India has submitted a report for the Trade Policy Review to the World Trade Organisation (WTO) wherein it has sought the abolition of measures such as the economic needs test imposed by developed countries that hinder the movement of professionals from the services sector.

The report points out that Mode 4 (movement of service sector professionals) is one of the most important issues for India in the world trade talks.

India has also asked for wider market access in professional services and other business, financial and telecom services.

India reiterated its active interest in Mode 1 (cross-border trade of services) and Mode 4, and sought greater commitment from developed countries in these areas. 

Meanwhile, at the Trade Policy Review meeting held in Geneva on May 23, 2007, India’s Commerce Secretary and Chief WTO Negotiator Gopal Pillai said in his opening statement that India was very concerned at the “slow pace of negotiations” in the WTO talks. He said political will on the part of developed countries to fulfil their commitments was still not evident.

“On an average, low-income countries face tariffs three to four times higher than the barriers applied in trade between high-income countries. Developing countries account for less than one-third of developed country imports, but for two-thirds of tariff revenue collected,” he said. Changing standards that imports from developing countries have to comply with have become a “hindrance to trade by their frequent use and misuse,” Pillai said.

May 26, 2007