106 SOCIAL SCIENTIST years; nor should we overlook the deep American sentiments aroused recently against the invasion of Japanese capital in their country. 4. Services The Dunkel Draft on services opens up a wholly new avenue in world trade for controlling our economy. Upto now, only trade in goods was regulated by international conventions. There are no universal rules or disciplines for trade in services. The United States has led the drive to establish such rules for services mainly because it wants to promote the entry of its service corporations in banking, insurance, telecommunications, travel, transport, etc. in foreign countries. In these areas the US corporations have distinct comparative advantage. Such entry will at the same time undermine the public utilities and national enterprises which have played a central role in the developing countries (and indeed in Western Europe). The Dunkel Draft would force India to open its domestic markets for penetration by the multinational corporations. The entry of their service corporations will bring in its train the import of a package of equity capital, other equipment and other goods. While forcing us to open our doors to the foreign service companies, the Dunkel Draft is silent on areas in which India has a comparative advantage, e.g. in consultancy services, in professional skills and even in labour services. It is argued that these areas are regulated by the immigration laws of the developed countries. 5. Textiles It is stated that India will get considerable advantages from the Dunkel proposals on textiles. We may examine them briefly. There will be no serious opening up of the Western markets in textiles during the transitional period of some 10 years. The Dunkel Draft postpones any serious opening up of trade in textiles to the end of the transitional period. Even then it offers only an uncertain liberalization in early 21st century. If this is offered as a concession, it is nothing less than a joke on the negotiators from the developing countries. 6. Multilateral Trade Organization (MTO) The most scandalous provision in the Dunkel document is the creation of a Multilateral Trade Organization (MTO). This institution in collaboration with the IMF and the World Bank will have the power to review our trade policies and practices. It will be empowered to impose retaliations and cross sanctions. It will no longer be necessary for the United States to use Special 301 for bilateral pressure of sanctions. The GATT will take this task over and univcrsalize it— applicable to all countries. The GATT will thus be added as another instrument for enforcing IMF and World Bank conditionalities for structural adjustment. The