Despite the euro zone crisis, negotiations on India-European Union Free Trade Agreement (FTA) has almost reached the closing stages. While consensus has been achieved in some tricky areas such as wine and pharmaceuticals, negotiators are working out agreements in agricultural products and automobiles.
Chief negotiators from both sides met last week to hammer out crucial deals in areas such as rice, sugar, textiles and auto. The outcome of the meeting turned out to be instrumental to close the talks by February 10, during the India-EU Summit here.
The Indian side was represented by Rajeev Kher, additional secretary, ministry of commerce & industry, and the chief negotiator from the 27-member EU was Ignacio Garcia Bercero.
EU high representative for foreign affairs and security policy and vice-president of the European Commission Catherine Ashton was in India on a two-day visit that ended on Saturday. She met Commerce and Industry Minister Anand Sharma and both were believed to have discussed an early conclusion of the deal.
“We are at the closing stages, and have sorted out several matters. How much we can do is still a matter of negotiation. Many contentious issues have been sorted out. Some of the outstanding issues still remain,” a senior commerce department official told Business Standard.
India has demanded significant relaxation for movement of its workers and professionals in services trade, which would entail liberalisation in EU’s Schengen visa regime, said officials involved in the talks. Besides, both India and EU would need to close the gaps that still remain pertinent to tariffs and procurement. Hence, both parties have decided to step up the momentum of talks before the upcoming India-EU Summit.
So far, 14 rounds of negotiations have been held since the talks began in June 2007. The last round was held from January 12-13 here.
Sharma had recently said the agreement would give more opportunities for market access in both goods and services. Both sides had been eager to clinch this deal for mutual benefits. While the EU wants to gain more access into the Indian markets, the latter is looking at EU as an important destinations for its information technology professionals, architects, engineers, teachers and chefs.
EU had been unrelenting on their demands for more rate concessions in India’s auto sector, which has been severely opposed by manufacturers. They argue cheaper imports would lead to massive job losses in the industry.
Similar problems have risen in the wines and spirits sector. The EU has demanded for stronger implementation of the intellectual property protection norms that might affect the country’s generic drugs industry, which exports 67 per cent of its produce to other developing and poorer countries.
As much as 90 per cent of the bilateral trade in goods and services would be covered under the pact with EU, India’s largest trading partner.
