

Antigua and Barbuda

None specified None specified Every person who is not a national of Antigua/Barbuda must have a valid work permit before takin

Normally, a work permit will be issued for a specific period to a non-national to fill a particular post 

unavailable. A prospective employer is required to submit the application for a work permit to the 

Argentina

Senior personnel None specified None specified

Armenia

Intra-corporate transferees 3 years, renewable for

successive periods

These enterprises must be prepared upon request to certify the qualifications of their transferees sconstituted under Armenian legislation are eligible for subsidization, irrespective of their capital ow

Temporary individualservice suppliers 

Same as above Service suppliers must be in the business service sectors inscribed in the schedule and entrance 

necessary professional qualifications, which are established by the relevant authorities or profess

Persons responsible forsetting up of a commercialpresence. 

3 months Entry is subject to availability of an invitation from Armenian natural or juridical persons. The conc

supplying services on a commercial basis or making direct sales to the general public within the te

not have a commercial presence in Armenia.

Persons entering under aservice contract

3 months, renewable for successive periods

Entrance is subject to possession of the necessary professional qualifications that are established 

professional bodies and to the availability of an invitation from an enterprise engaged in substantivperson must also not engage in supplying services or making direct sales to the general public w

scope of the initial service contract.

Service seller 3 months Entrance is subject to the availability of an invitation from an enterprise engaged in business in Ar

engage in supplying services or making direct sales to the general public within the territory of Arm

Aruba

None specified None specified Non-Arubans, when Arubans are defined as those persons of Dutch nationality born in Aruba and 

permission to become a director of a company.

Australia

Intra-corporate transferees 4 years None specifiedIndependent executives 2 years Does not require compliance with labor market tests.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

44

Australia—Continued

Business visitors/servicesellers 

 6 months Business visitors/service sellers are not required to comply with labour market tests. The service s

the public, or supply the service themselves, and the seller's financial support must originate from 

Specialists 4 years Labor market test required. Not required for natural persons or if the position is within a labor agre

Austria

Intra-corporate transferees None specified Entry does not require compliance with an economic needs test and all other requirements of Aus

entry, stay and work shall continue to apply. Persons concerned must have been employed by th

Specialist--In assessing such knowledge, account will be taken not only of knowledge specific to t

the person has a high level of qualification referring to a type of work or trade requiring specific tec

membership of an accredited profession. (Commitments regarding movement of personnel do no

interfere with or affect the outcome of any labor/management dispute or negotiation.)

Service Salesperson None specified Persons must not be engaged in selling directly to the public or supplying services themselves.

Senior positions responsiblefor the establishment of acommercial presence 

None specified Persons must not be engaged in selling or supplying services directly to the general public. The s

business must be outside of Austria and has no other representative office, branch, or subsidiary 

Barbados

None specified None specified The Immigration Act and regulations control the entry and residence of all foreign natural persons 

person working in Barbados a work permit must be obtained. Labor market tests are conducted.

Belize

Senior managerial personneland technical experts notavailable in the local labormarket

None specified None specified

Bolivia

Managers, executives, andspecialists

1 or 2 year residence permitsgranted, subject to therequirement of an employmentcontract, associated withcommercial presence

The number of foreign employees of an enterprise may not exceed 15 per cent of the total and tha

executives, and specialists.

Botswana

Managers, executives,specialized technicians and highly qualifiedprofessionals

None specified For a foreign natural person to work in Botswana a residence and work permit is required. Person

provide services only as managers, executives, special technicians and highly qualified professionto the requirements of the localization policy. Investors are required to train citizens in order to enamanagement positions over time. Professionals are required to register with the appropriate profe

natural persons should be recognized as such and they should have rights to practice in their cou

persons should be recognized and be registered by the appropriate committee or council.)
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

45

Brazil

Foreign specializedtechnicians and highly qualified professionals

None specified May work under temporary contract with entity, whether of national or foreign capital, established 

by the Ministry of Labor, which takes into account the qualifications' compatibility with the businescompany must also justify the need for the employee based on the availability of similar Brazilian 

Juridical persons engaged inthe following activities:Communications; landtransportation; commercialstores in general; commercial

offices; insurance;

advertising; and hotels and restaurants.

None specified Must obey proportionality of at least 2 Brazilians for 3 employees

Managers and Directors None specified Access granted under the following conditions: Must be designated to a position of full decision-m

existence of a link between the service provider in Brazil and its headquarters; proof that the Mana

after receiving the visa. Appointment to the position must be related to the provision of new techno

company must have invested at least 200,000 US$ in the Brazil--that amount may be adjusted in 

exchange rate. (All other laws and regulations regarding entry, stay, and work shall continue to ap

Brunei Darussalam

Intra-corporate transferees 3 years may be extended 2

years (max. 5 yrs.)

Those employees must have been employed by their firms outside Brunei Darussalam for a perio

preceding the date of their application for admission.

Bulgaria

Intra-corporate transferees 1 year, may be extended 1 year

(max. 3 yrs.)

The number of such transferees is not to exceed 10 per cent of the average annual number of the 

respective Bulgarian juridical person (where less than 100 persons are employed, the number of i

to authorization, exceed 10 per cent): employed by it outside the Republic of Bulgaria for at least tmovement

Specialists 1 year, may be extended 1 year

(max. 3 yrs.)

In assessing such knowledge, account will be taken not only of knowledge specific to the establishhas a high level of qualification referring the trade requiring specific technical knowledge, including 

profession.

Service Representatives 3 months within a 1 year period Those representatives must not be engaged in making direct sales to the general public or in supp

Employees in a seniorposition responsible for establishing a commercialpresence 

3 months within a 1 year period Representatives must not engage in making direct sales or supplying services. The service provid

subsidiary in Bulgaria. 

Burundi

Medical specialists,managers or specialized senior management

None specified None specified
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

46

Cambodia

Business visitors 90 days. Initial stay of 30 days

may be extended.

Person may not receive income from within Cambodian sources and may not engage in making dsupplying services.

Persons in an executive ormanagerial positionresponsible for setting up acommercial establishment

Not subject to a maximum lengthof stay

Intra-corporate transferees 2 years may extended 3 years

(max. 5 yrs.)

Does not require labor market tests. Temporary residency and work permit is required.

Cameroon

Intra-corporate transferees None specified None specified

Canada

Business visitors 90 days The person may not receive remuneration from within Canada and may not directly sell or supply 

generally required to be offered to the public may result in differential treatment in terms of: benef

insurance; social security or insurance; social welfare; and prices in regard to public education, tra

Intra-corporate transferees 3 years Persons must have been employed by a foreign juridical person for no less than one year.

Professionals 90 days or the time necessary 

to complete the servicescontract, whichever is less

Persons entering other than for agencies engaged in Placement and Personnel Supply Services 

in certain professions as long as the person possesses the required academic credentials and probeen recognized by the appropriate professional association in Canada. These professions includBaccalaureate degree and Provincial license; agrologists, who need a Baccalaureate in agricultur

and licensing is required New Brunswick, Alberta, Quebec, and British Columbia; architects, need 

Provincial license and certificate; forestry professionals need a Baccalaureate in forestry managem

licensing in Alberta, British Columbia and Quebec; geomatics professionals who need a Baccalau

environments sciences plus three years of related experience; land surveyors who need a Baccal

persons may not engage in secondary employment while in Canada.)

Chile

 Intra-corporate transferees 2 years, may be extended 2

years

1) Personnel have to have been employed within the organization for at least two years immediate

application for admission and will be performing the same type of duties as they were in the paren

may not make up more that 15% of the total staff employed in Chile. 3) Senior and specialized stain Chile. Personnel admitted under the length of stay are subject to provisions of the labor social s

China

Intra-corporate transferees 3 years None specifiedManagers, executives andspecialists 

3 years or longer if stipulated inthe terms of the contractsconcerned or whichever isshorter

None specified
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

47

China—Continued

Service Salespersons 90 days Persons may not receive remuneration from a source located within China. The salesperson can 

is not engaged in supplying the service.

Colombia

Managers, legalrepresentatives, and technical specialists, with theexception of the professional services subsectors

None specified If there are more than 10 employees, 90% of the firm's ordinary employees must be Columbians 

employees or specialists, administrative staff, or persons in posts of responsibility.

Costa Rica

Managers, administrativedirectors, supervisors, andgeneral executives of enterprises

None specified No more than two foreign employees for these positions in each enterprise.

Croatia

Senior managers andexecutives 

None specified None specified

Specialists Firms have to be prepared upon request to certify the qualifications of their transferees seeking en

Essential persons providingservices under a servicescontract 

up to 2 year, renewable. Nolimitations on extensions withvalid work contract withemployer

Residence and Work permits are required.

Business visitors 90 days Person may not receive remuneration from within Croatia or seek employment within Croatia. Rep

making direct sales to the general public or in supplying services themselves. 

Cuba

None specified None specified Foreigners must pay commercial service transactions, however the services are supplied, in conv

authorized. (Taxes and charges on the supply of services by foreigners are paid in local currency, 

amount in convertible currency, unless otherwise authorized.

None specified None specified This personnel must not be available in Cuba. Foreign personnel must help to train Cuban person

expertise. (Foreign workers may only remit abroad in convertible currency the percentage of their 

Bank of Cuba.)
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

48

Cyprus

All service suppliers or whoare employed by servicesuppliers 

None specified Entry is subject to Alien and Immigration laws and regulations. Entry permits are awarded only in f

qualified local personnel is available, always taking into account the employment situation and eco

application for such a permit must be made before entry into Cyprus. A visa may also be required of formalities upon arrival. (Under the Exchange Control Law, nonresident are not normally permit

Czech Republic

Essential senior executivesand specialists 

None specified Persons concerned must have been employed by their firm for at least one year immediately prec

require an economic needs test. Specialist--In assessing such specialist knowledge account will b

specific to the establishment, but also the level of the specialist's qualification referring to the type technical knowledge, including membership of an accredited profession.

Business representatives andsenior positions

None specified Entry does not require an economic needs test. Representatives must not be engaged in selling o

general public.

Democratic Republic ofCongo (Zaire)

Senior executives andspecialists 

1 year, extendable Entry does not require and economic needs test.

Dominica

All Foreign Natural Persons None specified The employment of foreign natural persons is regulated by immigration laws and is subject to Wor

Permits are generally awarded only to people with managerial and technical skills which are in sho

Professionals in certain disciplines may be required to register with the appropriate professional o

Dominican Republic

Senior and specialized staff None specified Persons must contribute to the training of Dominican personnel in the areas of specialization conc

natural persons is subject to the requirement of a work permit and a work visa. Natural persons pe

legal, accounting, consultancy, engineering, architectural and medical services, are subject to the in the laws governing the exercise of such professions. (Under the Tax Code, income received by dividends, royalties and interest is subject to payment of the taxes provided for by law. The laws rto Dominicans and foreigners without distinction, except as otherwise provided for in international basic rights of workers.)

Ecuador

Managers, administrator,legal representatives,specialists

None specified Any employer with a staff of more than 10 employees must employ Ecuadorians in proportions of 

ordinary workers, and not less than 80 per cent of skilled employees or specialists, administrative 

responsibility. This limitation does not apply for an employer with a staff of up to 10 employees.

Egypt

None specified None specified The number of foreign personnel necessary to supply services in any entity shall not exceed 10 pe

employed unless otherwise specified in the sector specific commitments.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

49

El Salvador

None specified None specified Every employer must employ Salvadorian nationals in a proportion of at least 90 per cent of the pe

of Labor and Social Security may authorize the employment of more foreigners when it is difficult nationals, but employers remain obliged to train Salvadorian personnel under the supervision and 

not more than five years. The amount of wages to Salvadoreans may not be less than 85 per cenpercentage may be changed with the authorization of the Ministry. (Foreigners may not hold the p

manager or representative of a small scale enterprise in the trade, industrial or services sector.)

Estonia

Intra-corporate transferees 3 years may extended 2 years

(max. 5 yrs.)

None specified

Services salespersons 90 days per every 6 months Salespersons may not sell services directly to the public or supply services themselves and may n

within Estonia.

Persons responsible forsetting up a commercialpresence in Estonia

90 days per every 6 months The concerned persons must have been employees of this enterprise based outside Estonia for a 

immediately preceding the date of submitting their application for entry and stay. Persons respons

presence may not engage in making direct sales to the general public, supply services themselvelocated within Estonia.

Employees of an enterpriseengaged in substantivebusiness 

90 days per every 6 months 5 years of working experience in a related field is required. The person must have been employed 

one year immediately preceding the date of submitting their application for entry and stay in Eston

order to provide a service only in the following professional categories; Architectural, Engineering 

867), Management Consulting Services (CPC 865), and Services related to Management Consultproviders not working for such enterprise do not fall into this category.

European Communities(EC12)

Intra-corporate transferees None specified Economic needs test not required. Must have been employed by or have been partners with Mem

preceding year before the movement.

Persons who are responsiblefor setting up, in a MemberState, of a commercialpresence

None specified Economic needs test not required. The representative will not make direct sales to the general pu

The service provider has its principal place of business in the territory of a WTO Member other tha

States and has no other representative, office, branch or subsidiary in that Member State.

Services sales person None specified Economic needs test not required.

Finland

 Intra-corporate transferees None specified Persons must have been employed or sub-contracted by the company for not less than one year i

Executives and managers None specified Do not require compliance with labor market tests.Specialists None specified In compliance with labor market testsBusiness visitors 90 days Persons must not engage in selling services directly to the general public.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

50

FYRO Macedonia

 Intra-corporate transferees 3 years may extended 2 years

(max. 5 yrs.)

None specified

Business visitors 90 days with the possibility of

renewal

Representatives must not be based in Macedonia and must not receive remuneration from a sourrepresentatives cannot be engaged in making direct sales to the general public or in supplying se

Gambia

Management and experts'jobs for the implementation offoreign investment

None specified The employment of such persons shall be agreed upon by the contracting parties and approved b

Enterprises must also provide for training in higher skills for Gambian nationals to enable them to 

conditions or requirements for an approval for expatriate quota/staff are (1) Payment of payroll tax 

D1,000,000.00 (3) Unavailability of qualified Gambian for the position.

Georgia

Services salespersons 90-day period. Prolongation is

allowed only once a year aftertwo months from the date ofexpiration of this period.

The salesperson can receive no remuneration from a source located within the Georgia. The sale

the general public or supplying the service themselves.

Persons responsible forsetting up a commercialpresence 

1 year Persons must have been employees of that enterprise outside Georgia for a time period not less t

their application for admission. Persons responsible for the setting-up of a commercial presence m

the general public or supplies services themselves.

Persons providing servicesunder a services contract 

3 months Persons must have been employees of the enterprise outside Georgia for a time period of not less 

their application for admission. The number of service suppliers granted temporary entry will depe

performed under the contract. The enterprise outside of Georgia must not have a commercial pres

 Intra-corporate transferees 3 years may extended 2 years

(max. 5 yrs.)

Persons must have been employees of their firm outside of Georgia for a period of not less than o

of their application for admission. 

Ghana

Senior executives andSpecialized skill personnel

None specified Automatic entry and work permit is granted to up to 4 expatriate senior executives and specialized 

relevant provisions in the Investment Promotion Law. Approval is required for any additional expa

level. Enterprises must also provide for training in higher skills for Ghanaians to enable them to a

Grenada

None specified None specified The entry of all foreign natural persons to Grenada is regulated by Grenada's immigration laws. Th

subject to Work Permit Regulations. Issue of permits is normally confined to people with manageshort supply or not available in Grenada. Professionals in certain disciplines may be required to ror governmental body.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

51

Guatemala

High level and specializedpersonnel

None specified Entry must contribute to the training of Guatemalan personnel in the specialized fields of activity c

per cent of Guatemalan workers and pay them at least 85 per cent of total wages paid. These req

following reasons: protection and promotion of the national economy; lack of Guatemalan technica

defense of Guatemalan workers who demonstrate their capabilities. The Ministry of Labour may, 

percentages by 10 per cent for a period of five years or increase them to eliminate the employmen

to decrease the percentage must include the requirement to train Guatemalan technical staff in th

period.

Guyana

Senior managerial personneland technical experts

None specified Unbound, except when those positions are not available in the local labor market.

Honduras

Senior and specializedpersonnel 

None specified The number of foreign personnel must not exceed 10 per cent of the workers in the enterprise. Fo

more than 15 per cent of total wages paid. The supply of services by suppliers not resident in Hon

Honduran personnel in the specialized fields of activity concerned. Managers and supervisors of t

limit of 10 per cent is established on the total number of foreigners affiliated to trade unions, and ngoverning body of a trade union. In order to obtain the necessary permit, foreigners must be resid

Hungary

Senior Official The duration of the business

directed by that senior official

One senior official per business venture 

Personalities ofinternationally recognized reputation 

For the duration of the invitation

 Intra-corporate transferees None specified Employed by their firm for no less than one year without interruptionBusiness visitors 90 days Representatives cannot receive remuneration from a source within Hungary and cannot engage in 

public or supplying services themselves.

Iceland

 Intra-corporate transferees None specified Entry is permitted without compliance with labour market tests. (Subsidies available only to natura

citizens.)

India

Business visitors 90 days Persons cannot be receiving remunerations from a source within India

 Intra-corporate transferees 5 years Persons must have been employed by the service provider for no less than one year.

Professionals 1 year He/she possesses the necessary academic and professional qualifications, which includes three y

engineering or natural sciences.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

52

Indonesia

Directors, managers andtechnical experts/advisors

2 years subject to a 1 yearextension.

None specified. (– Any foreign natural persons supplying services are subject to charges levied by 

Governments. – Any expatriate employed by a joint-venture enterprise, representatives office, anand/or an individual services provider must hold a valid working permit issued by the Ministry of M

immigration requirements and procedures to enter the territory of the Republic of Indonesia.)

 Intra-corporate transferees None specified Allowed entry based on an economic needs test.

Israel

Executives and managers None specified Entry does not require compliance with labor market tests.

Intra-corporate specialists None specified Work permit Issued in compliance with labor market tests.

Jamaica

None specified None specified Work permits and visas are normal requirements for entry and in some cases licensing may be a 

specified professional categories. The Work Permit Review Board must be satisfied that the skills 

Foreign natural persons who are Managers and executives are exempted from work permits for a 

specialists for 14 days

Japan

 Intra-corporate transferees 5 years Persons must have been employed by the firm for a period of no less than one year. Persons mus

following activities: (A) Directing a branch office as its head (B) Directing a juridical person as its one or more departments (D) Activities that require technology and/or knowledge at an advanced 

engineering, or other natural sciences (E) Activities which require knowledge at advanced level pe

business management, accounting, or other humanities sciences. Specialized technology and kno

must be in principle acquired by him or her by completing college education (i.e. bachelor's degre

these persons can provide certain services which include (a) legal services supplied by a lawyer q

law (b) Consultancy on law of jurisdiction by a qualified lawyer c ) Legal services supplied by a pa

under Japanese law (d) Legal services supplied by a maritime procedure agent qualified as "Kaijid

Accounting, auditing and bookkeeping services supplied by an accountant qualified as "Koninkaie

services supplied by a tax accountant qualified as "Zeirishi" under Japanese law.)

Business visitors 90 days The visitor seeking entry cannot engage in making direct sales to the general public or supplying t

entry cannot receive remuneration from within Japan.

Jordan

Business visitors 90 days Work permits for all categories are granted on the basis of an economic needs test. Visitors can s

a source within Jordan and without engaging in making direct sales to the general public or in sup

branch or juridical entity must be resident in Jordan.)

 Intra-corporate transferees 1 year but work and residency

permits are renewable

Persons must have been employed by a juridical entity of another member for a period of not less 

transferees are presumed to meet the economic needs test requirements.

Executives, managers, andspecialists

1 year but work and residencypermits are renewable

Work permits for all categories are granted on the basis of an economic needs test.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

53

Jordan—Continued

Professionals Same as above The juridical entity has no commercial presence in Jordan in the activity at a professional level. Th

academic credentials and professional qualifications, which have been duly recognized, where ap

association in Jordan. The commitment relates only to the service activity which is the subject of t

Kenya

Persons employed inmanagement and expert jobs for the implementation offoreign investment.

None specified Natural persons entering for the implementation of foreign investment shall be agreed upon by the 

Government

Korea

Executives, senior managers,and specialists

3 years, extendable Persons must have been employed at that firm for no less than one year. Personnel must observe 

commitments regarding temporary movement of natural persons do not apply in the case of labor-

subsidies, including tax benefits may be limited to residents according to pertinent laws.)

Employees responsible forthe establishment of acommercial presence 

 90 days Persons can not be engaged in making direct sales or supplying services themselves. Persons ar

commercial presence only when there is no representative office, branch, or subsidiary already es

immigration and labor laws. Korea’s commitments regarding temporary movement of natural pers

management disputes. 

Service Salespersons 90 days Persons can not receive remunerations from a source within Korea and cannot sell services or su

Personnel must observe immigration and labor laws. Korea’s commitments regarding temporary mapply in the case of labor-management disputes. 

Kuwait

Managers, specialists andskilled technicians

None specified Presence of foreign natural persons as self employers is not allowed. (Housing and social program

care, are limited to Kuwaiti citizens.)

Kyrgyz Republic

Service Salesperson 90 days The salespersons must not engage in selling the services directly to the general public and must n

Salespersons must also receiving no remuneration from a source located within the Kyrgyz Repubrequired. Citizens from other countries are required to obtain entry visas--except countries with wagreements on entrance without visas.)

Intra-corporate transferees,persons responsible forsetting up a commercial presence, and employees ofan enterprise engaged insubstantive business in theKyrgyz Republic withouthaving commercial presencein the Kyrgyz Republic whoprovide a service as aprofessional of a servicesector.

3 years may extended 2 years(max. 5 yrs.)

Persons must have been in the prior employ of their firm outside the Kyrgyz Republic for a period 

preceding the date of their application for admission. (For CIS citizens no entry visa is required. C

to obtain entry visas--except countries with which the Kyrgyz Republic has agreements on entranc
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

54

Latvia

Intra-corporate transferees 5 years Natural persons who have been in employ of the firm transferring them for one year immediately p

Senior, managerial orexecutive positions 

 5 years

Specialists 5 years Firms have to be prepared upon request to certify the qualifications of their transferees seeking en

the State Employment Office together with information on necessary qualifications (e.g. education

special requirements). Vacancy has to be open for applications one month.

Persons of an enterpriseengaged in substantivebusiness under a servicecontract

None specified Natural persons must have been in employ of the enterprise outside Latvia for one year immediate

fulfil the conditions of a specialist as defined above and provide a service in Latvia as a professionManagement Consulting Services (CPC 865) or Services related to Management Consulting (CP

experience in the field is required. Individual services providers not employed by such enterprise o

persons seeking access to Latvian employment market. Persons entering Latvia to provide servic

Business visitor 90 days Natural persons seeking entry without acquiring remuneration from or within the Republic of Latvia 

sales to the general public or supplying services themselves.

Lesotho

Senior executives andspecialized skilled personnel

None specified Automatic entry of up to 4 expatriate senior executives and specialized skill personnel in accordan

of Lesotho. Approval is required for any additional expatriate workers beyond the automatic leveltraining in higher skills for the locals to enable them to assume specialized roles. 

Liechtenstein

Essential persons (Intracorporate transferees) inthe following categories:Executives and seniormanagers and specialists

3 years Entry is subject to authorization, which includes receipt of residency and work permits. (Entry is su

working conditions prevailing in the branch and the place of activity provided by law and/or collect

remuneration, working hours, etc.), measures limiting professional mobility, regulations related to 

public retirement plans (with respect to qualifying period, residency requirement, etc.) and all othe

immigration, entry, stay and work. The enterprise employing such persons shall cooperate, upon rthe enforcement of these measures.)

Lithuania

Intra-corporate transferees Persons must have been in that prior employment of their firm outside Lithuania for a period of no

preceding the date of their application for admission. (Subsidies available only to natural persons 

Senior managerial orexecutive positions 

3 years but stay can beextended for as long as long asthe enterprise exists

Specialists 3 years (3 months for business

visitors)

Upon request establishments are to certify the qualifications of their transferees seeking entry

Malawi

Management and expert jobsfor the implementation offoreign investment.

None specified Employment of such persons shall be agreed upon by the contracting parties and approved by the 
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

55

Malaysia

Intracorporate transferees--Senior Managers 

 5 years None specified

Intracorporate transferees--Specialists 

 5 years 2 specialists per organization. Additional specialists may be allowed subject to market tests and th

acceptable training program in the relevant service. Provided that such persons are employees obeen in the employment of that foreign service supplier for a period of not less than one year immapplication for a work permit and he is to serve in at least a similar capacity.

Specialists 5 years Subject to market test and the employment of Malaysians as counterparts and/or training of Malay

programs in the relevant service.

Professionals 5 yearsBusiness visitors 90 days Persons may not receive remuneration from a source within Malaysia and must have been employ

one year. These persons may not sell services directly to the public or supply services themselves

Malta

None specified None specified The requirements of Maltese legislation and regulations regarding entry, stay, acquisition of real p

measures shall continue to apply, including regulations concerning period of stay, minimum wage

agreements. Entry, work and residence permits are granted at the discretion of the Government o

Mauritius

All high qualified naturalpersons

None specified Entry will be governed inter alia by the Passport Act of 1969 and the Immigration Act of 1973. (Th

Income Tax Act and Non-Citizens Employment Restrictions Act 1970.)

Mexico

Service salespersons 90 days The activity does not in any case constitute a direct sale to the general public.

 Intra-corporate transferees 1 year with option of renewal Employees have to have been employed by that enterprise for at least a year preceding obtention 

Moldova

Services salespersons 90 days. Prolongation is allowed

once a year after 2 months fromthe date of expiration

Persons concerned must not receive remuneration from a source located within Republic of Moldo

to the general public and may not engage in supplying the service.

Persons responsible for thesetting up of a commercialpresence 

90 days. Prolongation is allowedonce a year after 2 months fromthe date of expiration

Persons must have been employees of that enterprise outside Republic of Moldova for a time per

preceding their application for admission. Persons responsible for the setting-up of a commercial 

direct sales to the general public or supply services themselves. The enterprise may not have a co

Moldova.

Service Providers under aconcluded service contract

90 days. Prolongation is allowedonce a year after 2 months fromthe date of expiration

Persons must have been employees of the enterprise outside Moldova for a time-period of not les

their application for admission. That enterprise must not have a commercial presence in Moldova. 

granted entry depends on the size of the task to be performed under the contract. Individual servic

enterprise outside Moldova are considered as persons seeking access to the Moldovan employm
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

56

Moldova—Continued

 Intra-corporate transferees 3 years may be extended 2

years (max. 5 yrs.)

Persons must have been prior employees of their firm outside Moldova for a period of not less tha

date of their application for admission.

Mongolia

Business visitors,Intracorporate transferees and professionals under aservice contract

None specified Entry and temporary stay of natural persons with managerial and technical skills that fall within the

Mongolia

Morocco

 Intra-corporate transferees None specified Issuance of a work permit is subject to the signing of a contract of employment.

Sales Agents 90 days None specified

Namibia

None specified None specified The entry and residence of foreign natural persons (service providers) are subject to Namibia's Im

labor laws. In accordance with Namibian legislation, the employment of foreign natural persons fo

investment shall be agreed upon by the contracting parties and be subject to approval by the Nam

shall be employed in management and expert jobs only.

Nepal

Service Salespersons 90 days, renewable The persons may not receive remuneration from a source located within Nepal. Sales may not be 

public and the sales person may not engage in supplying the service.

Persons responsible for thesetting up of a commercialpresence

1 year, renewable Personnel engaged in setting up commercial presence shall present proof of the commencement 

the date of entry of that person.

Intra-corporate transferees 3 years may extended 7 years

(max. 10 yrs.)

Persons must have been in the prior employment of their firm outside Nepal for a period of not les

the date of their application for admission. Intra-corporate transferees are limited to 15 percent of 

be further liberalized after five years from the date of accession.

Netherlands Antilles

All categories of naturalpersons

None specified Test of economic needs is required

New Caledonia

Persons required to set upcompanies

None specified Subject to the fulfilment of formalities on the entry and residence of foreigners
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

57

New Zealand

Executives and seniormanagers as Intracorporate transferees 

3 years Persons must have been employed by that organization for at least twelve months prior to their pr

Specialists and/or seniorpersonnel as Intracorporate transferees 

12 months None specified

Specialist personnel 3 years Entry is subject to labor market tests. Installers and servicers 3 months within a 12 month

period

None specified

Service sellers as businessvisitors 

3 months in any calendar year Those representatives must not be engaged in making direct sales to the general public.

Nicaragua

Entry limited to senior andspecialized personnel inconnection to a commercial presence 

None specified Entry must contribute to the training of Nicaraguan personnel in the specialized field of activity con

minimum of 75 per cent Nicaraguan employees. In special circumstances, the Ministry of Labor m

larger number of foreigners when it is difficult or impossible to replace them by nationals, in which 

Nicaraguan personnel under the supervision and control of the Ministry for a period of not more th

professional services involving the presence of natural persons for legal, accounting, auditing, eng

services requires the fulfilment of the conditions and the authorizations for the exercise of that par

Nigeria

Senior management andexperts jobs for the implementation of foreigninvestment

None specified Their employment shall be agreed upon by the service providers and approved by the IDCC.

Norway

Managers and executives 2 years Compliance with an economic needs test is not required.

Specialists 2 years Compliance with an economic needs test is not required. In assessing such knowledge, account 

specific to the establishment, but also whether the person has a high level of qualification in regar

specific technical knowledge, including membership in an accredited profession.

Business visitors 3 months The representatives must not engage in making direct sales or supplying services. The service su

branch or subsidiary in Norway. Compliance with an economic needs test is not required. 

Oman

Business visitors 90 days None specifiedEmployees of juridicalPersons who are managers,executives, and specialists

2 years may be extended 2years (max. 4 yrs.)

Limited to 20% of the total number of personnel of the service provider.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

58

Pakistan

Executives and specialists None specified Maximum of 50% in superior categories (Executives and Specialists). Persons shall have been em

Member for a period of not less than one year prior to the date of application for entry into Pakista

services to the juridical person in Pakistan.

Panama

None specified None specified 90% of the ordinary workforce of any employer must be Panamanian workers, or foreigners with a 

residence in the country. Foreign specialized or technical personnel may not exceed 15% of the to

be permitted for a fixed period of time with the recommendation of the respective Ministry and the 

Social Welfare. 

Sellers of services None specified Persons must not be established in Panama and cannot receive remunerations from a source with

Managers, administrators andspecialists 

None specified Persons who have been employed by the firm for no less than 6 months preceding the application 

Papua New Guinea

Managers and specialists 3 years with any extensions

subject to the Department ofLabor and EmploymentRequirements

Entry is limited to those of key importance and where employees are unavailable locally. 

Peru

None specified 3 years which may be extended

for successive periods of nomore than 3 years.

Natural persons of another GATS member may not comprise more than 20% of the total staff empremuneration may not exceed 30% of the total payroll. These percentages do not apply in the follo

souse, parent, child, or sibling of a Peruvian citizen; personnel of foreign enterprises providing inte

under a foreign flag and registration; foreign personnel working for multinational service enterprise

regulations applicable to these cases; foreign investors who keep a minimum five tax units during 

sportsmen or women, or other suppliers of services taking part in public performances in Peru for 

Managerial or administrativepersonnel engaged in newbusiness activities;specialized personnelrecruited for teaching;personnel of public or privateenterprises with a Statecontract; and in any othercase provided for in aSupreme Decree as a resultof special expertise.

None specified May request an exemption from the percentages concerning the number of foreign workers and th

Philippines

None specified None specified Entrance may be awarded for the supply of a service after it has been determined that a person in 

and willing, at the time of application, to perform the services for which entrance is desired is not a
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

59

Poland

Key personnel, managers orspecialists 

1 year with a possibility ofextension.

Market tests are required for entry. Key personnel must have been employed by their firm for no le

real estate, direct and indirect, by foreigners and foreign legal persons requires permission. Entry 

other form of public assistance.)

Business visits 3 months As long as the visit does not involve direct provision of services.

Qatar

Managers, specialists, andskilled technicians

None specified Presence of foreign natural persons as self employers is not allowed. (Housing and social program

care, are limited to Qatari citizens.)

Romania

None specified None specified Natural persons not having Romanian citizenship and residence in Romania, as well as legal pers

and their headquarters in Romania, cannot acquire ownership over any kind of land plots, through 

Natural persons serving inmanagement and expert jobsnecessary to operate theforeign investment.

None specified None specified

Saudi Arabia

Business visitors 180 days, including multiple

entries

Persons may not acquiring remuneration from within Saudi Arabia or engage in making direct sale

services.

 Intra-corporate transferees 2 years, renewable for similar

periods

Persons who have work experience for a period of at least three years in the same field prior to th

Kingdom, to an affiliate in Saudi Arabia of a juridical person. The number of entrants is limited to 2

service supplier. A minimum of three persons will be allowed. The service supplier may have the f

managers, executives and specialists of each service supplier shall be limited to 15%; and the nu

other than managers, executives, or specialists) of each service supplier shall be limited to 10%, o

two ICT will be allowed as compliant with the 15% threshold. (Certain positions in a company may categories. These positions are recruitment and personnel, receptionists, cashiers, civil security g

relations) follow up.)

Contractual service suppliers 180 days, renewable Entrance allowed only in the following sectors: Legal services (Part of CPC 861); Architectural se

landscape architectural services (CPC 8674); Engineering services (CPC 8672); Integrated enginscientific and technical consulting (CPC 8675); Technical testing & analysis services (CPC 8676);

Environmental services (all-sub sectors) (CPC 94010 + 94020 + 9403 + 9404 + 9405 + 9406 + 94

883 + 5115); Management consulting services (CPC 8650); Services related to management cons

repair of equipment (not including maritime vessels, aircraft or other transport equipment) (CPC 6bookkeeping (CPC 8621 + 8622); Medical & dental services (CPC 9312); Inter-disciplinary resear

85300); Computer & related services (CPC 841-845 + 849); Construction and related engineering 

and tour operator services, excluding for Umra and Hajj (CPC 7471); and Restaurant services, inc

nightclubs, etc.) (CPC 6421 + 6422 + 6423).

Installers and maintainers 90 days, renewable Qualified specialists supplying installation or maintenance services. The supply of that service ha

between the builder of the machinery or equipment and the owner of that machinery or equipment
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

60

Sierra Leone

Senior managementpersonnel and technical experts 

None specified Entrance allowed if not available in the local labor market. Prior to a natural person working in Sie

obtained.

Singapore

None specified None specified Specific commitments in market access in any sector or subsector, through any mode of delivery, 

limitations established in the financial services sector.

Slovak Republic

Essential senior executives None specified Entry does not require an economic needs test. The persons concerned must have been employe

immediately preceding such movement.

Specialists None specified Entry does not require an economic needs test. The persons concerned must have been employe

immediately preceding such movement. In assessing such specialist knowledge account will be ta

to the establishment, but also of whether the specialist has a high level of qualification referring to 

specific technical knowledge, including membership of an accredited profession

Representatives of a serviceprovider 

None specified Entry does not require an economic needs test. Those representatives must not be engaged in m

or in supplying services themselves.

Persons working in seniorposition who are responsiblefor setting up a commercialpresence of a serviceprovider in the SlovakRepublic. 

None specified Entry does not require an economic needs test. Those persons may not be engaged in making dir

service provider must have its principal place of business in the territory of a MTO Member other t

representative office, branch or subsidiary in the Slovak Republic.

Slovenia

Business visitors 90 days Business visitors may not receive remuneration from or within the Republic of Slovenia and may n

general public or supplying services.

Employee in a senior position 1 year with extensions "business

visa" and a residence permitrequired

Limited by a business visa and a residence permit. Natural persons must have been employed by 

three years immediately preceding the entry or have been partners in it (other than majority share

Specialists 1 year with extensions "business

visa" and a residence permitrequired

In assessing such knowledge, account will be taken not only of the knowledge specific to the esta

specialist has a high level of qualification in regard to the type of work being performed, including 

profession. Natural persons must have been employed by their firm for a period of not less than th

entry or have been partners in it (other than majority shareholders).

Soloman Islands

Managers and specialists 2 years initially with any

extension subject to Immigrationand Labor requirements

Entry and temporary stay is limited to those of key importance and where employees are unavaila

required to provide on-the-job training to local employees)
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

61

South Africa 

Services salespersons 90 days Salespersons do not require an economic needs tests. Persons must not receive remuneration fro

not directly selling the service to the general public or supplying the service themselves.

Intra-corporate transferees 3 years None specifiedPersonnel engaged inestablishment 

 3 years Persons must have been employed with that company for at least one year preceding the date of 

Sri Lanka

None specified None specified Entry of natural persons is subject to Sri Lankan laws on immigration, consumer laws, and other r

persons who intend to work or to conduct business in Sri Lanka have to obtain the relevant work p

immigration requirements.

St. Kitts and Nevis

None specified None specified The employment of foreign natural persons is subject to Work Permit regulations. Permits are no

and technical skills which are in short supply or not available in St. Kitts and Nevis.

St. Lucia

None specified None specified The employment of foreign natural persons is subject to immigration laws and Work Permit regula

confined to persons with specialized managerial and technical skills and the administration of the 

market test. Professionals in certain disciplines may be required to register with the appropriate pr

St. Vincent and theGrenadines

None specified None specified The entry of all foreign natural persons to St. Vincent and their residence in St. Vincent is regulate

Employment of foreign natural persons is subject to Work Permit regulations. Issue of permits is n

managerial and technical skills which are in short supply or not available in St. Vincent. Profession

required to register with the appropriate professionals or governmental body. 

Suriname

Senior managerial personneland technical experts 

None specified Must not be available in the local labor market.

Sweden Intra-corporate transferees 2 years Persons must have been employed but the service supplier for at least one year immediately prec

admission.

Business visitors 3 months Service supplier must be a juridical person and the persons concerned have been employed by th

immediately preceding the date of their application for admission.
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

62

Switzerland

All types listed below None specified Entry and Stay of foreign service suppliers is subject to authorization (requirement of residency pe

granted subject to measures fixing overall numbers or work permits allocated. (Natural persons arconditions: Working conditions prevailing in the branch and the place of activity provided by law ato remuneration, working hours, etc.), measures limiting professional and geographical mobility w

statutory systems of social security and public retirement plans (with respect to qualifying period, 

other provisions of the legislation relating to immigration, entry, stay and work. The enterprise empupon request, with the authorities in charge of the enforcement of these measures. Eligibility for s

may be limited to persons domiciled in a particular geographical subdivision of Switzerland.)

Intra-corporate transferees 3 years, may be extended to a

maximum of 4 years. If renewedthe applicant must stay abroadfor 2 months between 2consecutive periods of stay.Persons staying in Switzerlandon an open ended employmentcontract not limited by time arenot considered as residing inSwitzerland for temporary stayor employment. 

Entrants must have been employed by their outside enterprise for a period of no less than one yea

Service sellers 3 months within 1 year. If

authorization is renewed theapplicant must stay abroad for atleast 2 months between twoconsecutive periods of stay.

Service sellers may not sell services directly to the general public or supply the services themselv

Employees involved in theestablishment of a commercial presence 

Same as above Persons must have been employed for no less than one year immediately preceding their applicat

enterprise. Persons responsible for establishing a commercial presence may not engage in makinthe service themselves. Persons' employer must not have a commercial presence in Switzerland.

Entrants with a servicecontract 

Same as above Persons must fulfill the conditions of a specialists as previously defined. 5 years of related experi

suppliers given entry is based on the size of the contract and task to be performed under the contenterprise outside of Switzerland, one other than enterprises providing Placement and Personnel provide services in the following sectors; Engineering services, Consultancy services related to thSoftware implementation services. Persons must have been employed for no less than one year i

admission by their respective enterprise.

Taiwan

Business visitors 90 days Persons must not be engaged in making direct sales to the general public and must not receive re

Intra-corporate transferees 3 years but may be renewed for

one year periods indefinitely

Employed by the juridical person for no less than one year.

Employees of an enterprisewith no commercial presencein Taiwan

90 days or the duration of thecontract, whichever is less. Entry permit may be valid for a12 months and allow multipleentries within that period

May enter and stay with the following conditions: (1) The enterprise outside Chinese Taipei has co

enterprise engaged in business within Chinese Taipei. (2) Persons have been employed by the ou

year and have met the conditions of a specialist defined above. (3) The persons may not engage Taipei. (4) The commitment relates only to the service activity which is the subject of the contract 

practice generally as a licensed professional. (5) The contract has to be obtained for providing cer
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

63

Taiwan—Continued

A natural person employedby business entities in Taiwan

May enter and stay for a periodof no more than 3 years

Thailand

Business visitors 90 days None specifiedIntra-corporate transferees 1 year which may be extended

two terms of no more than 1year each

Persons must have been employed by the company concerned outside Thailand for a period of nopreceding the date of his or her application for admission. Persons must have satisfied the criteria 

the Department of Employment. 

Tonga

Services salesperson 90 days Persons not based in the territory of the Kingdom of Tonga and receiving no remuneration from a 

engaged in activities related to representing a services supplier for the purpose of negotiating for t

where: a) such sales are not directly made to the general public and b) the salesperson is not eng

Intra-corporate transferees 2 years, renewable Employees of firms that provide services through a branch, subsidiary or affiliate in Tonga and wh

firm outside Tonga for a period of not less than one year immediately preceding the date of their a

Personnel Engaged inEstablishment

2 years, renewable Natural persons who meet the criteria of executives and senior managers who intend, or are respo

of a new business of a service supplier with its head of operations in the territory of another Membrepresentative, branch or subsidiary in Tonga. Executives would not directly perform tasks related services of the organization.

Trinidad and Tobago

None specified None specified The entry and residence of foreign natural persons is subject to Trinidad and Tobago's Immigratio

persons in excess of thirty days is subject to the obtention of a work permit, which is granted on a 

persons shall be employed only as managers, executives, specialists and experts.

Tunisia

None specified None specified Enterprises that are wholly export-oriented may recruit four managerial and supervisory staff of fo

relevant Tunisian legislation. (Any foreign natural person wishing to engage in a salaried activity o

employment endorsed by the competent authorities.) 
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

64

Turkey

Managers, executives, andspecialists 

2 years, renewable Work permits are given by the relevant authorities in accordance with the Foreign Capital Legislat

employment of foreigners. A residence permit is needed and are given by The Ministry of Interior. 

assigned only to Turkish citizens by the specific laws and cannot be rendered by foreigners. Howe

may work in professions which are assigned only to Turkish citizens with permission from the Min

which are assigned only to Turkish citizens are given below: 1) Doctors, 2) Pharmacists, 3) Nurse

directors of the factories producing medicine, 6) Guides, 7) Responsible directors of private hospit

agencies, 9) Directors of newspapers, 10) Dentists, 11) Notaries, 12) Those personnel working in 

and qualified personnel, 13) Those personnel undertaking coastal commerce and related activities

pharmacists and veterinarians dealing with laboratory services, 16) Lawyers who practice in Turki

Certified Public Accountants.)

Service sellers It is not necessary to obtain work

permits and residence permitsfor service sellers who stay inTurkey for no more than 30days.

Service sellers may not sell directly to the public.

United Arab Emirates

Business visitors 90 days Persons must not receive remuneration from a source within the UAE or sell services directly to th

 Intra-corporate transferees 1 year, may be renewed for 2

years (max. 3 yrs.)

Persons must have been employed by a juridical person of another Member outside the UAE for to the date of application for entry into the UAE. The number of managers, executives and specia

number of managers, executives and specialists of each service supplier. Their stay in the UAE wimmigration laws

United States

Services salespersons 90 days Persons shall receive no remuneration from a source within the United States and is not directly s

or supplying that service themselves.

 Intra-corporate transferees 3 years, may be renewed for 2

more (max. 5 yrs.)

Persons have been employed with their firm for no less than one year at the date of their applicati

Personnel engaged inestablishment 

None specified The persons has been employed in the immediately preceding year by an entity described in the U

with sector specific commitments. The persons shall be receiving remuneration from that source. 

acquisition of the physical premises for the entity that will commence its business operations withi

person.

Fashion models and specialtyoccupations 

 3 years Up to 65,000 persons annually on a worldwide basis in occupations as set out in 8 USC § 1101 (a

Specialty Occupations must have must have at minimum in order to gain entry (a) theoretical and specialized knowledge and (b) have attained a bachelor's degree or higher in the specialty along 

specialty through experience in progressively responsible positions. Also the persons must have f

is required in that state. (Specialty occupation aliens and their employers must be in compliance w

requirements.)
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

65

Uruguay

Managers , executives, &specialists

None specified None specified

Vietnam

 Intra-corporate transferees 3 years, may be extended The persons must have been previously employed by the foreign enterprise for at least one year. 

managers, executives and specialists shall be Vietnamese nationals. However, a minimum of 3 no

and specialists shall be permitted per enterprise.

Other personnel Will be granted entry and a stay

permit in conformity with theterm of the concernedemployment contract or for aninitial period of three yearswhichever is shorter, which maybe extended subject to theemployment contract betweenthem and the commercialpresence.

None specified

Service sales persons 901 days Persons not based in the territory of Vietnam and receiving no remuneration from a source located 

in activities related to representing a service provider for the purpose of negotiating for the sale of such sales are not directly made to the general public; and (ii) the salesperson is not directly enga

Persons responsible forsetting up a commercialpresence

90 days Managers and executives within a juridical person, who are responsible for the setting up, in Vietn

service provider of a Member when (i) these people are not engaged in making direct sales or sup

provider has its principal place of business in the territory of a WTO Member other than Vietnam a

in Vietnam.

Contractual service suppliers Not specified Natural persons who are employees of a foreign enterprise having no commercial presence in Vie

a period of 90 days or for the duration of the contract, whichever is less provided that the following 

applied: (1) The foreign enterprise has obtained a service contract from a Vietnamese enterprise e

Vietnam. The competent authority of Vietnam must be able to establish the necessary procedures 

the contract. These persons must possess: (a) a university degree or a technical qualification doc

equivalent level; (b) professional qualifications where this is required to exercise an activity in the and regulations of Vietnam; and (c) at least 5 years of professional experience in the sector. The n

service contract shall not be larger than necessary to fulfil the contract, as it may be decided by th

of Vietnam. These persons should have been employed by the foreign enterprise having no comm

of no less than 2 years and have met the requirements prescribed above. The entry of these pers

services (CP 841-845, 849) and engineering services (CPC 8672).
APPENDIX B Horizontal GATS commitments on the provision of services through the movement of natural persons (mode4)a

Type of worker Maximum length of stay Provisions affecting entries (Other provisions, if any)

66

Venezuela

Sellers of services,administrative staff,managers and executives,and specialists 

1 year, renewable, multipleentries permitted

Citizens of a party will be subject to the restrictions laid down in the current labour law with whatev

At present they are as follows: Chiefs of industrial relations, chiefs of personnel, captains of ships 

exercising similar functions must be Venezuelan nationals; 90% of the personnel of an enterprisemust be Venezuelan nationals; and the total remuneration paid to foreigners, including both manuexceed 20% of the total remuneration paid to personnel in either category. The Ministry of Labouthe above provision after having examined a particular case: In the case of activities that require s

are no Venezuelan personnel available; in the case of immigrants entering the country under cont

of small and medium sized enterprises. When foreign personnel are recruited, preference will be 

on Venezuelan territory, or married to Venezuelans, or who have established their domicile in Ven

of residence in the country.

Zambia

Management and expert jobsfor the implementation offoreign investment.

None specified The employment of such persons shall be agreed upon by the contracting parties and approved b

Enterprises must also provide for training in higher skills for Zambians to enable them to assume 

Zimbabwe

 Intra-corporate transferees None specified Subject to lack of availability in the local labor market.

Source: Compiled by the U.S. International Trade Commission based on information obtained from the Schedules of Specific Commitments submitted under the GAT

Note: No information was specified for the following countries: Angola, Bahrain, Bangladesh, Benin, Burkina Faso, Central Africa Republic, Chad, Côte d’Ivoire, Fiji, 

Macao, Madagascar, Mali, Mauritania, Mozambique, Myanmar, Niger, Paraguay, Republic of Maldives, Rwanda, Senegal, Swaziland, Tanzania, and Uganda.

a Many countries use similar terminology when categorizing their schedule of commitments by type of worker. However, despite the similarities in the titles of the cat

often defined differently in the schedules and it should therefore not be assumed that the definitions for similar titles and categories of workers are identical for all cou