The GENERAL AGREEMENT ON TRADE IN SERVICES (GATS) is the first set of international rules for the international trade in services. India has been a signatory to the Agreement since its entry into force in 1995. GATS sets out a framework of legally-binding rules governing the conduct of world trade in services. It is supported by a number of schedules of specific commitments undertaken by individual WTO Members. These commitments bind Members not to introduce more restrictive rules which could have an adverse effect on trade. India made initial commitments at the time of entry of GATS into force.

The commitments that have been scheduled by India so far are available on the Ministry of Commerce’s web site (http://commerce.nic.in/IndiaSchedules.doc)

Importance of the Services Sector

Services account for a large share of production and employment in most economies. Its share of the national GDP is higher in developed countries, where it averages 60-70 percent, while it is lower in developing and least developed countries. In India, the sector accounted for 49% of the GDP in 2001-02. The world trade in services amounted to US$ 1.440 trillion in 2001, of which India’s share was about 1.4%.

Present status of negotiations in services

The mandated negotiations under GATS to work out the rules and framework for further liberalisation of trade in services are underway. The negotiations, which commenced on January 1, 2000, are likely to continue for the next two years. The main objective of the negotiations is to liberalise commitments in all the service sectors and all the modes of supply of services and to improve the multilateral rules for trade in services.

As per the decision taken in the Doha Ministerial Conference, it has been decided that each member country must submit initial requests by June 2002 and initial offers by March 2003. This request-offer process is underway. However, most countries, including India have, interpreted these deadlines as indicative only.

Under successive rounds of negotiations, aimed at progressive liberalisation, Members individually choose the sectors in which binding commitments are to be made, and those in which commitments are not to be made. This is known as a "positive listing", or "bottoms-up", approach. Negotiations proceed on the basis of requests and offers; that is, countries request each other to consider liberalisation in particular sectors, and respond with offers. Agreement to liberalise is not reached until all participating Members – including developing countries – are satisfied with the total package being offered.

The main method of negotiations is the Request and Offer process, under which each country tables its demands from its trading partners and its offers to its trading partners sector-wise. We have submitted ‘requests’ to our trading partners in Computer Related services, Architecture services, Health services, Audio-Visual services, Tourism services, Maritime services and Financial services. On the other hand, we have received requests from 22 countries and have to finalise our response to these requests through an "initial offer". The initial offer would point towards the direction in which a Member is willing to liberalise. However, the initial offer has no legal status and can be withdrawn or amended at any time if the Member feels that the trading partners’ offers are not satisfactory or adequate.

In formulating the offers, Members are not obliged to respond positively to any particular request. Nor is there any requirement for reciprocity. That is, a request made by India in one area/sector/ activity does not impose any obligation to accept a similar request made of it by other countries. Further, the Doha Ministerial Declaration reaffirms the rights of members to regulate and to introduce new regulations on the supply of services.

Focus of consultations:

The focus of this consultation exercise is on the extent to which we can afford to meet the requests that have been made to us and also to identify the market access barriers that we face and frame requests for liberalisation appropriately. The objective is to give all interested parties in India the opportunity to participate in the formulation of India’s offers in the negotiations.

We would invite suggestions/ contributions, from all interested parties on the requests received by India at the GATS negotiations. We will appreciate if your inputs could be backed up by data/case studies wherever possible.

Deadline for comments

In view of the prescribed time schedule for the negotiations on GATS, we would need your inputs at the very earliest. Please try to send your comments to us at the earliest so that your suggestions are clearly taken into account in the context of the negotiations in Services. Your comments can be sent to the following address :

By post to: —

Joint Secretary (Shri R. Gopalan)
Trade Policy Division,
Department of Commerce,
Room No. 216, Udyog Bhavan,
New Delhi

By E-Mail to:—

rgopalan@ub.nic.in

Confidentiality:

Your comments will be treated in the strictest confidence, if you so indicate.

Sector Coverage

The service sectors which are under negotiations are based on the W/120 Classification of sectors and sub-sectors. The full list is available at : (http://www.wto.org/english/tratop_e/serv_e/mtn_gns_w_120_e.doc). These classifications cross-refer to the United Nations Central Product Classification (CPC). The commitments so far are based on the UN Provisional CPC, which was the basis for the negotiations during the Uruguay Round. The text of the CPC is available at: (http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=9&Lg=1).

Structure of GATS

The GATS applies in principle to all service sectors except "services supplied in the exercise of governmental authority", these being services that are supplied neither on a commercial basis nor in competition with other suppliers. GATS gives the flexibility to each member country to decide the service sectors in which it will undertake and schedule commitments. It allows the member countries to indicate measures that will be kept in place for that sector, which will act as limitation to market access and national treatment, as well as the Modes in which commitments are to be taken. These commitments are specified by modes of supply.

The GATS sets out four modes of supplying services, namely:

Mode1: Cross-border trade
Mode2: Consumption abroad
Mode3: Commercial presence
Mode4: Presence of natural persons

Mode 1

Cross-border trade corresponds with the normal form of trade in goods and maintains a clear geographical separation between seller and buyer. In this case services flow from the territory of one member into the territory of another member crossing national frontiers. (E.g. banking or architectural services transmitted via telecommunications or mail).

Mode 2

Consumption abroad refers to situations where a service consumer moves into another Member's territory to obtain a service (e.g. consumer travelling for tourism, medical treatment, to attend educational establishment).

Mode 3

Commercial presence is the supply of a service through the commercial presence of the foreign supplier in the territory of another WTO member. In this case a service supplier of one member establishes a territorial presence in another member's territory to provide a service. (E.g. the establishment of branch offices or agencies to deliver such services as banking, legal advice or communications)

Mode 4

Presence of natural persons involves the admission of foreign nationals to another country to provide services there. An Annex to the GATS makes it clear, however, that the agreement has nothing to do with individuals looking for employment in another country, or with citizenship, residence or employment requirements. The members still have a right to regulate the entry and stay of the persons concerned, for instance by requiring visas.

We are at liberty to schedule our commitments in one of the following ways:

(i) Full commitment: "none" or "no limitations", which implies that the Member does not seek in any way to limit market access or national treatment through measures inconsistent with Articles XVI or XVII of GATS.

(ii) Commitment with limitations: the Member details the measures maintained which are inconsistent with market access or national treatment, and implicitly commits itself to take no other inconsistent measures.

(iii) No commitment: "unbound" indicates that the Member remains free to maintain or introduce measures inconsistent with market access or national treatment.

(iv) No commitment technically feasible: "unbound*" indicates that in the sector in question, a particular mode of supply cannot be used.

"Commitments" generally involve the following obligations:

I) General Obligations:-

MFN: The ‘most favoured nation’ obligation applies across all sectors and all modes of supply, unless otherwise indicated through an exemption. This obligation forces all members to give the most favourable treatment that it has accorded to any of its trading partners to all other WTO members. In short, it obliges each country to not discriminate against any of its fellow members in the WTO.

Transparency: This principle obliges all members to identify and publicise all rules and regulations affecting trade in services. Any change in the regulations must also be made public. Information about any particular regulation must be readily available through national enquiry points.

II) Specific Obligations:-

National Treatment: This obligation requires non-discrimination between foreign and domestic services and service suppliers once they have entered the market.

Market Access: This obligation means that there can be no discrimination among services and service suppliers and that the only restrictions that can be enforced by members, provided they are scheduled, are quantitative and legal restrictions on :

the number of service operations
the value of service transactions or assets
the number of operations or quantity of output
the number of natural persons supplying a service
the participation of foreign capital
the type of legal entity

REQUESTS FOR HORIZONTAL COMMITMENTS

Horizontal commitments refer to those commitments which apply to all sectors.

Existing commitments:

Categories of business visitors, ICTs (Managers, Executives and Specialists with prior employment stipulation of one year) and professionals will be granted entry and temporary stay for a period ranging from ninety days to five years depending on the category.

A horizontal limitation on national treatment has been scheduled to facilitate preferential access to foreign service suppliers/entities that offer the best terms for transfer of technology in case of collaboration with PSEs or Government undertakings.

Summary of requests made to India:

India has been asked to take commitments with regard to transparency in domestic regulations, simplify procedures, eliminate differential treatment of foreign service suppliers and facilitate the movement of natural persons under Mode 4. The categories of professionals on which commitments have been sought include intra-corporate transferees, contractual service suppliers and specialists (tradespersons, associate professionals, professionals and managers).

Summary of requests made by India:

· Take full commitments in respect of the category of independent professionals de-linked from commercial presence.

· Put in place a Visa system to ensure the fulfilment of Horizontal and Sectoral commitments undertaken.

· Undertake to put in place a Visa system ensuring grant of multiple entry visas for professionals.

· Allow inter-firm mobility to professionals.

SECTORAL REQUESTS

PROFESSIONAL SERVICES

Accountancy Services

What is covered? UNCPC Group: 862

Existing commitments: India had not made any commitments in this service sector.

Summary of requests made to India:

Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4.

In the Auditing sector, take full commitments in Modes 2 & 3 and horizontal commitments in Mode 4.

Discuss the scope of the restrictions on advertising.

Abolish the nationality requirement for obtaining qualifications.

Architectural Services

What is covered? UNCPC 8671 and 8674 on Architectural services and Urban Planning and Landscape Architectural Services respectively.

Existing commitments : NIL

Summary of requests made to India:

Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4.

Allow foreign architects to supply services jointly with architects licensed in India.

Summary of India’ requests:

Take full market access and national treatment commitments in Modes 3 & 4.

Allow practice of architecture by a natural person or firm of architects (comprising of partners who are architects).

Remove restrictions on acquisition of land by such persons or firms.

Enter into MRAs for qualifications and licence to practice (use of professional title).

At the horizontal commitment level, put in place visa system to facilitate such practice of profession and remove the requirement of labour market tests for professional and specialists.

Clarify the conditions of grant of licence to practice and contract of employment.

Remove restrictions related to prior professional practice in the country to which access is sought.

Remove requirement of licensing in each federating State to enable practice of profession in federal States.

Construction and Engineering Services

What is covered? UNCPC Group 51 (Construction work), including pre-erection work, Construction work for buildings, civil engineering (highways, bridges, pipelines, mining), installation work, electrical work, building completion and finishing work etc.

There is close interrelation between the supply of construction services and the supply of architectural (CPC 8671), engineering, (CPC 8672), integrated engineering (CPC 8673) and urban planning and landscape architectural services (CPC 8674), although these are placed under the grouping of professional services separately in the W/120. In reality, these services are often provided in an integrated manner as they are used throughout the development of an investment project, including the stages of pre-investment (e.g. feasibility studies), project execution (e.g. architectural and structural design), and project implementation (e.g. the physical construction per se).

Existing commitments – Sector is unbound except for permission to foreign service suppliers to supply services in Civil Engineering Construction service (excluding construction work relating to warehouses, industrial buildings, residential and non-residential buildings) through incorporation, subject to foreign equity ceiling of 51%.

Summary of requests made to India

Take full market access and national treatment commitments on all sub-sectors on Modes 1,2 & 3 and horizontal commitments on Mode 4. Allow foreigners to tender for projects relating to warehouses, industrial buildings, residential & non-residential buildings

Remove the existing limitations on foreign equity.

Either remove the requirement of joint venture or enhance transparency of regulations so as to simplify the process of establishing joint ventures

Provide details of the discriminatory tax measures between Indian and foreign suppliers.

Unify and standardise sub-federal measures as far as possible.

Remove restrictions on, or procedures for, overseas remittances

Establish clear criteria & expeditious procedures for Intra Corporate Transferees (ICTs);

Allow entry & stay to site supervisors & accredited skilled workers & plant operators.

Legal Services

What is covered? UNCPC 861 covering legal advisory and representation services in the different fields of law, legal advisory and representation services in statutory procedures of quasi-judicial tribunals, boards etc., legal documentation and certification services and other legal advisory and information services.

Existing Commitments: Nil

Summary of requests made to India

Take full market access and national treatment commitments in Modes 1, 2 and 3 and horizontal commitments in Mode 4.

Allow foreign lawyers to give consultancy on the law for which he is qualified.

Allow foreign firms to provide legal services for foreign enterprises and individuals.

Abolish nationality requirements for obtaining qualifications.

Allow foreign law firms to hire local lawyers.

Give the right of voluntary commercial associations between foreign and local lawyers and law firms and to use of own name.

Legal service provided by foreign firm could include advice and assistance relating to litigation, preparation of documents, tax and fiscal questions, legal analysis and opinions etc.

Allow practice of home country, third country and institutional law by foreign practitioners without imposing the requirement of practising host country law.

Adopt a reference paper to cover recognition of foreign lawyers as fully licensed lawyers and establishment of norms for supervision of foreign establishments.

Health Services & Social Services

What is covered? Medical & Dental services (CPC 9312), services provided by midwives, nurses, physiotherapist, para medical personnel (CPC 93191) Hospital services (CPC 9311) and other Human health services (CPC 9319) Social Services

Existing commitments – FDI 51% allowed in Hospital services.

Summary of requests made to India

Medical & dental services :

Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4.

Allow joint ventures

Permit foreign doctors with national licences in the country of origin to practise for three years or more.

Services provided by Midwives, nurses, Physio-therapist, medical personnel

Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4.

Hospital Services :

Take full market access and national treatment commitments in Modes 2 & 3

Remove equity limit of 51%

Social services (CPC 93311) – i.e. Welfare services delivered through residential institutions to old persons and the handicapped.

Summary of India’s requests to other countries

Take full market access and national treatment commitments in Modes 2 & 4 for medical and dental services, services provided by midwives, nurses, physiotherapies, and paramedics.

Remove quantitative restrictions, numerical quotas and ENTs affecting entry of health professionals.

Recognise the qualifications of Indian medical and dental service professionals and nurses.

Remove requirement of residency and nationality for licensing.

Delink independent professionals from juridical persons.

Create a visa system to ensure the access as per commitments made.

Other Business Services

What is covered? Under the W-120 classification, the ‘Other Business Services’ sector includes all those business services that are not classified elsewhere. Specifically, the services covered are Advertising; Market Research and Public Opinion Polling; Management Consulting; Technical Testing and Analysis; Services Incidental to Agriculture, Hunting, Forestry, Fishing, Mining, Manufacturing and Energy Distribution; Placement and Supply of Personnel; Investigation and Security; Scientific and Technical Consulting; Maintenance and Repair of Equipment; Building Cleaning; Photographic Services; Packaging; Printing and Publishing; Convention Services and others.

Existing commitments: Nil

Summary of requests received:

Take commitments in Modes 1,2 & 3 particularly in Consulting, Placement and Supply services, Packaging Services and Printing & Publishing Services. In respect of Management Consulting Services, take full commitments and remove the foreign equity ceiling that is presently being imposed.

COMPUTER RELATED SERVICES

Sector coverage: 1B(a) to (e) of W/120 corresponding to CPC 84; it covers Consultancy services related to the installation of computer hardware, Software implementation services, Data processing services, Data base services, Other

Summary of requests made to India

Take full market access and national treatment commitments in all Modes of supply.

Specially, remove limitations on FDI (of 51%).

Our request is for enumerating the services covered by Computer Related services; another is for commitments at the broad functional level of two digit i.e. CPC 84 in view of the fast evolving nature of technology in this sector.

Existing commitments: 51% FDI allowed.

Summary of India’s requests to other countries

Take full market access and national treatment commitments in Modes 1, 2, 3 & 4

Institute a visa system to fulfil these commitments

Allow inter-firm mobility for professionals

Delink independent professional from commercial presence

Recognise the educational qualifications, training and experience of Indian professionals

Exempt temporary service providers from host country’s social security taxes and contribution

Permit majority shareholding of foreign companies with respect to commercial presence

Remove the condition of wage parity in horizontal commitments

AUDIO-VISUAL SERVICES:

What is covered in this sector? UN CPC 961 covering motion pictures, radio, television and other entertainment services.

Existing commitments: India has taken partial commitments on motion picture and videotape distribution services only, while imposing restrictions as to quantity (no. of titles) and quality of films. An MFN exemption to cover measures that define norms for co-production of motion pictures and television programmes with foreign countries and grant national treatment to such products co-produced with foreign countries which maintain a co-production agreement with India has been listed.

Summary of requests made to India

Take full market access and national treatment commitments in Modes 1, 2 & 3 and horizontal commitments in Mode 4 in all sub-sectors, particularly sound recording services, motion pictures distribution services, projection services, radio & TV services..

Remove the quantitative and content restrictions specified in Indian schedule in motion picture and video tape distribution services.

Provide information on MFN exemption based co-production agreements and remove references to future measures in MFN.

Summary of India’s requests to other countries

Take full market access and national treatment commitment in Mode 4 with regard to motion picture and video tape production and distribution, motion picture projection services, radio & television services, sound recording etc.

With respect to Motion picture and Videotape distribution services remove requirement of commercial presence or local printing of films for distribution purposes

Institute a visa system to fulfil the commitments taken

Take full commitments with regard to movement of independent professionals delinked from commercial presence

Delink independent professionals from juridical persons

Remove requirement of ENTs with regard to professionals

Remove requirement of proportionality of foreign and local employees

Remove requirement of provision of new technology to increase productivity or minimum foreign investment in respect of movement of personnel of foreign companies

DISTRIBUTION SERVICES:

Sector coverage: Commission Agents services (CPC 6211) and Wholesale trade services (CPC 6227), Franchising (CPC 8929), Retailing services including Food retailing (CPC 631), Non-food retailing (CPC 632), Retail sale of Motor vehicle, Motorcycles & related parts & accessories

Existing commitments: NIL
Summary of requests made to India

Take full market access and national treatment commitments in Modes 1, 2 & 3 and horizontal commitments in Mode 4

Allow foreign investment in retail operations without FIPB Review and allow joint ventures with majority foreign equity

Eliminate performance restrictions based on share of foreign participation

Provide opportunity for interaction with regulatory authorities and civic bodies to ensure transparency in rules and procedures relating to zoning.

EDUCATION AND TRAINING SERVICES

What is covered? Primary, secondary, higher, adult and other educational services (UNCPC 92)

Existing commitments – NIL

Summary of requests made to India

Take full market access and national treatment commitments in Modes 1,2,3 in Higher Education & Training services classified under Higher Education, Adult Education and "other" education.

Take commitments in Modes 1, 2 and 3 and Horizontal commitments in Mode 4 in Educational & testing services, "community education" and "education agency services".

Take full commitments specifically in Adult education & other education services under Mode 1, 2, 3 and horizontal commitments in Mode 4.

Under Article XVIII, put in place a transparent mechanism for the accreditation of courses and/or programs provided by foreign education service providers, including an appeal process.

ENVIRONMENT SERVICES

What is covered? UNCPC Group 9401, 94020, 94030, parts of 94040, 94050, 94060 and 94090. Other inter-related sectors are Business services (Architectural), Consulting, contracting, Engineering, Construction (Septic system), Distribution (Wholesale & retail trade service of waste, scrap & other material for recycling), Other (Repair services of machinery & equipment) and Sewage services, Refuse disposal services, Sanitation & similar services.

The classification of services under this sector is being debated in the Committee on Specific Commitments. The proponents of change feel that the present classification does not reflect the real manner in which business operates in the sector and that it should be expanded to cover the core sectors of water, waste, air, soil, noise management and protection of bio-diversity as well as other environmental and ancillary services.

Existing Commitments: NIL

Summary of requests made to India

Take full market access and national treatment commitments on Modes 1,2 & 3 and horizontal commitments on Mode 4 in accordance with the broad classification of environment services proposed by member countries.

FINANCIAL SERVICES

What is covered? Insurance and Banking (As per definitions in Financial Services Annex) at (http://commerce.nic.in )

The existing commitments are as follows:

Insurance for export or import has to be taken by the contracting parties in accordance with their mutual contract. However, if Insurance has to be taken by Indian party as per the contract, it must be through an Indian company.

There is no requirement for insuring goods in transit with Indian companies.

Re-insurance can be taken with foreign re-insurers to the extent of the residual uncovered risk after obligatory placements domestically with Indian insurance companies.

Overseas brokers are allowed to have resident representatives and offices that are allowed to procure re-insurance business from Indian insurance companies and place such business from abroad with Indian insurance companies.

Summary of requests made to India

Insurance

Take full market access and national treatment commitments in the Marine, Aviation & Transport, re-insurance, insurance inter-mediation and services auxiliary to insurance in Modes 1, 2 & 3 and horizontal commitments in Mode 4.

Remove restrictions on ability of the service providers to choose the preferred form of commercial presence and partner.

Remove limitations on level of equity participation.

Ensure that acquired rights are protected (grandfathering).

Ensure transparency in development and application of regulations.

Create framework principles including informing the public, applying regulations on handling financially troubled institutions on a non-discriminatory basis and removing requirements for approvals for products intended for supplying to business consumers.

Banking

Existing commitments:

1) No commitment in Modes 1, 2 & 4.

2) In Mode 3:

i) Lending by foreign banks possible only through branch operations licensed and supervised as a bank in its home country. Such banks must constitute Local Advisory Board with approval of RBI, and subject to certain residency/nationality conditions.

i) Grant of licences subject to cap of twelve licences per year both for new and existing banks.

ii) Banks may install ATMs (subject to licence if installed outside the licensed branch premises).

iii) Limitation on the investment by licensed foreign bank branches in other financial services sectors.

iv) PSEs cannot invest their surplus funds in banks other than scheduled commercial banks incorporated in India.

v) Licences for new foreign banks may be denied if the share of the assets of foreign banks in the total banking assets (on & off balance sheet) in India exceed 15%.

vi) Foreign banks are subject to non-discriminatory resource allocation requirements.

vii) Duly licensed foreign bank branches & firms incorporated in India (with equity ceiling of 51%) can participate in issues of securities & provision of financial consultancy services.

viii) Foreign equity participation in stock broking is possible only through the establishment of locally incorporated JV company with foreign equity ceiling of 49% limited to recognized foreign stock broking companies.

ix) Venture capital is allowed for foreign financial services companies, including banks, through the incorporation with foreign equity limited to 51% and the condition that funding must be entirely out of equity.

Requests received :

Take full market access and national treatment commitments in Modes 1 & 2 for all services and in Modes 1, 2 & 3 for financial information and advisory services.

Remove limitations on preferred form of presence, numerical quotas, monopolies, exclusive service suppliers, economic needs tests and discrimination between domestic and foreign suppliers in application of laws and regulations.

Remove restrictions on use of foreign capital and ceiling on equity.

Remove the nationality requirement for Local Advisory Boards in financial consultancy services.

Remove restrictions on investment by PSEs in foreign banks.

Remove discrimination between Indian and foreign banks in income tax, solvency ratios and borrowing limits.

Remove requirement of lending for priority sectors.

Clarify the rules with regard to "Qualified Foreign Investor" status and ease the aggregate limits on foreign investment in portfolio investment.

In Mode 4, remove restrictions on location of workforce.

Adopt the Annexe on Transparency in financial services. Ensure greater transparency in domestic regulations and apply without discrimination.

Remove restrictions on land acquisition by foreigners and ease the regulations on closure of offices and operations.

In Mode 4, address ENTs and remove residency and work permit requirement. Administer the visa process in a transparent and time bound manner.

Eliminate requirement of repatriation of earnings by foreign nationals with the consent of RBI.

Summary of India’s requests:

Take full market access and national treatment commitments in Mode 2 for data processing of Financial Services.

Remove restrictions with regard to the form of commercial presence.

Requirement of incorporation of a bank subsidiary at the sub-federal level, where imposed, should be removed.

Domestic Regulations restricting expansion of branch banking and provision of other financial services should be removed.

Remove discriminatory limitations on foreign equity.

Remove quantitative restrictions on the number of licences for foreign banks.

TELECOMMUNICATIONS SERVICES

What is covered? UNCPC 752 and 752 on telecommunications and telecommunications related services. In addition, some countries have sought commitments on telecom related services such as cable network services, satellite based navigation, positioning and timing services provided through global navigation satellite system.

Existing commitments:

India has not taken any commitments in Modes 1 and 2.

In Mode 3:

In voice telephone service for public use, service permitted subject to licence

In wire based service, quantitative restrictions are imposed. Also, total foreign equity in the private operator cannot exceed 25%. The resale of voice telephone services is not permitted.

In circuit switched data transmission services, Private leased circuit services and Facsimile services, limitation of service area and licensing requirements exist.

Data and message transmission services permitted only through incorporation with a foreign equity ceiling of 51%.

Cellular mobile services are subject to licensing and quantitative restrictions. Foreign equity in private operators cannot exceed 25%.

In Mode 4, the horizontal commitments given cover the entry and temporary stay of business visitors, ICTs and professionals.

Summary of requests made to India

Eliminate existing limitations & take full commitments in Basic Telecom & Value Added Services and telex & telegraph services.

Allow wireless transmission technologies including WLL.

Make full commitment on EDI and code and protocol conversion.

Eliminate restrictions on the number of operators and on geographical coverage for wire-based public voice services, private leased circuit services, cellular telephones etc.

Eliminate the prohibition on resale for wire-based public voice services and private leased circuit services.

Eliminate the limit of 25% on total foreign equity for wire-based public voice and cellular mobile telephone services.

Remove the restriction on equity of 51% for Electronic mail, Voice Mail, on-line information and data base retrieval, enhanced/value-added facsimile services.

Commit fully to the reference paper of the Basic Telecommunications negotiations relating to interconnection, independence of regulator, dispute resolution machinery, transparency and competitive safeguards and objective allocation of scarce resources.

Remove MFN exemptions relating to accounting rates.

Highlights of Reference Paper on Basic Telecommunications (available at http://www.wto.org/english/tratop_e/serv_e/telecom_e/tel23_e.htm )

Competition safeguard to prevent anti-competitive practices

Non-discriminatory, transparent, fair and cost-based interconnection with national networks

Transparent licensing processes

Independence of regulators

Non-discriminatory and transparent procedures for allocation of resources

TOURISM SERVICES

What is covered? As per W/120, 9A – D [Tourism and Travel related services—A. Hotels and restaurants (including catering) (UNCPC 641-643); B. Travel agencies and tour operators services (UNCPC 7471); C. Tourist guides services (UNCPC 7472); D. Other (UNCPC 7472)]

Existing Commitments: 51% FDI allowed in hotel and lodging services as well as travel agencies and tour operator services.

Summary of requests made to India

Take full market access and national treatment commitments in Modes 1, 2 & 3 and horizontal commitments in Mode 4, removing nationality and residency requirements on tourist guide services as well as foreign equity ceilings on hotels, travel agencies and tour operators.

TRANSPORT SERVICES

What is covered? UNCPC 71 (Land, transport services), 72 (Water transport services), 73 (Air transport services) and 74 (Supporting and auxiliary services)

Existing commitments: NIL

MFN exemption has been scheduled on cargo sharing between bilateral partners insofar as Bulgaria, Pakistan and the UAE are concerned and on cargo reservations for all countries in line with UN liner code.

Maritime Transport Services

Summary of requests received

I International Transport

1. Remove MFN exemptions relating to bilateral agreements and UN liner code.

2. Eliminate all regulations limiting market access and national treatment for international transport of freight and passengers for modes 1,2 and 3.

Eliminate restriction on foreign capital in international shipping companies

Eliminate requirement of permission from government before charter of vessels

Eliminate monopoly of national flag vessels and companies in Liner Shipping services

Eliminate preference to Indian vessels i.e. Export CIF/ import FOB basis

Eliminate favourable treatment to national flag vessels in transport of oil & Oil products

Eliminate restrictions on Government cargo (including arrangements by public transport)

Take full commitments under Mode 3

3. Take commitments under Mode 4 for presence of senior executives, managers and

ICTs and for visits for business purposes

II Auxiliary Services

1. Take market access and national treatment commitments on Maritime agency and freight forwarding services and on Towing services

2. Eliminate Obligations to use public facilities in respect of cargo handling services.

3. Take commitments on Rental and lease services without operators

4. Remove restrictions on storage and warehousing services and customs clearance services

5. Take additional commitments for access to & use of port facilities

III. Multimodal activities

1.On inland forwarding of cargoes, commit the ability to rent or lease or to have access to and use of multimodal facilities

2.Offer binding commitments on road and rail cabotage transport of cargo where an international; sea leg is involved

3.Take commitments as per definitions in model schedule to allow repositioning/moving equipment (i.e. empty containers, flatbeds) on their vessels between ports of India. Allow feedering of cargoes between main ports and way ports for multinational cargo between ports of India through vessels of any flag.

4.Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4 on maintenance & repair of vessels

IV. Logistics & related services

Take liberalisation commitments on Logistics and related services in the sub-sectors identified as follows:

a) freight transportation services

b) cargo-handling services

c) storage and warehousing services

d) custom clearances services

e) transport agency services

f) container station and depot services

g) inventory management services

h) order processing services

i) production planning services and

j) production control services

V. Ship Broking Services – Take full commitments in

1. Ship broking services, Classification societies, General sales agent services

2. Maintenance & Repair of vessels

3. Handling of cargo by ships and restrictions related thereto

Summary of India’s requests

Take full market access and national treatment commitments in Mode 1, 3 & 4.

Remove discrimination between foreign and national flag vessels in payment of charges, access to provisions etc.

Remove requirement of citizenship for operating as customs broker/agents and freight forwarding agents.

Remove reservation for national flag vessels in Government and Aid cargo.

In maritime freight forwarding, remove restrictions on capital, setting up of branch offices and of joint ventures.

Allow foreign companies to set up 100% owned subsidiary companies in the maritime agencies and customs brokers service.

Air Transport :

Existing commitments : NIL

Requests received

Take full market access and national treatment commitments in Mode 2 & 3 and horizontal commitments in Mode 4 on maintenance & repair of aircraft & parts thereof and on Ground Handling Services

Take full market access and national treatment commitments in Mode 1, 2 & 3 and horizontal commitments in Mode 4 on selling and marketing, computer reservation systems

Take full market access and national treatment commitments in Mode 3 and horizontal commitments in Mode 4 on Air port Management Services

Rail Transport

Existing commitments: NIL

Requests received

Take full market access and national treatment commitments in Mode 3 and horizontal commitments in Mode 4.

Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4 in Maintenance & Repair of Rail Transport Equipment

Space Transport

Existing commitments: NIL

Requests received:

India has been asked to take commitments in the sector.

Road Transport

Existing commitments: NIL

Requests received

Take full market access and national treatment commitments in Mode 3 and horizontal commitments in Mode 4 on Freight transport

Take full market access and national treatment commitments in Mode 1,2 & 3 and horizontal commitments in Mode 4 on Maintenance & Repair of Road Transport Equipment.

Services Auxiliary to All Modes of Transport

Existing commitments – NIL

Requests received :

Take full market access and national treatment commitments in Modes 2 &3 and horizontal commitments in Mode 4 in Storage & Warehouse services

Take full market access and national treatment commitments in Modes 1,2 & 3 and horizontal commitments in Mode 4 in freight transport agency & pre–shipment inspection, Cargo Handling services and other auxiliary transport services

In customs clearance agent services, take commitments to be taken and eliminate nationality and residency requirements.

POSTAL SERVICES

What is covered? UNCPC 751 covering Postal and Courier services. Postal services include services relating to letters & parcels, post office counter and others. Courier services include multi-modal and other courier services.

Existing commitments - NIL

Summary of requests made to India:

India has been asked to take full commitments in the sector and also to endorse and take commitments on a new sub-category of "Express Delivery" Services under the head of ‘Courier services’. It has also been asked to make all measures impinging on the sector transparent.

India has not made any requests in this sector

RECREATIONAL, CULTURAL AND SPORTING SERVICES

What is covered? UNCPC 961 covering motion picture, radio and television and other entertainment services, UNCPC 962 covering news agency services, UNCPC 963 covering library, archive, museum and other cultural services and UNCPC 964 covering sporting and other recreational services.

Summary of requests made to India:

India has been asked to take full market access and national treatment commitments in cinema ownership and operation and in news agency services.

Existing commitments: No commitments have been taken. Further, India had undertaken an MFN exemption in this sector to protect the waiver on the prohibition of sale of lottery tickets in India under the bilateral agreement between Indian and Bhutan. This exemption is for an indefinite period.

Summary of India’s requests: Nil.

Countries which have made Requests on India

Australia 
New Zealand 
USA 
Norway
Japan
Canada
EC 
Switzerland 
Brazil 
Singapore
China
Korea
Taiwan
Hong Kong China
Turkey
Poland
Panama 
Uruguay
Malaysia
Peru
Thailand
Egypt
List of Countries to whom Requests have been made by India

Argentina

Australia

Bahrain

Brazil

Brunei Darrusalem

Bulgaria

Canada

Chile

China

Columbia

Croatia

Cuba

Cyprus

Czech Republic

Dominican Republic

EC

Egypt

Estonia

Georgia

Honduras

Hongkong

Hungary

Iceland

Indonesia

Israel

Jamaica

Japan

Jordan

Kenya

Korea Republic

Kuwait

Latvia

Liechtenstein

Malaysia

Mauritius

Mexico

Morocco

New Zealand

Nigeria

Norway

Oman

Pakistan

Peru

Philippines

Poland

Qatar

Romania

Singapore

Slovak Republic

Slovenia

South Africa

Sri Lanka

Switzerland

Taipei

Thailand

Trinidad & Tobago

Tunisia

Turkey

UAE

USA

Venezuela

Zimbabwe

Back

Archived, 12/08/2003 source http://commerce.nic.in/wto_counsel_paper.htm

Archived, 12/08/2003
source http://commerce.nic.in/wto_counsel_paper.htm