The Hindu Business Line : India, France agree to expand trade

The French Minister for External Trade, Mr Francois Loos, calling on the Minister for Commerce and Industry, Mr Kamal Nath, in the Capital on Thursday. — Kamal Narang

New Delhi , Dec. 9

INDIA and France have agreed to take concerted steps to expand and diversify bilateral trade and investment to make ample use of the economic complementarities and the abounding business opportunities between them.

A joint statement issued at the end of the Indo-French Joint Committee meeting this evening by the Union Commerce & Industry Minister, Mr Kamal Nath, and the visiting Minister for External Trade, Mr Francois Loos, took due note of the inadequate level of cooperation which is not commensurate with the vast potentials in bilateral economic relations.

The possibility of enhancing cooperation in the field of Geographical Indications for agricultural products was discussed. The matter of according geographical protection for Darjeeling tea and its logo was discussed with a view to providing immediate protection in order to avert its misuse in France. Similar action could be taken to provide protection to other items such as basmati rice, alphonso mangoes, the statement said. France conveyed its readiness to receive a delegation from India to discuss the modalities of cooperation in this area.

Mr Loos said that India was a strategic country for the foreign trade of France and France had adopted a commercial action plan this year in order to develop its economic and commercial ties with India.

Mr Loos said, "The Indian market is largely unknown in France and opportunities in India barely known in France". Both sides agreed on the need for greater visibility and closer interaction between the two countries to avail of the opportunities for investment and trade.

Both sides highlighted market access issues involving each others exports — i.e., on the Indian side, the issue of harmonisation of standards and non-tariff barriers affecting marine products and some processed food items and on the French side, the issue of taxes on imported goods especially on wines and spirits, customs controls on food stuffs and the Indian requirement to label the maximum retail price which they said hampered export of French products to India.

Earlier, speaking at the inaugural session, Mr Kamal Nath invited France to invest and participate in the Special Economic Zones (SEZs) being set up in India. Stating that France had emerged as one of the important information technology software destinations for India, Mr Nath in his one-to-one meeting with Mr Loos raised the issue of the difficulties faced by Indian IT firms in obtaining visas/work permit for their personnel in France, including the problems faced due to the fact that visas were granted for short duration.

India has suggested that the French authorities could consider introduction of a visa/work permit regime that would facilitate easier movement of professionals and the issue of five-year green cards for IT professionals and personnel. The Indian side also suggested a bilateral framework for recognition of mutual technical qualifications.