Earlier today I gave a speech at a conference at the European Parliament hosted by Nirj Deva MEP and the Europe India Chamber of Commerce (EICC) on the topic of “Europe meets India: Economic and Political Dimension of the EU-India Strategic Partnership – Challenges and Opportunities”. This is a copy of my speech, in which I discuss the importance of good India/EU trade relationships.
Global Partnership in the Emerging Areas of EU-India Relations
Many thanks for inviting me to take part in this most interesting discussion. The European Parliament's position with regard to EU-Indian relations is clear: we want closer ties, improved communications and increased trade between the world's largest democracies. The Parliament supports the establishment of an EU-Indian FTA, as does David Cameron whose first overseas trip as leader of the British Conservatives was to India earlier this year. There are 1.3 million people of Indian origin in Britain and they contribute both economically and culturally to today's Britain. The UK recognises the importance of forging a new special relationship with India in the 21st century and increasingly the EU does too.
On issues such as terrorism, the environment and globalisation India and the EU have a great many shared interests and shared challenges. An FTA, not as an alternative to an agreement on the DDA, but complimentary to it should be the goal. As with EPAs with the ACP we must strive for a bilateral agreement that will reinvigorate multi-lateral negotiations and demonstrate that poverty alleviation and sustainable development can be beneficially linked to boosting trade.
Improving cooperation is not just about lowering tariffs it is also about working together to find mutually beneficial solutions. If it is alright with the Chair I would like to develop this theme by talking about a specific example. When you have 15 minutes to speak on EU-Indian relations it is very easy to touch on lots of topics and say very little. I hope to avoid this trap by talking about horses.
This is an issue of great interest to some of my constituents in Cambridgeshire. Newmarket is the home of British racing and also a centre for breeding thoroughbred horses. At present India bans the import of thoroughbred horses from the UK. This situation has been ongoing for a number of years and despite numerous letters from the Commission and DEFRA, the British Ministry responsible for these issues, Indian Authorities have yet to respond to requests for the scientific reasons for this ban on horses. India has also promised to move towards international OIE standards in this area, but as yet there is no information about how this might be achieved.
The EU currently does not allow Indian thoroughbreds to enter the EU so it is possible that these are tit for tat measures. However, no one knows because there has been no communication.
And this is my more general point. Improving market access is of course important but there is so much more that could be done to boost trade using the market access we already have. At present this isn't happening to the extent that it could do. Whether for bureaucratic, administrative or other reasons all parties need to develop a bilateral forum where regular meetings and discussions of outstanding issues, such as thoroughbred horses, can be discussed. Highlighting problems and blockages does not imply criticism. Invariably the issues are complicated which is why stumbling blocks need to be flagged up and discussed. Where there are capacity constraints all parties need to work together to overcome them. The alternative is that we have disputes dragging on for years, which is bad for trade.
The trade in thoroughbred horses is not one that will have a great impact on poverty alleviation but improved communication and cooperation will ensure that any FTA meets development targets as well as boosting trade.
The importance of forging a new special relationship with India in the 21st century is self-evident. I've always been fascinated by India as it is a country that lives its history, better than any other. The challenge is to maintain this achievement while gaining from the benefits of increased trade. Change is difficult and often painful. Parliamentarians, along with civil society and business, can help to create a climate of constructive dialogue. Events such as this are useful in fostering the relationships necessary for effective communication.
