India - which has proposed a global pact on 'Trade Facilitation in Services' (TFS) - on Friday called for tapping the full potential of the services sector to boost the world economy.
Commerce Minister Suresh Prabhu - representing India at the ‘Asia-Europe Meeting’ (ASEM) Economic Ministers’ meeting in Seoul - said Asia and Europe must look at ways to boost the services trade, which has a multiplier effect on job creation.
India has already submitted to the World Trade Organisation (WTO) a proposal for the TFS, aimed at easing norms including those related to the movement of skilled workers across borders for short-term work, to in turn increase the global services trade growth.
India is keen that the TFS proposal gains traction before the WTO’s Ministerial Conference (WTO's highest decision-making body) in December in Argentina. The ASEM is a forum to strengthen cooperation between Asia and Europe.
Mr. Prabhu said in a tweet that the “challenge ahead for all of us is how to ensure free, fair trade embodied in WTO principles prevails,” adding, however, that “India is committed to multilateral framework for promoting free and fair trade.”
Meanwhile, the WTO had on Thursday said “world merchandise trade volume is forecast to grow 3.6% in 2017, placed within a range from 3.2% to 3.9%, accompanied by global GDP growth of 2.8% at market exchange rates.” It added, “stronger-than-expected growth is driven by Asia and North America.”
WTO Director-General Roberto Azevêdo said, “The improved outlook for trade is welcome news, but substantial risks that threaten the world economy remain in place and could easily undermine any trade recovery.” He added that these risks include “the possibility that protectionist rhetoric translates into trade restrictive actions.”