India, EU need to tackle non-tarrif barriers: CII
The two countries are to finalise a bilateral trade and investment agreement at the India-EU Summit.india Updated: Oct 08, 2006 10:59 IST
The non-tariff barriers (NTB) in Indian and the EU markets need to be addressed for the two nations to benefit from bilateral trade and investments, industry body Confederation of Indian Industry (CII) said.
The two countries are to finalise a bilateral trade and investment agreement at the India-EU Summit at Helsinki on October 11-12 and the issue of NTBs should be addressed for them to benefit from the agreement, CII said.
Nearly 23.38 per cent of India's total exports to the 25-nation EU are covered by NTBs - especially in the area of carpets (86.2 per cent), textiles and clothing (65.85 per cent) and leather (31.35 per cent).
A recent study by CII Principal Advisor Jayanta Roy said India is one of the countries targeted by EU, affecting 3.5 per cent of the Indian exports as against the global average of 1.5 per cent.
Acting as a hindrance to greater engagement is Mutual Recognition Agreements and negotiations should be undertaken in the area alongside the trade and investment agreement.
India needs to focus on trade facilitation and work with EU nations to ensure time period for goods at ports be reduced to the minimum, CII said.
Implementation of Electronic Data Interchange also needs to be extended beyond customs to all other agencies to ensure a fully automated and paperless system is in place, it added.