Movement of business people a SADC perspective Malcolm McKinnon - - PowerPoint PPT Presentation

movement of business people a sadc perspective
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Movement of business people a SADC perspective Malcolm McKinnon - - PowerPoint PPT Presentation

Movement of business people a SADC perspective Malcolm McKinnon Trade in Services Advisor to SADC Outline Importance of movement of business people SADC Protocol on Facilitation of Movement of People SADC Protocol on Trade in


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Movement of business people – a SADC perspective

Malcolm McKinnon Trade in Services Advisor to SADC

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Outline

  • Importance of movement of business people
  • SADC Protocol on Facilitation of Movement of People
  • SADC Protocol on Trade in Services
  • Tripartite Agreement on Movement of Business People
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Importance of movement of business people

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Benefits of business mobility

  • Allows face-to-face communication and in-person meetings
  • Most effective way of meeting new clients
  • Essential for negotiating final agreements
  • Key factor in building long-term relationships
  • Key channel for transfer of knowledge
  • Stimulates trade and economic growth
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BUT …

  • Impediments to mobility of business people across borders imposes

real costs on economies

  • Reduced imports and exports
  • Reduced FDI stocks
  • Reduced productivity
  • Reduced competitiveness
  • Translates into trade transaction costs for business
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SLIDE 6

Sensitivities

  • Political sensitivity?
  • Regulatory concerns?
  • Enforcement concerns (temporary entry leading to permanent

entry)?

  • Effect on labour market?
  • Impact on wages of locals?
  • Bilateral arrangements provide for greater flexibility?
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Why politically sensitive?

  • Temporary entry leading to people absconding
  • Economic migration vs asylum seeking
  • Free movement of labour vs threat to domestic jobs
  • Social security benefits
  • Political targets to reduce net migration
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Why politically sensitive?

Open markets Export interests require reciprocity Skills shortages Import of skills leads to improvement

  • f domestic skills

Temporary entry leading to people absconding Free movement of labour vs threat to domestic jobs Unfair access to social security benefits Economic migration vs asylum seeking - security Political targets to reduce net migration

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SADC Protocol on Facilitation of Movement of Persons

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Context for SADC movement of business people

SADC Treaty (1991)

Trade Protocol (1996) Trade in Services Protocol (2010) Facilitation

  • f

Movement

  • f Persons

Protocol (2005)

Transport, Communication and Meteorology Protocol (1996)

Other sectoral Protocols, eg Tourism, Energy, etc

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Background

  • Two foundations for the PFMP:

1. SADC Treaty, which advocates for the “promotion of interdependence and integration of national economies for the harmonious, balanced and equitable development of the region” 2. Protocol on Tourism Development, which advocates for the introduction of a tourist Univisa

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Protocol on Facilitation of Movement of Persons

  • The development of policies aimed at the progressive elimination of
  • bstacles to the movement of persons in the region, generally into

and within the territories of State Parties

  • Specifically:

a. entry, for a lawful purpose and without a visa, into the territory of another State Party for a maximum period of ninety (90) days per year for bona fide visits and in accordance with the laws of the State Party concerned; b. permanent and temporary residence in the territory of another State Party; c. establishment of oneself and working in the territory of another State Party

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Harmonisation of Immigration Practices

  • State Parties agree to take steps to achieve each of the following from

the date of entry into force:

a. harmonisation around entry for a maximum period of ninety (90) days per year for bona fide visits b. standardisation of immigration procedures c. establishment of a separate SADC desk at ports of entry d. sufficient number of border crossing points with identical opening hours e. simple border permit/border passes for citizens of State Parties who reside in border areas f. abolition of visa requirements g. co-operation in the provision of training

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Current status of Protocol

MEMBER STATES DATE OF SIGNATURE DATE OF RATIFICATION Botswana 18-8-2005 6-9-2006 DRC 18-8-2005 Lesotho 18-8-2005 Mozambique 18-8-2005 9-12-2005 Namibia 18-8-2005 South Africa 18-8-2005 4-2-2008 Swaziland 18-8-2005 2-8-2006 Tanzania 18-8-2005 Zimbabwe 18-8-2005 Angola Madagascar Malawi Mauritius Seychelles Zambia

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SADC Protocol on Trade in Services

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Timeline

2000: Services Annex to Trade Protocol – liberalization of 6 priority sectors 2006: Standalone Protocol instead of Annex 2009: Adoption of Protocol by CMT 2011: Adoption of Negotiating Guidelines by CMT and approval to start negotiations 2012: Start of negotiations in April 2012; Protocol open for signature – 11 Member States sign at 2012 SADC Summit 2013: Zimbabwe signs at SADC Summit 2015: Negotiations due to end March 2015; CMT approves extension until December 2015 South Africa signs at SADC Summit CMT approves further extension until September 2016 2016: CMT approves further extension beyond September 2016 for 2 sectors

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Signature and ratification

  • Signature
  • 13 Member States signed
  • Not signed: Madagascar, Namibia
  • Ratification
  • 4 Member States have ratified

(Botswana, Mauritius, Mozambique, South Africa)

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SADC Trade in Services Protocol and GATS

  • The Protocol is built on the basis of GATS
  • Takes into account the rights and obligations
  • Framed on Art. V – achieved through the schedules of commitments
  • Most articles borrowed from GATS
  • Adapted to suit regional issues
  • Recognises on-going GATS negotiations
  • Disciplines on domestic regulations shall take into account the achievements
  • f the GATS negotiations
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TIS Protocol Objectives

  • Deeper regional integration and sustainable economic growth and development
  • To meet the challenges of globalisation
  • Diversified SADC economies through greater services trade
  • Integrated regional market for services, complemented by cooperative mechanisms
  • New opportunities for a dynamic business sector
  • Strengthened services capacity, efficiency and competitiveness
  • Expanded services exports
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Progressive liberalisation - six priority sectors

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Modes of supply

Mode of supply Short description GATS definition Example Mode 1 Cross-border supply From the territory of one Member into the territory of any other Member Computer services supplier in Country A supplying services to Country B via the Internet Mode 2 Consumption abroad In the territory of one Member to the service consumer of any other Member Hotel in Country B providing services to a visiting citizen from Country A Mode 3 Commercial presence By a service supplier of one Member, through commercial presence in the territory of any other Member Bank in Country A setting up a branch, subsidiary or joint venture in Country B Mode 4 Movement of natural persons By a service supplier of one Member, through presence of natural persons

  • f a Member in the territory of any
  • ther Member

Manager of bank in Country A moving temporarily to Country B to set up or run its branch office, subsidiary or joint venture

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Modes of supply

Mode of supply Short description GATS definition Example Mode 1 Cross-border supply From the territory of one Member into the territory of any other Member Computer services supplier in Country A supplying services to Country B via the Internet Mode 2 Consumption abroad In the territory of one Member to the service consumer of any other Member Hotel in Country B providing services to a visiting citizen from Country A Mode 3 Commercial presence By a service supplier of one Member, through commercial presence in the territory of any other Member Bank in Country A setting up a branch, subsidiary or joint venture in Country B Mode 4 Movement of natural persons By a service supplier of one Member, through presence of natural persons

  • f a Member in the territory of any
  • ther Member

Manager of bank in Country A moving temporarily to Country B to set up or run its branch office, subsidiary or joint venture

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Mode 4 (movement of natural persons)

  • Categories of “natural person”
  • Business visitor
  • Intra-corporate transferee
  • Contractual service supplier
  • Independent professional
  • Conditions of temporary entry and stay
  • Length of stay
  • Requirement for work permit, residency permit etc
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Tripartite Agreement on Movement of Business Persons

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“On a separate track”

  • Tripartite Ministers agree (October 2014):
  • Movement of Business Persons should not be

incorporated in the TFTA; and

  • the TTC-MBP should develop content and define the

appropriate legal instrument to be used.

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Possible structure of TAMBP

Article Heading Preamble 1 Objective 2 Scope and definitions 3 MFN 4 Short-term temp movement 5 Long-term temp movement 6 Market access 7 National treatment 8 Transparency of procedures Article Heading 9 Simplification and harmonization of procedures and documentation 10 Fees and formalities for the issue of visas 11 Expedited processing times 12 Immigration measures 13 Labour market testing 14 Cooperation between Tripartite immigration and labour market authorities 15 Concluding provisions

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Final draft of TAMBP

Article Heading Preamble 1 Definitions: “Business person” shall be limited to business visitors, traders and investors 2 Citation 3 Establishment 4 Objectives 5 Guiding principles 6 Scope 7 Temporary entry, stay and exit 8 Identification of a business person 9 Transparency Article Heading 10 Simplification and harmonization of procedures and documentation 11 Fees and charges 12 Multi-entry visas 13 Cooperation between relevant authorities 14 Expedited processing times 15 Immigration and security measures 16 Dispute settlement … Concluding provisions

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Main provisions

  • Provides for up to 90 days’ stay in another Tripartite country
  • Most countries grant for ordinary citizens of RECs and some countries grant a

longer period of up to 180 days.

  • Allows Member/Partner States to maintain visa requirements

between each other, and to grant – or not grant – visas on arrival in accordance with their domestic legislation

  • No change for business.
  • Allows a great deal of scope for Member/Partner States to interpret

the agreement in the way they want

  • Many draft provisions allow Member/Partner States to rely on their national

legislation.

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Questions