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Gaston Stronck, Ambassador of Luxembourg, was in Kolkata on Tuesday. After an event, organised by CII, Business Line talked to Stronck at length on the trade and investment issues in the context of ongoing negotiations for a free-trade agreement between European Union and India. Excerpts:
Will the proposed FTA, between India and EU, really boost India-Luxembourg trade and investments?
The pre-FTA, the two-way trade and investments has been less than significant. A dozen of Luxembourg companies, including ArcelorMittal, are physically present in India. I presume, there are a few hundred of other Luxembourg companies, which do business with India without being present here.
The FTA with EU can make a big difference. But, if it does not materialise now, after five years of negotiations, I am afraid, EU’s focus may shift to the US and Japan.
Both have recently begun negotiations for separate FTAs with EU.
Thus, now FTA can open up a world of opportunities for whole of Europe and India.
Are there issues over market access and quality between the two countries?
Those are routine ones. Economic diplomacy involves such issues regularly. We do not want to overemphasise such issues.
Why India is important for Luxembourg or for EU?
India is the place to be. Whether it is manufacturing or services. Luxembourg, geographically smaller though, can prove to be India’s gateway to Europe. We are already competitive, and getting even more competitive. Our strong points are: metal works, automotive components, engineering and technologies. We are transparent, fair and open.
An Indian arm of Luxembourg’s cutting tools and hard materials company — CERATIZIT SA — which has a unit in city, is opening up another unit close by. Luxembourg has been the suppliers of blast furnaces to Indian steel units. Once FTA is in place, the markets will really open up.
Would FTAs divide the trading world bypassing China?
China can live without FTA with EU. So does EU.
How do you view ArcelorMittal’s having to close down or mothball some of its European units?
In my opinion, if Arcelor had not been acquired by Mittal, situation would not have been much different. Whole of Europe’s manufacturing sector is under pressure. There is no reason to blame Mittal.
ArcelorMittal remains one of the biggest employers. The closures in ArcelorMittal have been limited.
> jayanta.mallick@thehindu.co.in
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