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Agricultural Products Of India

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									                                                                                                       The EU and India – facts
                                                                                                       and figures on trade in
             European Commission
             Directorate-General for Agriculture                                                       agricultural products



             Absorbing a large part of its exports, the EU is India’s most                             Our top five exports to India are: animal or vegetable fats and
             important trading partner. The EU is also the leading                                     oils (37 mio), beverages spirits and vinegar (21 mio), oil
             importer of agricultural products – a fact brought out in                                 seeds and oleaginous fruits (7.8 mio), by-products from the
             particular in its relationship with India. Over the last decade                           food industries (5.5 mio) and dairy produce, birds’ eggs,
             EU-India trade in agricultural products has more than                                     honey (4.4 mio).
             doubled, resulting in a favourable trade balance for India.

                                                                                                          EU/India trade in agricultural products 1996-2000
             Importance of agriculture in India                                                           000 Ecu/
             In many agricultural sectors, India is the world’s leading or                                1 500 000
             one of the largest producers. It is, for example, the second
                                                                                                          1 200 000
             largest milk producing country in the world. Its agricultural
             sector is characterised by a high degree of product diversity.                                 900 000
             The complementary nature of a number of important Indian                                       600 000
             agricultural products, in comparison to those produced in the
                                                                                                            300 000
             EU, offers India significant export opportunities to the EU
             market. Agricultural exports are very important for India and                                        0
             it has worldwide trade links.                                                                 -300 000

                                                                                                           -600 000

             EU/India trade in agricultural products – 2000                                                -900 000
             Total trade in agricultural products1 between India and the                                  -1 200 000
             EU is worth 1.4 billion, or 5.56% of total trade (almost                                                   1996   1997         1998       1999       2000

             25.6 bio ). In 2000, the EU exported 152 million of
             agricultural products to India, and imported 1 274 million                                                               EU import of agricultural products
             of agricultural products, giving a deficit of 1 122 million2.                                                            EU export of agricultural products
             Such figures bear witness to the substantial market access
                                                                                                                                      Balance of trade/agricultural products
             provided by the EU to its trading partners such as India,
             which has seen strong growth in its exports to the EU in
             recent years (an increase of 23% compared to 1999, an
             increase of 10.5% for agricultural products).

             Our top five imports from India are: coffee, tea, mate and
             spices (351 mio), fruit and nuts (228 mio), animal or
             vegetable fats and oils (134 mio), cereals and rice (99 mio)
             and lacs, gums, resins and other vegetable saps (77 mio).




             1 Agricultural products = “all agricultural products as defined in the Uruguay Round Agreement on Agriculture”
             2 Source Eurostat – Comext – these figures do not include fish and crustaceans, molluscs and other.
April 2001
        As to EU imports from India by group of products, vegetable                                 • Article 20 of the WTO Agreement on Agriculture, which
        products hold by far the leading position, with almost three                                  sets out the mandate for the agricultural negotiations,
        quarters of the agricultural imports.                                                         recognises the need for special and differential treatment
                                                                                                      of developing countries. In its comprehensive negotiating
                                                                                                      proposal, the EU has advanced a number of suggestions,
         EU imports from India by group of products (2000) in value                                   many of which are of direct interest to India.

                                                                                                    • The EU is sympathetic to India’s needs and proposes that
                          Other agricultural products included
                                                                                                      measures that promote the sustainable vitality of rural
                                 in Uruguay Round Agreement      Live animals and animal products     areas and the food security concerns of developing
                                                          5.2%   1.5%                                 countries, as a means of poverty alleviation, be exempted
                      Foodstuff, beverage & Tobacco                       Vegetable products          from any future reduction commitments. The EU would
                                              12.6%                       70.1%                       also like to see that other ways be examined in order to
                                                                                                      provide the necessary flexibility to developing countries to
                                                                                                      address these concerns.
Animal or vegetable fats and oils
                          10.5%
                                                                                                    • As a part of a general policy to promote sustainable and
                                                                                                      economic development, the EU and all developed
                                                                                                      countries should intensify all forms of assistance to
                                                                                                      developing countries, in order to facilitate the
                                                                                                      implementation of the Uruguay Round results and the
                                                                                                      making use of the appropriate WTO agreements.

        EU/India trade relations                                                                    • The EU is in favour of increasing market access for
        The purpose of the WTO is to facilitate trade. This is because                                products originating in developing countries. Therefore it
        trade, imports as well as exports, create wealth and improve                                  proposes that developed countries and the wealthiest
        human welfare. India has an immense potential to increase                                     developing countries provide significant, stable and
        its exports, and therefore to increase its wealth. However,                                   predictable trade preferences to developing countries. This
        this can only be realised in a more open trading system. For                                  should allow further investment in and development of the
        that reason, India and the developing countries in general                                    agricultural and agri-food sectors in developing countries.
        should not miss this opportunity and should take part in
        further agricultural trade liberalisation within the WTO.                                   • An important area of common interest is the protection of
                                                                                                      geographical indications for agricultural products. Both
        India and the EU both tabled comprehensive negotiating                                        India and the EU have an interest in pushing for the
        proposals in the context of the WTO negotiations. Although                                    establishment of a multilateral register of geographical
        the approaches reflected in the proposals diverge on many                                     indications.
        key issues, there is a lot of common ground to focus on:

        • Both India and the EU place a high priority on policies
          designed to foster rural development and addressed this
          issue in their respective proposals. The fact that rural
          development, as one of the so-called “non-trade concerns”,
          is up for discussion in these negotiations is a sign of good
          co-operation and a proof of the spirit of goodwill in our
          trade relations.

								
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