http://www.todaysengineer.org/2005/Jan/GATS.asp

GATS Identifies Four Service Modes

Under GATS, four modes of supply exist:

* Mode 1: Cross-border supply, in which the service crosses the border, such as distance learning

* Mode 2: Consumption abroad, in which the consumer moves to the country of the supplier, as in study abroad

* Mode 3: Commercial presence, in which the service provider establishes facilities in another country, as in branch campuses or arrangements with local institutions

* Mode 4: Presence of natural persons, in which people temporarily travel to another country to provide service, as when professors or researchers work abroad

Modes 3 and 4 had different advocates. Developed countries favored Mode 3, as it would permit movement of capital for investment in services in other countries. Developing countries, on the other hand, favored Mode 4, since it would permit the free movement of natural persons in providing services to other countries.

Mode 4 allows temporary services to be performed anywhere. Sorting this out, Mode 4 generally covers:

* Persons providing services where a foreign service supplier obtains a contract to supply services to the host country company and sends its employees to provide those services

* Independent service providers abroad — individuals selling services to a host country company or to an individual

* Persons employed abroad by foreign companies established in the host country, excluding nations of the host country

Mode 4 currently may gain temporary entry for periods of three years or more, they can be considered to have entered the local labor market, potentially providing services local people could perform.

In addition, while service suppliers at all skill levels are included in Mode 4, in practice, WTO members have generally limited the application to high-skilled workers — managers, executives and specialists. But again, GATS has not defined these terms clearly.

A GATS Visa Could Replace H-1B and L-1 Visas

One of the Mode 4 concepts circulating considers the possibility of a GATS visa, which would facilitate entry of Mode 4 service suppliers by avoiding the detailed visa procedures currently required in many countries. In theory, GATS visas would be issued rapidly, would be time-limited, would cover both independent service suppliers and intra-corporate transferees, and would include appeal rights and sanctions for abuse. (e.g., worker could accuse American citizen of a "hate crime" or "hate speech" for 'discriminating' against the foreign worker)

Mode 4 and Engineering Careers

The deadline for completing Mode 4 negotiations was 1 January, but as this issue of Today’s Engineer went live, that deadline had not been met. IEEE-USA is planning to meet with the USTR to discuss the effects of GATS Mode 4 and the danger of horizontal concessions in negotiating agreements that could adversely affect engineers’ careers, as well as the ability of the United States to sustain preeminence in technological innovation (www.ieeeusa.org/policy).