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Europe Daily Bulletin No. 10132
Contents Publication in full By article 27 / 32
GENERAL NEWS / (eu) eu/india

Free trade agreement suspended pending political decisions

Brussels, 04/05/2010 (Agence Europe) - On 4 March, in New Delhi, European Trade Commissioner Karel De Gucht and Indian Trade Minister Anand Sharma undertook to conclude talks for an EU/India bilateral free trade agreement (FTA) by the next bilateral summit in October. In parallel to intensified bilateral contacts at the level of experts and senior officials, De Gucht and Sharma are expected to meet again in July to lift the last political obstacles to the conclusion of an agreement. It is confirmed at the European Commission that an additional commitment at the political level, and compromises agreed by both sides, will be needed to achieve this. Last week, the 9th session of talks for an EU/India FTA allowed further progress to be made on rules of origin, trade facilitation, tariff liberalisation, public procurement and trade defence. However, there are still problems to be resolved in the chapters on customs duties, the trade in services, the opening of public procurement and sustainable development. This last chapter, which requires social norms to be included in the FTA, as requested by the EU (especially on child labour, environmental aspects), is the trickiest point and must still be discussed at length, Indian sources confirm. At the risk of seeing a final agreement fade into the distance, the parties should quickly agree on a form of language to their mutual satisfaction so that the FTA effectively takes account of the question of social norms - that the Indian business world refuses to include in the agreement but on which the Parliament refuses to be swayed. (E.H./transl.jl)

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