♤ Aims of TFS

o To ensure portability of social security contributions and crossborder insurance coverage to boost medical tourism.

o To ease norms for movement of skilled workers across borders.

♤ The TFS agreement will address the key issues that are pertinent to facilitating trade in services, such as transparency, streamlining procedures, and eliminating bottlenecks.

♤ India had, in February 2017, submitted to the WTO a legally-vetted draft proposal for a TFS agreement.

♤ In draft legal text that India submitted, it covered services under Mode1 (cross-border services), Mode 2(consumption abroad) and Mode 4 (movement of short-term services providers or natural persons).

♤ The draft provides for special and differential treatment provisions under which developing countries are offered transition period while least-developed countries are exempted from undertaking any commitments arising out of the TFS agreement.

♤ However, several developing countries said that it would impose burdensome commitments on them.

♤ Major industrialized members such as the European Union (EU), Canada, Switzerland, Australia and New Zealand, among others, welcomed the Indian proposal.