India, EU should address regulatory problems, tariff issues

NEW DELHI: Seeking deeper co-operation with India, European Union today said both sides need to work on eliminating tariff barriers and regulatory difficulties in their bilateral economic exchanges.

European Commission Vice President Joaquin Almunia emphasised that open exchanges can help in eliminating barriers and increase investment flows.

The Commission is the executive body of European Union (EU), a grouping of about 28 countries.

"We have a strategic partnership with India for many years. Now, with the new challenges and new priorities in our bilateral agenda, this partnership should be deepened," Almunia said here.

In response to a query on the barriers in their bilateral economic exchanges, he said there are traditional tariff besides non-tariff barriers and regulatory difficulties.

"There are difficulties in some cases coming from food safety regulations, in some cases obstacles to investments, in other cases obstacles coming from intellectual property rights and tariff barriers," Almunia noted.

His comments come against the backdrop of India and EU negotiating a Free Trade Agreement.

"We are very keen to reach a positive conclusion on the FTA negotiations," he added.

According to him, open exchanges can help to eliminate barriers in economic exchanges, counter obstacles and increase trade, services and investment flows.

"... we need to make an effort to pursue a convergent approach so that Indian global companies and European global companies can operate across the world with less barriers," he said.

Meanwhile, Almunia, who is also in charge of competition policy at the Commission, underlined the need for increased co-operation in the area of competition laws.

On Thursday, India and EU entered into an agreement that will facilitate exchange of information related to competition issues and ensuring non-discriminatory enforcement of such laws.

The pact provides for enhancement of the effective, transparent and non-discriminatory enforcement of the competition laws in India and European Union.