S/WPDR/W/55  
 
27  September 2016  
(16-5137) Page: 1/2 
Working Party on Domestic Regulation  Original: English   
 
 COMMUNICATION FROM I NDIA  
CONCEPT NOTE FOR AN  INITIATIVE ON TRADE FACILITATION IN SERV ICES 
The following communication  from the delegation of India, dated 23 September 2016, is being 
circulated to the Members of the Working Party on Domestic Regulation . 
 
 
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1  BACKGROUND AND MOTIV ATION  
1.1.  Services occupy a significant and growing share of domestic and international transactions. 
However, trade flows in services remain subject to numerous border and behind -the-border 
barriers as well as procedural b ottlenecks, which are impediments to the realization of the full 
potential of services trade. These impediments particularly limit the benefits of trade in services 
especially for small and medium enterprises and small exporters worldwide.  
1.2.  The Tra de Facili tation Agreement ("TFA" ), adopted by WTO M embers in 2014, was a 
significant milestone in relation to trade in goods. Its overall purpose is to expedite the movement, 
release and clearance of goods as well as co -operation on customs compliance issues. Like the 
TFA, there is need for a counterpart agreement in services, an Agreement on T rade Facilitation in 
Services (" TFS Agreement "), which can result in reduction of transaction costs associated with 
unnecessary regulatory and administrative burden on trade i n services . The TFS Agreement will 
address the key issues that are pertinent to facilitating trade in services, such as transparency, 
streamlining procedures, and eliminating bottlenecks.  
1.3.  The scope of the proposed TFS Agreement would encompass measures by  Members affecting 
trade in services across all modes of supply.  
1.4.  Importantly, the TFS Agreement, as in the case of the TFA, will also contain provisions for 
special and differential treatment for developing countries and LDCs and address related issues of  
technical assistance and support for capacity building.  
2  ILLUSTRATIVE ELEMENT S OF A TFS AGREEMENT  
2.1.  The TFS Agreement could be based on the TFA in goods, with suitable modification and 
adaptation to the services context, as required.  
2.2.  Some of the issues would  be cross -cutting issues relevant for all modes of supply of services, 
and others would be specific to each mode of supply.  
2.3.  An illustrative list of such elements is provided below:  S/WPDR/W/5 5 
 
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  2.1  CROSS -CUTTING ISSUES  
 Publication and availability of information, includin g automation and international electronic 
exchange of trade data.  
 Transparency in application of all measures of general application affecting trade in services.  
 Ensuring administration of measures affecting trade in services in a reasonable, objective 
and impartial manner.  
 Consultations and cooperation among relevant authorities.  
 Opportunities to comment before entry into force of measures affecting trade in services.  
 Procedures and timelines for consideration of applications from service suppliers, as wel l as 
for appeal and review.  
 Disciplines on taxes, fees, charges and other levies on supply of services.  
 Special and Differential Tr eatment for developing country M embers and LDCs.  
 Institutional arrangements.  
 
2.2  MODE -SPECIFIC ISSUES  
Mode 1:  
 Facilitation  of free flow of data across borders for ensuring meaningful supply of Mode 1 
services.  
Mode 2:  
 Facilitation  of supply of Mode 2 services, including through cross border insurance portability 
for availing of medical or tourist related services in a foreign count ry. 
 Endeavour  to streamline temporary entry formalities, such as visa processing fees, 
procedures and timelines for consumers seeking entry into another country to avail of 
services (such as medical services, education services, tourism, etc.) . 
Mode 3:  
 Facilitation  of supply of Mode 3 services, including through measures such as single window 
clearance for setting up commercial presence.  
 Disciplines  on charges applicable on Mode 3 service suppliers, in order to ensure that these 
do not unfairly disadvanta ge foreign service supplier s.  
Mode 4:  
 Facilitation  of supply of Mode 4 services through simplification of procedures for temporary 
entry and stay, and clarity in respect of work permits and visas as relevant for the 
categ ories of the Mode 4 commitments.  
 Disciplines  on measu res relating to taxation, fees/ charges, discriminatory salary 
requirements, social security contributions in relation to temporary entry, etc. in order to 
ensure that these do not unfairly disadvantage foreign service supplier s. 
 
3  CONCLUD ING COMMENTS  
India firmly believes that like the TFA, a well -structured TFS will significantly enhance the potential 
for trade in services for all Members. This concept requires careful deliberation in order to enable 
the development of a framework that ca n effectively address the main concerns of all Members. 
India looks forward to com ments and suggestions from all M embers on this critical concept and to 
developing the elements for the same.  
 
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