./.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/GC/W/224
2 July 1999
(99-2762)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Proposals Regarding the GATS Agreement in terms of Paragraph 9(a)(i)
of the Geneva Ministerial Declaration
Communication from India
The following communication, dated 2 July 1999, has been received from the Permanent
Mission of India.
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Issues
1. Articles IV and XIX:2 of the General Agreement on Trade in Services provide for
S&D treatment for developing countries.  But the actual history of implementation since the
conclusion of the Uruguay Round Agreements do not evidence the extension of such treatment to the
developing countries.  Also, the importance of Mode  4 for developing countries is obvious;  and yet
commitments made by the developed countries in this area were far from satisfactory.  An assessment
by the Council for Trade in Services under Article XIX is mandatory before embarking on negotiating
guidelines for the new round of negotiations.  Such an assessment must be carried out by CTS incollaboration with UNCTAD who have already commenced such work.  Until such an assessment is
complete, both in overall terms and sector-wise, it is very difficult to conclude that developing
countries have gained from the GATS so far.
Proposals2. Mode 4 commitments undertaken by developed countries being modest, there is a need for
making substantially higher commitments in this ar ea if the balance of benefits under GATS is to be
preserved.  Higher levels of commitments can be achieved on the basis of:  rules that are transparent,
no additional tariff/tax or other regulatory restrictions on the nationals of foreign countries that do not
apply to one’s own nationals, no quantitative limits on temporary movement of natural persons,fees/charges applicable for providing social security nets should not apply to temporary movement of
natural persons, no non-tariff barriers and no regulatory restrictions on the movement of natural
persons.
3. At least in sectors of interest to developing countries, the Economic Needs Test would not
apply;  where it would apply exceptionally, it would be based on transparent and objective criteria.
4. Need to list those sectors where visas would be issued automatically for temporary movement
of natural persons;  also certain occupations to be exempt from the work permit/ residency
requirement for short periods of trade-related presence.WT/GC/W/224
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5. In  modes other than Mode 4, developing countries to be given S&D treatment as outlined in
Articles IV and IX of GATS.
6. Any future negotiations in GATS to guided by the same architecture based on positive list,
request and offer approach, no prior exclusion of any mode and by the principles outlined in
Article IX for developing countries.  For Mode 4, a new list of occupations using theILO International Standard Classification of Occupations could be established.  It is also incumbent
on the CTS to establish modalities for treatment of autonomous liberalization undertaken by Members
since the Uruguay Round.  And finally, Article IV to be given real meaning in any new commitments
by developed countries.  Also, a monitoring mechanism to be set up for tracking implementation of
Article IV of the GATS Agreement.
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