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Talks on India-EU free trade pact to start from August: Commerce Secretary Rajeev Kher |
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NEW DELHI: Talks between India and the European Union for a free-trade agreement, which had snagged two years ago on tariff and visa-related issues, could resume in August, according to commerce secretary Rajeev Kher.
"Both the sides have agreed that negotiators must meet. We have conveyed that. Sometime in August, the EU chief negotiator will be available for negotiations," Kher told reporters on Monday.
"They have also conveyed that in August they are available for talks." Negotiations with the 28-nation bloc for the free-trade agreement (FTA), called the broad-based investment and trade agreement (BITA), had started in 2007 but became deadlocked in April 2013 on issues such elimination of duties on car imports in a phased manner.
India is reluctant to ease tariff as it sees the move hurting the domestic industry. Kher said this is the right time to move on the proposed agreement as trade with the EU is shrinking. "Textiles and leather sectors are facing the beating (in the EU markets).
So, by reducing tariffs, you can get greater market access. The benefits under the Generalised System of Preferences (GSP) has also gone," he said. India exports about $2.5-3 billion worth of textiles to the EU annually.
Last month, the country's overall exports declined 20.19% from a year ago to $22.3 billion. It was the sixth straight month of fall. In 2014-15, exports were down 1.23% from the previous fiscal to $310 billion, missing the $340 billion target by a huge margin. Kher said India needs to be smarter in negotiations.
"We need to bring in craftsmanship and strategy in our negotiations, rather than generic talks," Kher, who retires on Tuesday, said. This time round, India appears to be in a stronger position for negotiations as it has already raised the foreign investment cap in insurance—a key demand of the EU— to 49% from 26%.
India will reiterate its demand for data secure nation status from the EU, which will open the grouping to the Indian IT industry. India will also seek liberalisation in terms of movement of professionals and market access for agricultural products, pharmaceuticals and textiles.
It will also press for 'Mode 4' of the proposed pact, which will allow Indian professionals to work in EU member-states, a segment where India sets to gain the most. The EU, apart from demanding lower duty on its cars, wants customs duty on wines and spirits to be removed over a five-year period.
It is no at 150%. The bloc had also asked to include labour and environment related aspects besides liberalisation in multibrand retail and legal services.
Source : economictimes.indiatimes.com
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