India and the European Union have made substantial progress in negotiating a trade and investment agreement that could be in place by 2008, DPA quoted Indian Prime Minister Manmohan Singh as saying Friday after a summit meeting with EU leaders. The two sides first agreed to work towards concluding a trade pact at the last annual EU-India summit in Helsinki in 2006. "Two rounds of discussions have been completed. I am hopeful that by the next summit, the agreement will be in place," Singh said at a joint press briefing with Portuguese Prime Minister Jose Socrates and president of the EU Commission Jose Manuel Barroso. European Trade Commissioner Peter Mandelson was also present. Both Singh and Socrates said the pact would immensely boost trade between India and the European block of 27 nations. Barosso said it would be great example of how major developed and developing economies can tackle issues of development together. Asked about a timeframe, he said, "It is an ambitious agreement. We are doing our best." The EU is India's largest trading partner, accounting for one-fifth of India's total trade, and also its largest source of foreign direct investment and high technology. Bilateral trade touched 47 billion euros in 2006, but both sides agree that there is further potential for growth. At the end of the EU-India business summit on Thursday, India's Commerce Minister Kamal Nath was quoted by PTI news agency as saying that India was ready to open 90 per cent of its fast-growing market for EU companies. "We would also expect the partner to reciprocate with 95 per cent of their market," he said. India wanted to ensure that some non-tariff barriers like packaging standards are not included in the agreement, and several other issues such as quality control, phytosanitary matters and procedure for approval of goods still needed to be sorted out, he said. The next round of negotiations on the trade pact is scheduled to be held in France in December.
