Brussels, 26/07/2012 (Agence Europe) - The EU and India are facing difficulties with the services side of free-trade talks, which may prevent a deal being signed this year.
The talks on access to the services market under the trade and investment deal between the European Union and India have taken an unfavourable turn, making it unlikely that the November deadline will be reached, explained Indian newspaper Business Standard on 19 July.
The EU says that India is not offering as much in the way of service concessions to the EU as it has to South Korea and Japan, but New Delhi says the opposite. The EU is reported as saying that no further progress can be made until it gets a good deal for multi-brand retailing, insurance, banking, postal services, parcel delivery, legal services and accountancy. The Indian government is said to be working on changes in the field of multi-brand retailing, insurance and civil aviation, but is not prepared to budge on banking, postal services, parcels and legal services, according to officials from the Indian Trade Ministry interviewed by the Business Standard. Long talks were held on this issue in Brussels on 26 June between EU Trade Commissioner Karel De Gucht and Indian Trade Minister Anand Sharma.
India wants the EU to lift the 20% threshold in the safeguard clause for the Mode-4 quota of the World Trade Agreement on trade in services (AGCS) relating to the free circulation of Indian professionals under the visa relaxation scheme. New Delhi wants the EU to recognise India as a nation with robust data protection laws, which would allow Indian companies to win big government contracts. The EU has decided to investigate whether India meets the “robust law” requirements.
Although other sensitive issues need to be agreed upon, like cars, public tender, wines, spirits and sustainable development, the EU and India still hope to reach agreement in the autumn. BITA is planning to liberalise trade in goods, with a reduction in customs duty on 91-92% of European goods (as opposed to 95% of Indian goods), services, investment, public procurement, health and plant health rules, competition, industrial property, customs and trade facilitation. (EH/transl.fl)