India, Indonesia to set up working group on trade
India and Indonesia have agreed to establish a working group to discuss and perhaps solve the latter's ban on import of Indian buffalo meat and the delays faced by Indian pharma companies in drug registration there.
Indonesia continues to impose a ban on import of Indian buffalo meat stating that India is not free from Foot and Mouth Disease (FMD).
The Commerce, Industry and Textiles Minister, Mr Anand Sharma, said, “India is particularly keen on bovine meat exports to Indonesia and higher participation in Indonesia's pharmaceutical sector.”
India claims it has FMD-free zones from which deboned, deglanded buffalo meat is produced, fully conforming to OIE standards stipulated for export of meat from countries reporting FMD. Currently India exports buffalo meat to over 60 countries including Malaysia, the Philippines, Saudi Arabia, Germany, the UAE, Russia and Jordan.
On the pharma front, Indonesia has regulations requiring foreign drug registration holders to set up a production facility in Indonesia within two years of registration and a Foreign Direct Investment cap of 70 per cent. These, including the delays faced by Indian pharma companies in drug registration, inhibit Indian pharma exports and Indian investment in the sector.
Speaking at the first Indonesia-India Biennial Trade Ministers' Forum at Jakarta on Tuesday, Mr Sharma also said, “We have launched our bilateral Comprehensive Economic Cooperation Agreement (CECA).” These efforts would help achieve the bilateral trade target of $25 billion by 2015.
Meanwhile National Aluminium Co Ltd (Nalco) signed an MoU with Indonesia's East Kalimantan Province on technical cooperation on aluminium smelter industry and coal based thermal power plant.
- Umesh Shanmugam
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