(23 February 2010)

Britain's International Development Minister Gareth Thomas today called for negotiations which would increase trade between the EU and India to be concluded in 2010. The International Development Minister told a meeting in Brussels that negotiators in Europe and India must not let the discussion get “stuck in the weeds” as he highlighted the importance of securing a deal that brings trade and development benefits. Progress in the discussions has been slow as both sides look to agree a deal that would be pro-development as well as pro-trade.

Current restrictions mean that skilled professionals in certain sectors, such as legal professionals, from Europe cannot practice in India while Indian IT experts for example often face barriers within the European Union. The EU-India Free Trade Agreement would also see a reduction in tariffs on exports. For example, Scotch whisky currently faces high tariffs which we would like to see reduced or eliminated unlocking a large new market for this popular premium product. The EU is India’s most economically important trading partner with 18.7% of the country’s exports coming to the EU. Of those exports, 17.7% come to the UK.

Gareth Thomas said: “Despite the economic success India has enjoyed over the past decade, it is important to remember that more than 450 million people are living on less than $1.25 per day – as many as in the whole of sub-Saharan Africa.

“The benefits of an EU-India trade deal would be felt by businesses on both sides and this in turn will benefit millions of people whose employment relies on the import and export trade.

“The negotiations are progressing very slowly and I would urge all those round the table to do everything in their power to ensure that discussion in 2010 do not get stuck ion the weeds as we pursue a positive outcome.

“Trade with India is worth over 55 billion Euro to the EU and almost one fifth of that comes to the UK. In lieu of a final agreement on the Doha trade round, it is important to have an agreement in place that protects jobs by creating more opportunities for increased trade.”

One key topic for discussion will be tariffs and patents pharmaceuticals. India is the world’s largest exporter of generics – pharmaceuticals which can be produced more cheaply because the patent on them has run out – to the developing world.

The EU is keen to see a deal that would see India introduce appropriate levels of intellectual property protection while at the same time ensuring access to lifesaving treatments for diseases such as HIV and AIDS for developing countries.

Negotiations for this agreement began in June 2007 and there have been eight rounds of discussions so far. Progress has been tentative and was delayed further by elections in India.