India set for special deal with EU

Published November 8, 2004

BRUSSELS, Nov 7: Once written off as the poor cousin of Asian powerhouse China, India is to open talks on Monday to forge a strategic partnership with the European Union, a status so far restricted to just five big countries.

"India is very interested in this partnership, it will give it the status of a big player," said an EU official ahead of the bloc's one-day meeting with Prime Minister Manmohan Singh and two of his ministers in the Hague, the Netherlands.

"It will put them in a club of EU special partners alongside the United States, Canada, Japan, China and Russia."

The EU, as a bloc is both the leading foreign investor in India - the world's second-most populous country - and its biggest trading partner.

But it ploughs 10 times as much investment into China, and its total trade with India is worth less than 20 percent of the vigorous flow of exports and imports between Europe and China.

Fostering healthier economic relations is a key part of the strategic partnership, an action plan the two sides expect to approve at their next annual meeting in 2005.

But they are also keen to improve cultural ties and cooperation in the battles against HIV/AIDS, terrorism and the spread of weapons of mass destruction.

Many Europeans also believe India - which is pressing for a permanent seat in the UN Security Council - could be a multilateralist ally in resisting what they see as the current US administration's unilateralism.

"It is important that we start coordinating with India, not only to strengthen the UN but also to make preparations together for international meetings such as those on the protection of women and climate change," the EU official said.

PAKISTAN TENSIONS: The perennial tensions between India and Pakistan over Kashmir, which New Delhi has long maintained is not a subject for outside mediation, will be discussed at Monday's meeting.

"At the summit the EU will encourage India to make progress in agreeing on substantive confidence-building measures ... but we cannot expect a rapid progress: a cautious, gradual approach is needed," Dutch European Affairs Minister Atzo Nicolai said.-Reuters

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