By EuAsiaNews,
Brussels : The European Parliament (EP) adopted its report on a Free Trade Agreement (FTA) with India during its plenary session in the French city of Strasbourg on Thursday with 326 votes in favour, 226 against and 3 abstentions.
The report expressed disappointment with the slow pace of negotiations, and said it would like to see a FTA signed with India by the end of 2010.
The EU and India launched negotiations for an FTA in 2007.
The report, drafted by British MEP Sajjad Karim , who is of Pakistani origin, says the conclusion of an FTA between the EU and India would improve market access for goods and services, covering substantially all trade except for public procurement which India is not willing to include in the FTA.
Bilateral trade is expected to exceed 70.7 billion euro by 2010 and 160.6 billion euro by 2015.
The report points to the potential for an increase in EU-India trade and investment and business opportunities arising from the FTA but recommends that an evaluation be carried out of the existing sector-specificities.
India’s average applied tariff which is now 14.5% compared to an EU average of 4.1%.
India is concerned about the lack of harmonisation of micro-biological standards in the EU, implications of REACH and costly certificates for exporting fruit to the EU .
Bilateral trade in services is expected to exceed 246.8 billion euro by 2015 by the time the FTA in services is implemented.
MEPs call on the EU and India to ensure that commitments under the FTA do not preclude access to essential medicines whilst India is developing its capacity from a generic to a research based industry.
India is one of the major sources of counterfeit medicines seized by the customs services of the EU Member States (accounting for 30% of the total), noted the report.
The EP asked the European Commission to address the issue of child labour during the negotiations on the FTA. India is also asked to ratify and implement the basic conventions of the International Labour Organisation (ILO).
The issue of bonded labour should also be addressed.
A provision in the FTA should ensure that EU companies making use of Special Economic Zones cannot be exempted from respecting fundamental labour rights.
The EU also requests from India a more open approach in granting visas to citizens and business professionals and politicians from the European Union with multiple entries and minimum one year duration.
The EP calls on India to sign the Non- Proliferation Treaty (NPT).