India pulls off minor `coup’ in WTO pact

PARIS, Dec 14: India managed to withstand pressure from the developed countries over liberalising its financial services and convinced its trading partners that New Delhi’s present policy is reasonable, official sources said today. “India convinced its trading partners that its stand on financial services is a reasonable one and New Delhi made an improved offer this time,” diplomatic sources in Geneva said. Developed nations during the week-long negotiations were adamant that developing countries, especially India, Thailand, Malaysia and Indonesia open up the three areas which have long been protected.

India on Wednesday offered to remove the most favoured nation (MFN) clause so that all the WTO member-nations will receive equal treatment with regard to market access in its financial services, sources said, adding it also promised to introduce reforms in shipping insurance and make it more “market-friendly.”

However, western nations were not content with this offer and wanted more concessions from New Delhi. Referring to the offers made by developing countries, a senior official at the US Trade Representative said earlier, “the offers were not satisfactory, they have to be improved.”

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In the final stages of the agreement, early yesterday, New Delhi offered to increase the number of banking licences granted to foreign banks annually from eight to 12. “India made no commitments in the crucial areas of insurance and securities dealing,” the sources added.

It was feared that the US could sabotage the reaching of the agreement, as it did in 1995, as American industry wanted more concessions. The European Union, however, said he failure to reach an agreement would jolt fragile confidence in Asia and damage American commercial interests.