Report

152 QUANTIFICATION OF BENEFITS FROM ECONOMIC COOPERATION IN SOUTH ASIA
commitments have also been undertaken with regard
to temporary movement of medical professionals
engaged in medical or dental services. Commitments
have however been undertaken in respect of ‘specialists’
who are employed in a juridical person having
commercial presence in India.
As will be seen in the discussions later in this chapter,
the domestic regulatory framework in India allows for
100% FDI for hospitals. The regulatory framework
also allows for limited entry of foreign qualified doctors
and dentists.
The Maldives 9
Maldives has not undertaken any commitments on
Health and Medical services under the GATS as yet.
However, as will be discussed later in this chapter, the
domestic regulatory regime in fact allows for foreign
participation in the delivery of health services, and also
allows for limited entry of foreign qualified doctors
and dentists.
Nepal 10
Nepal’s schedule of commitments under GATS specifies
that with regard to Hospital services it has no restrictions
with regard to delivery of services under Modes
1 and 2.
Mode 3: With regard to Mode 3, it mandates
incorporation in Nepal and allows for maximum
foreign equity capital of 51%.
Mode 4: Under Mode 4, the schedule specifies that
foreign medical experts can work in Nepal with the
permission of the Nepal medical council for a maximum
duration of one year. Additionally, the horizontal
section states that ‘specialists’ employed in a juridical
person having commercial presence, will be given access
for an initial period of 3 years, which may be extended
to 7 and a maximum of 10 years. Other categories of
natural persons who will be provided entry are ‘service
salespersons’ and persons responsible for setting up
commercial presence.
As discussed later in this chapter, the regulatory
framework allows for 100% FDI for hospitals in Nepal.
Pakistan 11
With regard to both Hospital and Medical and Dental
Services, Pakistan’s GATS schedule specifies as follows:
Mode 1: Mode 1 is unbound because of what Pakistan
perceives is “lack of technical feasibility” in crossborder
supply of such services.
Mode 2: There are no restrictions on Mode 2.
Mode 3: Under Mode 3, incorporation is necessary and
foreign participation up to 51% is allowed. Mode 3 is
further subject to Pakistan Medical and Dental Council
regulations.
Mode 4: No commitments have been undertaken with
regard to Mode 4 for the Health sector. The horizontal
section states that specialists who are employed by a
juridical person having commercial presence, will be
provided access. The quota for such specialists is 50%
of the requirement of the juridical person. The time
period for the access however is not specified.
As discussed in the subsequent section, the
framework for FDI in Pakistan allows for 100% FDI
for hospitals. Movement of foreign doctors also seems
to be possible under the regulations.
Sri Lanka 12
Sri Lanka has not undertaken any specific commitments
under the Health or Medical/ Dental services subheadings.
However, from its horizontal commitments,
the following commitments can be inferred:
Mode 3: Foreign investment of up to 40% of equity in
a company proposing to carry on Medical and Dental
services is allowed under the automatic route. Any
investments above this limit require approval from the
relevant investment authority in Sri Lanka.
Mode 4: The horizontal section of the schedule specifies
that movement of natural persons is subject to Sri
Lankan laws on immigration, consumer laws, and other
relevant laws and regulations, and that aliens seeking
to work will need to acquire a work permit. Categories
9
See, GATS/SC/101, 30 August 1995, available at www.wto.org
10
See, GATS/SC/139, 30 August 2004, available at www.wto.org
11
See, GATS/SC/67, 15 April 1994, available at www.wto.org
12
See, GATS/SC/79, 15 April 1994, available at www.wto.org