By IANS,
New Delhi : Describing the 27-nation European Union as “a key strategic partner,” India Monday indicated that negotiations for a crucial free trade area agreement are “critically poised” and hoped to step up security-cooperation with the grouping at their forthcoming summit.
Prime Minister Manmohan Singh will hold wide-ranging talks with EU president Herman Van Rompuy and European Commission president Jose Manuel Barroso Feb 10.
The 12th summit will provide an opportunity to both sides to review the entire spectrum of the strategic relationship between India and the EU and to discuss bilateral, regional and multilateral issues of mutual concern, the external affairs ministry said.
“This relationship will expand further as EU evolves. India values its relations with the European Union and sees the EU as a key strategic partner,” the ministry said.
Besides bilateral issues, discussions will also be held on the global financial crisis, climate change, counter-terrorism, the situation in the Middle East and the Iranian oil sanctions.
The focus of the summit will be on giving a political push to the protracted negotiations for a free trade area (FTA) deal which are still bogged down in differences over some tariff reductions in key sectors like automobiles.
Ahead of the summit, government sources said the negotiations for a broad-based trade and investment treaty are critically poised, but did not specify when the deal will be signed. There may be an announcement of a timeline and roadmap for concluding negotiations at the Friday summit.
The EU’s envoy to India has said there won’t be any signing of the trade deal, but the summit will provide an opportunity for crucial trade-offs that could set the stage for wrapping up negotiations by the middle of the year.
Commerce and Industry Minister Anand Sharma had last week briefed Prime Minister Manmohan Singh on the progress made in the FTA negotiations and the sensitive areas that require give and take.
The EU has lobbied hard for a steep reduction in tariffs for export of its automobiles, wines and spirits to India — proposals that have met with fierce resistance from domestic manufacturers.
The EU has also been pushing India to open the banking and insurance, postal, legal, accounting, maritime, security and retail sectors, among others.
Sources also indicated that expanding security and counter-terror cooperation will be the thrust areas at the 12th summit. In particular, with transnational terrorist networks adopting ingenious ways, there will be discussions on how to expand closer coordination in the area of cyber-security, the sources said.
The EU is India’s largest trading partner, with bilateral trade estimated to be over $75 billion.