This article was first published 23 years ago

India may open up accounting

May 02, 2003 12:50 IST

India is unlikely to make any commitments on legal and distribution services while offering to partly open accounting and book-keeping as part of its sectoral commitments for the services negotiations at the World Trade Organisation.

Officials said the government might offer to open up the computers, financial, maritime tourism, and construction and engineering services sectors.

The offer list is being referred to the Cabinet Committee on WTO, which will authorise India's commitments in various areas.

For accountancy, a consultation paper of the commerce ministry has proposed that India accept full market access.

In auditing, the paper has suggested allowing consumption abroad, foreign commercial presence and the presence of natural persons.

The law ministry and the Bar Council of India had opposed any move to allow foreign lawyers to practice in India and the commerce ministry was heeding their advice, the officials said.

As for distribution services - wholesale and retail trading activities, commission agent services, and franchising - retail and wholesale trading will be closed. It was a political decision, the officials said.

It had been decided at the Doha ministerial meet that WTO members would submit initial requests by June 2002 and initial offers by March 2003.

This request-offer process is now on and most countries, including India, have interpreted these deadlines to be indicative only.

The US, the EU and Australia have already submitted their offers, while others like India are finalising their proposals.

India has submitted initial requests on computer-related services, architecture, health, audio-visual, tourism, maritime and financial services.

On the other hand, it has received requests from 22 countries and is finalising its response through an initial offer.

The initial offers will point to the direction in which a member is willing to liberalise. They have no legal status and can be withdrawn or amended at any time if the member decides that the trading partners' offers are not satisfactory.

In formulating the offers, members are not obliged to respond positively to any particular request. Reciprocity is also not required.

Moneywiz Live!