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EU's De Gucht Sees Solution To Indian Telecom Security Spat

BRUSSELS-(Dow Jones)- The European Union and India are likely to resolve a dispute over new Indian telecommunications security rules that European equipment suppliers fear will limit their access to the country's fast-growing market, EU trade chief Karel De Gucht said in a speech Tuesday. De Gucht also said that the EU's trading partners have introduced 130 new trade barriers in the past year--a violation of promises made by the Group of 20 industrialized and developing nations to avoid erecting trade barriers. Anti-crisis policies adopted by governments during the past three years have not been removed, he added. "Only 17% of all measures introduced since the beginning of the crisis so far have lapsed," De Gucht said in prepared remarks to the German Mechanical Engineering Association in Berlin. "So, measures designed to temporarily support demand hit by the crisis, are now locked-in." The new Indian security rules will make network service providers liable for network breaches. Foreign suppliers fear the rules could unfairly discourage Indian telecommunications companies from buying foreign-made equipment. "Raising this issue at the highest level with the Indians has led to positive signals that a non-discriminatory solution will be found based on international best practice, reconciling commercial and security interests," De Gucht said. -By Matthew Dalton, Dow Jones Newswires; +32 (0)2 741 1487; matthew.dalton@dowjones.com

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