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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