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This is an archive article published on April 21, 2012

No services pact sans labour mobility

India against selectively freeing up services sector under Doha round of trade talks

Commerce and Industry Minister Anand Sharma on Friday said that stakeholders need to remain committed for the Doha round of trade talks to go forward and a level playing field needs to be created by removal of trade restrictions.

The minister at the same time cautioned that current proposals of selectively freeing up trade in the services sector would upset the delicate balance of Doha and undermine WTO.

Currently,the proposal being negotiated for the services sector does not allow free movement of professionals across borders due to restriction on visas,entry procedures,and lack of mutual recognition of qualifications.

India has specific interests in the services agreement. However,the current proposals that relate to services do not seem to address the core issues that concern the movement of natural persons, Sharma said addressing G20 trade ministers meeting in Mexico.

Warning against a closed club agreement in the services,Sharma,in G20 trade ministers meeting said,Labour largely remains hemmed in by the national boundaries while capital finance and technologies are able to flow freely across the borders. They labour remain engaged in the value chains only as long as the wages are low and present a comparative advantage and this is a harsh reality which we cannot ignore.

 

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