The Hindu Business Line : EU proposes info facility on trade-related issues

THE European Union has proposed a one-stop-shop facility to provide private sector in the EU and India with comprehensive information and advice on issues related to bilateral trade.

Addressing an interactive session `Indo-EU trade and economic relations' here, Mr Nirj Deva, Member of EU's Parliament (in-charge of Asia), said the facility could provide information on customs procedures, duties and taxes, standards and technical regulations and investment rules.

"This could include a facility to promote investment opportunities and SME (small and medium enterprises) matching services," he said.

Stating that China had become a major growth engine for the West because of its thrust on attracting investments, he said India should focus on investments that could make it at least the second engine of West's growth.

He suggested a bilateral dialogue on investments, intellectual property rights, regulatory and industrial policy to improve business competitiveness on both sides.

While the EU was India's largest trading partner and main source of foreign investment, India was EU's 14th largest partner, behind countries such as China, Brazil and South Africa. "Trade and investment volumes are below potential," Mr Deva said.

India's market share in EU's global imports last year was only about 1.3 per cent.

He, however, wanted India to tackle issues such as high and discriminatory tariffs and taxes, non-tariff barriers, foreign direct investment restrictions and lack of intellectual property rights protection.

Mr Deva found fault with EU's restrictions on allowing genetically modified food. "It is a protectionist measure," he felt.