Brussels, 07/06/2013 (Agence Europe) - The gap is getting smaller but differences of opinion persist on some key chapters of the negotiations. New Delhi insists on having data secure nation status.
According to a source in the Indian government, quoted by Press Trust of India, “a small gap” between the two partners is still posing an obstacle to the conclusion of the negotiations for a bilateral agreement on trade and investment between the EU and India. Brussels and New Delhi are reportedly “extremely close to the finalisation” of their negotiations, but the gap - small though it be - corresponds to the most difficult issues to be settled.
The meetings in May - first on the technical level between the chief negotiators in the middle of the month, then on the political level between European Commissioner for Trade Karel De Gucht and Indian Minister for Trade Anand Sharma on the sidelines of the annual OECD meeting at the end of May - did not enable the differences of opinion to be bridged.
Last week, India asked the EU to give it data secure nation status - a vital requirement for the trade expansion of its information technology (IT) industry. While New Delhi has reformed its law on IT by adding provisions on data protection, cybercrime and the responsibility of internet access providers, the robustness of its data protection system is still considered insufficient by the European side. According to an Indian source, the EU has spoken of its willingness to set up a joint working group to look into this issue.
The parties have still not been able to plug the gap in other key chapters. While New Delhi wants an ambitious offer from the EU on temporary work visas for professionals from its IT industry, Brussels is demanding concessions from New Delhi on foreign investment in the insurance sector, on the automobile sector, on wines and spirits, and on public procurement. In addition to these files, the EU and India must come to an agreement on chapters on intellectual property and sustainable development.
The EU and India want to revitalise a trade relationship that was worth a little below €80 billion for trade in goods in 2012 (€38.4 billion in exports for the EU, €37.2 billion for India) and €20.4 billion for services in 2011. Bilateral investment exceeded €40 billion in 2010 (€35 billion for the EU). (EH/transl.fl)