The Hindu | 16 October 2006
India must get 5% EU trade share by 2011: CII
New Delhi, Oct. 16 (PTI): India needs to strive toward becoming the second or third largest partner for European Union and increase its contribution in EU trade from the present 1.5 per cent to five per cent by 2011, industry body CII said Sunday.
This is possible through a substantive bilateral agreement with EU. India and EU have decided to launch negotiations for a Trade and Investment Agreement and this is big step toward creating a sizeable share for Indian goods and services in the market, the Chamber said in a release.
The negotiations need to be completed at the earliest and the agreement should be in force by 2011-12 in a phased manner, it said adding that Indian companies should gain meaningful access for goods and services in the 25-nation Union, which would soon expand to a 27-nation Union.
Bilateral trade in goods between India and EU in 2005-06 was Euro 49 billion, with imports contributing Euro 27 billion and exports Euro 22 billion.
Two major areas, which need deeper negotiations for meaningful access, are Mutual Recognition Agreements (MRAs) for Indian services in EU and technical standards for goods.
This would be important for any meaningful higher access through mode 4 (movement of professionals) or through Mode 1 (cross border supply), CII said.
Similar work would have to be done to identify specific non-tariff barriers that impact flow of goods and services, it added.