India takes up subsidy, anti-dumping issues

India today asked the European Union for greater access for its agriculture and marine products, easier movement for its professionals and reduction in anti-dumping and anti-subsidy action. The EU urged New Delhi to open up its markets further and focus on multilateral negotiations to increase economic gains.

"Universally, EC's trade defence actions are limited to around half a per cent of EU's global imports, but in India's case three-and-half per cent of our exports face such action "" seven times the EU average," Commerce and Industry Minister Kamal Nath said at the Sixth India-EU business summit organised jointly by CII and FICCI.

Considering a large part of India's population is below 25 years, skilled and literate, Nath said EU would have to look at outsourcing as a 'business cooperation model" which would benefit both sides and increase competition. He said India was not asking for easier immigration but easier movement of its professionals.

Inviting investment in food processing and infrastructure, Nath said foreign direct investment inflows from the EU countries in the last 14 years was just $7 billion, barely a fifth of the total inflow into India.

EU Trade Commissioner Peter Mandelson said India should join hands with the EU to use the next 13 weeks up to the next WTO ministerial in Hong Kong to "think and act with boldness and make the case for greater openness to the rest of the WTO membership."

"I think India will be a benefit by greater openness. The opportunity to achieve that lies in the Doha round and the chance it offers to multilaterlise India's essential domestic reforms. India gains from the multilateral WTO system. Multilateralism defends India's interests," he said.

Mandelson pointed out that India had gained from its reduction of tariff and non-tariff barriers. "India has grown to be a major investor in other countries. Its FDI stock has grown from $0.6 billion in 1996 to $5 billion today," he said.

He added that India was the number one beneficiary of its new Generalised System of Preferences (GSP) out of 160 countries. "Our new scheme gives ample room to Indian exports to grow, particularly in view of the graduation of and limitations imposed on China. India is now on the same footing as Pakistan for clothing," he said.

Alan Johnson, the UK Minister for trade and industry said offshoring to India was benefiting not just the British companies but also encouraging Indian companies to offshore in Europe. He cited the instance of HCL Technologies which was now the largest contract centre employer in Northern Ireland providing call centre services for British and European companies.

Similarly, a UK-Dutch company Logica CMG operating from Bangalore had recently won a contract to provide real time gross settlement systems to the Reserve Bank of India, he added.