Movement of Natural Persons under AEC: Labor Market Issues

The ASEAN Framework Agreement on Services (AFAS) was signed in 1995, and among its goals was "to liberalize trade in services by expanding the scope and depth of liberalization beyond those undertaken by Member States under the GATS with the aim to realize a free trade area in services" (Article 1(c)). As a general matter, AFAS adopts the same four modes of supply as used in GATS, including (1) cross-border supply, (2) consumption abroad, (3) commercial presence, and (4) presence of natural persons.

Since 1995, ASEAN member countries have gone through several rounds of negotiations, with the goal of easing the flow of services within the ASEAN region. As such, the movement in natural persons (GATS mode 4) is negotiated in the overall context of enhancing trade in services among ASEAN member countries.