India, EU trade talks next week

India and the European Union enter tough negotiations next week on the proposed Trade and Investment Agreement with the 27-nation grouping keen on inclusion of the controversial labour clause but remaining ambiguous on New Delhi's demand for freer movement of people.

A high-level meeting between the two sides will be held in New Delhi from Monday on the comprehensive economic agreement which aims at eliminating trade barriers to enhance commerce between India and the EU.

At the six-day talks, the two sides will explore ways to do away with duties and easing custom procedures and discuss issues like sustainable development, rules, intellectual property, procurement and movement of Indians in Europe for business.

EU wants incorporation of sustainable development in the agreement with focus on poverty-reduction, maintenance of international labour standards and ensuring that carbon emissions do not rise with increase in trade.

"The EU does not want growth in trade to affect labour standards," a senior EU official told a group of visiting Indian journalists in Brussels on the condition of anonymity. The official acknowledged that the labour issue is "going to be one of the most controversial" aspects of the Trade and Investment Agreement.

"Our objective is to look at issues that do not jeopardise the needs of future generation because of needs of present generation," the official said.