Regional and Bilateral Arrangements for Labor Mobility: Potentials and Challenges? Md. Shahidul Haque IOM Regional Representative for the Middle East UN ESCWA – ALO Regional Workshop on “Movement of Natural Persons and its Implications on Development in the Arab States” Cairo, 5 – 6 September 2007

MRF Cairo - September Introduction  Since the beginning of industrial civilization, people have been moving to provide services or to promote goods/services in foreign markets.  It was managed though consular and/or trade arrangements mainly between two countries/entities.  International labor mobility is a trans-national process and neither destination nor origin countries can address all related issues acting alone.

MRF Cairo - September Introduction  International labor mobility remains a highly regulated affair between or among states.  Labor mobility can be viewed from two general perspectives:  Trade negotiation perspective  Labor market perspective

MRF Cairo - September Migrants worldwide -- all categories labor migrants *ILO estimates (Sept 2006) Temporary labor migrants Mode 4 Overall Migration and Mode million 86 million* ? ?

MRF Cairo - September Overall Migration and Mode 4 In financial terms: considerable impact and potential 3% liberalization for labor mobility may lead to global economic welfare gains of US 300 billions for both developing and developed countries 191 million 86 million* ? ? Mode 4: a very small number of highly-skilled persons

MRF Cairo - September Political Economy of Labor Mobility Migrants (rights) Markets (liberalization/profit) Destination Countries (sovereignty) Transit Countries Origin Countries (benefit)

MRF Cairo - September Arrangements for Labor Mobility  Existing arrangements on movements for employment overseas are as follows: Multilateral: no global arrangement for labor mobility. Regional: mainly trade and integration agreements with provisions for labor mobility. Bilateral: agreements for labor mobility and/or trade agreements with provisions for labor mobility. Unilateral: policies of some countries for labor mobility.

MRF Cairo - September Multilateral Arrangements  No comprehensive global system or instrument to manage labor mobility.  States jurisdiction to regulate migratory flows.  Differences exist between labor origin and destination countries.

MRF Cairo - September Regional Arrangements involving Labor Mobility  Regional Trade Agreements (RTAs) mainly aim at decreasing trade barriers between parties (not to manage labor mobility).  It treats mobility mainly in four ways:  Comprehensively deals with labor mobility including permanent and temporary mobility.  Allows free movement of labor (entry to local labor market).  Provides limited movement of labor.  Provides limited movement only for service providers (no labor mobility) - GATS

MRF Cairo - September Examples of RTAs and Labor Mobility  RTAs providing full mobility of labor:  European Union  Agreement on the European Economic Area (ECA)  European Free Trade Association (EFTA)  Common Market for Eastern and Southern Africa (COMESA)

MRF Cairo - September Examples RTAs…..  RTAs providing market access for certain groups:  Caribbean Community (CARICOM)  North American Free Trade Agreement (NAFTA) and Canada – Chile Free Trade Agreement.  Group of Three (Colombia, Venezuela and Mexico)

MRF Cairo - September Examples RTAs….  RTAs using the GATS model with some additional elements:  ASIA Free Trade Area (AITA)  Euro-Mediterranean Association Agreements (Morocco and Tunisia)

MRF Cairo - September Examples RTAs…  Agreements using the GATS model  Southern Common Market Agreement (MERCOSUR)  Agreements providing facilitated entry for labor (no market access)  Asia Pacific Economic Cooperation (APEC) Forum.  South Asian Association for Regional Cooperation.

MRF Cairo - September Bilateral Arrangements involving Labor Mobility  BLA is an arrangement (Treaties and MOU) between states, regions and public institutions that provide for the recruitment and employment of foreign short or long term labor (OECD).  Though a common mechanism to regulate inter- state labor mobility and much more widely used than RTAs, most temporary labor mobility takes place outside bilateral state arrangements.

MRF Cairo - September Bilateral Arrangements  In post WW – II, industrial nations resolved to labor recruitment from abroad to address domestic labor shortage.  By 1900, trading nations or entities concluded bilateral arrangements under “Treaties of Friendship, Commerce and Navigation (FCN)” to provide limited right for establishment/mobility.

MRF Cairo - September Bilateral Arrangements  By end of 1960s, a number of European countries and the USA entered into bilateral agreements for employing foreign workers (most of these agreements were discontinued or replaced by the 1970’s).  By the early 1990’s: renewed interest in BLAs, faced with labor demand particularly European countries signed agreements with non European countries to facilitate entry of labor.  In Asia, by late 70s bilateral agreements have tended to address the labor mobility issues.

MRF Cairo - September Objectives of BLAs  Can bring order and predictability in the management of labor markets (recruitment, placement, integration and return).  BLAs address flow of low-skilled labor in particular.  Origin Countries: increase access to foreign labor market. enhance economic development (remittance, transfer of skill/knowledge). higher protection for migrants.

MRF Cairo - September Objectives …  Destination Countries: ease labor shortage and forge commercial and economic relations with origin countries. assist integration of foreign workers in a host economy and society. Reduce irregular migration ensure return of migrants after end of the arrangement/labor market demands

MRF Cairo - September Categories of Bilateral Arrangements  The most common categories of BLA are as follows: Seasonal or guest worker agreement. Contract/project linked agreement. Agreements for trainee or other short-term training programs. Working and holiday schemes.

MRF Cairo - September Examples of BAs including BTAs for Labor Mobility  Canada Seasonal Agricultural Workers Program.  Australia – New Zealand Closer Economic Relations (ANZCERTA).  Japan – Singapore Free Trade Agreement.  US – Jordan Free Trade Agreement.

MRF Cairo - September Developed along parallel tracks Governmental policies & practices for migration management Mode 4 Migration Management and Mode 4 Two sets of realities Mode 4: not a migration agreement ; it’s about trade in services

MRF Cairo - September Developed along parallel tracks Two sets of realities ; it’s about trade in services Mode 4: not a migration agreement Governmental policies & practices for migration management Mode 4 Migration Management and Mode 4 Framework governing migration Relevant regulatory framework:

MRF Cairo - September Conclusion  Regional and bilateral arrangements concerning labor mobility have evolved rapidly through broadening its scope, implementation process and institutional framework.  Difficult to measure effectiveness of these arrangements as they often pursue several objectives.  Success of these arrangements depend on the “political” will of the states and stakeholders.

MRF Cairo - September Thank you indeed.