PaRCha - JNU - AISA material - 2005 ID-15331
.
headlines in the New York Times. USA has gone on record expressing its satisfaction and saying that they had achieved the goal they had set for themselves. .
The objective in regard o mode 3 i.e. "commercial presence" category of service providers, which is a euphemism for FDI in service sector, is now clearly stated as : "Commitments on enhanced levels of foreign equity participation; removal or substantial reduction of economic needs test; commitments allowing greater flexibility on the types of legal entity permitted." The objectives of the multilateral investment regime which developed countries had pushed earlier on from Singapore Conference in 1997 and given up in the aftermath of Cancun, have surfaced now in this form. And this time, with active support and collaboration of India. The other such issue is government procurement. This too has made its re-entry through GATS. The declaration enjoins the member countries to engage in "more focused discussions" on the subject. The gains of Cancun have thus been frittered away. .
The members are also mandated to develop discipline on domestic regulation pursuant to Article IV:4 of GATS. This is explicitly intended to circumscribe and erode the authority of the nation-states to regulate the service sector in the national interest to further national policy objectives. .
The structural flexibility of GATS which was won after a hard struggle in the Uruguay Round has also been reduced by introducing an element of compulsion in regard to participation in plurilateral negotiations." Members to whom such ( i.e. plurilateral requests) have been made shall consider such requests
" This takes way the basic right of member countries under GATS to selectively engage in negotiations. .
This outcome has to be seen in the context of our offer of across-the-board opening up of various sectors of services including health, education, sewage (which always goes with the water supply systems), financial services, telecommunication etc. Although the specific levels of FDI indicated in the offer are within the limits o the so-called autonomous liberalization, the whole process is only the beginning. The objective of he negotiating round is to progressively get all the limitations removed and the commitments locked in as part of international treaty obligations. .
To gather the support of the vocal lobbies, the supposed gains in terms of mode 1 (eg. business process outsourcing) and mode 4(eg. H1B visas) are being stressed, which are evidently of significance to a very small but influential section of society, and which come our way, not because of GATS but because of the inherent profit calculus of MNCs. .
Bad deal: .
. India stands to gain almost nothing from the so-called "concessions" offered by the developed countries. Whatever little benefit in terms of enhanced market access would accrue to developing countries would be cornered by agri-exporters like Brazil, Argentina etc. .
.
.
PaRCha - JNU - AISA material - 2005 ID-15331
.
headlines in the New York Times. USA has gone on record expressing its satisfaction and saying that they had achieved the goal they had set for themselves. .
The objective in regard o mode 3 i.e. "commercial presence" category of service providers, which is a euphemism for FDI in service sector, is now clearly stated as : "Commitments on enhanced levels of foreign equity participation; removal or substantial reduction of economic needs test; commitments allowing greater flexibility on the types of legal entity permitted." The objectives of the multilateral investment regime which developed countries had pushed earlier on from Singapore Conference in 1997 and given up in the aftermath of Cancun, have surfaced now in this form. And this time, with active support and collaboration of India. The other such issue is government procurement. This too has made its re-entry through GATS. The declaration enjoins the member countries to engage in "more focused discussions" on the subject. The gains of Cancun have thus been frittered away. .
The members are also mandated to develop discipline on domestic regulation pursuant to Article IV:4 of GATS. This is explicitly intended to circumscribe and erode the authority of the nation-states to regulate the service sector in the national interest to further national policy objectives. .
The structural flexibility of GATS which was won after a hard struggle in the Uruguay Round has also been reduced by introducing an element of compulsion in regard to participation in plurilateral negotiations." Members to whom such ( i.e. plurilateral requests) have been made shall consider such requests
" This takes way the basic right of member countries under GATS to selectively engage in negotiations. .
This outcome has to be seen in the context of our offer of across-the-board opening up of various sectors of services including health, education, sewage (which always goes with the water supply systems), financial services, telecommunication etc. Although the specific levels of FDI indicated in the offer are within the limits o the so-called autonomous liberalization, the whole process is only the beginning. The objective of he negotiating round is to progressively get all the limitations removed and the commitments locked in as part of international treaty obligations. .
To gather the support of the vocal lobbies, the supposed gains in terms of mode 1 (eg. business process outsourcing) and mode 4(eg. H1B visas) are being stressed, which are evidently of significance to a very small but influential section of society, and which come our way, not because of GATS but because of the inherent profit calculus of MNCs. .
Bad deal: .
. India stands to gain almost nothing from the so-called "concessions" offered by the developed countries. Whatever little benefit in terms of enhanced market access would accrue to developing countries would be cornered by agri-exporters like Brazil, Argentina etc. .
.
.