INDIA AND EC
DISCUSS MARKET ACCESS ISSUES
OUTCOME
OF INDIA-EC JOINT COMMISSION 12th SESSION
The
12th Session of the India-EC (European Commission)
Joint Commission was held in Brussels on 10th July,
2002. The meeting was chaired by the Commerce Secretary, Shri
Dipak Chatterjee, on the Indian side and Mr. Guy Legras, Director
General, External Relations from the European Commission side.
India-EC Joint Commission is an important bilateral forum which
looks in to the trade, economic and development issues between
India and the EU. The meeting was a build up to the third India-EU
Summit, which is scheduled to be held between the EU Presidency
and the Indian Prime Minister in Copenhagen on 10th
October, 2002.
Discussion
on market access issues and identification of the deliverables
for the next summit were the highlights of the meeting. India
raised the issue of the concessions given by EU (European Union)
under the drug control window of its GSP (Generalised System of
Preferences) to Pakistan which has hurt the Indian textile and
clothing industry and is likely to cause trade diversion of over
Euro 250 million from India. The meeting discussed the possibilities
of a limited bilateral deal to compensate the Indian textile and
clothing industry for the trade loss/diversion. The Indian side
also raised other issues of market access including approval of
its exporting units for various products. India has sought approval
of exporting units for milk products, egg products, gelatine,
fruits & vegetables, duty reduction on flowers and gherkins,
approval of accreditation agencies for organic products and approval
of certain new grape varieties. Various hurdles to market access
arising due to SPS (Sanitary & Phyto-Sanitary) and health
related measures also were discussed with a view to find solutions.
A working group of the two sides will meet in October 2000 to
resolve these issues.
The
Joint Commission agreed to work out details of a new programme
having an outlay of about Euro 15 million which would assist specific
projects for promotion of bilateral trade/investment between India
and EU. This is likely to be fructified at the Indo-EU Summit
in October 2002 at Copenhagen.
A scholarship programme for affording opportunities
to Indian and EU students and academia was also agreed to be launched
at the next Summit. A possible launch of negotiations for a customs
agreement between India and EU will be another important issue
on which a decision is expected at the next Summit. The
Joint Commission had authorised joint studies of four specific
sector namely food processing, IT, engineering and telecommunications
last year. It was decided that a joint working group will identify
the actions to be taken to facilitate trade and investment on
the basis of these studies and present it to the next Summit.
The studies were carried out jointly by the industry on both sides.
A similar study of four new sectors namely financial services,
bio-technology, textiles and energy is also proposed to be launched
this year. The decision of the Joint Commission will form the
basis of action for the next political Summit between India and
EU at Copenhagen in October 2002.
