Call to restrict foreign accounting pros

a working group set up by the union government for devising a strategy for wto negotiations on trade and services has suggested that market access in india of foreign accounting professionals should be restricted till the country attains comparative level of economic development. the transition period for providing market access to foreign accounting professionals under the wto regime should be eight years after india attains 3.5 per cent of share in world market for accountancy services for two consecutive years, chairman of the group sunil bhargava told reporters here on thursday. the extent of market access allowed to foreign service providers in comparative terms should be defined in terms of value and volume rather than in percentage term that has always been found to be detrimental to the interest of the country, bhargava said. the report, submitted to the minister for law, justice and company affairs arun jaitley on april 8, recommended discouraging commercial presence mode of foreign service suppliers in accountancy who may endanger the survival of domestic service provider by their huge organisational and financial strength. however, cross border supply, consumption abroad and movement of natural persons may be allowed, it said. the best strategy for india during wto negotiations on trade and services would be, bhargava said, lodging the protest as entry of reservations. bhargava said the structure of the accountancy service sector worldwide was "oligopolistic", showing a tendency of further concentration, and, during the negotiations, it must be stressed that free market should not become monopolistic market. suggesting rules of fair trade through a protective mechanism the group held that international trade should not be concluded at below the normal value of service in the exporting country by a service provider. the group held that there was an immediate need for development of a harmonious coding system on the lines of trade in goods that would help the developing countries to target niche market or services where they had core expertise. the report called for higher level of preparedness, development of appropriate skills and strategic framework for protecting the interest of domestic service provider in the ongoing negotiations under the general agreement on trade and services.