IP/07/182

Brussels, 14 February 2007

EU-: Ferrero-Waldner makes first bilateral visit

The Commissioner for External Relations and Neighbourhood Policy, Benita Ferrero-Waldner will make her first bilateral visit to India from 16 to 20 February travelling to Delhi, Rajasthan and Mumbai. During her stay she will meet with Prime Minister , Foreign Minister , Finance Minister P. Chidambaram and Trade Minister Kamal Nath to discuss the implementation of the Joint Action Plan, common challenges and areas of ever closer cooperation. The Commissioner will also visit two schools and a rural drinking water scheme, supported by the Commission in Rajasthan, and meet with the Governor and the Chief Minister of the State.

Commissioner Ferrero-Waldner said: “The EU-India relationship is a strong, growing and dynamic relationship based on common values and strong mutual interests. While the EU is India’s first trading partner, and its main source of Foreign Direct Investment, the EU is also keen to work with India on the crucial issues of our day, from energy security and climate change to multilateral trade liberalisation, non- proliferation, UN reform, the promotion of human rights and democracy, the fight against terrorism, peace and regional integration in South Asia. India is a natural partner for the EU on many of these issues, not least because of our shared commitment to seeking multilateral solutions in a rules based international order." She added: "India is celebrating 60 years of independence just as we Europeans are marking 50 years of integration between our nation states. The EU believes regional co-operation can help bring stability and prosperity to many parts of the world – and we applaud the very important role that India plays in fostering greater regional co- operation and trade liberalization in South Asia. I am sure that the SAARC summit, which India will host in April, will be a milestone in further co-operation, and we look forward to attending as observers." During her visit, Commissioner Ferrero-Waldner will highlight the EU´s policy on Energy and Climate Change, and will call for a further intensification of EU-India co- operation in this field. Key priorities are the development of clean coal technologies, increasing energy efficiency and savings, promoting environment-friendly energy sources as well as assisting India in energy market reforms. She will also discuss the negotiation of a broad-based trade and investment agreement between the EU and India and press for progress on the ongoing negotiations of bilateral agreements on maritime transport and civil aviation. As India prepares to host the next Summit of the South Asian Association for Regional Co-operation (SAARC), the Commissioner will emphasise the support of the EU for all current efforts to promote regional co-operation and trade liberalisation in South Asia. The EU was granted observer status in SAARC last year and will participate for the first time as an observer at the next summit. India is currently the 10th trading partner of the EU. EU exports to India have achieved a 13.2% average growth rate in the past five years (as compared to the 4,4% average growth of EU exports worldwide). EU-India trade reached €40.1 billion in 2005, up 22.5% from 2004. Bilateral trade flows also increased by 25% in the first half of 2006. India has become an important production base and outsourcing destination for EU operators. India’s fast-expanding middle class makes it a particularly attractive market for EU exports. The last EU-India Summit endorsed the recommendations of an EU-India High-Level Trade Group to move towards the negotiation of an EU-India broad-based trade and investment agreement. On 6 December 2006 the Commission submitted draft negotiating directives for the negotiation of such a bilateral agreement to the Council. For more information: http://ec.europa.eu/comm/external_relations/india/intro/index.htm

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