Safeguards ensured in Singapore treaty

India has ensured safeguards in four services -- education, audio-visual, financial and telecom in the comprehensive economic cooperation agreement with Singapore.

The four sectors will be governed by the definition of juridical persons to ensure that benefits are enjoyed by only Indian or Singaporean citizens.

Commerce ministry officials told Business Standard that the juridical person norms was introduced in the four areas to protect India's bargaining position at the World Trade Organisation in the services sector.

"Inserting these safeguards was pertinent since Singapore already has a CECA with United States, which includes services," an official said.

Accordingly, the education and audio-visual services will be open to firms owned and controlled by a Singapore national for three years or until the WTO negotiations in the services sector are complete, whichever is earlier. India is due to submit its revised offers in the services sector to the WTO after assessing those of the US and the European Union.

The financial services sector would be governed by the definition of juridical persons for four years after which there would be a review, officials said adding that in case of telecommunications, the review would be after three years.

Officials said Singapore had agreed to recognise professional degrees granted by any university in India in the areas of medicine, architecture and accountancy in the next 12 months.

Other professional qualifications will be recognised only for the purpose of granting visas.

Since Singapore wants to restrict the quality of professionals entering its territory.

"We had sought wage parity which was not acceptable to Singapore. However, they have agreed to allow professionals earning at least equal to an average Singapore monthly salary, which is around 2,500 Singapore dollars," officials said.

India is also working on obtaining mutual recognition for electrical, electronics and telecommunication equipment.

"We are also working on speeding up the registration process for Indian drugs and pharmaceuticals, which have already being approved by the US and the European drug authorities," they said.

Officials said the CECA had a provision for taking "safeguard action" in case of a surge in preferential imports or an increase in Customs duty on goods to the level of the most favoured nation (MFN) duty.

Singapore has also amended its Regulation of Imports and Exports as per which, providing false trade description is a penal offence and conviction can lead to an imposition of a fine of 1,00,000 Singapore dollars or three times the value of goods, or imprisonment of up to a term of two years for a first-time offender.