European Union trade commissioner Pascal Lamy will visit India next month to discuss issues involved in Indo-EU trade relations.

The Head (trade and economic affairs) of European Commission in India, Stefano Gatto, said in Kolkata on Friday that sanitary and phytosanitary (SPS) issues were a major bone of contention in Indo-EU trade.

Gatto said that EU would never dilute the intensity of SPS issues, adding that such protectionist measures were not at all discriminatory.

He said that EU was willing to offer help to India in terms of training and quality improvement of goods manufactured in Kolkata.

EU being the largest trading partner of India was keen to expand bilateral ties. By 2005, EU-India trade is likely to touch Euro 35 billion, Euro 50 billion by 2008.

Claiming that there was a huge scope for further increasing the bilateral trade between India and the European Union, comprising a total of 17 European countries including France, Germany, the United Kingdom, Belgium and Italy, Gatto said since the formation of the EU in 1991 exports from India had recorded a massive 23 per cent growth, while the margin of imports from the EU to this country had gone up by about 21 per cent.

During the same period (1991-2002), the total volume of bilateral business also grew from Euro 1.9 billion to over Euro 25 billion, making India one of the most important and largest business partners of the EU, Gatto emphasised.

Hailing the business environment in India as one of the most competitive in terms of value addition, Gatto also made it clear that there was a great need to improve the quality of Indian products in some of the most demanding sectors like engineering and chemicals.

He said the Commission had set a strict international benchmark for accepting goods from other countries and urged all the partner countries to strictly abide by this, no matter whatever the cost. However, the Commission was ready to extend all possible help in meeting the minimum requirements, Gatto emphasised.

Agencies