West To Seek Better Access From India

Developed countries like the US and the European Union (EU), Canada, Japan, Australia and New Zealand are likely to seek improved market access from India under the ongoing World Trade Organisation (WTO) service negotiations.

"These countries would be interested in areas like telecommunications, finance, transport, distribution, environment, business, professional and education services," said S N Menon, additional secretary in the ministry of commerce.

He was speaking at a seminar on 'WTO Negotiations on Trade in Services' organised by the Confederation of Indian Industry (CII).

The main demand of the countries would be in respect of commercial presence because they were financially capable of establishing legal presence on the territory of a trading partner, Menon said.

"They would like to seek full or improved market access and national treatment, as well as the removal of the most-favoured nation (MFN) exemptions taken by India," he said. For this, India would have to consider the foreign investment regime in each sector, he added.

India, on its part, had recently filed a request on the medical, dental and health services sector, and was in the process of submitting requests on accountancy, architectural, computer, audio-visual, educational and maritime services, Menon said.

Inter-ministerial groups had been set up to clear the requests India would make in these areas, he added.

On MFN exemptions, he said India's general assessment was that it's trading partners had taken a large number of exemptions which had adversely affected service exports. India had taken exemptions on telecommunications, audio-visual, recreational and maritime services, he said.

Commerce secretary Dipak Chatterjee, whose speech was read out by joint secretary R Gopalan, said India would have to be futuristic in preparing its requests and offers.

"A perspective of 8-10 years has to be borne in mind while preparing the requests. Since the negotiations, which will conclude in 2005, are likely to be valid for five years before fresh talks are initiated, we should set 2012 as the benchmark while preparing requests and offers," he said.

Chatterjee said the recognition of qualifications was likely to be an important issue for the growth in professional services.

This would involve building equivalence and upgrading standards of our education, training and experience.

He called on national associations of various professionals to initiate a process whereby the mutual recognition agreements are facilitated.

Earlier, speaking at the inaugural session, commerce and industry minister, Murasoli Maran said that 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.

"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," he added.