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Home > Business > Business Headline > Report

EU eases rules on trade in services

BS Economy Bureau in New Delhi | April 30, 2003 15:30 IST

The European Union has announced its proposals on WTO services negotiations that seek to do away with the economic needs test, double the visa duration for professionals and the self-employed on contract to six months and set a service-wise floor on the number of professionals to be allowed in EU member states.

The number of foreign professionals to be given entry to EU states will be decided through a bilateral process.

It will be fixed once the WTO services negotiations, currently under way, conclude, EU Trade Commissioner Pascal Lamy told reporters through an audio conference from Brussels.

Lamy said the number of professionals to be allowed into EU states would be higher than the existing level.

"I will agree to the numbers according to what I get in terms of opening up of services in those markets," he said.

The EU proposals envisage permitting foreign computer maintenance experts to temporarily enter the market.

It also seeks to permit foreign lawyers, architects and accountants, but does not mention doctors, teachers, public utilities, social and audio-visual services.

Restrictions have been eased in capital-intensive sectors such as telecommunications and financial services. But the sectors do not interest India much.

Lamy said the EU had received 35 requests from WTO members, of which 27 were from developing countries. He said the proposals aimed at harmonising the rules among EU member states.

On doing away with the economic needs test, Lamy said the EU wanted to bring about transparency in the rules governing working conditions, minimum wage requirements and collective wage agreements.
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