News: India, Europe trade bloc sets up joint study group

(BL 02/12/2006) New Delhi - In a significant bid to step up trade and investment flows, India and the European Free Trade Association (EFTA) bloc, comprising the member-countries of Switzerland, Norway, Liechtenstein and Iceland, on Friday set up a Joint Study Group (JSG) to explore the possibility of entering into broad-based trade and investment pact. The agreement to set up the JSG was signed on Friday at a meeting of the EFTA Council in Geneva in the presence of Union Commerce and Industry Minister, Kamal Nath, and Ms Doris Leuthard, Federal Counselor, Federal Department of Economic Affairs, Switzerland. The Chairperson of the EFTA Council and Ministers from all other member States were also present. The study would examine all aspects of bilateral economic relationship and recommend measures to deepen engagement through an expansion of two-way trade and investment flows. This would also entail trade facilitation, technical standards, sanitary and phytosanitary standards, intellectual property rights and dispute settlements, besides, trade in goods and services. The JSG would be co-chaired by the Additional Secretary, Europe Division in the Department of Commerce, Rahul Khullar, from the Indian side, while his counterpart official is to be designated by the EFTA. The JSG will meet alternatively in New Delhi and Geneva and has been directed to give its report within one year. The first meeting is scheduled for February 2007. Kamal Nath said India is emerging as a major manufacturing base for the global economy. The investment potential of EFTA States could be married with the country's manufacturing capabilities to foster greater economic growth on both sides, he added. Bilateral trade between India and EFTA in 2005-06 stood at $7,475.36 million, comprising exports of $623.11 million and imports of $6,852.25 million. The growth in bilateral trade was 9.3 per cent last year over 2004-05. Even as India's exports to EFTA declined by over 3 per cent, its imports grew by 11 per cent. Among the four members of EFTA countries, India's largest trading partner is Switzerland, followed by Norway, Iceland and Liechtenstein.