Historically, the Quantitative Restrictions in the form of Licences, quotas, etc. came into effect for Balance of Payment reasons under specific enabling provisions of GATT to which India was a contracting party in the year as far back in 1947. When WTO was created a successor institution of GATT with all its legal instruments in the year 1994, the provisions were adopted to eliminate QRs as a first step towards reducing the overall protectionism in the world economy because they were considered more damaging to trade than tariffs & replace them with negotiated bound tariffs.

Tariff line vis import policy was first ammended in India on 1.4.1996. The position with regard to phased removal of QRs is as follows :

Total Number of Tariff Lines as on 1.4.1996 - 10202 (10 digit)

Tariff lines free as on 1.4.1996 - 6161

Tariff lines freed for imports during 1996-97 - 488

Tariff lines freed for imports during 1997-98 - 391

The QRs in respect of 2714 items were withdrawn preferentially for imports from SAARC countries w.e.f.1.8.1998 Tariff lines freed for imports during 1998-99 - 894

QRs remarked on 31.03.2000 - 714

QRs remarked on 31.03.2001 - 715

India has filed a proposal in the WTO on the "Proposed Liberalisation of the Movement of Professionals under the General Agreement on Trade in Services (GATS)" as part of the Mandated Services Negotiations. The proposal lists the barriers in the movement of professionals under the Mode 4 delivery system.

The paper recommends :

Broadening the scope of individual professionals, Uniform definitions, Specific commitments, Adoption of International Standards Classification of Occupations (ISCO-88) of ILO on the WTO Services Sectoral Classification List.

The paper lists specific barriers in the movement of professionals. These are :

ENT : Economic Needs Test (ENT), clear and transparent criteria to be laid down for applying such Tests and for establishing norms for administrative and procedural facilities. Fewer occupational categories to be made subject to such Tests. In sectors/sub-sectors where ENT is to be used, its application should be based on multilateral principles.

GATS Visa : On administrative procedures relating to Visas/Work Permits, Member countries should ensure a more transparent and objective implementation of their regimes. Further, temporary service providers should be separated from permanent labour flows. This could be achieved either by introducing special GATS Visa for categories of personnel covered by the commitments undertaken by the Member in Mode 4 under GATS or through a sub-set of administrative rules and procedures for temporary movement which are simpler and faster.

Exempt Social Security Contribution : Exemption from contributions to social security for developing country professionals who move abroad for a temporary period under GATS as such temporary providers are not eligible for any benefits under the social security schemes.

Enforce MRAs : Strengthening GATS norms and Disciplines on recognition of qualifications by proper implementation of Article VII of GATS providing for Mutual Recognition Agreements (MRAs) between Members. Further, effective opportunities should be provided to developing country Members to join in Negotiations for establishment of MRAs.