India-E.U. iron out differences in trade matters

By Alok Mukherjee

LISBON, JUNE 28. India and the European Union today managed to iron out some differences in trade-related matters, particularly in the case of textiles. Under a memorandum of understanding signed in 1994, E.U. was expected to release an export quota of 8,000 tonnes of textiles to India every year. However, it released only 50 per cent of the quota, pending differences on tariff issues, especially on those pertaining to exports from E.U. to India.

The matters was resolved today during the summit meeting where the Minister for Commerce and Industry, Mr. Murasoli Maran, met the E.U. Trade Commissioner, Mr. Pascal Lamay. At this meeting, it was decided that 3,500 tonnes quota would be immediately released while differences over 71 tariff lines would be resolved within three months. These 71 items are for exports from the E.U. to India and the E.U. expects India to lower tariffs on them.

There was a discussion on the reduction in India's sugar export quota as well. Over the years, the quota has been reduced from 25,000 tonnes to 10,000 tonnes and India today sought restoration of the full quota. Apparently, the E.U. response was that any quota unutilised by other sugar exporting countries would be released to India.

During the meeting, India also proposed the setting-up of a committee to look into bilateral trade irritants. However, Mr. Lamay went further to suggest that the two should directly communicate on such matters as a committee would take time to resolve pending issues.

Apart from trade matters, India and the E.U. also signed an agreement on cooperation in civil aviation. This agreement was signed by the External Affairs Minister, Mr. Jaswant Singh, and the E.U. Commissioner for External Relations, Mr. Chris Patten. The agreement envisages a grant of $32 millions for upgrading and training Indian personnel in areas such as airworthiness, airline management, air traffic management, product support, cooperation in technologies for aerospace industry, pilot and instructor training and airport services.

Two other agreements signed today pertained to the setting-up of a joint working group on information technology and the setting up of an Indo-E.U. round table for wide-ranging bilateral cooperation.

Send this article to Friends by E-Mail

Section  : International
Next     : $135-million World Bank loan for India