India, U.K. to undertake joint study on trade barriers offer

India and Britain on Tuesday agreed to undertake a joint study on ways to remove non-tariff barriers in bilateral trade following talks between Finance Minister P. Chidambaram and the Chancellor of the Exchequer, Alistair Darling, here as part of the ministerial-level India-U.K. Economic and Financial Dialogue.

The study would also cover domestic regulations in services in the two countries, a joint statement issued after the talks said.

The two sides expressed deep disappointment over the collapse of the last round of Doha talks and emphasised the need to find a way forward.

“We are deeply disappointed by the recent pause in the Doha Development Round talks. Today we discussed the way forward. We urge all parties to show greater flexibility to agree on free and fair trade rules that deliver a balanced result for the world’s poor and the global economy. Bilateral initiatives will also be important, and we are pleased to announce that the U.K. and India will undertake a joint study into non-tariff barriers, including domestic regulations in services, to trade between India and the U.K. and how they could be removed. We also acknowledge the promising beginning to our work on intellectual property as joint co-chairs of the Intellectual Property Rights and Innovation work stream within the G8 Heiligendamm Process,” the statement said.

It said the two sides believed that open markets, operating through a free and fair trading regime, would be “crucial” for overcoming the challenges facing the global economy.

“Both India and the U.K. share a strong commitment to a multilateral, rules-based trading system and an open and transparent investment regime,” it said.

A spokesperson of Indian High Commission said that a host of global macro-economic issues were discussed in the context of the rising fuel, food and energy costs. Climate change and enhancing cooperation in the filed of renewable sources of energy was also discussed and it was decided that the two countries would work together to reduce pollution without compromising growth and development.

Mr. Chidambaram