NEW DELHI: India has lashed out at other World Trade Organisation (WTO) members for their reluctance in opening up the services sector. The revised offers submitted by most WTO members during the ongoing talks to liberalise market access in services have not been found encouraging.
The hesitation of rich nations to abolish visa quotas and open up the market for professions has upset India so much that a formal warning has been sounded out on dismal progress in other areas if the service sector is not opened up.
The disappointment of India at the revised offers of other WTO members, especially rich nations, was conveyed formally at a recent meeting of the Committee on Trade in Services at Geneva. At a special session convened to review the progress in service sector talks, Indias ambassador and permanent representative to the WTO Mr Ujal S!
ingh
Bhatia made it clear that the revised offers have failed to deliver results.
While pitching strongly for liberalisation in Mode 4 (movement of natural persons), which relates to easier visa norms, he pointed out that many countries had sought to maintain status quo. The attack in this case was against countries like the US which have a ceiling on certain types of visas issued to qualified professionals.
We would want the abolition of numerical quotas. In case they have to be applied, the criteria for fixation of such quotas should be specified, he said.
Mr Bhatia also called for the removal of visa conditions like economic needs tests as they impede market access. There is also hardly any improvement with respect to binding commitments for enhancing transparency in Mode 4 commitments, he noted.
The Indian envoy sought binding commitments from WTO members in various segments including business services, computer-related services, financial data processing, research and development services, management consulting services, environmental services, placement services, supply of personnel and provision of financial information. These areas, which pertain to crossborder supply of services (Mode 1), are consid!
ered to
be important from the viewpoint of countries like India.
Even the proposals related to contractual services and independent professions are considered to be fraught with various drawbacks.
The Indian envoy highlighted the need to go in for reasonable offers in services so that a balanced outcome could be achieved in agriculture and industrial goods. Indias view is that a balanced outcome is necessary and liberal market access for industrial goods through the non-agriculture market access (NAMA) talks may not materialise if WTO members continue to drag feet on opening up of services.
Special emphasis should be placed on business process outsourcing, Mode 4 and tourism which are important to developing countries. The flexibility provided by the General Agreement on Trade in Services to developing countries should also be preserved, he
added
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