Indo-US FTA on services mooted; Govt yet to take view
Hindustan Times
Indo-US FTA on services mooted; Govt yet to take view
Press Trust of India
New Delhi, August 6 2004
A free trade agreement (FTA) on services between India and the US could be on the cards, a move which can give a big leap to the country’s IT industry.
The idea of the FTA was mooted at the Indo-US Joint Business Council and both the governments are yet to take a view on this.
"An idea has been floated at JBC level. It has not even come up at the ministry level. Let us see how it develops," Commerce and Industry Minister Kamal Nath told PTI.
While the FTA is expected to benefit the country’s software and BPO segment, India may have to give in to pending US demand of opening up its retail, legal, accounting, and banking services sectors.
It is likely that select goods may also be included at a later date.
The idea of FTA on services owes its origin to the fact that services negotiations at WTO level are moving at a very slow pace and only 42 out of the 148 member countries have made their offers till now and that Government wishes to give a boost to services exports.
It will take time for all the countries to make offers which would be negotiated and then take the shape of an agreement. The deadline for completion of the round started at Doha has also been extended to December 2005.
The TRIPS Council, which is the negotiating body for services, is yet to finalise a date for submission of revised or improved offers which some countries may be submitting.
While May 31 was mooted at the General Council, where the framework with a paragraph on services was signed, it was not agreed upon and a fresh date will be decided only after the negotiating committees meet in September in Geneva.
