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November 07, 2009 11:03 AM
India, EU Leaders Hope For FTA In A Year Amidst Differences
NEW DELHI, Nov 7 (Bernama) -- India and the European Union Friday hoped of clinching a free trade agreement in a year, but non-trade issues like labour standards and environment remain as sticky negotiating points, the Press Trust of India (PTI) reported.
Indian Prime Minister Manmohan Singh reviewed the progress on the negotiations for a Bilateral Trade and Investment Agreement with Swedish Prime Minister and EU Chair Fredrik Reinfeldt and European Commission President Jose Manuel Barroso at the 10th India-EU Summit here in Indian national capital New Delhi.
"We have expressed the hope that the negotiations can be completed in one year," Singh said addressing a joint press conference with Reinfeldt and Barroso.
While the three leaders underscored the importance of the market-opening pact for helping global economic recovery, differences on the scope of the agreement were clear at the media briefing by Indian Commerce and Industry Minister Anand Sharma and EU Trade Commissioner Catherine Ashton later in the day.
"...so far as the trade agreement negotiations are concerned, these issues (labour standards and environment) come into play only in the sense that we are seeking...a good opportunity for our workforce," Ashton said.
But Sharma was categorical. "Here we are talking of trade in investment and services. No other extraneous issues are part of the negotiations," he said.
While, the EU agreed that UN Convention was the right platform for the climate change issue, it remained concerned on other environmental areas like water.
India and the 27-nation bloc have been engaged in talks for the last three years to conclude a bilateral trade and investment agreement, aimed at breaking duty barriers to the mutual trade that aggregated US$80 billion in 2008-09.
Wide differences on the scope of the negotiations have stalled the pact. India is strongly opposed to inclusion of "extraneous" issues like labour standards and environment, which the EU wants to get addressed.
Sharma, in his meetings with Ashton and Swedish Trade Minister Eva Bjorling, said if the bilateral relations are put on a fast track through a pact mutual trade can leapfrog to US$200 billion by 2013.
The 27-nation EU bloc is India's largest trading partner and the European industry is keen on tapping the growing Indian market.
However, it is facing political pressure from member countries, which want the trade to address the social issues as well.
India has been opposing linkages between trade and social issues stating that these are best left to other multilateral platforms like the International Labour Organisation.
-- BERNAMA
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