12
bank are examples of supplies through commercial
presence.
2.19. Mode 4, presence of natural persons, occurs
when an individual has moved into the territory of the
consumer to provide a service, whether on his or her
own behalf or on behalf of his or her employer. Thus, it
covers two distinct categories of natural persons: self-
employed and employees.
2.20. Mode 4 also applies to two areas: trade in
services in the BPM5 sense (e.g., financial auditing
services by an auditor sent by a foreign firm or provision
of entertainment
services by a self-employed
professional foreign entertainer who is temporarily on
tour in the host economy), and employment, meaning
labour input in the production process. Presence of
natural persons covers only non-permanent employment
in the country of the consumer.23 However, GATS
provides no definition of “non-permanent” employment.
In countries’ commitments, the temporary status
generally covers two to five years, and it may be
different for different categories of natural persons.
2.21. Short-term employment of foreign doctors or
teachers is covered under mode 4. Intra-corporate staff
transfers and, more generally, short-term employment of
foreign staff in foreign affiliates are particularly relevant
in the GATS context
because many countries have
referred to this subcategory of natural persons in their
schedules of commitments. Other examples are short-
term employment of construction workers or paid
domestic helpers.
(c) Services Sectoral Classification list - GNS/W/120
2.22. In 1991, the GATT secretariat produced a note
setting out a classification of service sectors, known as
the GNS/W/120 Services Sectoral Classification list,
resulting from consultations with member countries. The
list identified relevant sectors and sub-sectors with
regard to national services regulations so that specific
commitments on these regulations could be made and
negotiated. GNS/W/120 should thus be considered as a
negotiating list rather than as a statistical classification.
It is reproduced in full in annex VI. In order to assist the
clear
delineation of each sub-sector, codes from the
23
The GATS annex on movement of natural persons states:
“The Agreement shall not apply to measures affecting natural
persons seeking access to the employment market of a
Member, nor shall it apply to measures regarding citizenship,
residence or employment on a permanent basis,” (see WTO,
work cited in footnote 18).
Provisional CPC were assigned to each of the sub-
sectors.
2.23. The 12 major categories in the GATT
GNS/W/120 list are:
1. Business
services.
2. Communication
services.
3. Construction and related engineering services.
4. Distribution
services.
5. Educational
services.
6. Environmental
services.
7. Financial
services.
8. Health-related and social services.
9. Tourism and travel-related services.
10. Recreational, cultural, and sporting services.
11. Transport services.
12. Other services not included elsewhere.
2.24. The List may evolve over time, and the services
trade negotiators may use other classifications in future
negotiations, as
has been the case for basic
telecommunications, financial services and maritime
transport.
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