ASEAN Economic Community: what mode

ASEAN Economic Community: what model for labour mobility?
1

Flavia Jurje and Sandra Lavenex

Abstract
This paper analyses the labour mobility reforms developed by the Association of Southeast Asian Nations
(ASEAN) in particular for the envisaged 2015 ASEAN Economic Community (AEC). The Community
Blueprint foresees the achievement of a free movement regime for skilled labour, mobility of selected categories
of people associated mainly with trade in services and investment. Labour migration policies for other types of
workers are not part of the regional integration framework. The agenda on services trade mobility,
institutionalized at the multilateral level by the 1995 WTO General Agreement on Trade in Services under the
so-called ‘mode 4’ temporary movement of service providers, has taken shape in other regions of the world as
well. For instance, in North America (NAFTA), Europe (EU), or South America (MERCOSUR), services-
related mobility provisions have coupled with other, more comprehensive, regional policies to migration (e.g.
free movement of people in the EU, residence and work rights for all citizens of MERCOSUR and associated
countries, etc.). Assessing the current context on labour migration within ASEAN and drawing on mobility
models employed by other regional units, the study discusses the prospects for deeper labour market cooperation
in Southeast Asia.

Introduction
The ASEAN Economic Community (AEC) shall be the goal of regional economic integration
by 2015, as stated by the heads of the ASEAN governments back in 2007 at the 13
th

Singapore Summit. To this end, the AEC envisages to transform ASEAN into a region with
“free movement of goods, services, investment, skilled labour
2
, and freer flow of capital”
(AEC Blueprint 2008: 5). While setting the goals for the 2015 single market, the AEC
Blueprint underlines the need for “the movement of business persons, skilled labour and
talents”, as a key element for achieving greater economic integration in the region. This paper
assesses the labour market reforms undertaken by ASEAN, drawing on mobility
liberalization experiences developed by other regional integration units, such as the EU, NAFTA, and MERCOSUR. In all these regional integration units, states have committed to
more comprehensive migration policies: in the case of the EU and MERCOSUR, the agenda
on trade-related mobility represents only one component of much more encompassing free
movement regimes, while within NAFTA the mobility provisions exceed the GATS mode 4
template, by for example expanding the categories of people entitled to move, covering more
sectors, introducing a special visa (i.e. Treaty NAFTA - TN-visa, for professionals entering
the US), etc. Comparing these various regimes would shed light on the importance of the
trade-mobility interlink for the development of regional migration policies, but also reveal
potential policy shortcomings of focusing solely on trade-related mobility for managing the
movement of people within a future economic community. The analysis is based on primary
data collected through semi-structured interviews with key stakeholders from the ASEAN
region, EU, NAFTA, and MERCOSUR, as well as coded mobility-related provisions
included in relevant documents and trade agreements concluded by the selected regions. The
coding scheme draws on previous efforts by Jurje and Lavenex (2014).
In the following, the paper presents the regional mobility models devised by ASEAN, EU,
NAFTA, and MERCOSUR respectively. It elaborates on both opportunities and constraints
encountered in liberalizing the movement of natural persons at the regional level. The study
concludes with addressing further policy alternatives for the ongoing labour mobility reforms
initiated by the Southeast Asian states.

Labour mobility within ASEAN
Mobility of service providers within the Southeast Asian region was not part of the original
Declaration, however it has become an important aspect of regional economic integration
with the adoption of the 1995 ASEAN Framework Agreement on Services (AFAS) and then
later with the initiative to conclude an agreement on Movement of Natural Persons (MNP).
Mobility of skilled labor within ASEAN is also promoted through the so-called Mutual
Recognition Arrangements (MRAs) of professional services. Finally, the goal to achieve the
free flow of skilled labour and professionals within the forthcoming 2015 ASEAN Economic
Community has brought along a series of reforms envisaged to enable member states to meet
these liberalization targets. In addition, Aspects related to migrant workers’ rights are covered
in a regional Declaration signed by ASEAN leaders in 2007.
3 The developments related to ASEAN labour mobility framework are detailed below.

ASEAN Framework Agreement on Services
Members agreed that “there shall be a freer flow of capital, skilled labor and professionals
among Member States” (AFAS art.4 (e)). This agenda has evolved relatively at the same time
with the WTO GATS mobility developments. The flow of skilled labour and professionals
related to trade in services is associated with the so-called “mode 4” mobility of natural
persons, one out of the four modes of cross boarder services supply, as defined by the 1995
WTO/GATS agreement.
The objective of the movement of natural persons was sought to expanding trade in services
and deepening economic integration. So far, ASEAN members have negotiated eight
packages of commitments within the AFAS framework, laying down Mode 4 conditions for
market access and national treatment under the horizontal commitments (see details below).
Moreover, the schedules of specific commitments and MFN exemptions lists contain
provisions taken by individual countries in specific sectors, for certain categories of service
providers (e.g. Singapore’s MFN exceptions allow the presence of unskilled/semi-skilled
natural persons that come from traditional sources of supply
3
, measures under periodical
domestic policy review; Indonesia reserves low level occupations/semi-skilled jobs to
Indonesians, with limited exceptions for citizens from Malaysia, Singapore, Brunei
Darussalam, Papua New Guinea and Australia). Despite these several rounds of services
negotiations and commitments packages signed, ASEAN members have not moved much
beyond the initial WTO/GATS outcome. In particular, commitments on mode 4 are mainly
linked to investment and business flows, and seen as only facilitating the movement of
professionals, managers, and qualified staff under the intra-corporate transferee category
(Nikomborirak and Supunnavadee 2013, ILO/ADB 2014). Recent developments have sought
to include all mobility-related commitments in a separate binding document – the Agreement
on Movement of Natural Persons – that would supersede all mode 4 provisions codified
previously in AFAS.

Kết quả (Việt) 1:

Cộng đồng kinh tế ASEAN: những gì mô hình cho di động lao động?1 Flavia Jurje và Sandra Lavenex Tóm tắt Phân tích này giấy cải cách lao động di động phát triển bởi Hiệp hội các quốc gia đông nam á (ASEAN) đặc biệt cho các dự 2015 kinh tế cộng đồng ASEAN (AEC). Cộng đồng Thấy trước kế hoạch chi tiết thành tích của một chế độ miễn phí phong trào cho lao động có tay nghề cao, tính di động đã chọn loại người liên quan đến chủ yếu là với thương mại trong dịch vụ và đầu tư. Lao động di cư chính sách cho các loại người lao động không phải là một phần của khuôn khổ hội nhập khu vực. Thương mại chương trình nghị sự về các dịch vụ di động, thể chế độ đa phương bởi 1995 WTO Hiệp định chung về thương mại Dịch vụ theo các cái gọi là ' chế độ 4' tạm thời chuyển động của nhà cung cấp dịch vụ, đã hình dạng ở các vùng khác của thế giới như tốt. Ví dụ, ở Bắc Mỹ (NAFTA), Châu Âu (EU), hay Nam Mỹ (MERCOSUR), Dịch vụ-quy định tính di động có liên quan đã gắn liền với khác, chính sách toàn diện hơn, khu vực để di chuyển (ví dụ: các phong trào tự do của người dân trong EU, nơi cư trú và làm việc quyền cho mọi công dân của MERCOSUR và liên kết Quốc gia, vv). Đánh giá bối cảnh hiện hành về lao động di chuyển bên trong ASEAN và vẽ trên di động Mô hình làm việc của các đơn vị khác của khu vực, việc nghiên cứu thảo luận về những triển vọng cho sâu hơn thị trường lao động hợp tác ở đông nam á. Giới thiệu Cộng đồng kinh tế ASEAN (AEC) là mục tiêu của hội nhập kinh tế khu vực 2015, như đã nói bởi những người đứng đầu chính phủ ASEAN trở lại trong năm 2007 lúc 13th Hội nghị thượng đỉnh Singapore. Để kết thúc này, AEC envisages để biến ASEAN thành một khu vực với "miễn phí di chuyển hàng hóa, Dịch vụ, đầu tư, lao động có tay nghề cao2và dòng vốn chảy tự do hơn " (AEC Blueprint 2008:5). Trong khi thiết lập mục tiêu cho thị trường duy nhất năm 2015, AEC Kế hoạch chi tiết nhấn mạnh sự cần thiết cho "sự chuyển động của những người kinh doanh, lao động có tay nghề cao và tài năng", như là một yếu tố then chốt để đạt được hội nhập kinh tế lớn hơn trong vùng. Bài báo này đánh giá các cải cách thị trường lao động của ASEAN, vẽ trên di động tự do hoá kinh nghiệm phát triển bởi các đơn vị khác của hội nhập khu vực, chẳng hạn như EU, NAFTA và MERCOSUR. Trong tất cả các đơn vị hội nhập khu vực, Kỳ đã cam kết toàn diện hơn di chuyển chính sách: trong trường hợp của EU và MERCOSUR, chương trình nghị sự ngày thương mại liên quan đến tính di động đại diện cho chỉ có một thành phần của bao gồm nhiều hơn nữa miễn phí di chuyển chế độ, trong khi trong NAFTA quy định di động vượt quá chế độ GATS 4 tiêu bản, bằng cách ví dụ: phát triển các loại của người dân quyền di chuyển, bao gồm nhiều hơn nữa lĩnh vực, giới thiệu một thị thực đặc biệt (tức là Hiệp ước NAFTA - TN-thị thực cho các chuyên gia nhập Hoa Kỳ), vv. So sánh các chế độ khác nhau sẽ làm sáng tỏ tầm quan trọng của các trade-mobility interlink for the development of regional migration policies, but also reveal potential policy shortcomings of focusing solely on trade-related mobility for managing the movement of people within a future economic community. The analysis is based on primary data collected through semi-structured interviews with key stakeholders from the ASEAN region, EU, NAFTA, and MERCOSUR, as well as coded mobility-related provisions included in relevant documents and trade agreements concluded by the selected regions. The coding scheme draws on previous efforts by Jurje and Lavenex (2014). In the following, the paper presents the regional mobility models devised by ASEAN, EU, NAFTA, and MERCOSUR respectively. It elaborates on both opportunities and constraints encountered in liberalizing the movement of natural persons at the regional level. The study concludes with addressing further policy alternatives for the ongoing labour mobility reforms initiated by the Southeast Asian states. Labour mobility within ASEAN Mobility of service providers within the Southeast Asian region was not part of the original Declaration, however it has become an important aspect of regional economic integration with the adoption of the 1995 ASEAN Framework Agreement on Services (AFAS) and then later with the initiative to conclude an agreement on Movement of Natural Persons (MNP). Mobility of skilled labor within ASEAN is also promoted through the so-called Mutual Recognition Arrangements (MRAs) of professional services. Finally, the goal to achieve the free flow of skilled labour and professionals within the forthcoming 2015 ASEAN Economic Community has brought along a series of reforms envisaged to enable member states to meet these liberalization targets. In addition, Aspects related to migrant workers’ rights are covered in a regional Declaration signed by ASEAN leaders in 2007. 3 The developments related to ASEAN labour mobility framework are detailed below. ASEAN Framework Agreement on Services Members agreed that “there shall be a freer flow of capital, skilled labor and professionals among Member States” (AFAS art.4 (e)). This agenda has evolved relatively at the same time with the WTO GATS mobility developments. The flow of skilled labour and professionals related to trade in services is associated with the so-called “mode 4” mobility of natural persons, one out of the four modes of cross boarder services supply, as defined by the 1995 WTO/GATS agreement. The objective of the movement of natural persons was sought to expanding trade in services and deepening economic integration. So far, ASEAN members have negotiated eight packages of commitments within the AFAS framework, laying down Mode 4 conditions for market access and national treatment under the horizontal commitments (see details below). Moreover, the schedules of specific commitments and MFN exemptions lists contain provisions taken by individual countries in specific sectors, for certain categories of service
providers (e.g. Singapore’s MFN exceptions allow the presence of unskilled/semi-skilled
natural persons that come from traditional sources of supply
3
, measures under periodical
domestic policy review; Indonesia reserves low level occupations/semi-skilled jobs to
Indonesians, with limited exceptions for citizens from Malaysia, Singapore, Brunei
Darussalam, Papua New Guinea and Australia). Despite these several rounds of services
negotiations and commitments packages signed, ASEAN members have not moved much
beyond the initial WTO/GATS outcome. In particular, commitments on mode 4 are mainly
linked to investment and business flows, and seen as only facilitating the movement of
professionals, managers, and qualified staff under the intra-corporate transferee category
(Nikomborirak and Supunnavadee 2013, ILO/ADB 2014). Recent developments have sought
to include all mobility-related commitments in a separate binding document – the Agreement
on Movement of Natural Persons – that would supersede all mode 4 provisions codified
previously in AFAS.