Australias Trade Policy Agenda: Creating Opportunities for Education Providers

1
Australias Trade Policy Agenda Creating
Opportunities for Education Providers

• Presentation to the Victorian TAFE Association by
  Rhonda Piggott
• 22 April 2005

2
Outline

• Australias Trade Policy Agenda
• Education Services in the WTO General Agreement
  on Trade in Services (GATS)
• Australias Free Trade Agreement Agenda
• Preserving Australias VET Advantages

3
Growing Education Industry

• Education services were worth nearly 6 billion
  in export revenue to Australia in 2003-04, an
  increase of more than 60 since 1999-2000.
• Total international student enrolments have
  increased from 133,384 (1999) to 322,776 (2004).
• International student enrolments in VET have
  increased from 29,593 (1999) to 57,384 (2004).

4
Australias Trade Policy Agenda

• The Australian Government advocates global trade
  liberalisation to open markets for Australian
  exporters through multilateral, regional and
  bilateral trade policy.
• Australia is an active participant in the current
  Doha Round of WTO negotiations, plays a leading
  role in regional groups such as APEC, and has
  embarked on an FTA program focused toward
  strengthening our major trading relationships.

5
General Agreement on Trade in Services (GATS)

• First multilateral agreement covering
  international trade in services, the GATS came
  into effect in 1995 as part of the Uruguay Round
  of WTO negotiations.
• The GATS sets out principles and rules affecting
  international trade in services, and also
  includes WTO Member schedules detailing specific
  market access and national treatment commitments
  applied to foreign service providers in a range
  of services sectors.

6
WTO/GATS Principles

• Market Access extent to which services and
  suppliers can enter or operate in a market.
• National Treatment according the same treatment
  to foreign suppliers as extended to domestic
  suppliers.

7
Modes of Supply for Services Trade

• The modes of supply for services under GATS are
• 1. Cross-border supply education services
  delivered through distance/correspondence.
• 2. Consumption abroad international students
  studying abroad.
• 3. Commercial presence establishment of
  offshore campus.
• 4. Presence of natural persons short-term
  travel by education professionals.

8
GATS Current State of Play

• The current round of multilateral trade
  negotiations commenced in Doha, Qatar in November
  2001.
• WTO Members negotiate improvements in market
  access and treatment of service providers.
• Australia aims to eliminate barriers to trade in
  key export sectors, including education.

9
Services Sector Trade Barriers

• Examples of trade barriers that exist in
  services industries include
• Restrictions on foreign equity ownership and
  joint ventures or other partnerships.
• Lack of regulatory transparency associated with
  licensing and approval procedures.
• Restrictions on the number of service suppliers
  or the places where they may operate.

10
Typical Barriers in Education Services

• Restrictions on investment, student recruitment,
  and service delivery/marketing without the
  involvement of local partners.
• Limitations on the operation of wholly
  foreign-owned educational institutions.
• Restrictions on course accreditation, and
  recognition of Australian qualifications.

11
Approach to Free Trade Agreements

• Negotiate on a comprehensive GATS plus basis.
• Aim to complement Australias multilateral trade
  objectives.
• Aim to facilitate deeper engagement with
  important trading partners.
• Aim to deliver substantial liberalisation, remove
  trade barriers and improve market access in a
  shorter timeframe than through the WTO.

12
Completed FTAs

• Australia-New Zealand Closer Economic Relations
  Trade Agreement Services Protocol (1 Jan 1989)
• Singapore-Australia FTA (28 July 2003)
• Thailand-Australia FTA (1 Jan 2005)
• Australia-United States FTA (1 Jan 2005)

13
Upcoming FTAs

• ASEAN-Australia and New Zealand FTA
• UAE-Australia FTA
• Malaysia-Australia FTA
• China-Australia FTA

14
FTA Objectives in Education Services Sector

• Comprehensive national treatment and market
  access commitments.
• Fewer restrictions on the delivery of distance
  and online education.
• Greater recognition of Australian-based
  qualifications.
• Transparent procedures for establishing a campus,
  twinning arrangement or joint venture overseas.

15
Preserving Australias VET Advantages

• Look to FTA opportunities to build on existing
  strengths
• Diversity of students in education sector.
• Comprehensive curriculum coverage.
• Variety of course delivery methods.
• Quality assurance mechanisms.
• High level of English language proficiency and
  uptake of information technology.

16
Industry Consultation

• DFAT welcomes input from the VET sector regarding
  problems or challenges faced by providers seeking
  to establish operations internationally.
• Industry consultation is vital in assisting DFAT
  to effectively address the concerns of the
  education sector in our multilateral and
  bilateral trade negotiations.

17
Contact Details

• Rhonda Piggott
• Assistant Secretary
• Services Intellectual Property Branch
• Department of Foreign Affairs and Trade,
  Canberra.
• [phone]
• rhonda.piggott_at_dfat.gov.au