'Rich nations must improve services sector offers at WTO'

India today warned it may scale down its offer for opening up services sectors at World Trade Organisation talks if developed countries did not improve offers in areas of interest to developing countries.

"We have not received satisfactory offers from our trading partners in our main areas of interests, namely mode 4 (movement of professionals) and mode 1 (cross border supply of services such as BPOs)," Commerce Secretary S N Menon said at an ICRIER seminar on WTO services negotiations.

Menon said it would be difficult for India to justify the inclusion of new sectors and improvements to commitments in existing sectors that it had undertaken in a revised offer, if the next round of submitting offers scheduled for July 2006, did not correct the imbalance.

"We may have to go back on what we have placed on the table if the situation so demands," he said, adding that India's revised offer, submitted in August 2004, was a substantial improvement over the initial offer for opening up services.

Services negotiations were at a crucial stage and it was important to arrive at an agreement in the sector along with those in agriculture and industrial goods, he said.

WTO member countries must submit revised offers by July 31, 2006, so as to finalise a draft text by December.

India has so far received 14 plurilateral requests, Menon said, adding that some of the important requests were for opening up of the telecom, financial services, energy, legal, maritime, retail, education, environment and construction sectors.

Meanwhile, trade ministers from about 30 countries would gather in Geneva during a mini-ministerial from June 29-July 2 in a bid to give a momentum to stalled negotiations in agricultural and non-agricultural market access.

Menon said the chairmen of agriculture and NAMA groups were in talks with other WTO countries and a draft text was expected by June 19.

WTO countries had to finalise modalities in farm and industrial tariffs by April 30, but the deadline was missed as the US and EU blamed each other for the stalemate.