India-EU to combat terror and sign trade and investment accord

Helsinki, Oct 13 (UNI) Giving a cutting edge to their strategic relationship, India and the European Union (EU) today decided to immediately begin negotiations for a broad-based bilateral trade and investment agreement as Prime Minister Manmohan Singh extracted a firm assurance from the 25-member bloc to join hands with India in fighting terrorism.

The proposed trade and investment agreement would cover 90 per cent of tariff lines and trade volume, Dr Singh said, addressing a press conference at the conclusion of the 7th India-EU Summit.

The EU is India's largest trading partner accounting for a fifth of the country's trade.

The proposal for the two sides entering into a trade and investment accord was made by a high-level trade group formed by the two sides during the 6th India-EU Summit in New Delhi in September last year.

Officials here said the agreement would eventually lead to the two sides signing a free trade area accord. The officials said the two sides might finalise the accord within the next two years and implement it within the next seven years.

The Prime Minister was assisted at the summit by Commerce and Industry Minister Kamal Nath, Minister of State for external Affairs Anand Sharma, National Security Adviser M K Narayanan and Foreign Secretary Shiv Shankar Menon.

The EU side comprised Finnish Prime Minister Matti Vanhanen, in his capacity as President of the European Council, EU High Representative for Common Foreign and Security Policy Javier Solana and European Commission President Jose Manuel Barroso.

The two sides expressed satisfaction over the outcome of the Summit and adopted a 30-point joint statement, dealing with various political and economic issues.

Dr Singh, without directly naming Pakistan, appealed to the EU countries to show 'zero tolerance' for terrorism as that would send the right signal to those countries directly engaged in terrorism or which were allowing their territories to be used for terrorist activities.

The joint statement devoted a major portion to the international fight against terrorism.

''The EU and India stand united in facing the scourge of terrorism, which constitutes one of the most serious threats to international peace and security. The EU and India condemned terrorism in all its forms and manifestations, committed by whomever, wherever and for whatever purpose,''the joint statement said.

The two sides said the fight against terrorism could only succeed if it was sustained and comprehensive, adding they attached great importance to counter-terrorism cooperation in the framework of the UN and shared a commitment to universal ratification and full implementantion of all international counter-terrorism conventions and related protocols.

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