Talks to close a broad-based comprehensive trade pact with the European Union (EU) has reached its final stage while both sides would be sitting for another round of negotiations by the middle of this month to agree on crucial areas where there are still some gaps.
According to officials in the ministry of commerce and industry, the agreement is expected to be initialled by both parties within the next couple of months. Initialling of a trade pact by the negotiating countries indicates the intent to sign the deal by agreeing on broad areas of convergence. However, the main deal is signed after the legalities are taken care of.
Initialling of the India-EU trade pact was earlier expected to take place by April. However, in the presence of some irritants that are still hampering the talks, the process got delayed.
Some areas where there still exist a wide range of gaps are opening of India’s auto market with significant tariff reduction, duties on imported wine and spirits, EU’s insistence on stricter policy for intellectual property rights (IPR), particularly in drugs and pharmaceutical products and its consent to the provisions under the Anti-Counterfeit Trade Agreement (ACTA).
The ACTA is being formulated by a handful of developed countries in which the 27-nation economic bloc of EU is also a party, to implement stricter implementation of IPR laws. According to the developing countries, the provisions are much more stringent than what has been laid out under the World Trade Organisation (WTO) rules.
Last month while addressing the high-level Trade and Economic Relations Committee (TERC), Prime Minister Manmohan Singh strongly advised Indian negotiators to not to compromise their positions by agreeing to any obligations on IPR beyond what is mandated in domestic laws and WTO rules.
