European automotive supplier body CLEPA said accepting the status quo on Indian tariffs would set a “dangerous precedent” and called for equal access on both sides.
There is currently a tortuous Free Trade Agreement (FTA) being thrashed out between India and the European Union but CLEPA said the sub-continent’s market should be opened on a much more equal basis.
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“India is not willing to open its market to several automotive products,” CLEPA president Peter Tyroller said at this week’s annual reception of the supplier body in Brussels. “CLEPA is willing to accept a transition period but free access has to be the end point.
“It would set a dangerous precedent for Europe to accept the Indian position. We have to make sure we keep industry in Europe – I am not talking about protectionism. We need fair competition but we must be able to enter their markets without tariff barriers as well.”
However, the issue appears to be in something of a deadlock due to recent political events in India in which regional government and the national administration’s division of power have apparently changed.
“There are a lot of people who believe the prime minister of India is not so keen on restructuring,” CLEPA CEO Lars Carlstrom told just-auto at the Brussels reception.
“I am a bit afraid if it will go through – we will probably know in two months. I know there is a meeting between the chief negotiators in April and a summit meeting in May in Brussels.”
