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Assoc.Prof. Thongnard Kumchai Chiangmai University,Thailand

Trade in Health Services in ASEAN. Assoc.Prof. Thongnard Kumchai Chiangmai University,Thailand. Contents. Global trends in international trade in the health services sector Trade in Health Services in ASEAN Summary. World Trade Organization: goods and services. WTO. WTO.

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Assoc.Prof. Thongnard Kumchai Chiangmai University,Thailand

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  1. Trade in Health Services in ASEAN Assoc.Prof. Thongnard Kumchai Chiangmai University,Thailand

  2. Contents • Global trends in international trade in the health services sector • Trade in Health Services in ASEAN • Summary

  3. World Trade Organization: goods and services WTO

  4. WTO 1. Goods(Multilateral Agreements on Trade in Goods-MTAs) 2. Services (General Agreement on Trade in Services-GATS) 3. Intellectual Property (Agreement on Trade Related Intellectual Property Rights-TRIPS)

  5. Agricultural and food products

  6. Trade in Services • Service is increasingly becoming an important sector in each economy • Main instrument is the General Agreement on Trade in Services (GATS)

  7. GATS • Obligations • Most Favoured National Treatment • Market Access • National treatment • Transparency • Domestic Regulation • Liberalization commitments

  8. Increase in share of service sector Share of services in GDP vs. income Philippines Singapore Thailand Malaysia Cambodia Indonesia Vietnam

  9. Service sectors Business Communications Construction Logistics Education Environment Financial Health services Tourism Recreation, culture and sports Transportation Other services

  10. Health Services sub-sectors Specialized Services Dental Care Medical Check-Up

  11. Thai Spa Traditional Thai Massage Long Stay Health Promotion

  12. Food, Drugs and Herbal Products Food Drug Cosmetics

  13. Progress in WTO round of negotiation

  14. Latest situation in WTO WTO time out “Time out to review the situation, time out to examine available options and time out to review positions,” ‘Today there are only losers.’ Pascal Lamy WTO Director General

  15. Global Situations and Trends Global trends in international trade FTA More countries engage in FTA Delay in WTO negotiation

  16. Multilateral, Regional, and Bilateral ? Multilateral Regional Which way? FTA logo Bilateral

  17. THINK ASEAN

  18. ASEAN Economic Community • AEC • 600 millions of people

  19. ASEAN Vision 2020 Free flow of Services, Investments, Goods, and Capital

  20. ASEAN Community 2015 • To speed up efforts to create a single market by 2015,five years ahead schedule.

  21. ASEAN Community 2015 ASEAN Security Community (ASC) ASEAN Economic Community (AEC) ASEAN Socio-Cultural Community (ASCC) The Peaceful, prosperous, and people-centric ASEAN Regional production base Single regional market

  22. ASEAN Framework Agreement on Services-AFAS • To enhance cooperation in services and eliminate substantially restrictions • To liberalize trade in services beyond those undertaken under GATS (i.e.GATS plus) • AFAS adopts the structure and approach of GATS/WTO • The negotiation is conducted through the Coordinating Committee on Services-CCS

  23. GATS Commitments • Trade in services is distinguished into four different modes : • Mode 1 Cross – border Supply • Mode 2 Consumption Abroad • Mode 3 Commercial Presence • Mode 4 Presence of Natural Persons

  24. Cross – border supply • Telemedicine • Tele – education and consultation

  25. e-Health General citizen

  26. Cross – border supply Question of ethical and legal aspects Question of professional licensing Question of “gatekeeper”

  27. Consumption abroad • Potential area • Health care services • …. Good quality health personnel • …. Hi – tech medical equipment • Dental care • Cosmetic surgery • Tour + health package • Short stay + health package • Health insurance

  28. Commercial Presence • Country A invest in hospital service in country B • or • Country B invest in hospital service in country A

  29. Presence of natural persons • MRA on Nursing Services 2006 • MRA on Medical Practitioners 2009 • MRA on Dental Practitioners 2009

  30. ASEAN MRA on Dental Practitioners • Objectives • 1. facilitate mobility of dental practitioners within ASEAN; • 2.exchange information and enhance cooperation in respect of MRA • 3.promote adoption of best practices on standards and qualifications; and • 4.provide opportunities for capicity building and training of dental practitioners

  31. Summary

  32. Trade in Health services WTO/RTA/FTA • Health care sector is a priority sector in trade agreement. • Globalization is a key driver of change in the healthcare system. • The internet will revolutionize the future of medicine • Open economies and free market obviously have impact to healthcare delivery system.

  33. THINK ASEAN

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