PM panel to review India-EU free trade pact on Wednesday
PTI | Apr 4, 2011
PM panel to review India-EU free trade pact on Wednesday
NEW DELHI: Ahead of crucial talks on India-EU free trade agreement in Brussels, the Prime Minister’s Trade and Economic Relations Committee (TERC) will review the issue on Wednesday.
While the panel headed by the Prime Minister is in favour of inking Broad-based Trade and Investment Agreement (BTIA), the officials from both sides have remained engaged in resolving difference on key issues like opening of markets in auto and auto components, wines and spirits, and intellectual property rights and services.
However, according to highly placed sources, the two sides have agreed on four of the 12 key areas which have been in the negotiations since June 2007 for BTIA, aimed at freeing vast markets of about two billion people to mutual advantage.
While the European Union (EU) wants India to eliminate or drastically reduce tariff on completely built units (CBUs)and completely knocked down units (CKDs) in passenger cars, the Indian negotiators are resisting the demand to protect the domestic industry.
If the EU demand is considered, import duty on CBUs will significantly be lowered from over 100 per cent at present.
Besides EU also wants India to open its services sector including foreign direct investment in retail, banking and other financial services.
The 27-nation bloc has also been pressing India to agree for a intellectual property rights regime over and above what the country has agreed multilaterally in the World Trade Organisation (WTO).
Indian and EU officials are already engaged in a two-day meeting here for the proposed pact. Commerce Secretary Rahul Khullar is scheduled to visit Brussels later this week to discuss the pact with his counterpart.
The PM panel is also likely to clear negotiations for India-Australia FTA which has already been recommended by the joint study group.
The sources further revealed that the PM’s Trade and Economic Relations panel is also likely to adopt the joint study report for a market opening pact between India and Indonesia.
The Joint Study Group has recommended that a Comprehensive Free Trade pact between the countries "have long term implications as the constitution of trade between the two countries are complementary in nature".
The panel would also examine setting up a joint study group for a possible free trade pact between India and the Common Market For Eastern and Southern Africa (COMESA).
The country has already implemented free trade pacts with South Korea and ASEAN and has inked comprehensive pacts with Japan and Malaysia.
