NEW DELHI: A parliamentary standing committee on commerce has asked the government to revoke a review clause in the India-ASEAN free trade agreement to define 'independent professionals' for greater movement of natural persons in the ASEAN region 

Chaired by Naresh Gujral, the committee has said the agreement has not yielded desired outcomes. 

The committee finds that professional qualification, training and other requirements including professional standards have been used as a barrier for movement of accounting services from India, though, the Indian requirements in this regard meet the international standards," it said in its latest report. 

Citing limitations on national treatment as well as market access limitations imposed by several countries such as visa restrictions, restrictions on the mobility of personnel, impediments to technology and information transfer, buy national public procurement practices, nationality and residence requirements and professional certification/ entry requirements, it asked the Department of Commerce to address them at bilateral or multilateral level. 

Flagging the problem of grant of visa to IT professionals in Singapore, the panel said it is important that the Singapore authorities remove the obstacles to market access. 

"In services trade, the committee strongly feels that Singapore authorities may be engaged at the highest level, if needed, on the issue of movement of professionals," the panel said in the report. 

Imbalance in goods trade 

Citing adverse effect on Indian exports of farm products, textiles, leather, pharmaceuticals and steel, among other items due to the provisions of the India-ASEAN Trade in Goods Agreement, the standing committee asked the department to furnish a note on the assessment of the working of pact and seek better market access for goods in order to have more balanced trade. 

India's exports to the 10-member ASEAN rose from $25.15 billion in 2015-16 to $31.07 billion in FY17 while imports increased from $39.91 billion to $40.63 billion. 

On the decline in exports of agriculture commodities to the ASEAN, the committee stressed on promotion of value addition. 

"Commodities enjoying comparative advantage in ASEAN countries may be identified and market access at zero duty may be sought for our farmers and agro-processors," the report stated. 

Stating that it finds it disconcerting that the steel industry has been put to a disadvantage by the agreement, the panel proposed reciprocity in tariff reduction/elimination by ASEAN countries on Indian steel products should be ensured on account of "broad and sweeping market access given by India". 

The committee also recommended the commerce department to be vigilant over the safeguard measures imposed by the ASEAN countries on textile exports since it directly affected the country's exports. 

On the department's submission that the imbalance was mainly due to imports of essential commodities of coal, petroleum and edible oils by India and it would be in a better trade position if these were excluded, the committee said: "If this approach or argument is subscribed, then there was no need for the trade agreement with ASEAN. The import of essential commodities will continue with or without the trade agreements". 

The panel stated that better market access in terms of higher export has not materialised for India and this was a matter of concern and recommended that India should seek better market access from ASEAN countries especially for those tariff lines which are kept in Sensitive Track and High Sensitive List.