FTA/CEPA/Trade Pacts

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India-EU FTA to be stitched up within this year

Union Commerce and Industry Minister Anand Sharma on Monday said talks between India and European Union had been intensified in an attempt to stitch up a free trade agreement (FTA) within this year.

This was deliberated upon during the bilateral meeting Mr. Sharma had with the visiting Ireland Minister for Enterprise, Jobs and Innovation, Richard Bruton Ireland. "Both India and EU are committed to a balanced and ambitious agreement within this year," he said after the meeting.

As many as 12 rounds of negotiations have been completed for reaching the FTA since 2007, which is also known as the Broad-based Trade and Investment Agreement (BTIA). Officials said that almost 90 per cent of the bilateral trade in goods and services would be covered under the pact, by far the most ambitious by India. Besides, mutual policy and investment rules would also be relaxed. With bilateral trade in goods at euro 53 billion (in 2009) and euro 16 billion in services, EU is India's largest trading partner.

"It is hoped that this agreement will lead to increase in opportunities for market access in both goods and services for each other," Mr. Sharma said.

Differences persist on opening of the market by India on auto and auto components, wines and spirits and agriculture besides the EU demand for stricter enforcement of intellectual property rights by New Delhi. India has already signed FTAs with the Association of South-East Asian Nations (ASEAN), Japan and South Korea, while it is in advanced stages of negotiations for the same with individual members of ASEAN like Malaysia and Thailand.

Mr. Sharma and Mr. Bruton also reviewed the state of bilateral relations between India and Ireland. Bilateral trade was only $525 million in 2009-10, lower than $688 million 2008-09.

"Between April and December 2011, we see positive signs as exports from India to Ireland grew by 1.45 per cent," Mr. Sharma said.

The Hindu

 

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http://www.business-standard.com/in...iscuss-fta-to-boost-bilateral-trade/132609/on



India, Turkey to discuss FTA to boost bilateral trade

 

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http://www.business-standard.com/in...iscuss-fta-to-boost-bilateral-trade/132609/on



India, Turkey to discuss FTA to boost bilateral trade

Turkey today said it will discuss opening up of their markets with India under a free trade agreement (FTA).

"We will be discussing issues relating to non-tariff and tariff barriers under FTA with Indian authorities," Turkish Trade Minister Zafer Caglayan said here in his address to India-Turkey Business Forum.

Both the countries are exploring the possibility of FTA to boost bilateral trade.

The current two-way commerce is $3.14 billion and experts said an FTA between the two would significantly enhance the trade.

Major imports from Turkey comprise minerals, fertilisers, nuclear reactors and machinery, while exports include pharma, man-made yarn and electronic goods.

Do we import nuclear reactors and machinery from Turkey?

 

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India, EU to expedite trade talks

India and the 27-nation European Union (EU) on Friday vowed to "expedite" talks to conclude a trade deal, even as both sides missed yet another deadline to sign the ambitious broad-based trade and investment agreement.

India and the EU have been negotiating the deal since 2007. However, successful conclusion has eluded both sides, owing to issues like slashing of import tariffs on imported European cars and wines and relaxation of the European visa regime for Indian professionals.

According to European Council president Herman Van Rompuy, the talks made "substantial progress". Though Prime Minister Manmohan Singh said the deal would be concluded at the "earliest", he did not mention specifically when.

"Our trade with Europe has reached $107 billion in 2011. Both sides have made considerable progress in the negotiations on the broad-based trade and investment agreement. There are complex issues involved, but we have agreed to expedite discussions so that we can conclude an agreement at the very earliest. We seek solutions that are practical, mutually beneficial and acceptable to both the sides," Singh said.

While the Bharatiya Janata Party said consultations were not conducted with political parties for a consensus, protests over generic drugs and patent issues were held in some parts of Delhi when the summit took place.

The EU asked India to cooperate in bringing Iran on the negotiating table over its nuclear programme, even as New Delhi plans to increase trade with Teheran by not recognising the sanctions imposed by the US and the EU. "We will share...our deep concern on the Iranian nuclear programme, and will ask Prime Minister Singh to use India's leverage towards Iran to help bring Teheran back to the negotiating table," Van Rompuy said. Singh said promoting stability in Iran, Syria, Afghanistan and Pakistan remained India's priority. "There are problems with Iran's nuclear programme. We sincerely believe this issue can be, and should be, resolved by giving maximum scope to diplomacy," Singh said.

Both sides also signed a declaration on research and innovation cooperation and a memorandum of understanding on statistical cooperation.

"I raised the issue of greater people-to-people exchanges and easier travel arrangements for tourism, businesspersons, professionals and other categories of travellers. We have agreed to continue our discussions on these matters," Singh said.

India, EU to expedite trade talks

 

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EU hopes talks for India trade pact will conclude by year-end

Clarity on duty concessions on wines and automobiles from the Indian side, visa regime for Indians from European side remain

The European Union today said it was expecting that negotiations for a comprehensive free trade pact with India would be completed by year-end though issues like duty concession on wines and automobiles were yet to be resolved.

"Yes, that is our expectation (to conclude by the year-end). There is never a guarantee but everybody is working towards that time-line," European Union Ambassador and Head of Delegation to India Joao Cravinho told reporters here.

However, clarity on issues like duty concessions on wines and automobiles from the Indian side and liberalising visa regime for Indian professionals from European side needs to be worked upon, Cravinho said on the sidelines of an interactive meeting with Members of European Parliament on India-EU FTA organized by FICCI.

"They continue to be more difficult areas (auto and wines). There has been no concrete development on these areas. We have some of the issues like visa liberalisation from our member states," Graham Watson, Chairman, European Parliament's Delegation for Relations with India, who was also present at the occasion, said.

Cravinho hoped that greater clarity is expected on the pact during the visit of Commerce and Industry Minister Anand Sharma's to Brussels in June.

"We hope when Minister Sharma goes to Brussels there will be an occasion for some clarity on the horizons. When the political leadership meets in June perhaps we can have a breakthrough," the ambassador said.

India is in talks with the EU, its biggest trading partner, since 2007 for liberalising their commerce in goods, services and investment through an FTA, officially known as Bilateral Trade and Investment Agreement (BTIA).

"Indian side is looking at tariffs that exist on automobiles, wines and spirits and so on. I hope we can get an agreement that recognises the wider common interest. We are both worried about slowing levels of economic growth if we can achieve a broader agreement," Watson said.

Indian automobile industry has apprehensions that with the free trade pact, the import duties on passenger cars may be slashed. At present, high-end passenger cars attract import duty of over 100% (basic plus other levies).

The fear is that if India agrees for aggressive cuts in these duties, there would not be any incentives for global auto majors to set up their manufacturing base in the country.

On the visa issue, Cravinho said: "We can liberalise visa regime. I hope we can significantly improve the opportunity for India to send people to EU and send services to the European companies".

EU hopes talks for India trade pact will conclude by year-end

 

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EU seeks Modi intervention to resume FTA talks | Business Standard News