INDIA TO SEEK INCREASED
MARKET ACCESS IN SERVICES
MARAN
ADDRESSES NATIONAL SEMINAR ON TRADE IN SERVICES
India
will seek increased market access in the ongoing WTO negotiations
in Services, as this is one area in which the developing countries
have a comparative advantage. Addressing a National Seminar on
WTO Negotiations on Trade in Services organised by the Confederation
of Indian Industry (CII), here this morning, Shri Murasoli Maran,
Union Minister of Commerce & Industry, underlined that since
global trade in services in the year 2000 at US $ 1.4 trillion
had reached 23% of merchandise trade and since India had 49% of
its GDP accounted for by the services sector, it was high time
that the country took advantage of the market in services. This
was needed also to achieve the target of attaining one per cent
of the global trade by 2007. "Movement of natural persons is of
crucial importance to us in realising our potential in services.
It is in this sector that the developed countries have not provided
us with sufficient market. A plethora of regulations in the guise
of Economic Needs Test, processing of visa applications, residency
requirements, recognition of educational qualifications, social
security contribution, etc., stand in the way of obtaining market
access in sectors in which India definitely has an advantage.
We have taken up the cause of liberalisation of movement of natural
persons and presented proposals in WTO accordingly". Shri Maran
said. Shri Dipak Chatterjee, Commerce Secretary, addressed the
valedictory session of the Seminar at which a number of leading
participants made sectoral presentations. Shri S.N. Menon, Additional
Secretary, Ministry of Commerce & industry, addressed the
Session on the "Doha Mandate on Services: The Road Ahead".
Shri
Maran stressed that India had taken an active role in establishing
the Guidelines and Procedures for Negotiations in Services which
had commenced from 1st January, 2000 as mandated by
the Uruguay Round and this process was continuing. India’s joint
proposal on Guidelines and Procedures for Negotiations had been
accepted almost in its entirety, Shri Maran said, adding that
a number of studies had been carried out to assess India’s potential
which would serve as valuable inputs in submitting the country’s
proposals and each Ministry had been sensitised to formulate their
proposals after extensive consultations with the stakeholders.
Emphasising that stakeholders’ consultations in the government
were a continuing process, he said that today’s Seminar was a
major step towards broad-basing the government’s interaction with
the stakeholders.
Referring
to the pattern of world trade in services, the Minister observed
that trade in services had taken place mostly between the developed
countries. "North America and West Europe account for 70% of the
world exports of commercial services and they also account for
70% of the imports of commercial services. Even after allowing
for varying estimates on world trade in services, we find that
80% of the world’s trade in services occurs through only two modes,
namely Mode 1 (cross-border supply of services) and Mode 3 (Establishment
of Commercial Presence) out of the four modes of supply of services
(in GATS – the General Agreement on Trade in Services). Mode 2
relates to consumption abroad like tourism services etc. Mode
4 which is of significance to the developing countries, (that
is movement of natural persons)
has hardly grown and remains insignificant at less than 1.5% of
the total trade in services. It is this distortion that
developing countries seek to correct as we go along", the Minister
said. Shri Maran also launched CII’s WTO Website on the occasion.
