WTO NEGOTIATIONS IN SERVICES - INDIA EMPHASISES NEED FOR REMOVAL
OF BARRIERS IN MODES 4 & 1
Shri Arun Jaitley,
Union Minister of Commerce & Industry and Law & Justice,
has said that Mode 4 (i.e., movement of natural persons) is India’s
main area of interest in the ongoing WTO negotiations under the
General Agreement on Trade in Services (GATS) and emphasised that
constructive dialogue between developed and developing countries
for removal of barriers to supply of services through this Mode
is of paramount importance. "As such, we look for sector-specific
commitments and for support for the removal of barriers such as
economic needs tests, procedural difficulties associated with
visas and work-permits and non-recognition of qualifications.
Coordinated efforts are necessary to get negotiations on Mode
4 started at Cancun, perhaps based on the Mode Schedule being
proposed by us. We expect support from the developed countries
as well as the Friends of Mode 4 group on this issue in the run-up
to Cancun", Shri Jaitley said in an intervention during the session
on Services at the recently concluded informal Ministerial Meeting
of the World Trade Organisation (WTO) – mini ministerial – held
at Sharm El Sheikh, near Cairo which was hosted by the Government
of Egypt.
The Doha agenda negotiations
on Services in the WTO are a request-offer process. Services under
GATS can be delivered through four means – Mode 1, which refers
to cross border trade in services; Mode 2, which relates to consumption
of services abroad; Mode 3, which represents commercial presence;
and Mode 4 i.e., movement of natural persons. India has also stressed
its interest in Mode 1 which covers cross border supply of services
such as business processes outsourcing (BPO).
"Being fully engaged
in the services negotiations, India is actively participating
in bilateral negotiations on requests and offers as well as the
multilateral process. We re-emphasise the need for greater flexibility
to be shown to developing and least developed countries. Adequate
flexibility must also be given to these countries while scheduling
their commitments, both in the choice of sectors and the extent
of commitments. This is enshrined in Article XIX of GATS and the
Guidelines and Procedures for negotiations. We consider the time
frame given for the market access commitments negotiations in
the Doha Ministerial Declaration to be indicative in nature",
the Minister said.
Expressing disappointment
at the initial offers tabled so far, particularly by the developed
countries, in the sense that there is little tangible response
to requests made by developing countries on Mode 4, the Minister
drew attention to the guidelines and procedures for the negotiations
on trade in services finalised in March 2001 which had clearly
stated that the aim of the negotiations was to achieve progressive
liberalisation of trade in services while giving due respect to
the national policy objectives and levels of development of member
countries and that special attention must be given to sectors
and modes of supply of services of export interest to developing
countries.
