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November 22, 2001
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India asks EU to reduce non-tariff barriers, allow more access

India on Thursday asked the European Union to reduce non-tariff barriers and grant benefits under generalised system of preferences so as to allow greater access to its markets.

"In order to access the developed markets like EU, there is a need for deeper appreciation of large but developing economies like India.

It calls for a series of positive steps in terms of granting GSP, reducing non-tariff barriers and also significant reorientation of contingent remedies," Commerce Minister Murasoli Maran said at the second India-EU summit in New Delhi.

Indian trade and industry was facing difficulties in the EU markets on account of non-tariff barriers, Maran said, suggesting that EU should reconsider anti-dumping/anti-subsidy initiatives against India.

"Some of the non-tariff barriers noticed are sanitary and phyto-sanitary/technical barriers to trade, standards in agro/organic products, environment related barriers in respect of marine products and tariff rate quotas in respect of agri products," he said.

Maran said that though the bilateral trade with EU at over $20 billion per annum was growing steadily, India's share in the EU's global imports was just about one per cent.

"Diversification could be achieved by addressing growth sectors like food processing, pharmaceuticals, software and electronics," he added.

Maran pointed out that the Indian government had on its part opened up the economy to make it an attractive investment destination.

He, however, admitted that more progress has to be made. "India is less a tiger than an elephant, a sleeping elephant just awakened. Its steps are measured and steady. But we agree that an elephant also can walk faster and we need to increase our pace to keep steps with the fast moving world."

Commenting on the WTO ministerial meeting at Doha, Maran said, "It is important that all outstanding developmental concerns raised by developing countries on implementation are duly and urgently addressed and form the prime objective in the next WTO initiatives."

"India looks foward to working with the EU and other countries in carrying foward the work programme. It is very important that the needs and concerns of the developing countries are fully integrated into all aspects of WTO activities," he added.

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