New Delhi, July 2 :
New Delhi, July 2:
At the Mexico round of trade talks, India will be stressing on increased market access for the movement of natural persons in the services sector in order to realise its potential for services.
'India and other developing countries have comparative
advantages over the developed world as far as this mode of
trade in services is concerned. Efforts should be made to develop new markets and increase
its share significantly from a mere 1.5 per cent of the total trade in services,' said commerce minister Murasoli Maran at a seminar organised by Confederation of Indian Industry (CII) here today.
Maran said 80 per cent of the world's trade in services occurs through only two modes like cross border supply of services (Mode 1) and establishment of commercial presence (Mode 3) out of the four modes of supply of services.
'We need to put this ratio right and is yet to be given the market access. There are innumerable ways to stop a person from moving to another countries and we have to break the barriers,' Maran said.
The other two modes of export of services are consumption abroad like tourism
and movement of natural persons. The developed world
stops the flow of natural persons under the pretext of regulations such as economic needs test,
residency requirements, processing of visa applications, social security contribution and a host of other measures. India will be addressing these issues at WTO.
Stronger ties with China
India should work faster at building up bilateral ties with China in order to strengthen its stand in the coming Mexico round of trade talks.
CII president Ashok Soota said, 'China, though a new member to WTO (World Trade Organisation), have impressed upon the developed countries about their commitments. The trip to Washington, Chicago and New York showed that these offices are well disposed more towards China than India.'
'India and China have the same type of economy, so there are places of commonality. We should be working on them to present an united front in the trade talks and cash on the favourable impression they have already made,' he added.
Soota advised the commerce ministry to look into newer modes of expansion like e-commerce instead of insisting on having a brick-and-mortar presence in all countries. However he also cautioned that the reliability of Indian IT sector may take a hit, as a fallout of the controversy over travel advisories issued by several developed countries.
'The investors are questioning the long-term investment decisions that were directed for India and thinking of other destinations due to this controversy. They are also questioning the feasibility of business continuity and the back up facility in case of trouble. Steps should be taken immediately to clear up these ideas,' said Soota.
He also said there are some problems in understanding the demands by India in relation to Intellectual Property Rights.
'The main problem was regarding the Patents Act concerning drugs and pharmaceutical firms. According to their definition, we are protecting the industry instead of opening up due to the clause of compulsory licensing. It took a lot of discussion to clear up this misconception. We think, clause-to-clause discussion on every subject should be held before the Mexico round.'





