| Date: |
06-08-2015 |
| Subject: |
Government defers free trade agreement talks with European Union post ban on pharmaceutical products |
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NEW DELHI: India has decided to defer talks with the European Union on the proposed free trade agreement in protest against the ban on about 700 pharmaceutical products clinically tested by contract research organisation GVK Biosciences.
The chief negotiators of India and the EU were to meet later this month to start the stalled negotiations on the Broadbased Investment and Trade Agreement (BITA). The EU is India's biggest trade partner, with a bilateral trade of nearly $100 billion.
"Government of India has taken a decision to defer the proposed talks between the chief negotiators on BITA for the present," the commerce and industry ministry said in a statement on Wednesday. "This decision has been taken as the Government of India is disappointed and concerned by the action of EU in imposing legally binding ban on the sale of around 700 pharma products clinically tested by GVK Biosciences, Hyderabad."
The EU has alleged manipulation of clinical trials by GVK Biosciences. India had raised the issue with various EU regulators over the past eight months while pointing out that most of these drugs have already been there in the EU market for many years without any adverse pharmaco-vigilance report from any of the member states.
Germany's drug regulator, the Federal Institute for Medicines and Medical Products has stated that the ban, one of the largest by the EU on the sale and distribution of generic drugs, will take effect from August 21.
India is likely to face a loss of $1.2 billion because of this ban, according to Pharmaceutical Export Promotion Council of India.
"Pharmaceutical industry is one of the flagship sectors of India which has developed its reputation through strong research and safety protocols over the years and therefore, Government of India will examine all options in this regard," the ministry said.
After a gap of about two years, India and the EU were expected to resume negotiations on the proposed free trade agreement to boost bilateral commerce and investment.
The talks, launched in June 2007, have been stuck over differences on several issues. The EU wants a better offer in automobiles, wines and spirits while India is seeking greater access for its professionals.
Source : economictimes.indiatimes.com
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