Among the four modes recognized by GATS, Mode 4 provides for temporary
cross-border movement of natural persons in an individual capacity, or as a part of an
establishment to provide the service overseas[15].
The four traditional GATS Mode 4 categories of services can be described as
follows:
(1) Business visitors and salespersons (BVs), which in GATS terminology falls in
the category of commercial presence. It covers foreign nationals who travel
abroad for the purpose of negotiating a sale of a service or exploring the
possibility of making a FDI for their company in the destination country.
(2) Intra-corporate transferees (ICTs) – this category covers employees of a foreign
provider of services that has set up a commercial presence abroad and transfers
these employees to its foreign location.
(3) Independent professionals (IPs) – this category covers self-employed
professionals or semi-skilled workers who are supplying a service to a
company or an individual in a host country.
(4) Contractual services suppliers (CSSs) – this category covers employees of
a foreign provider of services who are engaged under contract to provide a
service to a firm in the destination country (Stephenson and Hufbauer, 2010).
While any service provider from a developing country may freely get access to
developed countries’ service markets, the actual levels of market access via Mode 4, however, depends on a national schedule of commitments of host country, and service
providers have to be pre-employed by the host country’s industries and screened by the
host country’s government before they come to deliver services. Thus, in all matters
related to the length of stay, the level of skills, and the nature of contract for the
temporary service providers, host countries enjoy greater latitude.