'EU must cut non-tariff barriers'

India and the European Union need to tackle non-tariff barriers in each other's markets to fully benefit from a bilateral trade and investment agreement, to be finalised at the India-EU Summit at Helsinki on October 11-12.

A CII study shows that nearly 23.38 per cent of Indian exports to the EU are covered by non-tariff barriers, especially in carpets (86.2 per cent), textiles and clothing (65.85 per cent) and leather (31.35 per cent).

India is the EU's one of the most targeted countries, with 3.5 per cent of its exports affected, compared with a global average of 1.5 per cent.

The study showed that out of 84 anti-dumping cases initiated against exports from India, the highest percentage, 33 per cent, were from the EU.

It also accounted for 44 per cent of anti-subsidy cases.

Standards are another area of concern and sometimes differing standards among EU countries can be a cause for concern for Indian exporters. In services, the biggest hindrance to greater engagement are mutual recognition agreements (MRAs).

According to the CII, negotiations for MRAs in areas of interest to both sides should be held alongside those for the trade and investment agreement. The agreement should contain the MRAs that have been signed.