India hopes agreement in two years

Helsinki, Oct 13 (UNI) India is looking forward to an early conclusion of the negotiations as recommended by the High Level Trade Group set up last year for a broadbased Trade and Investment Agreement with the European Union.

Speaking to the press at the conclusion of the seventh India-EU summit, Prime Minister Manmohan Singh said the potential for expansion of ''our trade and investment is enormous and both have agreed to work jointly to double our trade over the next two years.'' The EU-India summit generated a serious political commitment to increase bilateral trade and economic cooperation and to tackle barriers to trade and investment. Within the Joint Action Plan the Summit launched a High Level Trade Group and mandated it to explore ways and means to deepen and widen the bilateral trade and investment relationship.

The high level group met five times and engaged in substantive discussions on a wide range of subjects. The broader trade policy context was examined and information was exchanged on the EU's and India's bilateral trade agreements with other parties. The group also discussed a number of specific areas that would be relevant to any future bilateral trade and investment agreement.

Both parties are convinced that subsantial benefits could be achieved through elimination of non justified non tariff obstacles to trade. It also analysed the importance of service sector to both the EU and India and cosnidered the scope for negotiations of FTA in services. There was unanimity on the principle that any such agreement should build upon the outcome to which both partners are fully omitted and that any agreement should be compatible with generalised system of pereferences.

The Group noted India's interest in including provisions on investment protection and promotion in any possible future bilateral trade and investment agreement.

The Group recommended that an expanded trade partnership be developed through the negotiation of a broad based trade investment agreement relationship between the EU and India to a higher plane.

Commerce and Industry minister Kamal Nath said there is a synergy in the India-EU relations.

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