India's Services Challenge

Geneva - India says its revised offer for market-opening in the Doha Development Agenda services negotiations will be "contingent" upon liberal commitments in cross-border and temporary movement of service providers from key industrialized countries - the United States and the European Union (WTD, 3/7/05).

Indian trade minister Kamal Nath spoke to WTD last Friday at the conclusion of the Mombasa informal trade ministerial meeting.
Mr. Nath said industrialized countries must agree to provide liberal commitments in Mode 1 and Mode 4 in their revised offers due in May so New Delhi can reciprocate in its offer that would be submitted within two months. Initial offers by the United States and the EU are well short of expectations, Mr. Nath said.

By targeting cross-border and movement of service providers in
the negotiations, India intends to see that there are no artificial
barriers for its information technology exports - particularly in the burgeoning business of outsourcing and short-term movement of its professionals abroad.

At Mombasa, trade ministers attempted, but could not arrive at clear "benchmarks" for the services negotiations because of opposition from Brazil. It insisted that Doha agriculture negotiations would dictate the pace of progress in other areas.

The EU said services needed a critical mass in the tabling of both initial and revised offers for it to move in agriculture.

Hong Kong last week called for a stand-still on service commitments made so far so that there would be no backsliding if other areas of the Doha negotiations faltered. The United States went a step further by saying ministers must agree on a "standstill" in addition to making new commitments.

There was no agreement in the end on any of the "benchmark"
proposals.