Fine balance needed on market access

India and the European Union (EU) have agreed that a “fine balance” needs to be arrived at on market access on both the sides, an issue that is bogging progress in the tortuous negotiations for a free trade agreement.      

Commerce and Industry Minister Anand Sharma and EU Trade Commissioner Karel De Gucht concluded another round of talks yesterday at the European Commission headquarters in Brussels, which the Commission said “provided a renewed momentum to bring the negotiations forward”.   

The next ministerial meeting on the ongoing India-EU Broad-based Trade and Investment Agreement  is scheduled for June, as experts and chief negotiators will remain engaged.  

In his talks with Gucht, Sharma underscored the importance of getting a good package on services, including declared interest in IT sector and movement of Indian professionals.  

He also emphasised the need to declare India a data- secure country. Both the sides sought a complete understanding on a balanced package in the services sector. Other issues of market access for agricultural products, pharmaceuticals and textiles were highlighted by Sharma. The EU conveyed its strong interest in financial services, automobile sector, wines and spirits and cheese.

The EU also sought assurance on the facilitation of registration of their Geographical Indicators.  

Sharma reaffirmed the stated position that India cannot go beyond the parameters of the TRIPS Agreement and Indian laws for Intellectual Property Regime in the ongoing negotiations for a trade and investment agreement.

India is demanding for a data secure status from the EU. This has been preventing flow of outsourcing business to India and free flow of sensitive information to India such as patient information for tele-medicine.   

The EU also wants hike in the FDI limit in the insurance sector to 49 per cent from the current 26 per cent, a Bill for which is pending with Parliament.      India is in talks with the EU, its biggest trading partner, since June 2007 for liberalising their commerce in goods, services and investment through an FTA.