The Prime Minister's Trade and Economic Relations Committee (TERC) on Saturday gave its nod for launching free trade agreement (FTA) negotiations with Australia. It also decided that India will not take Intellectual Property Rights (IPR) obligations beyond the domestic laws or mandated by World Trade Organization (WTO).
The committee also took up the proposal for a new economic engagement through the mechanism of free trade agreement with Common Market of Eastern and Southern Africa (COMESA).
These important decisions were taken during a meeting of the TERC chaired by the Prime Minister, Manmohan Singh, on Friday but the statement on the subject was released by the PMO (Prime Minister's Office) on Saturday.
Putting across strongly that India will not succumb to pressure from European lobbies or European Union states on the issue of IPR regime, the statement said “The Prime Minister has directed Indian negotiators not to take IPR obligation, particularly in pharmaceuticals, beyond domestic laws or as mandated in a WTO pact while entering into an FTA with the European Union”.
Reviewing the status of the negotiations, TERC observed that certain concerns have been raised about the Indian stand on issues relating to intellectual property rights, especially in the context of pharmaceutical products. The EU has been demanding that India should enforce a stricter IPR regime than what has been mandated in its domestic laws and the WTO agreement on TRIPS.
The TERC, headed by the Prime Minister, also approved the launch of negotiations for an FTA with Australia. The matter is likely to be taken up during the visit of Union Commerce and Industry Minister Anand Sharma when he visits Australia on May 10.
The TERC was informed that while there has been a substantial growth in bilateral merchandise trade with Australia, tariffs and non-tariff barriers continue to raise the cost of imports, imposing implicit taxes on businesses and consumers alike. It was felt that a comprehensive FTA with Australia would benefit both countries. India's bilateral trade with Australia stood at around $14 billion in the financial year 2009-10.
India has already implemented free trade pacts with South Korea and ASEAN and has signed comprehensive pacts with Japan and Malaysia. The duties and barriers on trade are significantly removed or eliminated under FTAs.
