EU-INDIA FREE TRADE AGREEMENT NEGOTIATIONS REGAIN MOMENTUM

Negotiations for a Free Trade Agreement (FTA) between the European Union and India have regained momentum after the visit of a high level Indian delegation on 15 April led by Commerce and Industry Minister, Anand Sharma. India and the EU began the FTA talks in 2007 and they are almost six years into the negotiations.

The EU side is asking for concessions in the financial services sector, including opening up of the insurance sector for foreign direct investment (FDI) from the present 26 percent to 49 percent. The EU has also a strong interest in the automobile sector, where it is demanding the dismantling of duties, as well as asking for a stable taxation regime for wines and spirits and access to dairy products. The EU negotiators also want to obtain an assurance on the facilitation of registration of their Geographical Indicators.

On the Indian side, while seeking a good package for the IT industry, including allowing flexible movement of IT professionals, India is making it clear to the European Union that it cannot go beyond the parameters of the TRIPS (Trade-Related Intellectual Property Rights) Agreement and its laws for Intellectual Property Regime (IPR). India is also pressing the EU on the need to declare India a data-secure country as well as reaching a balanced package in the services sector. India is also highlighting the issue of market access for agricultural products, pharmaceuticals and textiles.

Both sides are intent on concluding an agreement at the earliest and the next ministerial meeting is due to take place in June. After the meeting of Indian Prime Minister Dr. Singh and German Chancellor Angela Merkel, President François Hollande of France, and UK Prime Minister David Cameron, there is a need for demonstrating pragmatism to conclude an ambitious and balanced agreement.