Press Information Bureau
Government of India
Ministry of Commerce & Industry
04-May-2011 11:31 IST
Minister of State for Commerce and Industry, Shri Jyotiraditya M Scindia, strongly raised the issue of restrictions on Indian firms from importing finished pharmaceutical products to Argintina during his bilateral meeting with Minister Of Industry, Argentina, Ms.Debora Giorgy at Buenos Aires late last night. The Argentine Minister assured that she would find a solution to the problem. In the interim, she stated that drugs worth US $ 150 to 200 million would be purchased from Indian companies by Argentina. “The Indian pharmaceutical industry is among the world’s largest and most developed. Increased market access of Indian products can benefit both the countries”, Shri Scindia said.
The Indian Minister also highlighted the difficulties for Indian businessmen to obtain Argentine visa. Shri Scindia pointed out that it was a problem that needed resolution if bilateral trade and investment were to grow. Ms Giorgy agreed and promised to resolve this. “There is a need to introduce a new element in bilateral relationship: P2P i.e. people to people, along with G2G and B2B” emphasized the Indian Minister.
Widening and deepening of the MERCOSUR PTA has emerged as the key agenda for the visit. The issue was raised by Shri Scindia as an important tool to enhance bilateral trade. Argentina is a key member of this trading bloc and it should expedite the conclusion of the expansion process. Currently, India has sent its wish list and is waiting for MERCOSUR to schedule the next round of negotiations. Indian side received assurance of positive consideration from the Argentine side. Argentina is one of the leading members of MERCOSUR the 3rd largest economic bloc. Other members of this bloc are Argentina, Paraguay and Uruguay. It was formed in 1991 with the objective of free movement of goods, services, capital and people and became a customs union in January 1995.
At Montevideo, Uruguay also, a day earlier, Shri Scindia raised the issue of broadening of MERCOSUR PTA and pushed for BIPA with Uruguay. During his meeting with the Uruguay Foreign Minister Mr Luis Leonardo Almagro Lemas, Shri Scindia said that the trade between the two countries needs to touch the US $ 1 billion mark from Current levels of US $ 110 million. He said “there is tremendous possibility for bilateral cooperation and we need to deepen engagement at the institutional level and expand the strategic relationship.” In this connection he identified that Double Tax Avoidance Agreement (DTAA), Bilateral Investment Promotion and Protection Agreement (BIPA) as critical future steps.
Shri Scindia highlighted the potential for deepening the engagement between the LAC countries. He emphasised on the similarities, complementarities and the opportunities to work together amidst the changing economic axis of the global world and rising south- south cooperation. He mentioned that he has constituted a Committee to devise a strategy for enhancing trade and investment in the LAC region under his chairmanship. The success of the FOCUS LAC programme that incentivises exports to the LAC region is crucial for the growth of exports in India. The Minister identified the potential areas of cooperation between the LAC countries which includes: Automobiles, IT, oil and gas, Textiles, chemicals and pharmaceuticals.
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DS/GK
