Date:17/01/2006 URL: http://www.thehindubusinessline.com/2006/01/17/stories/2006011700570700.htm

Back For successful conclusion of multilateral trade talks — `Lot of work to be done post-Hong Kong'

Our Bureau

The Union Commerce and Industry Minister, Mr Kamal Nath, and the UK Trade Minister, Mr Ian Pearson, at the Udyog Bhavan in the Capital on Monday. - Kamal Narang

New Delhi , Jan. 16

INDIA and the United Kingdom have said a lot of work remains to be done post-Hong Kong, if the ongoing Doha Round of multilateral trade talks under the umbrella of the World Trade Organisation (WTO) are to successfully end by the projected deadline of December 2006.

This was shared by the visiting United Kingdom Minister of State for Trade, Mr Ian Pearson, and the Union Commerce and Industry Minister, Mr Kamal Nath, at their meeting here on Monday.

Mr Kamal Nath took up in particular India's seriousness in addressing the issue of tariff peak and tariff escalation in developed country markets in the non-agricultural market access (NAMA) negotiations as they adversely affect exports of value-added products from India.

Both the Ministers emphasised the need to further reinforce bilateral trade and economic cooperation between India and the UK, particularly in the services sector on a mutually beneficial manner.

The UK is India's largest trading partner in the European Union with the Indo-UK two-way trade estimated at $7 billion during 2004-05. It was indicated during discussions that the second meeting of the India-UK Joint Economic and Trade Commission (JETCO) would take place in London later this month, which would discuss in depth substantive steps for augmenting the scope of bilateral trade and investment flows between the two countries.

Later at an interaction with the business delegation accompanying Mr Pearson, both the sides underscored the untapped potential for further boosting trade and economic cooperation between India and Britain.

Pitches for Indian beverages: The UK side raised the issue of market access of alcoholic beverages to India. From the Indian side, it was sought that Indian whisky be classified as whisky for market access purpose.

This is needed because Indian whisky is not allowed to be marketed in Europe as whisky since it is molasses based and the European Commission position is that whisky must be manufactured out of grain-based alcohol.

While the Indian delegation at the talks included the Minister of State for Commerce and Industry Mr Elangovan, Mr S.N. Menon, Commerce Secretary, and Dr Ajay Dua, Secretary (Industrial Policy & Promotion); the UK side included the UK High Commissioner to India Sir Michael Arthur, besides members of the UK business delegation that included representatives of The Times (TBC), GlaxoSmithKline, London Stock Exchange, Virgin Atlantic, UK Trade & Investment, Asia House, Cambridge University, Standard Chartered Bank, Global Group (Europe) Ltd with Mr Karan Bilimoria, CBM, as delegation leader, an official release said here.