House of Representatives

Explanatory Memorandum

Circulated By Authority of the Minister for Home Affairs, the Honourable Brendan O'Connor Mp

ANNEX E

AANZFTA TEMPORARY MOVEMENT OF NATURAL PERSONS (MNP):

KEY "WTO PLUS" GAINS

1. AANZFTA provides a framework, through the MNP chapter, for countries to make commitments on temporary business entry that go beyond service suppliers to include goods sellers and investors. There are further disciplines on temporary business entry to promote expeditious processing of formalities and enhanced transparency.

2. At this stage, the commitments of most ASEAN countries in their schedules to the MNP chapter relate only to service suppliers, consistent with the WTO GATS framework. Nevertheless, most ASEAN countries have improved on their GATS commitments as follows.

3. Indonesia has made a general commitment to allow entry and stay of intra-corporate transferees ("directors, mangers and technical experts") for up to six years and business visitors for 60 days, with possible extension to 120 days.

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There are some sectoral exceptions to these general commitments. For example, the improvement on WTO commitments in relation to "managers" does not apply in relation to computer and related services and insurance services and the improvement on "technical experts" does not apply to banking services.

4. Laos has made provision for business visitors (60 day period of stay) and intra-corporate transferees - executives, managers and specialists (six month period of stay with possibility of renewal for a further period of one year). Malaysia has increased the period of stay for intra-corporate transferees, specialists and other professionals to enter and stay for a maximum of ten years, although there are some exceptions to this commitment, including professional services, telecommunications and banking services. Thailand has clarified that its "business visitor" commitments (90 day period of stay) cover both "service sellers" and "persons responsible for establishing a commercial presence" and has committed to an increased period of stay for intra-corporate transferees (up to four years). Singapore has extended its commitments for intra-corporate transferees to all services sectors, not just those listed in its services schedule (as per its WTO GATS commitments). In addition, it has committed to a longer length of stay for intra-corporate transferee under AANZFTA than under the GATS, namely, a maximum of eight years, as distinct from five under the GATS.

5. The Philippines has made commitments that cover not only services suppliers, but also goods sellers and investors. These include provision for:

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business visitors (59 days with possible extension of up to one year);

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intra-corporate transferees (one year period of stay, which may be extended) and investors (one year period of stay, which may be extended);

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contractual service suppliers, including persons in technical advisory or supervisory positions and professionals (accountants, landscape architects and certain engineering sub-sectors), subject to the issue of temporary permits by the Filipino Professional Regulation Commission (one year period, which may be extended); and

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specialists under contract as part of a higher education twinning or bridging program, in the fields of nursing, midwifery, library and laboratory enrichment, agriculture, industrial, environment, natural resource management, engineering, architecture, science and technology and health-related programs (one year period, which may be extended).

6. The MNP chapter provides a platform for countries to broaden and deepen their commitments in movement of natural persons in future and thereby facilitate freer movement of skilled labour within the region.