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Banking industry

FICCI Seeks Regulatory Barriers Removal in Services Trade Under WTO Talks

Strategic Insights

— 1 min read

Industry chamber FICCI has pressed the Commerce Ministry to address market access barriers in services such as banking, IT, and health in developed countries, including the US, EU, and Gulf Cooperation Council, and Southeast Asian nations like Thailand, Malaysia, and the Philippines. The submission is aimed at facilitating the export of services by Indian companies, as per the ongoing WTO talks. FICCI has sought to leverage the plurilateral approach for service negotiations, as mentioned in the Hong Kong Ministerial Declaration of December last year. The chamber has requested that regulations be relaxed in areas such as banking, IT, and health services, to enable Indian companies to supply their services effectively in these markets.

Key Takeaways:

  • FICCI has sought the removal of regulatory barriers in services like banking, IT, and health in developed countries and Southeast Asia, to facilitate the export of services by Indian companies.
  • The chamber has requested the Commerce Ministry to address market access barriers in services, citing the need to leverage the plurilateral approach for service negotiations, as mentioned in the Hong Kong Ministerial Declaration of December last year.
  • In banking services, FICCI has requested the relaxation of regulations in countries like the US, Australia, GCC, Thailand, Malaysia, and Indonesia, to enable Indian banks to supply their services effectively.
  • The chamber has also sought the relaxation of stringent hiring conditions for expatriates in IT services, as well as restrictions on the availability of foreign bank branches for insurance from the US-based Federal Deposit Insurance Corporation.
  • FICCI has requested that some expatriate staff be permitted in foreign countries to enable Indian banks to reduce their operational costs.
  • The chamber has also sought the relaxation of health service regulations in the UK.

Statistics:

  • FICCI has identified six countries with stringent regulations on banking services: US, Australia, GCC, Thailand, Malaysia, and Indonesia.
  • The chamber has requested the relaxation of stringent hiring conditions for expatriates in IT services in Thailand.
  • The Hong Kong Ministerial Declaration of December last year included the plurilateral approach for service negotiations, in addition to the request-offer approach.

Sources:

  • PTI report, 23-02-2023
  • FICCI release (exact wording)
  • Hong Kong Ministerial Declaration (exact wording)

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