India for cross-border trade under GATS
http://economictimes.indiatimes.com/cms.dll/html/uncomp/articleshow?msid=45368
NEW DELHI: Terming the issues related to
cross border trade in services and movement of natural persons as the
"main area of interest" under GATS, India has sought a constructive
dialogue between the developed and the developing countries for removal of barriers
in supply of services.
"Mode 4 (movement of natural
persons) is India's main area of interest in the ongoing WTO negotiations under
the General Agreement on Trade in Services", Commerce and Industry
Minister Arun Jaitley said at the recently concluded informal meeting of trade
ministers at Sharm-el-Sheikh in Egypt.
"Constructive dialogue between
developed and developing countries for removal of barriers to supply of
services through this Mode is of paramount importance", he said.
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, Mode 4 relates to movement of natural persons.
Seeking support from developed countries
as well as 'Friends of Mode 4 group' on the issue in the run up to Cancun,
Jaitely said coordinated efforts were needed to get negotiations on Mode 4
started at the Ministerial in September.
"As such, we look for
sector-specific commitments and for support for the removal of barriers such as
economic needs, procedural difficulties associated with visas and work-permits
and non- recognition of qualifications," he said.
India has its main interests in Mode 4
and Mode 1 which also covers Business Process Outsourcing.
Jaitley stressed on the need for greater
flexibility to be shown to developing and least developing countries.
"Adequate flexibility must also be
given to those countries while scheduling their commitments, both in the choice
of sectors and extent of commitments", he said.
Jaitley expressed disappointment at the
initial offers tabled so far, particularly by the developed countries, as there
was 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 finalized in March 2001 which had stated that the aim of negotiations was to achieve progressive liberalization.