BRUSSELS: While describingIndia as an "important ally" in the World Trade Organisation (WTO) trade talks, the European Union is looking for more concessions in industrial tariffs before it canmake any move in the contentious area of agriculture.

Senior European Commission officials say discussions are being held with India before WTO meetings, as there are many areas in which the two sides can see eye to eye.

`Strategic partnership'

This is reflective of the closer economic ties ever since the relationship was upgraded to a "strategic partnership" last year, the officials told visiting Indian journalists here.

Apart from trade, energy is an area where a dialogue will be launched in the EU headquarters here on June 29.

Foreign Secretary Shyam Saran will lead the Indian team.

The issues to be covered include energy efficiency, safe energy and energy security especially in the light of soaring oil prices, which have impacted on the economies of both India and the EU.

The details of the energy pact are expected to be finalised by the next summit in New Delhi in September.

Farm subsidy bills

On the Doha Development Round of the WTO, the EC officials are keen on some concessions to reduce what are described as high average industrial tariffs in India. They are not prepared, however, to give a time frame for reductions in the EU's huge farm subsidy bills, which are already the subject of fierce debate within the European community.

They point out that a commitment has been made in principle to cut back on trade distorting agricultural subsidies and that the actual end date for eliminating them will be announced in the next phase of discussions.

Services offers

In services, the EC officials maintain that the EU offer is the "best" of all submitted at the WTO. India has already said it is not happy with the services offers of most countries including the United States on the key aspect of movement of professionals.

The EC, however, points out that there is no issue of visas in their offer. It has to be handled by individual countries in the EU.

Visa issue

At the most, they can offer a common code of consular services as the issue of visas, it is pointed out, is extremely sensitive and within the purview of the policies of the member-countries.

Asked about the European Union's stance on the Iran-Pakistan-India gas pipeline project, the officials said it was different from the U.S. and there was no negative position on the proposal.

As for peaceful uses of nuclear energy, there are no plans in the EU for the time being and this subject could be an issue for discussion in the long run.

Cooperation in

renewable energy

The EU says there is scope for cooperation in renewable energy sources. It is increasingly seeking to focus on "green" electricity based on wind or solar energy. As solar energy is not as abundant as in India, wind energy is expanding.

According to EC data, the installed capacity for wind energy rose by 23 per cent to nearly 30,000 MW in 2003 from 5,000 MW in 1999.

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