Building A Bridge To India

THIS is one relationship which needs to be nurtured. The European Union (EU) is India라이브 바카라 largest trading partner and accounts for almost a third of its exports. But India ranked 19 in 1995 in the list of major suppliers to the EU, moving up from 25 in 1990. While India is a small player compared to the US, Japan and China, even Taiwan, Singapore, Malaysia, South Korea and Thailand individually export more than India to the EU.

According to data available with Indian authorities, India라이브 바카라 strength lies in traditional exports like textiles, leather, gems and jewellery, with these sectors covering 57.7 per cent of Indian exports to the EU in 1991. In the first 10 months of 1995, the figure hovered around 57.3 per cent.

As India evaluates its EU options, there is trouble in the existing market. The European Commission (EC) is all set to impose punitive tariffs on unbleached cotton exports from India. The reason: Indian exporters are violating anti-dumping regulations. (Dumping means selling a product below the normal price.) This is the second case in recent months—earlier anti-dumping duty was imposed on plastic exports. Despite intense lobbying in European capitals, India has failed to avert imposition of duty on unbleached cotton.

Besides, there is another complaint against Indian exporters: of dumping "cotton-type bed linen". The EC is investigating this complaint. Though India is not the only country against whom anti-dumping charges were made and tariffs imposed—Pakistan and China also figure in the list—this is small consolation.

Mostly because it destabilises trade in that product. Take unbleached cotton: India rakes in Rs 534 crore annually by selling this textile item to the EU. True, this amount is not large compared to the overall trade, but there is a growing opinion in India that the frequent use of anti-dumping procedures is turning into a device for protectionism.

While in political and economic terms, India is not as important to the EU as some other Asian nations, there is an increasing realisation on both sides that existing ties must be strengthened. While India has always accorded importance to Brussels, headquarters of the EC, the Commission also took a step forward by publishing a communication titled "EU-India Enhanced Partnership" this June.

Indian officials see the document as an "acknowledgement of the ongoing profound changes in Indo-EU ties". Both are on the threshold of monumental change—the EU has established a single market, it is moving towards the European Economic and Monetary Union with a single currency and to an arrangement where the EU라이브 바카라 membership will increase from 15 to 27; India, too, is liberalising its economy in an effort to bring the country in tune with global structures.

Simon Le Naelou, heading the South Asia division in the EC, feels the EU paper has sent a "political message". Arguing that it라이브 바카라 not enough to hold a troika and a joint commission meeting once a year, he emphasises the need for regular dialogue. "Our communication came at the right time and shows we are not ignoring India," Le Naelou said. Asked about India라이브 바카라 participation in the 1998 Asia-Europe meeting in London, he said the EU would want India to come but that "we can’t do anything as far as the invitation is concerned". That라이브 바카라 for the ASEAN to decide.

Indian officials, while encouraged by this document, however, feel that it really is a "huge wish list". While it provides no sops for India in quantitative terms, it does prepare the ground for boosting ties.

The document is being discussed at two levels in the Council of the European Union (which is distinct from the EC): the Asia group of the Permanent Representatives of the member-states and the Council Group on Common Foreign and Security Policy. These discussions will culminate in "Council Conclusions", giving the requisite mandate to the EC for promoting Indo-EU relations.

This communication calls for broadening and deepening dialogue on both political and economic issues of mutual concern and acknowledges the eventual need for a new framework of cooperation. It identifies sectors like investment promotion, infrastructure and information and culture for development of bilateral cooperation.

Despite this communication, Indian offi-cials feel the EU라이브 바카라 priorities lie elsewhere—they give the example of South Africa, with whom a dialogue has been initiated.

Indian officials say they have a big list of "well developed grievances" on the economic front. For one, India is slipping down the market access ladder in EU countries. Take the example of Suzuki cars. If these cars are exported from Japan, they attract a certain amount of duty and if it comes from India, the duty is a little less. But if it comes from Hungary, there is no duty payable, which makes the Suzuki car from Hungary automatically cheaper.

Officials admit India will have to grow into an important entity—economically and commercially. But they complain that the moment "you become significant, the EU begins to think of reasons to stop your market access". They claim that Europe always had this tendency to protect industry, a trend which has worsened with internal economic problems. Europe is undergoing recession, unemployment is at 10.7 per cent, the first half of 1996 saw nil industrial growth and the economic and fiscal discipline forced on EU countries because of demands of the monetary union is making them externalise economic problems.

The manufacturing sector in the EU is becoming uncompetitive. Wages and the costs for energy and other inputs are very high. On top of that, the EU lacks the political will to take tough measures, resulting in what an official called use of "disingenuous ways" to tackle competition. They mention the case of Germany which has banned Azo dyes in clothes from India and other countries. And, yes, permitted dyes have to be imported from Germany—which means that for a coloured shirt, the dye has to come from Germany. The Netherlands imposed a similar ban from August 1 and Sweden wants to follow suit. France wants to go a step further—it wants to ban Azo dyes and extend it on other products. Indian officials claim the dyes have been used for a long time and there "is not a shred of evidence to show that it causes cancer", as alleged.

바카라 웹사이트There is also talk of bringing in new waste disposal standards. Therefore, if an Indian or a supplier from another country supplies goods to the EU, he will also have to ensure that the packaging will be disposed of properly—something that will automatically raise costs.

Now for the good news—EC officials feel that they can’t afford to ignore India, though some of them say they find some Indians difficult to work with. The EU certainly looks at India as a potentially good market but it must be recognised it is making a concerted effort to raise awareness about India in the EU and vice-versa. It has been giving development aid to India for nearly 20 years and now there are nearly 50 EU-funded development projects, adding up to ECU 750 million (One ECU equals $1.2089).

In India, the EU suffers from a disadvantage—the US tends to dominate the media, airwaves and the people라이브 바카라 consciousness. Indians still look at the EU as individual countries rather than as potentially one of the most powerful blocs in the world. The EU is trying to change some of this. It opened a European Business Information Centre in Mumbai last December to encourage "interface with the private sector in Europe."

바카라 웹사이트Besides, there are a host of projects. Nearly ECU 30 million have been set aside for a new programme that involves a sort of an exchange of people and projects from academics, business and the media. The first group of journalists from India is visiting the EU from October 12—a group of European journalists will be in New Delhi a day later.

Another project for cooperation—in the maritime sector—is also in the pipeline. The EU experience is that delays at Indian ports caused by congestion or customs or other formalities raises the costs tremendously. Kandla and the New Bombay ports have been chosen for this. Says Le Naelou: "We want to help decongest the ports and provide expertise to hasten customs and other tariff services. All this should help in cutting the delays." And make both India and the European Union realise each other라이브 바카라 market potential.