3. Movement of persons
Developing countries’ prospects for each of the
services sectors discussed above depend largely
upon their own policy reforms and the foreign
investment that they manage to attract. The situation
is very different for what in WTO parlance is called
Mode 4, meaning the movement of natural persons
for the purpose of supplying services. This is an
area where many developing countries have export
interests, but their ability to take advantage of their
[T]elecommunications, transport, energy and financial
services … are a driving force in the economy. Their
efficient organization will reduce unit costs and help
lower the high cost of production in Zambia. They will
also generate both increased merchandise and services
exports.
Trade Policy Framework: Zambia (2016)
34 TRADE POLICY FRAMEWORKS FOR DEVELOPING COUNTRIES: A MANUAL OF BEST PRACTICES
advantages is heavily dependent upon the willingness
of their partners — especially, but not exclusively, the
developed countries — to relax the existing restrictions.
If markets were fully open, developing countries would
be well positioned to supply a wide range of services
via Mode 4, from construction to medical services, but
the immigration laws and regulatory schemes of the
developed countries greatly inhibit this movement.
This is an issue explored in some TPFs. The Angola
report observes that developing countries, and
especially the least developed countries (LDCs), have
indicated that Mode 4 represents one of the most
important means of supplying services internationally.
The report notes that these countries have requested
that other WTO Members, to the extent possible and
consistent with GATS article XIX, consider undertaking
commitments to provide access in Mode 4, taking into
account all categories of natural persons identified by
LDCs in their group requests related to this mode of
supply. In the absence of such commitments, whether
they are provided in WTO or in RTAs, the export
capacity of developing countries may continue to be
inhibited.
