the President of the European Council, Herman Van Rompuy, and Indian Prime Minister Manmohan Singh confirmed Friday at the end of a summit between the European Union (EU) and the India their willingness to accelerate the negotiations on a free trade agreement, in the hope that a conclusion next spring. "This would be the largest bilateral exchange never concluded by the European Union agreement," recalled Herman Van Rompuy, "the European Union is the first export of the India area and India our ninth trading partner, with trade in goods with a value of around EUR 52 billion in 2009.". "We believe that this is not enough and that free trade will be a powerful engine of sustainable growth for two of the major economies, where live more than 1.5 billion men". Manmohan Singh has said that the India and the European Union should be at the forefront of the fight against the protectionist temptations.
Additional time
If being able to conclude a political agreement at the Summit on the contours of the future free trade agreement, both parties granted additional time to the negotiators. But the climate of discussion seems really positive. "I did not much a favourable outcome to récemmen t, says a European negotiator, but I became optimistic." Even if, as is the rule in this kind of very complex negotiations, the most difficult issues remain to the end. Exchanges on the property are among the more concrete advances, chemicals and textiles, noted one diplomat in Delhi, while real difficulties remain in the car and wines and spirits, two sectors where the India imposes heavy taxes on the import. Very sensitive subjects for the France.
In services, Europe considers it now has things to offer to the India, claiming freedom of movement for its skilled workers, typically its computer engineers, which may be required to move from one European country to another. But the EU would get in Exchange an opening of Indian sectors such as Bank, insurance and retail, which is not acquired.
In the European camp, there is also a beginning of opening of the India on the question of public procurement, which was blocked so far. A way forward could be to limit the field to the central Indian State, the Federated States being excluded. On the other hand, the European request to include considerations of human (child labour) rights and protection of the environment in the free trade agreement, particularly to meet the European Parliament, which must ratify the agreement, remains unacceptable to the India, who considers it of protectionist measures.
Major supplier of generics
Also remains difficult drug record. While the India has become the largest supplier of generics in the world, including for the treatment of AIDS and tuberculosis in poor countries, NGOs such as Médecins sans frontières, who were demonstrating Friday near the European Council, are afraid that the free trade agreement, which contains strict intellectual property rules, interferes with the production of these drugs in India. For its part, the Commissioner for trade, Karel de Gucht, said that the conflict in the WTO between the EU and the India on generic drugs had been abandoned, the EU promised to amend the customs codes so that there is more confusion.
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