3. Movement of persons Developing countries’ prospects for each of the services sectors discussed above depend largely upon their own polic...
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.
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