Sydenham College Hall, B Road, Churchgate, Mumbai

| Balbir Verma on session
| on sectoral GATS issues (Architecture)

---------------------------- Original Message ----------------------------
Please forward:

INVITATION:

DEFEND THE SERVICES SECTOR
Maharastra Convention against WTO-GATS
November 16th, 2005
2.00 to 6.30 pm.

Sydenham College Hall, B Road, Churchgate, Mumbai


SERVICES UNDER THREAT:

The services sector is the largest segment of India?s economy ? it
contributes more than 50% to national GDP. Since 1991, India embarked on a
series of far-reaching reforms in key sectors--such as banking, insurance,
energy, telecommunications and government services. Policies were altered
to enable the entry of private service providers and Foreign Direct
Investment (FDI).  There was little effort to monitor and address these
reforms from the standpoint of distributive equity, employment, and
regulatory
institutions. As a result, while those with disposable incomes and located
in urban areas are able to consume more, a huge proportion of India?s
peoples?majority of who live in rural areas?are struggling with rising
costs and limited access to essential services such as health, finance,
water and electricity.
Currently, trade unions and social movements are fighting exciting battles
to stop these anti-people reforms and privatisation of essential public
services. There have been important victories in sectors such as water and
electricity.

GATS: ATTACK ON DEMOCRACY:

But the most dangerous mechanism through which services reform is being
pushed is the GATS (General Agreement on Trade in Services), which is a
trade treaty within the World Trade Organisation. The GATS is one of more
than 20 agreements in the World Trade Organisation (WTO). It establishes a
multilateral framework of rules and principles for the liberalisation of
trade in services. Over 160 services sectors are potentially on the table
for liberalization, including health, education, water, utilities, energy,
transport, infrastructure, childcare, insurance, financial services, and
in fact, just about every area of activity that we require for well being
and development. The impacts of GATS on India will be far reaching. 
Broadly speaking GATS will: 1) Limit and likely reduce the access of poor
sections of society to timely, affordable and quality services; 2)
Restrict the ability of the Indian Government to act in favour of the
public interest if this interferes with the profits of private firms, and
3) Drive out smaller Indian firms from the services markets, thus leaving
Indians dependant on foreign firms over which they have little control.
The Indian state will be more or less powerless to penalise foreign
service providers for high costs, poor quality and inadequate access to
services by Indian consumers.  Rapid liberalisation of services and giving
foreign service providers the same treatment as Indian firms will destroy
local/national service businesses in India and other developing countries.
 They will also restrict the government?s ability to further develop
capacity in the Indian services sector through public procurement of goods
and services.

INDIA?S STAND: NOT IN THE NATIONAL INTEREST

India believes that it stands to gain a lot from the GATS and is taking an
?aggressive? position in current GATS negotiations. India has signaled
that it will open sectors such as architecture, urban planning,
distribution services, construction, educational services, life insurance
services and air transport services. Foreign equity limitations have been
further diluted in existing commitments in engineering, research and
development services, basic telecommunications, banking and asset
management services. Developed countries led by the European Union (EU)
are demanding changes to the GATS that will force countries to open up
more sectors and dilute national legislation. Raising of FDI limits in
sensitive sectors such as banking, insurance, airports, and retail is an
extremely controversial issue in the country and has been strongly opposed
by a number of United Progressive Alliance (UPA) coalition partners and
the public.

However, India appears to be willing to allow foreign firms to increase
their base of operations and ownership of assets in India in return for
gains in the Mode 4 form of service supply (the temporary movement of
services professionals across borders). India is demanding that the US
increase the quota of H-1B visas from its present GATS commitment of
65,000 to about 100,000. Indian negotiators have signalled that if the US
agrees to India?s Mode 4 demands, they are willing to provide concessions
on the US? demands on GATS, as well as in other areas such as Agriculture
and NAMA (Non Agricultural Market Access). India has narrowed Mode 4
negotiations to the movement of highly skilled professionals and does not
take into account unskilled or lower skilled workers.  Services companies
in the US would gain the most from an increase in H-1B visas. Not
surprisingly, Microsoft founder Bill Gates is actively lobbying the US
Congress for a complete removal of quotas on H-1B visas.

WHY NO DEAL IN HONG KONG IS BETTER THAN A BAD DEAL:
Commitments under the WTO are irreversible and will have far reaching
impacts, some of which may not be visible in the short term. Services are,
in one sense, the backbone of our societies and economies. Every aspect of
our lives, from education, health, environment and transportation to
energy, water, food, hotels and finance, are dependent on services. 
Access to affordable services is crucial to building strong, healthy and
productive societies.  We cannot let these be taken out of democratic
control and into the hands of a few Commerce Ministry bureaucrats to be
signed away as trade-offs in the WTO.

Towards this end, service sector unions and various professional bodies in
Mumbai are gathering in a convention to discuss the strategy to convey
their positions to the Indian Government and the negotiators who will
represent the Indian position in the WTO Ministerial meeting in Hong Kong
in mid December.


PROGRAM:

2- 2.30 PM: Short film: WTO: WHY IS IT REALLY BAD FOR YOU

2.30- 3.00 PM: Chair: DR SHANTI PATEL (Ex Mayor of Mumbai). Keynote
address: S P SHUKLA (former Ambassador to GATT, former Member, Planning
Commission).

3.00 ?5.30PM: Sectoral GATS issues: Chair: R.G.KARNIK (State Government
Employees)
S.D DHOPESHWARKAR (Banking), A.V NACHNE (Insurance) MIHIR DESAI (Legal
Services) AD GOLANDAZ (Electricity) DR. RAVI BAPAT (Health) BALBIR VERMA
(Architecture) PROF. KISHORE THEKEDATH (Education)

5.30-6.30PM: Final session on strategies and resolution: GAJANAN KHATU and
S P SHUKLA.

Presentation of draft resolution: MEENA MENON

ORGANISED BY:
All India Bank Officers Association, All India Bank Employees Association,
All India Bank Officers Confederation, All India LIC Employees Federation,
All India Port and Dock Workers Federation (Workers), All India Trade
Union Congress, Brihan Mumbai Mahapalika Shikshak Sabha, Central
Government Employees Coordination Committee, Centre for Indian Trade
Unions, Focus on the Global South ? India, General Insurance Employees All
India Association, Hind Mazdoor Sabha, India Centre for Human Rights and
the Law, National Union of Seafarers of India, Maharastra State Government
Employees Confederation, Maharastra State Zilla Parishad Employees
Confederation, Vikas Adhyan Kendra and YUVA


=====================================================================
Benny Kuruvilla
Focus on the Global South - India
A-201, Kailash Apartments
Juhu Church Road
Juhu , Mumbai - 400049
India

Tel:91.22.55821141/55821151
Tel Fax:91.22. 26251347

Email    : bennyk@xxxxxxxxxxxx
Website: http://www.focusweb.org

 ++++Subscribe to our free monthly e-newsletter - FOCUS ON INDIA - for
issues related to trade, international financial institutions and peace
and security. Write to focusind@xxxxxxxx++++

Please forward:

 

INVITATION:

 

DEFEND THE SERVICES SECTOR
Maharastra Convention against WTO-GATS
November 16th, 2005

2.00 to 6.30 pm.

Sydenham College Hall, B Road, Churchgate, Mumbai

 

SERVICES UNDER THREAT:

 

The services sector is the largest segment of India’s economy – it contributes more than 50% to national GDP. Since 1991, India embarked on a series of far-reaching reforms in key sectors--such as banking, insurance, energy, telecommunications and government services. Policies were altered to enable the entry of private service providers and Foreign Direct Investment (FDI).  There was little effort to monitor and address these reforms from the standpoint of distributive equity, employment, and regulatory institutions. As a result, while those with disposable incomes and located in urban areas are able to consume more, a huge proportion of India’s peoples—majority of who live in rural areas—are struggling with rising costs and limited access to essential services such as health, finance, water and electricity.

Currently, trade unions and social movements are fighting exciting battles to stop these anti-people reforms and privatisation of essential public services. There have been important victories in sectors such as water and electricity.

 

GATS: ATTACK ON DEMOCRACY:

 

But the most dangerous mechanism through which services reform is being pushed is the GATS (General Agreement on Trade in Services), which is a trade treaty within the World Trade Organisation. The GATS is one of more than 20 agreements in the World Trade Organisation (WTO). It establishes a multilateral framework of rules and principles for the liberalisation of trade in services. Over 160 services sectors are potentially on the table for liberalization, including health, education, water, utilities, energy, transport, infrastructure, childcare, insurance, financial services, and in fact, just about every area of activity that we require for well being and development. The impacts of GATS on India will be far reaching.  Broadly speaking GATS will: 1) Limit and likely reduce the access of poor sections of society to timely, affordable and quality services; 2) Restrict the ability of the Indian Government to act in favour of the public interest if this interferes with the profits of private firms, and 3) Drive out smaller Indian firms from the services markets, thus leaving Indians dependant on foreign firms over which they have little control. The Indian state will be more or less powerless to penalise foreign service providers for high costs, poor quality and inadequate access to services by Indian consumers.  Rapid liberalisation of services and giving foreign service providers the same treatment as Indian firms will destroy local/national service businesses in India and other developing countries.  They will also restrict the government’s ability to further develop capacity in the Indian services sector through public procurement of goods and services.

 

INDIA’S STAND: NOT IN THE NATIONAL INTEREST

 

India believes that it stands to gain a lot from the GATS and is taking an “aggressive” position in current GATS negotiations. India has signaled that it will open sectors such as architecture, urban planning, distribution services, construction, educational services, life insurance services and air transport services. Foreign equity limitations have been further diluted in existing commitments in engineering, research and development services, basic telecommunications, banking and asset management services. Developed countries led by the European Union (EU) are demanding changes to the GATS that will force countries to open up more sectors and dilute national legislation. Raising of FDI limits in sensitive sectors such as banking, insurance, airports, and retail is an extremely controversial issue in the country and has been strongly opposed by a number of United Progressive Alliance (UPA) coalition partners and the public.

 

However, India appears to be willing to allow foreign firms to increase their base of operations and ownership of assets in India in return for gains in the Mode 4 form of service supply (the temporary movement of services professionals across borders). India is demanding that the US increase the quota of H-1B visas from its present GATS commitment of 65,000 to about 100,000. Indian negotiators have signalled that if the US agrees to India’s Mode 4 demands, they are willing to provide concessions on the US’ demands on GATS, as well as in other areas such as Agriculture and NAMA (Non Agricultural Market Access). India has narrowed Mode 4 negotiations to the movement of highly skilled professionals and does not take into account unskilled or lower skilled workers.  Services companies in the US would gain the most from an increase in H-1B visas. Not surprisingly, Microsoft founder Bill Gates is actively lobbying the US Congress for a complete removal of quotas on H-1B visas.

 

WHY NO DEAL IN HONG KONG IS BETTER THAN A BAD DEAL:

Commitments under the WTO are irreversible and will have far reaching impacts, some of which may not be visible in the short term. Services are, in one sense, the backbone of our societies and economies. Every aspect of our lives, from education, health, environment and transportation to energy, water, food, hotels and finance, are dependent on services.  Access to affordable services is crucial to building strong, healthy and productive societies.  We cannot let these be taken out of democratic control and into the hands of a few Commerce Ministry bureaucrats to be signed away as trade-offs in the WTO.

 

Towards this end, service sector unions and various professional bodies in Mumbai are gathering in a convention to discuss the strategy to convey their positions to the Indian Government and the negotiators who will represent the Indian position in the WTO Ministerial meeting in Hong Kong in mid December.

PROGRAM:

 

2- 2.30 PM: Short film: WTO: WHY IS IT REALLY BAD FOR YOU

 

2.30- 3.00 PM: Chair: DR SHANTI PATEL (Ex Mayor of Mumbai). Keynote address: S P SHUKLA (former Ambassador to GATT, former Member, Planning Commission).

 

3.00 –5.30PM: Sectoral GATS issues: Chair: R.G.KARNIK (State Government Employees)

S.D DHOPESHWARKAR (Banking), A.V NACHNE (Insurance) MIHIR DESAI (Legal Services) AD GOLANDAZ (Electricity) DR. RAVI BAPAT (Health) BALBIR VERMA (Architecture) PROF. KISHORE THEKEDATH (Education)

 

5.30-6.30PM: Final session on strategies and resolution: GAJANAN KHATU and S P SHUKLA.

 

Presentation of draft resolution: MEENA MENON

 

ORGANISED BY:

All India Bank Officers Association, All India Bank Employees Association, All India Bank Officers Confederation, All India LIC Employees Federation, All India Port and Dock Workers Federation (Workers), All India Trade Union Congress, Brihan Mumbai Mahapalika Shikshak Sabha, Central Government Employees Coordination Committee, Centre for Indian Trade Unions, Focus on the Global South – India, General Insurance Employees All India Association, Hind Mazdoor Sabha, India Centre for Human Rights and the Law, National Union of Seafarers of India, Maharastra State Government Employees Confederation, Maharastra State Zilla Parishad Employees Confederation, Vikas Adhyan Kendra and YUVA

 

 

=====================================================================

Benny Kuruvilla

Focus on the Global South - India

A-201, Kailash Apartments

Juhu Church Road

Juhu , Mumbai - 400049

India

 

Tel:91.22.55821141/55821151

Tel Fax:91.22. 26251347

 

Email    : bennyk@xxxxxxxxxxxx

Website: http://www.focusweb.org

 

 ++++Subscribe to our free monthly e-newsletter - FOCUS ON INDIA - for issues related to trade, international financial institutions and peace and security. Write to focusind@xxxxxxxx++++