INDIAN professionals can look forward to better and more lucrative offers in developed countries as restrictions on their movement get dismantled within a new globally administered multilateral trading apparatus under the aegis of the World Trade Organisation (WTO).

The revised Framework Agreement decided upon by the 147 member countries of the WTO in Geneva recently mandates that "with a view to providing effective market access to all Members and in order to ensure a substantive outcome, Members shall strive to ensure a high quality of offers, particularly in sectors and modes of supply of export interest to developing countries, with special attention to be given to least-developed countries".

Besides, "member countries shall aim to achieve progressively higher levels of liberalisation with no a priori exclusion of any service sector or mode of supply and shall give special attention to sectors and modes of supply of export interest to developing countries. Members note the interest of developing countries, as well as other Members, in Mode 4".

Curbs on Mode 4 workers to be eased

Experts are of the opinion that a country such as India is likely to benefit most in the sunrise service industries such as health, education, tourism apart from the computer and IT industry.

The new agreement could pave the way for Indian professionals in the non-IT sectors such as hospital services and other health-related areas and social services to globetrot more regularly on specific assignments.

Under the General Agreement on Trade in Services (GATS), the services are divided into 12 broad categories. These are:

Business services, which include legal services, accounting, auditing and book-keeping services, architectural services, engineering services, medical and dental services, veterinary services, services provided by midwives, nurses, computer and related services, research and development services, and advertising services.

Communication services such as postal services, telecommunication services, audiovisual services and other related services;

Construction and engineering related services

• Distribution services;

• Educational services

• Environmental services

• Financial services

• Health and related social services

• Tourism and travel related services

• Recreational, cultural and sporting services

• Transport services

• Other services

Once the GATS rules come into force, member nations are expected to significantly reduce constraints on movement of professionals. In other words, foreign-qualified professionals and practitioners would be allowed entry and temporary stay to work in a country to perform temporary assignments without being linked to the presence of a branch, office or subsidiary in that country.

Under the WTO negotiations, international trade in services is categorised under four different "Modes":

Mode 1: Cross border supply.

Mode 2: Consumption abroad.

Mode 3: Foreign commercial presence.

Mode 4: Movement of natural persons.

Health personnel to benefit most

A developing country such as India with high abundance of skilled manpower in various disciplines is likely to benefit as restrictive controls on movement of people coming under Mode 4 across territorial frontiers diminish under the agreement.

Movement of natural persons is linked to other negotiations because many services need the applied knowledge, expertise and technical skills of individuals if they are to be supplied successfully. The ability to move key personnel into foreign markets in order to provide a service is an essential component of business strategy for all kinds of suppliers with international operations. The reality around the world, however, is that nearly every country has visa, residence and work permit restrictions which can impede or delay the movement of professionals to country locations where they are needed.

Services liberalisation talks have tended to concentrate on issues such as cross border supply and commercial presence. But India and a number of other developing countries, including Thailand, Egypt and Argentina, argue that their service providers do not have the capital to establish branches or subsidiaries abroad (i.e. to have commercial presence). Nevertheless, the developing nations say that individuals can still supply services competitively in foreign countries even without the formal commercial presence of their companies in those countries.