Examine how bundling a Social Security Agreement with a trade pact like CETA addresses non-tariff barriers to service exports.

Q. Examine how bundling a Social Security Agreement with a trade pact like CETA addresses non-tariff barriers to service exports. (15 marks, 250 words)

Tariff cuts liberalise goods, but India's service exports—especially under Mode 4 (movement of natural persons)—are throttled by non-tariff barriers (NTBs): visa costs, qualification recognition, and the burden of dual social-security contributions. By bundling the Agreement on Social Security (Double Contribution Convention, DCC) with the India–UK CETA, both effective 15 July 2026, India tackles these behind-the-border barriers directly [1].

How the DCC dismantles service-export NTBs - Removes a hidden cost wedge: Indian professionals on temporary UK assignments previously paid social-security levies in both countries. The DCC exempts such contributions, raising the exemption window from 3 to 5 years [1]. - Improves cost-competitiveness: benefiting 75,000+ professionals and 900+ companies, it lowers the effective cost of exporting IT/ITeS, professional and financial services—sectors where India holds comparative advantage [1]. - Complements market access: CETA opens 137 UK sub-sectors (all 12 service sectors), but access is hollow if NTBs erode margins; the DCC operationalises that access [2].

Why bundling works - A twin-track legal architecture pairs tariff liberalisation (goods) with mobility-cost relief (services), signalling that services are integral, not incidental [3]. - It sets a replicable template for India's pending FTAs (EU, others).

Residual barriers - Visa quotas, degree-recognition and data-localisation issues persist, requiring separate mutual-recognition agreements.

Bundling thus converts paper market-access into real service-export gains by neutralising a key cost NTB. As India targets doubling bilateral trade by 2030, embedding mobility instruments within trade pacts should become the norm—advancing both export competitiveness and skilled-worker welfare.

(~250 words)

Sources: 1. India and the United Kingdom Unleash a Next Generation Economic Corridor — PIB — DCC exemption raised 3→5 years; 75,000+ professionals, 900+ companies benefit 2. India-UK CETA Synopsis of Key Chapters — Department of Commerce — UK opened 137 service sub-sectors across all 12 sectors 3. India–UK CETA Comes into Effect — PIB — CETA and Agreement on Social Security entered into force 15 July 2026