Trade relation Between EU and India

Topics: International trade, European Union, Organic food Pages: 39 (4768 words) Published: November 17, 2013


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Trade relation Between EU and India

Table of Content
1. Introduction……………………………………………………………………….............. …….2

2. Food Trade Relation
2.1 Introduction………………………………………………………………………………………2 2.2 Food Trade Laws and Regulation ……………………………………………….. ……2 2.3 Identification……………………………………………………………………………………..2 2.4 Analysis……………………………………………………………………………………………..3 2.5 Benefits and Drawbacks…………………………………………………………………….3 2.6 EU Involvement in India…………………………………………………………………….4

3. Biotechnology and Pharmaceutical Trade Relation
3.1 Introduction……………………………………………………………………………………….5 3.2 Biotechnology and Pharmaceutical Trade Laws and Regulation………….6 3.3 Identification……………………………………………………………………………………..7 3.4 Analysis ……………………………………………………………………………………………..7 3.5 Benefits and Drawbacks……………………………………………………………………..8 3.6 EU Involvement in India………………………………………………………………………8 4. Conclusion………………………………………………………………………………………………….9 5. Bibliography……………………………………………………………………………………………….10 6. Appendix……………………………………………………………………………………………………12

Introduction
The First bilateral trade relation in 1960 between  between the European union(EU) and India has done ,and in this way India has become the first country to establish the relation with EU and later on  most recent cooperation agreement was signed in 1994 and an action plan was signed in 2005. As of April 2007 the Commission is pursuing a free trade agreement with India. (1). Trade between the two has more than doubled from 25.6 billion Euros ($36.7 billion) in 2000 to 55.6 billion Euros in 2007, with further expansion to be seen. "We have agreed to achieve an annual bilateral trade turnover of 100 billion Euros within the next five years," Singh told reporters. A joint statement issued at the end of the summit said the EU and India would work to reach an agreement on climate change by the end of 2009. (2)  

Trade with the EU represents 19% of India's exports and 14% of imports, the EU being India's largest trading partner. The EU is also India's largest source of foreign direct investment. However, India accounts for just 2.6% (2010) of total EU trade and attracts only 1.1% (2009) of the EU's world-wide investments, which demonstrates the potential for strengthening many of EU-India trade and investment areas.(3)

 

2. Food Trade Relation
2.1 Introduction
Over the last few years, Trade Relation between EU and had increased, EU has increased its import on organic food. Because of this reason the farmers of India are adopting organic farming. Due to the low consumption of such organic food on domestic level, the prime market for such Indian organic food lies in European Union. India has become largest and leading supplier of organic species, basmati and herbs etc. According to the report of RCNOS on “FOOD processing market in India (2005)” – India exports amount to 53% of their organic food. If we compare it with other agricultural products, this amount of export is considerably very high. The prices of organic food are 30% higher than other non-organic food. Due to such high cost, the domestic market is unable to consume entire organic food produced in the country. Thus, the main objective of organic farmers and government is to export it to EU. These organic foods are accepted in European markets. 2.2 Food Trade Laws and Regulations

EU is benefitted by Indian government by providing 68.9% of Indian farm exports and 64.3% of other goods totally duty-free which was formally 6% offered by the Indian government. Exporters in developing countries wishing to penetrate the European Union should be aware of the many requirements of their trading partners and EU Governments. Standards that are being developed through legislations, codes, markings, labels and certificates with respect to environment, safety, health, labour conditions and business ethics are gaining importance. Exporters...
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