The Hindu Business Line : Multilateral pacts have priority over RTAs: EC

THE European Commission (EC) on Friday stressed that multilateral agreements should have priority over any bilateral or regional trading agreements (RTAs).

Mr Richard Carden, Special Adviser to the Directorate General of Trade, EC, said in his keynote address at the Fourth India-EU Business Summit that "this is the only way to ensure that the interests of the less developed countries are protected."

He hoped that India's regional trade deals would not affect its commitment to the WTO process. The Business Summit is jointly organised by CII and FICCI in partnership with the Department of Industrial Policy and Promotion (DIPP), UNICE and Confindustria. In his remarks, Mr S.N. Menon, Special Secretary, Ministry of Commerce and Industry, said: "in Cancun we were about to agree on some permanent agreements, in such cases national interests need to be protected, especially in agriculture where it concerns India. We need time, like you, to put in place a common agriculture policy before such an agreement."

Speaking on the joint industry lead recommendations on eight sectors, Mr Menon said that the joint industry initiative has helped immensely in policy formulation in various sectors. He said that the Indian Government was focussed on being a facilitator to keep doors open and take care of irritants.

On the issue of European enlargement, he said that while it would present tremendous opportunities, "we are worried it will make the EU more inward looking."

Mr Herve Jouanjean, Deputy Director General External Relations, EC, felt that the enlargement of the Union from the current 15 to 25 members post May 1, 2004 would result in very little, if any, trade diversion. He said that the enlargement would be beneficial for Indian exporters in terms of lower tariffs with simple and uniform trade procedures.

Mr Jouanjean assured that "India should not lose investments, post enlargement since all European investments in India are strategically focussed on the Indian market and as a manufacturing base."

Earlier, Dr Amit Mitra, Secretary General, FICCI, in his opening remarks briefly touched upon the Singapore issues and the challenges they presented for a consensus.

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