Despite strong indications that a resolution to the generic drug seizure dispute between the European Union (EU) and India would be announced on Friday, at the 11th EU-India Summit in Brussels, no mention of the matter was in fact made.
Instead, Indian Prime Minister Manmohan Singh and his EU counterparts, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, focused on the fact that free trade negotiations were proceeding well and a speedy conclusion was expected by spring next year.
At a post-summit press conference, Singh said that the “last stages of this complex exercise” were ongoing, adding that a “balanced agreement would bring enormous benefits to both sides”.
When asked by Business Standard about the robust opposition to the proposed FTA by some sections of society, including small farmers and shopkeepers, the Prime Minister responded that he was confident enough that “safeguards to protect the essential interests” of these groups would be built into the trade accord.
Van Rompuy added that the FTA would be “the biggest agreement concluded by the EU and one of the biggest bilateral agreements ever”.
In a joint report on the state of play of negotiations presented to the summit, it was noted that the chapter on trade in goods was “well advanced” and that the final form would be “asymmetrical in the favour of India”.
The chapter on trade in services had made “progress” and offers were expected to be exchanged in January.
Regarding the controversial chapter on sustainable development by which EU is seeking to bind India to a range of human rights and environment commitments, a move India strongly rejects, the report merely said that discussions were ongoing to identify a basis for agreement taking into account “the interests and concerns of both sides”.
Briefing the press, Commerce Secretary Rahul Khullar said that the endgame was now in progress. “In these kinds of negotiations, it’s the difficult issues that are always left to the end and they require difficult decisions.” The incentive to come to a conclusion was however strong, since the stakes were now high, he concluded.
Explaining the absence of an announcement on the generic drug seizure dispute, he said while a broad consensus on resolving the issue had been arrived at, the lawyers of both sides were now examining the way forward in such a manner that each party’s “right to further legal recourse” would not be prejudiced.
Talks at the summit also addressed a range of other bilateral, regional and global issues. On the bilateral front, a joint declaration on international terrorism was issued which affirmed a mutual commitment to fighting terrorism.
“The London, Madrid and Mumbai attacks showed that terrorism knows no boundaries and that a common response is essential: the Joint Declaration on Counter Terrorism we have agreed today signals a clear commitment in this regard,” Van Rompuy said.
The two sides went on to discuss the situation in Afghanistan and Pakistan. Van Rompuy briefed the Indian Prime Minister about the recent conclusion of the NATO summit in Lisbon where withdrawal strategy for troops by 2014 was devised in addition to plans for the “Afghanisation of Afghanistan”.
When asked by Business Standard if EU was willing to seriously partner with India in Afghanistan despite the concerns of NATO’s key ally Pakistan, Van Rompuy chose to evade the question saying only that the EU was committed to Afghanistan for the long term.
However Vivek Katju, secretary (west), later drew the attention of reporters to the fact that in the joint declaration issued at the summit it was clearly stated that the “leaders agreed that terrorism must be combated firmly and expressed concern at the continuing existence of safe havens, including cross border dimension, ” a clear reference to Pakistan.
Another issue related to Pakistan that was raised related to the EU’s recent offer of a special trade waiver for certain Pakistani exports at the WTO. Questioned about India’s position on this matter, Prime Minister Singh replied that “European Commission officials were in touch with their Indian counterparts on the matter and it would be satisfactorily resolved.”
He continued that India supported international efforts to help flood-devastated Pakistan with “direct aid and ground assistance”. Climate change, disarmament and the global economic scenario were also touched upon during the summit.
