More on Mode 4
An offensive position on Mode 4 is right
India’s proposal to the WTO for disciplining qualification norms for
service providers is a positive step, as movement of natural persons (Mode
4) is a crucial concern for developing countries and failure to take an
offensive position on this could mean a huge loss of opportunity. Especially
given the highly defensive position of key developed countries.
In the post-Hong Kong talks in late March-early April, only one of the two
exclusive requests by developing countries related to improved market access
under Mode 4. Among other things, it asked that economic needs tests (ENTs,
which allow foreign suppliers only if there’s no domestic supplier) be
removed or cut significantly. The response was (expectedly) over-cautious.
But benefits to developing countries of developed country commitments are
seriously limited without meaningful offers on Mode 4. Developing country
service exporters continue to suffer ENTs, requirements of
nationality/residence, regulations, qualifications recognition, visas, wage
parity, social security contributions, etc, especially for professional
service providers under Mode 4 or cross-border trade,as in business process
outsourcing. India wants qualification norms to be pre-established, publicly
available and based on transparent criteria. But, significant gains will be
tough, unless developing countries harden on developed countries’ insistence
that they commit more on opening up services especially under Mode 3
(commercial presence).
................
http://www.financialexpress.com/fe_full_story.php?content_id=127305
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An offensive position on Mode 4 is right
India’s proposal to the WTO for disciplining qualification norms for
service providers is a positive step, as movement of natural persons (Mode
4) is a crucial concern for developing countries and failure to take an
offensive position on this could mean a huge loss of opportunity. Especially
given the highly defensive position of key developed countries.
In the post-Hong Kong talks in late March-early April, only one of the two
exclusive requests by developing countries related to improved market access
under Mode 4. Among other things, it asked that economic needs tests (ENTs,
which allow foreign suppliers only if there’s no domestic supplier) be
removed or cut significantly. The response was (expectedly) over-cautious.
But benefits to developing countries of developed country commitments are
seriously limited without meaningful offers on Mode 4. Developing country
service exporters continue to suffer ENTs, requirements of
nationality/residence, regulations, qualifications recognition, visas, wage
parity, social security contributions, etc, especially for professional
service providers under Mode 4 or cross-border trade,as in business process
outsourcing. India wants qualification norms to be pre-established, publicly
available and based on transparent criteria. But, significant gains will be
tough, unless developing countries harden on developed countries’ insistence
that they commit more on opening up services especially under Mode 3
(commercial presence).
................
http://www.financialexpress.com/fe_full_story.php?content_id=127305
--
No virus found in this outgoing message.
Checked by AVG Free Edition.
Version: 7.1.392 / Virus Database: 268.5.6/340 - Release Date: 5/15/06