India to formally submit to WTO its proposal for trade facilitation in services

India will formally submit its proposal on trade facilitation in services at the World Trade Organisation (WTO) this week in its bid to persuade other member countries to agree to a more liberal and transparent visa regime and data transfer rules.

“Our proposal on trade facilitation in services, which is in line with the pact on trade facilitation in goods already signed by members, is scheduled to be formally placed before the WTO at the services council meeting in Geneva on Friday. We are hopeful that it will be received well by other members and an agreement can be worked out,” a government official told BusinessLine .

New Delhi is looking at the initiative as a shift from its usual reactive mode to a proactive mode at the multilateral forum, but some trade experts warn that it could be counter-productive.

“While developed countries are not likely to commit anything substantial on services either in the area of visas or data transfer, the move might give them an opening to put pressure on India to allow negotiations on new issues,” said a Delhi-based trade expert who did not wish to be named. As per the concept note prepared by the Commerce Ministry, there needs to be facilitation of supply of Mode 4 services (movement of professionals) through simplification of procedures for temporary entry and stay, and clarity in respect of work permits and visas as relevant for the categories of the Mode 4 commitments.

It said there is a need to look at the disciplines on measures relating to taxation, fees/charges, discriminatory salary requirements, social security contributions in relation to temporary entry in order to ensure that these do not unfairly disadvantage foreign service suppliers.

But developed countries, especially the US and the EU, have so far been resisting all attempts by India to move towards a more friendly and less discriminatory visa regime for temporary workers. On the contrary, both, in the recent past, have made their regimes harsher for Indian workers.

“Since the proposed trade facilitation in services agreement, like the one on goods, is likely to be applicable on a best-endeavour basis (non-binding) in many areas, it is highly unlikely that developed countries would agree to anything substantial on visas or data security and transfer,” the trade expert said.

As trade facilitation in services could be seen as a new issue, New Delhi could come under pressure to allow other new issues, that are not part of the on-going Doha Round, to be taken up for negotiations.

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