The Hindu Business Line : Indo-EU Summit: A blossoming of intense cooperation

THE fifth India-European Union summit in the Hague held on Monday marks a defining moment in the bilateral relations and a testimony to the blossoming of intense cooperation that was flagged off in 2000 when the first summit was held in Lisbon in Portugal.

The joint statement issued at the Hague by the Prime Minister, Dr Manmohan Singh, and the Netherlands Prime Minister, Mr Jan Peter Balkenede, at the end of the one-day summit also saw the culmination of relations by the declaration of India-EU Strategic Partnership.

Both the leaders agreed to intensify cooperation and take action to facilitate and expand bilateral trade and investment flows, given the importance of realising the potential of the growing Indian and EU markets and the mutual benefit of increased economic interaction.

The leaders renewed their commitment to pursuing issues key to increasing market access and creating an enabling economic environment.

The Director-General of the Research & Information System (RIS) for the Non-Aligned and Other Developing Countries, Dr Nagesh Kumar, told Business Line that as the EU is the single largest trading partner for India and a relatively bigger source of foreign direct investment, there are "obvious complementarities" in reinforcing the relationship and the upgrading of relations to Strategic Partnership by the EU came as a positive sign.

Both the sides signed the memorandum of understanding on the States Partnership Programme, providing a framework for cooperation in the sectors of education, health and environment.

They have also urged early operationalisation of the States Partnership Programme (euro 160 million) and Trade and Investment Development Programme (euro 14 million).

They also commend the continued development of the joint initiative for enhancing trade and investment through the launching of the round table of business leaders as well as the series of business seminars.

Both the leaders also agreed to work towards a mutually acceptable mechanism to correct EU and India Information network to facilitate linkages in the realm of research and technological development.

Commenting on this point, the Indian Chamber of Commerce President, Mr Anup Singh, said this agreement is a milestone for India as it has prised open a world of opportunities especially in the field of biotechnology, life sciences and automotive engineering.

These are areas where the business potential is immense and the domestic entrepreneurs need the right spur to make a global presence, he added.

Both the sides also appreciated the recent successful conclusion of the Customs Cooperation Agreement and looked forward to this being availed themselves of to improve trade flows and fight against customs fraud.

The EU remains by far the country's largest trading partner. India's exports to EU stand at euro 13.3 billion against EU exports to India at euro 14.2 billion.