ASEAN TRADE in Services ASEAN TRADE in Services FrameworkFramework

Jose Y. Cueto Jr., MD, FPCS, MHPEdProfessional Regulatory Board of MedicineRepresentative to the ASEAN MRA AJCCM

40th APS Anniversary Lecture ForumASEAN Economic Integration and Inclusive Growth

Outline of Presentation1. The ASEAN Trade in Services Framework2. Conceptual Framework for Mutual

Recognition Arrangement and Mutual Recognition of Skills

3. Modes of Supply of Services3. AFAS Package of Commitments4. Challenges in Moving Forward

1. ASEAN Trade in Services Framework

Single Market and Production

Base

Competitive Economic

Region

EquitableEconomic

Development

Integration into the Global Economy

ASEAN ECONOMIC COMMUNITY

1. Free Flow of Goods

2. Free Flow of Services

3. Free Flow of Investment

4. Free Flow of Capital

5. Free Flow of Skilled Labor

6. Priority Integration Sectors

7. Food, Agriculture and Forestry

1. Competition Policy

2. Consumer Protection

3. Intellectual Property Rights

4. Infrastructure Development

5. Taxation

6. E-Commerce

1. SME Development

2. Initiative for ASEAN Integration

1. Coherent approach towards external economic relations

2. Enhanced participation in global supply networks

COUNTRY Services Agriculture Industry

Brunei 32.5% 0.8% 66.7%

Cambodia 40.0% 30.0% 30.0%

Indonesia 38.1% 14.7% 47.2%

Lao PDR 37.4% 27.8% 34.8%

Malaysia 48.0% 12.0% 40.0%

Myanmar 43.6% 38.2% 18.2%

Philippines 55.7% 12.8% 31.5%

Singapore 73.4% 0.0% 26.6%

Thailand 52.7% 13.3% 34.0%

Vietnam 37.7% 22.0% 40.0%

Why professional services matter

“Services Revolution” driving

- GDP growth - employment growth - export growth - productivity growth- poverty reduction

International Trade Strategy Promotion of export of services

Facilitation of inflow of foreign services and foreign services providers

Identification of professions requiring skill sets considered to be in short supply in the domestic market

REGULATED REGULATED PROFESSIONSPROFESSIONS

Technology Professions

1. Agriculture2. Architectur

e3. Chemistry4. Environmen

tal Planning5. Fisheries6. Forestry7. Geology8. Interior

Design9. Landscape

Architecture

10.Master Plumbers

11.Sugar Technology

Health and Allied Professions

1. Dentistry2. Medical

Technology3. Medicine4. Midwifery5. Nursing6. Nutrition and

Dietetics7. Optometry8. Pharmacy9. Physical and

Occupational Therapy

10.Radiologic Tech.

11.Respiratory Tx.

12.Veterinary Medicine

Business, Education and

Economic Professions

1. Accountancy2. Criminology3. Customs

Brokers4. Guidance

Counseling5. Librarian6. Marine Deck

Officers7. Marine

Engineer Officers

8. Professional Teachers

9. Psychology10.Real Estate

Services11.Social

Workers

Engineering Professions

1. Aeronautical

2. Agricultural 3. Chemical 4. Civil 5. Electrical 6. Electronics 7. Geodetic 8. Mechanical 9. Metallurgic

al 10.Mining 11.Naval

Architecture and Marine

12.Sanitary

SINGLE MARKET AND PRODUCTION BASE

SINGLE MARKET AND PRODUCTION BASE

Source: http://farm8.staticflickr.com/7272/7601994244_5d9ab99785_b.jpg

Free flow of

goods

Free flow of

goods

Free flow of

professional services

Free flow of

professional services

Free flow of

investmen

t

Free flow of

investmen

t Free

flow of capital

Free flow of capital

Free flow of skilled labor

Free flow of skilled labor

Conceptual Framework

RECOGNITION DEVELOPMENT HARMONIZATION

OF QUALIFICATIONS

MOBILITY OF PROFESSIONALS(ASEAN ECONOMIC COMMUNITY 2015)

MRA NQF AQRF

Conceptual Framework

RECOGNITION DEVELOPMENT HARMONIZATION

OF SKILLS

MOBILITY OF SKILLED LABOR(ASEAN ECONOMIC COMMUNITY 2015)

MRS NQF AQRF

Framework for MRA and MRSASEAN QualificationsReference Framework

(AQRF)

Mutual Recognition of SkillsTechnical/Vocational Skills

Mutual Recognition ArrangementsProfessional Qualifications

7 ProfessionsTourism Sector

Priority SectorsOccupations

Regional Situation

National Qualifications Frameworks(10 countries)

ASEAN Qualifications Reference Framework

ASEAN MRA / MRS

ASEANINTEGRATION / AEC

2015

Device for Comparison Referencing Process

The AQRF Translation device to enable existing

frameworks and training systems at national level to be compared or related to each other

The 8-level AQRF has been designed and agreed upon by all AMS

AMS have agreed to reference their NQFs to the AQRF in 2018

THE PHL QUALIFICATIONS THE PHL QUALIFICATIONS FRAMEWORKFRAMEWORK

LEVELLEVEL

GRADE 10

GRADE 12

TECHNICAL TECHNICAL EDUCATION AND EDUCATION AND

SKILLS DEVELOPMENTSKILLS DEVELOPMENT HIGHER EDUCATIONHIGHER EDUCATION

DOCTORAL AND POST DOCTORAL

BACCALAUREATE

BASIC BASIC EDUCATIONEDUCATION

L1

L2

L3

L4

L5

L6

L7

L8

NC I

NC II

NC IV

NC III

NC IV

DIPLOMA

BACCALAUREATE

POST BACCALAUREATE

MALAYSIA

INDONESIA

S2S2S2S2

S1S1S1S1

S3S3S3S3

General High School

General High School

11

22

33

44

55

77

88

99

66

ProfessionalProfessional

SpesialistSpesialist

D ID I

D IVD IV

D IIID III

D IID II

Vocational Senior High School

Vocational Senior High School

SubspesialistSubspesialist

Elementary/Junior High SchoolElementary/Junior High School

FORMAL ACADEMIC EDU FORMAL VOCATIOAL/PROF EDU

8

1

2

3

4

5

6

7

1

2

3

4

5

6

7

8

9

1

2

3

4

5

6

7

Qualifications(A)

Qualifications(B)

Country(A)

Country(B)AQRF

8

Readiness of AMS (ILO Study)

Readiness CountriesCan be ready for recognition for many professions

MalaysiaPhilippines

Can be ready for recognition for some occupations

Brunei IndonesiaVietnam ThailandSingapore

With support, can be ready for recognition for key migrant worker occupations

CambodiaLao PDRMyanmar

Carmela I. TorresILO Regional Office, Bangkok

V. Services, unlike goods, have 4 modes of supply

MEMBER A MEMBER BMode 1: Cross border supply

Mode 2: Consumption abroad

Mode 3: Commercial presence

Consumer A

The service crosses the border

Service

supply

Service Supplier

Service Supplier

Consumer A

Consumer A

Consumer A

Service Supplier

Commercial

Presence

Establishes a commercial presence in AService

supply

Mode 1: Cross Border Supply

Cambodia

Philippine Hospital

Singapore Hospital

Mode 4: Movement of natural persons

Employee sent by firm from B

Naturalperson

Self-employed goes to Member A

MEMBER A MEMBER B

Naturalperson

Consumer A

Consumer A

Commercial

Presence Juridical person

Service

supply

Service

supply

Mode 2: Consumption Abroad

Philippines

Singapore

Mode 3: Commercial Presence

Thailand

Mode 4: Movement of natural persons

Implications for Practice Mode 1: Cross border supply Technology-based Diagnostic radiology Histopathology Medical transcription Medical research Education: distance learning mode

Implications for Practice Mode 2: Consumption abroad Services offered/Value-added Diagnostics Surgical procedures Minimally invasive procedures Medical education Thai students Residency training/Subspecialty Indonesia, Nepal, India, Pakistan

Implications for Practice Mode 3: Multinational companies invest in

the Philippines

May bring their own people with them

Implications for Practice Mode 4: Movement of natural persons Full/Free mobility: countries with similar

education, accreditation, certification systems, and professional practice

US and Canada Australia and New Zealand

10 ASEAN countries: wide variation Limited Practice Temporary registration

Defining the Form of MobilityEngineeringArchitectureAccountancy

Establishment of ASEAN Registries

DentistryMedicineNursing

Temporary licensing 1. Limited Practice 2. Expert Visit 3. Research 4. Education/Training 5. Humanitarian Missions

Trade in Services Temporary movement of professionals

Does not involve: 1. Permanent registration 2. Acquisition of citizenship 3. Permanent residence

3. ASEAN Framework Agreement on Services (AFAS, 1995) Liberalization Targets and Commitments

Trade in Services in ASEANFree Flow of Trade in Services Important in realizing AEC

Substantially no restriction to ASEAN services suppliers in providing services and establishing companies

Subject to domestic regulations

Dir. Brenda R. Mendoza, NEDA

Liberalization of Services1. Business services2. Communication services3. Construction and related Engineering

services4. Distribution services5. Educational services6. Environmental services7. Financial services8. Health related and Social services

Liberalization of Services9. Tourism and Travel related services10. Recreational, Cultural and Sporting

services11. Transport services12. Other services not included elsewhere

Liberalization of Services Total of 12 Broad Sectors

Covering 128 services sub-sectors (WTO Services Sectoral Classification List:

W120)

Package of Commitments Initial package 1997

Second Package 1998

Third Package 2001

Fourth Package 2004

Fifth Package 2006

Sixth Package 2007

Seventh Package 2009

Eighth Package 2010

Ninth Package 2013*

Tenth Package 2015*

Status Completing AFAS 9 and 10 packages

Scheduled subsectors: AFAS 9: 104 AFAS 10: 128

Completion Target: AFAS 9: 2013 AFAS 10: 2015

4. CHALLENGES MOVING FORWARD

Way Forward Implementation of Competitiveness

Roadmaps for all regulated professions Strengthening QA and Regulatory

mechanisms Strengthen Continuing Professional

Development Career progression pathways Strategy: Complementation, not competition

Way Forward Providing safety nets/mechanisms Implementing the Philippine Qualifications

Framework Shift to OBE and learning outcomes Qualifications Register Quality Assurance Mechanisms International Alignment Pathways and Equivalencies

Way Forward Getting all stakeholders to act together

towards a single direction Government regulatory bodies/Agencies Academe Industry/Business Professional Organizations Professionals/Students

THANK YOU FOR YOUR KIND ATTENTION!