Brussels, 24/04/2013 (Agence Europe) - The EU says it is ready to make an ambitious offer on temporary work visas for Indian professionals in order to help finalise an agreement with India. However, Brussels is demanding concessions from New Delhi on cars, wines, spirits and public procurement.
“We are very conscious that for India it will not be possible to conclude an agreement unless there are improved conditions for Indian highly qualified professionals to provide temporary basis service in Europe. And we are ready to make quite an ambitious offer. In the same way, we are expecting India to take some politically difficult decisions which are important for Europe. We are also ready to take politically important decisions which are important for India”, said the chief European negotiator, Ignacio Garcia Bercero, quoted by Reuters on 22 April, just after the meeting between European Commissioner for Trade Karel De Gucht and Indian Minister for Commerce and Industry Anand Sharma on 15 April.
In adopting an ambitious set of reforms for its distribution and banking sectors at the end of 2012, India gave reasons for hope that the free trade negotiations with the EU might be unblocked before India's general elections in 2014. The services sector is the key element of the negotiations - with the EU wanting, in particular, a good deal in the retail trade, insurance and banking services sectors. Although it has already made concrete steps to reform the first two of these sectors, New Delhi still has to make its commitments in the banking sector tangible. India has offensive interests for its ICT industry and its ICT qualified experts. It expects the EU to lift the 20% threshold in the safeguard clause introduced in the mode-4 tariff of the WTO agreement on trade in services (GATT) relating to the free movement of Indian professionals, as part of a relaxed visa regime.
This is an expectation that the EU is ready to meet - provided that New Delhi makes concessions on sensitive matters such as cars (both passenger vehicles and spare parts), wines, spirits and public procurement. “It is very clear that for us issues like cars or wines and spirits are extremely important in terms of our export interest to India. Besides, we believe that there is certainly enough room in India to allow cheaper European imports of those products in the Indian market”, Bercero stated. In addition, the EU and India must also come to an agreement on chapters on intellectual property and sustainable development.
The European and Indian negotiators are due to meet in New Delhi in May to settle the areas of dispute that are blocking an agreement. This will be ahead of a new ministerial meeting in June. The EU and India want to reinvigorate a trade relationship that was worth €80 billion in trade in 2011 (€40.4 billion-worth of exports for the EU, €39.4 billion for India) and €20.4 billion for services. Bilateral investment was over €40 billion in 2010 (including €35 billion from the EU). (EH/transl.fl)