EU-India to Hold Trade Talks

The European Union (EU) recently called upon India to continue with its plans to open up its economy to European exports under the bilateral trade deal between the two trade powers. “India has filed a first market access offer with Brussels, an important step in the negotiations for an EU-India trade deal which were launched last year” said Ms. Peter Power, EU spokesperson.

The EU and India had around US$72 billion in two-way trade in 2006, smaller than what the two sides expected. By comparison, EU trade with China totalled 254 billion euros in the same year, according to EU estimates. EU officials are critical of the South Asian powerhouse remains protected by rules and regulations that restrict European business as well as by import tariffs. India has expressed that it wants to seal a new deal with the EU during 2008.

Indo-German Consultation on Development Cooperation

Two-day meeting of the Indo-German Annual Consultation on Development Cooperation was held in New Delhi. The bilateral meeting reviewed the ongoing programmes and discuss new projects for funding under the Indo-German Development Cooperation Programme. During the meeting, the umbrella agreements for financial cooperation and technical cooperation for the projects committed in 2007 were signed between Mr Kumar Sanjay Krishna, Joint Secretary, Ministry of Finance, India and Mr. Wolfgang Kanera, Head of the South Asia Division, Federal Ministry for Economic Cooperation and Development, Germany.

The agreements entail German development assistance amounting to Euro 302.79 million. The Indo-German development cooperation has been historically important having the roots in the German Financial Cooperation support to Rourkela Steel Plant in 1958. This year marks the 50th year for Indo-German Development Cooperation. In this respect, Federal Minister for Economic Cooperation and Development, Ms. Heidemarie Wieczorek-Zuel will be visiting India in October 2008. Both sides are keen to organise ceremonial events to commemorate 50 years of development partnership during the visit of the German leader.

Chile for FTA with India

Chilean President Mrs. Michelle Bachelet visited New Delhi recently expressing her country’s willingness to upgrade the Preferential Trade Agreement with India, signed in 2006, to the level of a Free Trade Agreement (FTA). Bachelet, during her meeting with Indian President Mrs. Pratibha Devisingh Patil, said, “Bilateral arrangements will open more opportunities between India and Chile. We should further deepen and widen our economic relationship. This could even shape up in the form of an FTA. Chile has necessary infrastructure to become a platform for India for doing business in Latin America.”

The Chilean President also sounded of the Indian side for an early conclusion of treaty on avoiding double taxation supporting the case for an FTA agreement with India. Given the strong credentials of the economies of both sides and the growing outreach of business houses, President Patil stressed on increasing trade relations with Chile while addressing the media after her deliberations with Bachelet. During the discussion, President Bachelet reiterated her country’s support for India’s bid for a permanent membership in the UN Security Council.

India-Indonesia Economic Talks

India and Indonesia have to finalise economic talks soon for the conclusion of comprehensive economic cooperation agreement. Indonesian Ambassador to India Mr. Andi M Ghalib, in a recent press briefing, stated, “It is being drafted; we hope in one month’s time there will be a meeting to that effect. The blueprint for the agreement already exists. It is now for the two nations to prepare negotiations on the comprehensive economic cooperation agreement.” The bilateral agreement between the two Asian powers was designed to achieve two-way target of US$10 billion by 2009.

Following the visit of Indonesian Trade Minister Dr Mari Pangestu some time ago, both sides have planned a meeting in New Delhi. Concerning this, Mr Ghalib stated, “If the agreement is signed in proper time, it would pave the way for the two countries to pursue a free trade agreement (FTA).” Highlighting the future aspects, the Chairman of the Indian Committee of the Indonesian Chamber of Commerce and Industry, Mr. Djismun Kasri stated that both countries have not yet maximally benefited from their huge trade potentials. “We need to conduct direct trade with India,” said Mr. Kasri adding that the two-way trade between Indonesia and India stood at US$6 billion last year.

India to Strengthen Defence Ties with Poland

Polish Deputy Foreign Minister Mr. Ryszard Schnepf visited India and had a bilateral meeting on defence ties with his Indian counterpart Minister of State for Defence Mr. M Pallam Raju. During the meeting, Raju expressed the hope that defence ties between India and Poland are set to take off into an era of more participative cooperation.

Being the erstwhile member of the Warsaw Pact countries, Poland joined the NATO in 1999 and the EU in May 2004. The Indian minister said that the MoU on Defence Cooperation signed in February 2003 during the visit of the Polish Prime Minister to New Delhi envisaged consolidation of defence ties between the two countries. Poland, which manufactures a large inventory of arms and ammunition, has been responsive to New Delhi’s interests in the South Asian Region.

New Zealand Proposes FTA with India

New Zealand Minister for Agriculture, Bio-security and Forestry, Mr. Jim Anderton paid a visit to New Delhi recently to propose free trade agreement (FTA) with India. The minister approached India for an import basket of wine, dairy, and timber products to boost bilateral trade to more than 616 million NZ dollars between the two countries.

Mr. Anderton stated that India is regarded as a priority relationship for New Zealand. “Last year both the countries agreed to study the implications of an FTA, which is a clear indication of our commitment to the relationship,” he added. Mr. Anderton led a business delegation consisting largely of timber industries. Mr. Anderton’s meeting with Indian Science and Technology and Ocean Development Minister Mr. Kapil Sibal was followed by the signing of a MoU for research and development in the areas of climate change, dairy development and other areas of scientific and technological cooperation.

India-Bulgaria Security Cooperation

Indian delegation headed by the Union Home Secretary Mr. Madhukar Gupta had wide range discussions on security related bilateral issues with their Bulgarian counterparts led by Deputy Minister of Interior Mr Goran Yonov during the latter’s visit to India recently. The discussion between the two high-level delegations aimed at reviewing the initiatives and progress outlined under the Agreement on Cooperation in Combating Organised Crime, International Terrorism, and Illegal Trafficking in Narcotic Drugs and Psychotropic Substances, signed in 1994.

The high-level delegation meeting also focused on newer areas of cooperation on issues of mutual concerns. It was appreciated that the framework provided under the 1994 Agreement was acquiring substantive content. And the detailed agency-to-agency has also been identified as well as worked out for mutually beneficial capacity building programmes. The Bulgarian delegation had separate subject-specific interactions with officials of the Intelligence Bureau (IB), Central Bureau of Investigation (CBI) and the Narcotics Control Bureau.

Berlin Air Show Attracts India

Accompanied by a high-level official delegation, Indian Defence Minister Mr. A K Antony paid three-day visit to Germany recently. He met his German counterpart Dr. Franz Josef Jung and attended the International Aerospace Exhibition and Conferences – ILA 2008, popularly known as Berlin Air Show. India’s first participation at the Berlin Air Show, the oldest air show in the world dating back to 1909, saw the country’s big way presence as ‘partner country.’

Germany’s Federal Chancellor Dr. Angela Merkel opened the show. She was accompanied by noted leaders, such as Mr Antony; Mr Michael Glos, Federal Minister for Economics and Technology; Mr Matthias Platzeck, Minister President of the Land Brandenburg; Mr Harald Wolf, Mayor of Berlin and Senator for Economics, Technology and Women; and Mr Jürgen Thumann, President of the Federation of German Industries (BDI). In his message, Mr. Antony stated that India’s presence at the show marked a new milestone in defence cooperation with leading countries and global firms in the aviation and aerospace sector.

India, Finland Pact on Science

India and Finland have signed an Agreement of Cooperation in Science and Technology (S&T) for broad-based framework of cooperation in research, development, and innovation policies between the two countries with renowned cutting-edge technologies. Indian Minister of Science & Technology and Earth Science Mr. Kapil Sibal with his counterpart Finnish Minister of Economic Affairs Mr. Mauri Pekkarinen signed the agreement in Helsinki.

Speaking on the occasion, Mr. Sibal said that way forward for the bilateral relations was to set up an innovative industrial R&D fund enabling technology access to market for mutual benefits of the peoples of both sides. Mr. Pekkarinen termed the visit of Indian minister as a big landmark in the bilateral relations between the two countries. During his visit, Mr Sibal also met Finnish Prime Minister Mr. Matti Vanhanen and Mrs. Sari Sarkomaa, Minister of Education.

India-Bahrain Pact on Expatriate Indians

India and Bahrain finalised a bilateral draft MoU on the Labour Mobility and Manpower Development. The Indian delegation led by Mr Vayalar Ravi, Union Minister of Overseas Indian and Parliamentary Affairs and Bahrain delegation led by Dr Majeed Bin Al Alawi, Bahraini Minister of Labour negotiated the agreement.

The proposed MoU will provide an institutional framework for strengthening bilateral cooperation in the deployment of Indian workers in Bahrain. It covers a wide range of activities to make labour mobility simple, transparent and efficient. The MoU will be signed soon after getting necessary approvals from the respective governments. During the negotiations both Ministers expressed their determination to resolve the problems of overseas Indian workers in Bahrain as well as combating malpractices like substitution of contracts, delayed or non-payment of wages, harsh working/living conditions, denial of contractual facilities, ill-treatment and physical abuse of workers.

India-Egypt to Exchange Industrial Know-how

In a bilateral meeting held in New Delhi, Indian Minister of Commerce and Industry Mr. Kamal Nath and Mr. Rachid Mohammed Rachid, Trade Minister of Egypt agreed to explore possibilities of the exchange of industrial know-how and formation of JVs between the two countries.

Both sides extensively focused on specific sectors like textiles, iron and steel, cement, building materials, automotive and its components, chemicals, petrochemicals and fertilisers, drugs and vaccines, communication and IT, new and renewable energy and organic fuel for industrial use, infrastructure, housing and real estate development projects. During the meeting, Mr. Nath welcomed the Egyptian proposal for an FTA that will provide the two countries opportunities for greater interaction in the fields of trade and investment. He said that both countries could cooperate in pharmaceuticals, as there is scope for JVs to exploit the markets in Middle East and Africa.