Agreeing to resist protectionism in global trade, India and the European Union announced reaching the final stage of a trade and investment opening pact, billed as one of the largest bilateral agreements. On concerns that the Broad Based Bilateral Trade and Investment Agreement (BTIA) with the 27-nation EU could hurt the interests of Indian farmers and traders, Prime Minister Manmohan Singh said the pact would have enough safeguards to protect them.
"There are concerns among small farmers and shopkeepers. I am confident we will build enough safeguards to protect their essential interests," Singh said at a joint news conference, along with the European Council President Herman Van Rompuy and the European Commission President Jose Manuel Barroso at the end of a day long EU-India Summit.
A joint declaration issued afterwards said that the two sides "agreed on the contours of a final package, and reaffirmed the importance of an ambitious and balanced" conclusion of BTIA to enhance their about Euro 56 billion bilateral trade.
The leaders decided to speed up negotiations so that BTIA could be concluded in the spring of 2011. "We are at the last stages of this complex exercise. We have directed our officials to redouble their efforts to reach a conclusion by the spring of 2011.
Finalisation of a balanced agreement will bring enormous benefits to both sides," Singh said. He further said that the two sides should take lead in avoiding protectionist trends, keeping markets open and encouraging the free flow and movement of people.
India has concerns over restrictions of movement of people in several European countries like the UK and Germany.
It's apprehensions were partly addressed in the joint statement. "Recognising the important implications of the movement of people for India and EU, they (leaders) agreed to explore initiatives that could lead to a regular, comprehensive and structured dialogue on migration issues, with a view to deepening cooperation in this field," it said.
Recalling the G-20 commitment for concluding a multilateral trade opening deal under WTO, the statement said the leaders "affirmed their commitment to resist all forms of protectionist measures".
Indian trade in goods and services has been facing protectionist measures like seizure of off-patent generic drugs in some European countries and restrictions on professional visas in the US.
