India, EU free trade pact by year end

India and U.K. on Tuesday expressed commitment to conclude the broadbased India-EU Free Trade Agreement (FTA) by the end of the year.

“Both economies are sharing the gains from increased trade and investment flows. Both sides are fully committed to ensure the conclusion of an ambitious and balanced broad-based EU-India FTA by the end of the year,” said the joint communique issued after a meeting between Finance Minister Pranab Mukherjee and Britain’s Chancellor of Exchequer George Osborne.

The negotiations for a FTA between India and 27-member club has been going on since 2007. United Kingdom is a member of EU.

The joint declaration also called for early conclusion of the development focused Doha round of trade talks.

India and U.K. also reiterated the need for early ratification of the International Monetary Fund (IMF) quote reforms by the member countries.

“It is in both our interest to have a strong, legitimate IMF as an anchor of global economic stability and prosperity,” the communique said.

Both the nations agreed that the global recovery continues to remain fragile and challenges exist in the form of rising food and fuel prices, fiscal imbalances and volatile capital flows.

“We are committed to multilateral co-operation through G20 and international financial institutions. This is more vital than ever before,” it added.

It said that both the countries are working on reducing fiscal imbalances and strengthening the business environment.

“We have agreed to work together in G20, IMF, FSB and other international financial institutions in key areas of strengthening economic surveillance, capital flow management and financial sector reform, to increase the resilience of the global economic and financial system,” the communique added.