Just like the previous revised texts on agriculture and industrial goods, the new WTO draft on service has disappointed the developing countries. The services draft has no concrete proposals for effecting market access in sectors and modes of export interests to developing countries, particularly, Mode-1 and Mode-4.
Countries like India that have skilled manpower like medical professionals, engineers, architects and IT professionals are aggressive in liberalisation of the movement of natural persons under Mode-4 of the agreement. The Annex C of the Hong Kong Declaration had listed out the objectives for future negotiations in services. But unfortunately, the revised text on services negotiations released on May 26, 2008 has not been able to define guidelines or set the timeframe for implementation of these objectives.
If globalisation is to be a reality easy movement of people across borders is necessary otherwise it would merely mean opening up of markets for goods and investment. But the developed world it appears is more keen to seek more market access for farm and industrial goods in the Third World while at the same time keeping their protected regime intact.
Mode-1 of the agreement deals with outsourcing like services supplied through Internet, telecommunications and other media. The developing countries like India, which have manpower expertise are aggressive on the issue of Mode-1.
Mode-4 and Mode-1 have recognised the importance of labour or human capital in the process of development. The developed world is apprehensive that easy movement of professionals from the Third World countries might amount to denying job opportunities to their own people. The US regulates such movements through issuance of H1B visas on quota basis.
Through Mode-2 a consumer gets services provided to him when he travels to the other country while Mode-3 deals with services supplied by commercial presence of the provider in the other country. It is necessary that the member countries when they meet for future negotiation should demand formulation of clear guidelines for implementation of the objectives of the Hong Kong declaration in respect of these four modes. They should also set the timeframe for implementation, if the services negotiations are to proceed with ?the same level of ambition and political will as reflected in the agriculture and NAMA modalities?.
One thing should be made clear in the interests of the developing world that negotiations in agriculture, NAMA and services should proceed separately and not result in a trade off.
The services text has urged member countries to finalise the text for domestic regulation for adoption?a sense of exercising commitment. However the draft has not prescribed the timeframe for submission of revised offers and the schedule of commitments by countries, which is open for negotiations.
The draft has mentioned about liberalising energy-related services, environmental services and financial services. Earlier, before the Bali conference on climate change the EU and the US had jointly proposed liberalisation of trade in a number of green goods and services. Many developing countries had reacted to this proposal as the industries in these countries are already developing environment friendly technologies, which may face unequal competition on opening up. Similar may be the case with opening up of financial services.
