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Issues and Prospects on the Movement of Natural Persons and Human Capital Development in the Philippine-American Economic Relations

Author

Listed:
  • Tereso S. Tullao Jr.

    (PIDS)

  • Michael Angelo A. Cortez

Abstract

The United States of America is the top trading partner of the Philippines and also the top destination of highly skilled and professional Filipino workers. This paper explores the possibility of a free trade agreement (FTA) that covers the asymmetries of the two countries in labor, services and human resources development, particularly educational services. The existing FTAs of the U.S. were examined to seek for provisions the Philippines may adopt for a freer movement of natural persons. However, there are barriers inherent in the U.S. immigration and recent U.S. Congressional pronouncements to uphold the primacy of their immigration policy, thus, no more similar liberal agreements could be entered into. Issues on the movement of workers, particularly mutual recognition, accreditation, taxation and the refund of social security contributions were raised. For the educational sector, the issue of public subsidy and national treatment of foreign service providers were also brought up to clarify the objective of bringing access to students. The paper concluded that for an FTA concerning the movement of natural persons to materialize, the Philippines should weigh its sacrifices against what it will be requesting from the U.S. within the context of the overall importance of the maximizing opportunities for the Filipino worker.

Suggested Citation

  • Tereso S. Tullao Jr. & Michael Angelo A. Cortez, 2006. "Issues and Prospects on the Movement of Natural Persons and Human Capital Development in the Philippine-American Economic Relations," Development Economics Working Papers 22701, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:22701
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    References listed on IDEAS

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    1. Chaudhuri, Sumanta & Mattoo, Aaditya & Self, Richard, 2004. "Moving people to deliver services : how can the WTO help?," Policy Research Working Paper Series 3238, The World Bank.
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    Cited by:

    1. Tereso S. Tullao, Jr. & Michael Angelo A. Cortez, 2006. "Enhancing the movement of natural persons in the ASEAN region: Opportunities and constraints," Working Papers 2306, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

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    More about this item

    Keywords

    Services Trade; Modes of Supply; Educational system; GATS; cross-border transactions; movement of natural persons; FTAs; labor market; Trade Liberalization; labor migration; reciprocity; preferential treatment; national treatment; Market Access;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F10 - International Economics - - Trade - - - General

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