India as needy of free-trade pact as us: EU ambassador

While declaring that negotiations for a free trade agreement (FTA) between India and the European Union (EU) are on target for completion this October,the EUs ambassador to India told reporters on Monday that India stands to gain as much from an FTA with the EU as the EU does,if not more. Citing negotiations over market access liberalisation,Danielle Smadja said the EU is hardly acting at the behest of Indias Ministry of Commerce and Industry,which has painted a picture of authority and control over inter-sessional negotiations.

Experts and chief negotiators closed the 9th round of FTA dialogue in Brussels,Belgium,last week with marked progress being made at both levels,said Smadja without detailing the sectors where breakthroughs may have been made. But while laying out the roadmap for further dialogue between the countries trade leaders,Smadja made sure to point out exactly how much India stood to gain from the culmination of a trade deal. Its not only the EU thats looking for a strong and robust IPR regime… its not just the EU thats interested in gaining market access, Smadja said,while insisting that FTA negotiations are on target for completion by Octobers ministerial meeting. The EU is definitely interested in Indias services,whether it be insurance or telecom,but India is also interested.

In recent weeks,the MoC has been clear in its position on many issues,especially EUs insistence on including labour and environment clauses into the FTA,while holding legal threats over the EU after Dutch customs unlawfully seized Indian generic drugs headed for Brazil last year. In March,Commerce Secretary Rahul Khullar told an audience at an ASSOCHAM seminar on FTAs that Indias mercantilist mentality has the world chasing Indian FTAs. Pertaining to the EU,Khullar has told The Indian Express that when youve come to talk to me,you wont push me into doing something Im not ready to do.

Although both sides are painting a picture of progress,the same issues of labour and environment which divided the table when negotiations began in 2007,remain divisive issues today. Although Khullar and Commerce and Industry Minister Anand Sharma have been adamant in their declaration that social issues will not be part of these negotiations,Smadja remains similarly stubborn. This issue of trade continues to be discussed by chief negotiators and each time it comes up,the EU further explains our position, she said. All I can say is that India took note of our explanation; If we are serious about an agreement,we have to be serious about all the sensitivities.