02 March 2012

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EU India Agreement Mode 4 Additional 40,000 Indian workers to get job in EU Who will benefit EU or India

EU India Agreement Mode 4 Additional 40,000 Indian workers to get job in EU
Who will benefit EU or India

Since 2007, India and European Union have been negotiating a bilateral trade and investment agreement.

The details emerged in a leaked copy of the EU/India Free Trade Agreement, which is due to be signed later this year.
It was first initiated by Former Trade Commissioner Lord Mandelson in 2007.

February - India and EU summit was held in New Delhi.
After that joint statement was issued which was not clear, was very ambiguous.

What are the provisions of this EU/India Free Trade Agreement.

1. To increase the business between India and EU. [ Export Business ]

2. EU has offered Mode 4 to India.

3. Mode 1 means cross-border service supply

4. Mode 4 means movement of natural persons

5. Mode 4 will allow Indian companies to bring temporary workers into the EU.

6. The EU has proposed that, overall, 40,000 Indian workers will be admitted without any labour market test as to their impact on the resident workforce.

7. The proposal is for each member state to take a proportion of the EU commitment.

8. Germany will admit only 8000 workers.

9. UK will admit 12,000 workers

10. UK will get more Export Deals more business in India.

11. The Indian migrants, who can live and work in Britain for six months, will be in addition to people given visas under Britain’s supposedly strict immigration cap.

12. A six month period means no tax or National Insurance will be paid in the UK.

13. Visas would be issued under the -so-called ‘International Agreements’ category of the immigration system.

14. Because of Mode 4 offer Indian IT professional will benefit.

15. In the EU/India FTA, ‘Mode 4’ labour access for transnationals to bring in their own ICTs, as well as to supply labour for any other firm

In exchange What EU will get because of this agreement?

1. FDI in Banking services up to 74%

2. Britain to land lucrative export deals.

3. India should provide full national treatment to wholly owned subsidiaries of European banks incorporated in India, including removal of any numerical ceilings on number of local branches.

4. India is expected to commit granting to European banks a number of branch licenses per year which amounts to 50% of all new branch licenses awarded in India in the given year, but not less than 10 licenses per year.

5. Multi brand Retail – 51% FDI

6. Opening of Legal services for EU professionals

7. Single Brand 100% FDI recently 100% FDI in single brand allowed by India

The above details are part of leaked trading agreement between India and European Union.

Agreement is not signed by Indian and European Union and it may get signed in future.

As discussions are going on many conditions of the agreement will change.

Few websites has reported that UK is opted out of this agreement.

If the agreement is signed I do not know who will benefit and but from above few conditions I think only Indian and European poor and middle class citizens will suffer.

Suppose UK Company got a branch office in India.
Then that that company will hire Indian cheap labor that will go to work in UK and UK citizens will lose job.

In India what will happen if tax heaven country banks open the branches in India. So it will become easy for corrupt Indians to deposit their black money in such banks.

But if agreement is signed property there will be a win win situation for EU and Indian citizens.

Reality views by sm –

Friday, March 02, 2012

Tags – EU India Trade Mode 4 Mode 1 leak document agreement


Destination Infinity March 02, 2012  

I think they will make changes to it before it is submitted. I think it will benefit both economies. Any idea why they are insisting on more banking sector deregulations?

Destination Infinity

kaykuala March 02, 2012  

Trade and Labor are heavy stuff to comment on. It involves policies which are often stained by political considerations.


SM March 02, 2012  

Destination Infinity, thanks.

Thangaraj March 03, 2012  

What types of jobs are they and what are all the qualifications needed

sm March 03, 2012  


Its not clear and i think all type of jobs