Lok Sabha Question No. 4041 (UNSTARRED), answered on 2017-03-27
Subject: Trade Facilitation Agreement of WTO
Ministry: COMMERCE AND INDUSTRY
Asked by: K. GOPAL, HARI MANJHI, M. UDHAYAKUMAR, KRISHNAN NARAYANASAMY RAMACHANDRAN, RAM CHARITRA, C. MAHENDRAN

## GOVERNMENT OF INDIA

## MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4041 TO BE ANSWERED ON 27 th  MARCH, 2017

## TRADE FACILITATION AGREEMENT OF WTO

## 4041.  DR. K. GOPAL:

SHRI HARI MANJHI:

ADV. M. UDHAYAKUMAR:

SHRI K.N. RAMACHANDRAN:

SHRI RAM CHARITRA NISHAD:

SHRI C. MAHENDRAN:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the  salient  features  of  the  Trade  Facilitation  Agreement  (TFA)  of  World  Trade Organization (WTO) along with its ratification status, country-wise including India and the benefits to the country therefrom;
- (b) whether the Government has started the process to set up a National committee on Trade Facilitation in the country to coordinate and implement the TFA of WTO and if so, the details and the status thereof;
- (c) whether  the  said  TFA  is  likely  to  simplify  customs  regulations  for  crossborder movements  of  goods/  lead  to  reduction  in  transaction  costs/  make  it  easier  for developing countries to trade with developed nations in global markets and also to reduce  red-tapism  to  facilitate  trade  by  reforming  customs  bureaucracies  and formalities and if so, the details thereof;
- (d) whether the Government has introduced a concept note at the WTO highlighting the need for a Trade Facilitation Agreement (TFA) in services and if so, the details and the status thereof indicating the recent developments in this regard;
- (e) whether India's efforts to garner support for the proposed TFA in Services comes even as it has dragged the United States to the WTO following US's move to hike visa fees for H-1B and L-I categories and if so, the details thereof; and
- (f) whether  India  had  also  objected  to  Britain  tightening  norms  for  foreign  skilled workers and if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) to  (c):    Yes  Madam,  consequent  upon the ratification of the Trade Facilitation Agreement (TFA) of World Trade Organization (WTO) by India in April, 2016, a National Committee on Trade Facilitation (NCTF) under the Chairmanship of Cabinet Secretary has been constituted.

The TFA would necessitate simplification of border management procedures and adoption of new transparency measures, all of which are expected to reduce the transaction cost of imports and exports and facilitate smooth movement of goods across borders. As of now 112 members have ratified TFA, including India (list attached).

- (d) & (e):  India tabled the 'Concept Note for an initiative on Trade Facilitation in Services' at the WTO to facilitate discussion among WTO members with an aim to achieve an outcome. India's proposal on Trade Facilitation in Services and the US visa fee hike for H-1B and L-1 categories are different issues and are being taken up separately at the appropriate level.
- (f) :  Government  of  India  has  been  consistently  taking  up  the  issue  of  tightening  norms  for skilled  foreign  workers  with  the  Government  of  UK  at  the  highest  levels.    The  UK Government has been urged to not accept the recommendations of the Migration Advisory Committee (MAC) in the interest of the bilateral trade in services between India and the UK.

***

## The List of Countries which has ratified TFA

## (Total 112 Countries including 28 Member States of European Union)

|   Sl. No. | Country                                            | S. No.   | Country                        |
|-----------|----------------------------------------------------|----------|--------------------------------|
|         1 | Hong Kong China                                    | 46       | Macao China,                   |
|         2 | Singapore                                          | 47       | United Arab Emirates           |
|         3 | United States                                      | 48       | Samoa                          |
|         4 | Mauritius                                          | 49       | India                          |
|         5 | Malaysia                                           | 50       | Russian Federation             |
|         6 | Japan                                              | 51       | Montenegro                     |
|         7 | Australia                                          | 52       | Albania                        |
|         8 | Botswana                                           | 53       | Kazakhstan                     |
|         9 | Trinidad and Tobago                                | 54       | Sri Lanka                      |
|        10 | Republic of Korea                                  | 55       | St. Kitts and Nevis            |
|        11 | Nicaragua                                          | 56       | Madagascar                     |
|        12 | Niger                                              | 57       | Republic of Moldova            |
|        13 | Belize                                             | 58       | El Salvador                    |
|        14 | Switzerland                                        | 59       | Honduras                       |
|        15 | Chinese Taipei                                     | 60       | Mexico                         |
|        16 | China                                              | 61       | Peru                           |
|        17 | Liechtenstein                                      | 62       | Saudi Arabia                   |
|        18 | Lao PDR                                            | 63       | Afghanistan                    |
|        19 | New Zealand                                        | 64       | Senegal                        |
|        20 | Togo                                               | 65       | Uruguay                        |
|        21 | Thailand                                           | 66       | Bahrain                        |
|        22 | European Union (on behalf of its 28 member states) | 67       | Bangladesh                     |
|        23 | Republic of Macedonia                              | 68       | Philippines                    |
|        24 | Pakistan                                           | 69       | Iceland                        |
|        25 | Panama                                             | 70       | Chile                          |
|        26 | Guyana                                             | 71       | Swaziland                      |
|        27 | Côte d'Ivoire                                      | 72       | Dominica                       |
|        28 | Grenada                                            | 73       | Mongolia                       |
|        29 | Saint Lucia                                        | 74       | Gabon                          |
|        30 | Kenya                                              | 75       | Kyrgyz Republic                |
|        31 | Myanmar                                            | 76       | Canada                         |
|        32 | Norway                                             | 77       | Ghana                          |
|        33 | Viet Nam                                           | 78       | Mozambique                     |
|        34 | Brunei                                             | 79       | Saint Vincent & the Grenadines |
|        35 | Zambia                                             | 80       | Nigeria.                       |
|        36 | Ukraine                                            | 81       | Nepal                          |
|        37 | Lesotho                                            | 82       | Rwanda                         |
|        38 | Georgia                                            | 83       | Oman                           |
|        39 | Seychelles                                         | 84       | Chad                           |
|        40 | Jamaica                                            | 85       | Jordan                         |
|        41 | Mali                                               |          |                                |
|        42 | Cambodia                                           |          |                                |
|        43 | Paraguay                                           |          |                                |
|        44 | Turkey                                             |          |                                |
|        45 | Brazil                                             |          |                                |