India and the EU are making last ditch efforts to resolve differences and conclude negotiations on free trade agreement (FTA), in the run-up to their next month’s summit in Brussels that will be attended by Prime Minister Manmohan Singh.

Commerce and Industry Minister Anand Sharma and EU Trade Commissioner Karl De Gucht will meet in Brussels (European Union headquarters) on Monday to review the progress of negotiations for a broad-based pact to further open up the bilateral trade of USD 75 billion.

India and the 27-nation bloc have been engaged in negotiations since 2007 for a Bilateral Investment and Trade Agreement (BITA) for opening commerce in merchandise by reducing and eliminating duties.

BITA will also provide liberalising trade in services, an area of strength for India — on which it faces hurdles like visa problems in several EU members like Germany and Britain.

The British government has capped at 21,700, the number of visas to be issued to skilled workers from India and other countries outside the EU, starting April, 2011.
The India-EU negotiations for BITA which started in 2007 had hit roadblocks several times as there was a pressure from some EU members that social issues like environment and labour standards should be covered in the agreement. Indiahas been resisting these efforts.

“There is no question of discussing such issues. There are other forums to discuss such matters. India’s position is clear. I think that is understood by the interlocutors,” Sharma said before leaving for Brussels.

The two sides have recently stepped up efforts to resolve the pending issues as they want to conclude the negotiations by the year end.
EU is India’s largest trading partner and the bilateral trade in 2009-10 aggregated to USD 75 billion.

India has already implemented free trade agreements with the ASEAN (Association of South-East Asian Nations) and South Korea.

It is also in advance stages of finalising a similar pact withJapan and Malaysia.