The Parliamentary Committee on Commerce (PCC) has cautioned the government against early signing of India-EU, Free Trade Agreement (FTA) and urged it to wait for the committee's report before finalizing it. The committee’s members have expressed strong concerns over any move to sign the EU-India FTA without taking note of the Committee's views as it is studying the impact of the agreement after taking view of all stakeholders and is likely to present its report soon.
On the other hand, with the European Union demanding more access to India’s insurance sector and a stricter intellectual property regime and India refusing to give such assurances, India-EU free trade pact looks far from the finish line. The agreement will help Indian companies expand in the EU, the country's biggest trading partner.
Further, Commerce and Industry Minister Anand Sharma is scheduled to meet EU trade commissioner Karl De Gucht in Brussels on April 15 amidst expectations that the two sides may be able to iron out their differences, finally clearing the way for the signing of the FTA. On the positive front, an investment protection pact will be included in the proposed India-EU free trade agreement and the two sides will try to resolve issues concerning duty cut in the automobile sector in the high-level meet in Brussels.
The two-way trade between India and EU increased to about $110 billion in 2011 from $ 83.37 billion in 2010. India has already implemented comprehensive FTAs with other countries such as Malaysia, South Korea and Japan.
