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Certain U.S. Laws for Foreign Workers Draw Fire from India in the WTO

This is a Congressional Research Reports report (PDF) on the DS503 case. Note that they say that there is a possibility of the US losing the case, and having to modify behavior on the contested parts of our work visa system, which includes the quotas that limit the rate of increase in job outsourcing workers and GATS Mode 4 generally. It's only because of the quotas that far more jobs that can be, are not offshored. Professor Alan Blinder of Princeton found that 26% of all US jobs could be outsourced and offshored.

Urgent Warning on jobs and the future.

The future of the US middle class is endangered by the 1995 GATS trade agreement. Our participation in this agreement and others that are related to it could throw the US in to a much greater pandemonium than COVID-19. This could happen any day. They are poised to offshore a great many jobs because its so much more profitable. Many of those jobs are thought to be stable but they cant be as long as the governments of the world are working behind peoples backs to trade away decent jobs. (For what, kickbacks?). People are currently entering these professions precisely because they pay well.

International Regulatory Initiatives in Services: Background Note by the Secretariat - WTO Document S/C/W/97

The main goal of the GATS is trading services, roughly 80% of a modern economy and including most jobs. This is an area that most people don't associate with trade nor do they realize that its been put in the hands of the WTO. One important part of the neoliberal project is trade across borders in various kinds of work. Importing workers to do jobs they can do more economically than "locals". (This initiative was only in its earliest stages in 1997 when this Note was written, now that its more than 20 yrs later its much farther along, but, except in a few service sectors like IT, the US is dragging its feet). Eventually the neoliberal project hopes that trillions of dollars "now wasted on over-high wages" could be "saved" and transformed into profits. Basically, like NAFTA, but for the rest of the country's jobs. Under Track Two of the GATS, barriers to global outsourcing, offshoring, etc. of professional and non-professional services such as work permit or visa barriers or anti-discrimination statutes that might impede outsourcing and similar are quietly being eliminated on a global scale. Outsourcing and offshoring jobs that people depend on to eat out from underneath entire countries and generations of workers is a very sensitive subject so the strategy is "Privatization by stealth".

Boeing’s 737 Max Software Outsourced to $9-an-Hour Engineers

Planemaker and suppliers used lower-paid temporary workers. Engineers feared the practice meant code wasn’t done right. It remains the mystery at the heart of Boeing Co.’s 737 Max crisis: how a company renowned for meticulous design made seemingly basic software mistakes leading to a pair of deadly crashes. Longtime Boeing engineers say the effort was complicated by a push to outsource work to lower-paid contractors. The Max software -- plagued by issues that could keep the planes grounded months longer after U.S. regulators this week revealed a new flaw -- was developed at a time Boeing was laying off experienced engineers and pressing suppliers to cut costs.

AFSC:Trade Agreements and Guest Worker Programs

Trade agreements lock in entitlements for foreign firms to take publicly funded jobs if they are the lowest qualified bidders, they also must give foreign companies such abnormally favorable conditions that it is almost certain they will be.

AFSC: State issues affecting Government Procurement

"Don’t Make Trade Commitments Affecting Our State Unless We Authorize It," "Does WTO Limit Local Authority? Proposed Commission Would Explore Impact of “Free Trade”" many others (trade agreements offshore millions of public service jobs like teaching, construction, and nursing, as a bargaining chip in global power, they potentially block domestic programs like Green New Deal, public housing, rent control, zoning restrictions, etc.)

Informal Brief: The WTO Services Negotiations and Migrant Workers (AFSC)

As the World Trade Organization (WTO) gears up for the next ministerial meeting to be held December 2005 in Hong Kong, some developing country governments are pushing for an expansion of the types of labor currently covered under the services agreement. Under the WTO’s General Agreement on Trade and Services (GATS), services are categorized into four “modes”. These include: Mode 1 ­ Providing services abroad Mode 2 ­ Consumption of services abroad Mode 3 ­ Commercial Presence ­ Subsidiary branches including service providers such as a banks, hospitals, or construction ­firms that are owned by a foreign company Mode 4 – Temporary movement of natural persons (workers) acro ss boarders to provide services Mode 4 and temporary workers Sectors currently covered under GATS Mode 4 commitments focus on highly skilled jobs, such as doctors, nurses, company executives—sectors favored by current visa systems. Also favored by current commitments are categories of special importance to Mode 3, commercial presence, such as intra­company transferees. Some developing country governments want to expand services covered under Mode 4 to include medium and low ­skilled workers, such as domestic help or construction, thus covering sectors in which they hold a competitive advantage.

GATS, Migration, and Labor Standards

(Search domain www.ilo.org/wcmsp5/groups/public/---dgreports/---inst/documents/publication/wcms_193612.pdf Mode 4]," Abdel-Hamid Mamdouh, director of trade in services at the World Trade Organization said "Ah, yes - it could be hundreds [of millions] if we liberalize." John Zarocostas, Migration helps export services, Washington Times, January 3, 2005, p. A10.

TISA - backdoor services liberalisation on a global level!

The Trade in Services Agreement (TISA) currently under negotiation on the side-line of the World Trade Organization (WTO) poses significant deregulatory threats for the majority of services sectors. International trade in services is dealt with by the General Agreement on Trade in Services (GATS) and its annexes. Each WTO country so far autonomously decides which sectors are to be opened up to cross-border competition. Services sectors liberalisation is carried out once governments gave their explicit agreement to do so (positive lists). TISA intends to reverse this logic and implement a negative listing of liberalisation commitments. Only explicitly targeted sectors in the agreement would not be subject to further liberalisation. This poses significant risks of liberalising all services sectors of the economy unless explicitly exempted from the agreement. TISA would contain “Standstill” and “Ratchet” clauses. Standstill clauses effectively freeze the degrees of regulation in particular sectors and countries are no longer free to implement more strident regulatory provisions. A recently leaked text showed that the financial services industry, through TISA, intends to freeze international financial regulatory efforts by setting a minimum regulatory floor which could not be subsequently superseded by any government wishing so. Ratchet clauses effectively impede government to reverse achieved liberalisation floors. Once a sector is liberalised, there cannot be a turning back. These clauses mean that governments will no longer be able to challenge decisions and choices made by previous governments. The combination of the ratchet and standstill clauses renders the reversal of liberalisation levels impossible. Additionally, TISA could prescribe necessity tests for regulatory measures. Governments would have to prove the necessity of a regulatory instrument before implementing it. For example, in a discussion of universal coverage, a Government would have to prove the necessity of re-regulating already privatised services such as postal services.

Four modes of WTO

slideshow explaining the four modes - a key concept to understanding how services trade is scheduled.