India, EU to talk duty sops

India is expected to raise a number of bilateral issues, including the continuation of the generalised system of preferences (GSP) on textile exports, during European Union Trade Commissioner Peter Mandelson's first visit to the country later this month.

Mandelson would attend a programme organised by the Confederation of Indian Industry in Kolkata on January 13 before arriving in Delhi for bilateral discussions the next day, officials said.

Although World Trade Organisation issues are expected to figure prominently in the discussions, India is expected to use the opportunity to take up issues like GSP.

"The draft, set out by the EU allowing for GSP benefits up to 12.5 per cent of total exports, is favourable to India. Countries like China have already graduated from the GSP regime but India still enjoys duty benefits under the scheme. We will be seeking an assurance that the share is not diluted to 10 per cent," an official said.

Some European Union countries have been demanding a reduction in the limit -- to 10 per cent -- which will lead to India graduating out of the GSP. So long as the textile exports of a country to the EU are within the limit, the country will get duty benefits.

Officials said India was also likely to raise the issue of harmonisation of standards with the European Union since some Indian exports were having to conform to separate standards in different countries.

"Indian export consignments also face a peculiar problem that if they do not meet the standards, they are destroyed. We want to request them to return such consignments or hold them back instead of destroying them," an official said.

Other bilateral issues, including the export of meat and basmati rice, are also likely to figure in the talks.