The proposed India-EU free trade pact, which seeks to liberalise trade in goods and services, will include government procurement and is likely to be concluded by this year-end, Belgium Ambassador to India, Mr Pierre Vaesen, said on Wednesday.
Belgium, the founding member of the European Union (EU), is the second-biggest EU trading partner of India.
“The Broad base Trade and Investment Agreement (BTIA) between India and the EU will be concluded by the end of this year... It will include access to government procurement contracts,” said Mr Vaesen at the Federation of Indian Export Organisations function here.
The two sides are learnt to have agreed to open government procurement market for each other and include it in the proposed pact.
At present, India has an observer status in the World Trade Organization’s (WTO) government procurement agreement, but it does not mean that India is under an obligation to subject it’s about $125 billion government purchases to the WTO rules.
The FTA, once concluded, will create billions of dollars of new trade and opportunities for Indian and European firms, Mr Vaesen said, adding “Do not miss this train“.
India and the 27-nation bloc are negotiating the pact, since June 2007. However, talks are stuck on issues like easing visa regulations for Indian professionals and reduction in tariffs on cars and spirits imported from the EU.