India, EU for opening services sector

Methods other than "request-offer" approach needed to resolve stalemate in talks.

European Union Trade Commissioner Peter Mandelson today said methods other than the "request-offer" approach were needed to resolve the stalemate in service talks at the WTO.

Present negotiations in the services sector at the World Trade Organisation are based on request and offer method. Member countries "request" to open services sector and countries respond through "offers", stating what they are willing to give.

Mandelson said though the EU wanted more young professionals to work in Europe, there was a political sensitivity involved. "There is a debate over migration, nervousness about people movement. We have to take that into account and advocate opening up Europe for legitimate and younger professionals."

Asked to list the areas where EU wants India to progress, Mandelson said, "India should continue on the downward path of applied tariffs, make sure that its laws are conducive to good business practices, reduce state taxes and notifications required, and reduce bureaucratic demand, so that people feel that India is a good place to do business."

About India-EU bilateral investment agreement, he said while an agreement would take some time, the immediate objective was to make conditions for FDI more positive. "In the long term, we want to see regulatory convergence which will promote greater credit flows between India and the EU," he said.

Mandelson said it was in India's own interest not to continue as a partially closed economy, as sectors like retail were key to getting agricultural products and manufactured goods to the market.