International Trade Negotiations and the Trans-Border Movement of People: A Review of the Literature
We review the international and New Zealand literatures on the two-way interaction between international migration and agreements designed to enhance cross-border trade or investment. Benefits and costs of migration, to the extent that these may feature in trade and migration negotiations, are discussed. While trade and migration can be substitutes in some contexts, they will be complements in other contexts. Liberalisation of services and the movement of people are likely to offer much more significant gains than liberalisation of remaining barriers to goods trade. Significant scope for liberalisation under GATS mode 4 (the movement of natural persons) may remain. However, temporary migration is already promoted on a unilateral and bilateral basis within immigration policy frameworks that may provide greater flexibility than GATS mode 4. With respect to both trade and migration, the more diverse the exchanging countries are, the greater the economic benefits tend to be. However, greater diversity may also imply greater social costs. This paradox of diversity needs to be addressed through appropriate social policies accompanying enhanced temporary and permanent migration.
Keywords: international trade, migration, outsourcing, temporary workers, e-labour, GATS, negotiation
JEL Classification: D60, F13, F15, F22, F51
Acknowledgements This literature review was commissioned by the Workforce Research and Evaluation section of the New Zealand Department of Labour. We would like to thank Ruth Wallis for initiating the project and for her input during the first stage. We also benefited from comments from Yan Flint, Rob Hodgson, Christine Hyndman, Vasantha Krishnan and Dirk van Seventer.