Dublin, 18/04/2013 (Agence Europe) - Europe and India are giving themselves extra time in which to smooth out their differences on the sensitive chapters of their talks.
The ministerial meeting on 15 April, in Brussels, between Commissioner Karel De Gucht and his Indian counterpart, Anand Sharma, failed to make a breakthrough in EU-India free-trade negotiations with a view to reaching an agreement this year. De Gucht and Sharma held a positive meeting that gave fresh impetus to taking talks forward, the spokesman for the trade commissioner, John Clancy, said after Monday's meeting. He added that they trust further progress will be made in coming months. Both men will meet in June to put the final touches to a final package, hoping to announce an agreement has been reached during a bilateral summit in the autumn.
However, in addition to the political signal sent out by the Commission and New Delhi that positions could come closer in coming months showing a resolve to attain results, scepticism is gaining ground over the possibility of the partners reaching an agreement before the perilous Indian general election in 2014. Unlike the huge media coverage for the talks with North America, the talks between the EU and India, launched in 2007, have moved forward discreetly over the past year to come closer to a final package thanks to reforms undertaken by New Delhi in the distribution sector and the banking sector.
Although the services sector is the key component of the talks, the parties must also settle sensitive issues, such as the automotive industry, not only for passenger cars but also for spare parts, wines and spirits, and public procurement. They must also agree on a chapter relating to intellectual property and a on a clause relating to sustainable development.
Many differences remain on these issues. The proposals put forward by India to reduce the very high customs duties imposed on European exports of cars and alcohol do not meet with the Commission's satisfaction. A promise has been made that the Indian insurance sector will be opened up, although this comes up against considerable resistance on the part of the Indian business world. India, for its part, is not pleased with the EU's proposals on market access to its industry and ICT professionals, and the intellectual property chapter and access to medicines pose a problem.
Both partners are now engaged in a race against time. The EU should very soon devote all its energy to complex free trade talks with the United States and Japan, for which the stakes and potential gains are far more sizeable. (EH/transl.jl)