The Hindu : WTO services talks: India submits proposals

Online edition of India's National Newspaper
Wednesday, Jul 17, 2002

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National

WTO services talks: India submits proposals

By Sushma Ramachandran

NEW DELHI July 16. Even as negotiations for services at the World Trade Organisation pick up pace, India has submitted proposals seeking easier market access for professionals in the health sector as part of its drive for liberalisation in ``movement of natural persons''.

This is just one of the areas where India wants reciprocal facilities from developed countries which have been seeking greater presence of their financial and banking services here. The Indian proposal is part of a series of request lists being issued by all WTO member-countries interested in taking part in the services negotiations under the General Agreement on Trade in Services (GATS).

Official sources say the Indian wish list for services is focussed on the ``movement of natural persons'' which is basically about allowing greater ease of movement for skilled workers from one country to another. With the country's huge educated and skilled workforce, the effort is to capitalise on this area of strength for the economy. Movement of these professionals largely for short-term work prospects is being hampered by developed countries due to various types of non-trade barriers.

The sources say that the scenario for movement of professionals to one of the biggest markets, the U.S., worsened after the September 11 terrorist attacks last year. While fears on security issues can be appreciated, it is felt such countries should be able to distinguish between genuine academics and professionals seeking employment and terrorist elements.

The U.S., on its part, is seeking to establish greater commercial presence in this country especially in the financial services sector. The principle of reciprocity, however, would have to apply since India would then seek easier market access for its workforce.

Among the areas where this country is seeking easier movement for natural persons are information technology where barriers for software professionals need to be eliminated. Similarly, greater market access will be sought for professionals in accountancy, education and communications, including audio-visual services. The proposal for allowing easier movement of doctors and other health service providers is the latest request list made by India which will demand more liberalisation in all these areas by the developed world.

The Commerce Ministry is currently holding consultations with other related Government departments and academic institutions before finalising the request lists for other areas.

In the case of IT, considered the most important area for the services negotiations, discussions are now being held with the IT and Communications Ministry. Several detailed studies have also been commissioned on these issues from institutes such as the Indian Council for Research in International Economic Relations (ICRIER) while talks are also being proposed with all the stakeholders.

Meanwhile, the WTO is trying to dismiss reports that these negotiations will help in liberalisation or privatisation of Government services including health, water distribution and education.

Describing these suggestions as untrue, the WTO has said that such sectors have rarely been discussed in the negotiations and the principal focus of talks lies in other service sectors.

Highlighting the tremendous interest of member-countries in the negotiations, the WTO has said that till the end of the June, as many as 55 WTO members have tabled written proposals either individually or jointly as in the case of the European Union and Mercosur. Of these, 32 are developing countries.

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