India Complains to WTO about H-1B quotas
India Complains to WTO about H-1B quotas
Date: Friday, July 22, 2005 1:47 AM
JOB DESTRUCTION NEWSLETTER
by Rob Sanchez
July 22, 2005 No. 1294
India is formally complaining to the WTO that member nations such as the USA are not doing enough to open up the services sector under Mode 4 of the GATS agreement. What this means in plain English is that India is complaining that the U.S. puts too many limits on the number of H-1B visas.
Indias ambassador and representative to the WTO, Mr Ujal Singh Bhatia, expressed his unhappiness with the United States in a statement to the free-traders in Geneva. In his opinion the U.S. is demonstrating a lack of political will by not allowing more of India's "highly educated" professionals to get visas.
The revised offers of the USA and the European Union (EU) do
not provide much scope for new market access in regard to Mode 4.
The USA has made no changes in its Mode 4 offer whereas the EU
has made modest improvements. Let me underline that the
demandeurs in the Services negotiations include a number of
developing countries eager to harness the potential of the
burgeoning numbers of their highly educated and trained
professionals. There is a growing perception of a lack of
political will, which aggravates the structural slowness of
Services negotiations.
Under Mode 4 of the "General Agreement of Trades and Services" (GATS) agreement nations must allow unimpeded movement of "natural persons" so that corporations can move workers anywhere they want without the hassle of borders or immigration laws. Bhatia wants the U.S. to liberalise market access to India's services which in practical terms means that he wants all limits to H-1B and other guest-worker visas to be abolished. In Bhatia's opinion the United States should have open-borders.
"We would want the abolition of numerical quotas. In case they
have to be applied, the criteria for fixation of such quotas
should be specified"
There is a hint of good news in all of this. The trade talks aren't going so well for India. The following statement by Bhatia hints that the one-worlders are having a few problems pushing their agenda:
My first observation concerns how rapidly we have shed the
cheerful optimism of not so long ago, to descend into the
depths of anxiety if not despair.
Bhatia understands that U.S. workers are demanding something be done to save jobs when he said, "There has also been an upsurge in protectionist pressures". What he really means is that all of you who are actively fighting H-1B, outsourcing, and corporate globalism are starting to be heard by the power-brokers. You are giving them headaches because things aren't going quite as smoothly as they had planned.
To all of you who are giving Ujal Singh Bhatia migraines, I say: "KEEP UP THE GOOD WORK!"
Material Used for this Newsletter
http://economictimes.indiatimes.com/articleshow/1173422.cms
India flays WTO members for slow 'services'
http://www.inwent.org/internet/themen_reg/ef/events/wto/06069/index.en.shtml
Doha Development Round: Present Situation and Prospects of Success
by Ujal Singh Bhatia
Ambassador of India to the WTO
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http://economictimes.indiatimes.com/articleshow/1173422.cms
India flays WTO members for slow 'services'
G GANAPATHY SUBRAMANIAM
TIMES NEWS NETWORK[ SUNDAY, JULY 17, 2005 12:00:00 AM]
Surf 'N' Earn -Sign innow
NEW DELHI: India has lashed out at other World Trade Organisation (WTO) members for their reluctance in opening up the services sector. The revised offers submitted by most WTO members during the ongoing talks to liberalise market access in services have not been found encouraging.
The hesitation of rich nations to abolish visa quotas and open up the market for professions has upset India so much that a formal warning has been sounded out on dismal progress in other areas if the service sector is not opened up.
The disappointment of India at the revised offers of other WTO members, especially rich nations, was conveyed formally at a recent meeting of the Committee on Trade in Services at Geneva. At a special session convened to review the progress in service sector talks, Indias ambassador and permanent representative to the WTO Mr Ujal Singh Bhatia made it clear that the revised offers have failed to deliver results.
While pitching strongly for liberalisation in Mode 4 (movement of natural persons), which relates to easier visa norms, he pointed out that many countries had sought to maintain status quo. The attack in this case was against countries like the US which have a ceiling on certain types of visas issued to qualified professionals.
"We would want the abolition of numerical quotas. In case they have to be applied, the criteria for fixation of such quotas should be specified," he said.
Mr Bhatia also called for the removal of visa conditions like economic needs tests as they impede market access. "There is also hardly any improvement with respect to binding commitments for enhancing transparency in Mode 4 commitments," he noted.
The Indian envoy sought binding commitments from WTO members in various segments including business services, computer-related services, financial data processing, research and development services, management consulting services, environmental services, placement services, supply of personnel and provision of financial information. These areas, which pertain to crossborder supply of services (Mode 1), are considered to be important from the viewpoint of countries like India.
Even the proposals related to contractual services and independent professions are considered to be fraught with various drawbacks.
The Indian envoy highlighted the need to go in for reasonable offers in services so that a balanced outcome could be achieved in agriculture and industrial goods. Indias view is that a balanced outcome is necessary and liberal market access for industrial goods through the non-agriculture market access (NAMA) talks may not materialise if WTO members continue to drag feet on opening up of services.
Special emphasis should be placed on business process outsourcing, Mode 4 and tourism which are important to developing countries. The flexibility provided by the General Agreement on Trade in Services to developing countries should also be preserved, he added.
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http://www.inwent.org/internet/themen_reg/ef/events/wto/06069/index.en.shtml
Doha Development Round: Present Situation and Prospects of Success
Issues Note
Ujal Singh Bhatia
Ambassador of India to the WTO
Permanent Mission of India to the WTO, Geneva
Thank you, Mr. Chairman, and Good Morning Ladies and Gentlemen,
I would like to share with you some thoughts on how the challenge of an expeditious and successful conclusion of the Doha Round negotiations is to be met, and where we stand now in pursuit of that endeavor. In the current mood of somber reflection in Geneva, reinforced by the developments in Europe over the past few days, this is a pressing question. My remarks will, therefore, center on the present outlook for the Doha negotiations, from the perspective of a Geneva-based participant.
My first observation concerns how rapidly we have shed the cheerful optimism of not so long ago, to descend into the depths of anxiety if not despair. The year 2005 had opened with a purposeful gathering of Ministers in Davos, which affirmed ambitious targets for the Ministerial Conference in Hong Kong, scheduled for this December. Key protagonists were also converging on the desirability of achieving a meaningful interim outcome before the summer break in Geneva. Expectations of this so-called First Approximation have suffered steady erosion in recent weeks. And Hong Kong inspires worry and anxiety, rather than hope and purposive action.
What accounts for this sudden change? For sure, there has been a steady deterioration in the global economic outlook, and worries over the stubbornly high oil prices and the persistence of fiscal imbalances in major economies. There has also been an upsurge in protectionist pressures following the elimination of quotas in textiles and clothing, which, I might recall incidentally, was clearly foreshadowed 10 years ago. One might add to this list to cite major trade disputes between key players.
But these developments constitute only the present context of the Doha negotiations, and are largely beyond the power of negotiators in Geneva to influence. I intend to focus instead on the internal dynamic of the negotiations themselves, which has evolved in recent months.
Three features stand out. First, negotiations in some major areas have entered a phase of criticality in their trajectory. In Agriculture, the prolonged impasse over the issue of ad valorem equivalents or AVEs has further underlined the sensitivities in the market access pillar. Negotiations on the market access pillar remain quite undeveloped as of now. In NAMA, negotiators are focusing on the central issue of the tariff reduction formula. Positions on this issue remain strongly entrenched. Easy solutions over these ticklish matters were never on the cards.
Secondly, and this is not unrelated, linkages across negotiating areas are increasingly to the fore. Key constituencies in the membership are insisting on achieving a modicum of balance across different subjects in the agenda. They are determined to ensure their concerns and interests do not remain unheeded.
I wish to particularly emphasize the importance of two clusters, Services, and the Development Issue. The Services negotiations have just missed another important deadline, with only two countries submitting revised offers by the stipulated date of May 31. The revised offers of the USA and the European Union (EU) do not provide much scope for new market access in regard to Mode 4. The USA has made no changes in its Mode 4 offer whereas the EU has made modest improvements. Let me underline that the demandeurs in the Services negotiations include a number of developing countries eager to harness the potential of the burgeoning numbers of their highly educated and trained professionals. There is a growing perception of a lack of political will, which aggravates the structural slowness of Services negotiations.
The development dimension of this negotiation, which had so captured the imagination of NGOs and civil society alike, remains elusive. Key areas in the development mandate, whether it is expanding meaningful market access for products and services of export interest to developing countries, or issues under the Implementation and S&D clusters, remain to be purposefully addressed. Worse, flexibilities and S&D features already present in the mandate are being questioned. A development audit of the Doha round is a growing priority.
Finally, there is an attempt, in the name of ambition, to redefine the mandate. Trade liberalization is not an absolute good, but desirable only within agreed parameters which reflect the diversity of circumstances, interests, and stages of development. It is no surprise that a large segment of the membership is resisting reinterpretations of the mandate. Similarly, the attempt to foist unmandated obligations on the so-called advanced developing countries has only served to further complicate a difficult negotiation.
So, the Doha negotiation is in some trouble, but far from being doomed. Some of our present difficulties simply represent the natural maturing of negotiations. What we can do is not add to them. This calls for a scrupulous adherence to the mandate. Equally, success in our effort would require tolerance for an outcome that promises something for everyone in the diverse WTO community. This can be achieved only through a transparent and inclusive process.
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