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The July Framework Agreement adopted by the World Trade Organisation (WTO) on 1st August, 2004 laid down the broad principles and guidelines for further negotiations in the Doha Round and reaffirmed that all WTO Members should strive for submitting high quality offers in sectors and modes of supply of interest to developing countries by May, 2005.
The Cabinet Committee on WTO matters (CCWTO) met today to take stock of the follow-up action taken by the Ministry of Commerce and Industry consequent to the last meeting of the CCWTO on 30th May 2005, in which Department of Commerce had been directed to have effective inter-ministerial consultations. In particular, Department of Commerce had been directed to consult Ministry of Information Broadcasting, Department of Telecommunication and Ministry of Finance. Such consultations were held by the Department of Commerce and the details have been reported to the CCWTO. The suggestion made by various Departments/Ministries in these consultations have been accepted by the Department of Commerce and appropriately incorporated in the Revised Offers. The CCWTO has now given directions to the Department of Commerce to make these Revised Offers to the WTO in July/August, 2005 as part of the services negotiations under the Doha Round.
The Cabinet Committee on WTO matters also reiterated that the Commerce Ministry has the flexibility to move forward in the services negotiations within the limits of its autonomous liberalisation. While making the Revised Offer, India will also be guided by the range and depth of the improved Offers that would be made by the developed countries in the Modes and sectors of interest to India. (What it means is that the offers are conditional. In other words, a member country can also withdraw its offers if it does not in turn get satisfactory offers from other member countries).
India’s major trading partners such as USA, EC, Japan, Canada, Australia etc., have already submitted their Revised Offers. An analysis of these Revised Offers has revealed that they have fallen short of India’s expectations. Accordingly, the Revised Offer will be calibrated appropriately keeping the best interests of India in mind. However, India still expects that other countries would respond favourably to its requests of increased market access, especially in Modes 1 & 4 in various sectors of importance to India.
In keeping with the July Framework Agreement, India will be making its Revised Offers shortly in sectors which include those in which commitments were made in the Uruguay Round or in which Initial Offers were made in the ongoing Doha Round of WTO negotiations. A few other sectors will also be included in the Revised Offer. The sectors thus covered include business services, construction and related engineering services, health related and social services, tourism and travel related services, maritime services and transport services.
On the importance of services negotiations for India, Shri Kamal Nath, Union Minister of Commerce & Industry, has said: “Given its strengths in this area, India is a demandeur in the WTO negotiations for liberalisation of trade in services. Currently, India’s earnings through services exports are estimated at US $ 51 billion in 2004-05. This is a quantum jump from US $ 25 billion in 2003-04. The bulk of the increase has expectedly come from Miscellaneous and Software Services (Miscellaneous Services include services such as Communication, Financial, Construction, Management, Other Business Services etc.). According to the Boston Consulting Group, this has the potential to increase to US $ 200 billion by 2020, if the developed countries provide better access to their markets, especially through improved offers in respect of Mode 1 (cross-border supply which covers BPO) and Mode 4 (movement of natural persons)”.
SB/MRS
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