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European Union India to join world trade talks, allays Third World fears of imbalance

European Commission vice-president Sir Leon Brittan said today a comprehensive round of multilateral trade negotiations is necessary in the current economic climate to stimulate trade and growth and to reduce the risk of protectionism.

''International trade negotiations are due to start again next year. That is the way to get the best results for all concerned,'' Brittan said while addressing a seminar organised in New Delhi by the Federation of Indian Chambers of Commerce and Industry.

''Endorsement by India of a comprehensive approach will be very important and a timely signal to the international community that you are back in business with the energy and imagination that has characterised this region in the past,'' he said.

The key mechanisms of the millennium round of multilateral trade negotiations are of vital importance for interests of all members belonging to the World Trade Organisation. ''Comprehensive negotiations involving all industries and all trading countries will enable every sector to pursue its priorities and provide individual countries with wider opportunities to balance their interests.''

Brittan said the 15-member European Union will put all its current tariffs on the table for negotiation in the new round. ''Another important feature of a comprehensive round is the fact the outcome must be decided by consensus. No one is forced to agree to that outcome.''

Within the millennium round, Sir Leon said, there are still significant opportunities for market access improvement through substantial reduction of such tariffs across all sectors.

Europe continues to be India's largest single trading partner,Sir Leon said, accounting for nearly 30 per cent of India's total exports. In 1997, the two-way trade between India and the EU totalled 18.3 billion euros (about Rs 800 billion).

Despite fierce competition from elsewhere in Asia, those exports have increased at a steady rate. India now has a trade surplus with the EU. This includes not only traditional areas of industrial goods, particularly textiles, but also services.

''Given the excellent human resource base in India, services are an obvious area for expansion in our bilateral trade,'' Sir Leon said. ''Further market opening under the WTO would help Indian firms emulate the successes in international markets already achieved by Indian software and IT suppliers.''

He denied allegations that the EU is targetting Indian exports through anti-dumping and anti-subsidy actions. These measures in any case only affect just over two per cent of India's total exports to the EU.

Sir Leon also extended EU's expertise in the process of regional integration within the SAARC region.

Sir Leon, who visited India last in 1996, will also tour Pakistan, Malaysia and Indonesia.

UNI

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